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Wednesday, September 12, 2007

Indonesia-Russia Arms Deal Raises Concern

Indonesia has signed a $1 billion arms package to update its crumbling military. The agreement with Russia includes contracts for two submarines and contains an option to purchase up to eight more over the next 15 years. As Chad Bouchard reports from Jakarta, that plan is raising concerns among other Pacific nations.

Under the turbid waters of the Western Pacific, a quiet arms race is threatening to upset the fragile balance of power between nations.

Military analysts say Indonesia's deal with Russia last week, which included two of Russia's famously stealthy Kilo-class submarines, is the latest development in an ongoing underwater arms race across the region.

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