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Saturday, March 23, 2013

Dutch orders for F-35 likely to be scaled back

F-35 Lightning II |Dutch orders for the Pentagon's F-35 warplane are likely to be cut back, sources close to the discussions told Reuters, citing cost overruns and delays in the program, uncertainty over the Netherlands' defense strategy and budget cuts across Europe.

The Netherlands may cut 17 to 33 F-35s from its initial plans to buy 85 of the new warplanes, according to people close to the discussions who were not authorized to speak publicly since final decisions are not expected until later this year.

U.S. officials fear cuts in orders by the Dutch or other buyers could trigger a "death spiral" in the Pentagon's biggest arms program by driving up the price of remaining orders, leading to more cancellations. Washington alone has already delayed 410 of its 2,443 orders beyond 2017.

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