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Trump picks ex-Boeing executive Shanahan as defence secretary


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Posted

Trump picks ex-Boeing executive Shanahan as defence secretary

By Idrees Ali and Steve Holland

 

2019-05-09T201635Z_1_LYNXNPEF481LL_RTROPTP_4_USA-SHUTDOWN-TRUMP.JPG

FILE PHOTO: U.S. President Donald Trump (L) listens next to Acting U.S. Defense Secretary Patrick Shanahan during a Cabinet meeting on day 12 of the partial U.S. government shutdown at the White House in Washington, U.S., January 2, 2019. REUTERS/Jim Young

 

WASHINGTON (Reuters) - President Donald Trump plans to nominate Patrick Shanahan, a former Boeing Co executive, as his defence secretary, the White House said on Thursday, breaking with tradition by choosing someone who made a career at a top defence company as Pentagon chief.

 

Shanahan had been under investigation by the Pentagon inspector general for allegedly seeking preferential treatment of Boeing while at the Defense Department but he was cleared of wrongdoing in April. He has been acting defence secretary since January, the longest in Pentagon history.

 

"Based upon his outstanding service to the country and his demonstrated ability to lead, President Trump intends to nominate Patrick M. Shanahan to be the secretary of defence," White House spokeswoman Sarah Sanders said in a statement.

 

Early tests for Shanahan will include handling growing tensions with Iran, renewed missile tests byNorth Korea and questions about how the United States should handle the political and economic crisis in Venezuela.

 

Shanahan said in a statement that he was committed to modernizing U.S. military forces and if confirmed would aggressively implement Trump's national defence strategy which prioritises competition with China and Russia over the counterinsurgency wars that have consumed the Pentagon for much of the past two decades.

 

Shanahan, 56, was thrust into the role in an acting capacity in January, after Jim Mattis abruptly resigned over policy differences with Trump.

 

On his first day as acting Pentagon chief in January, Shanahan told civilian leaders of the U.S. military to focus on "China, China, China." 

 

The Trump administration has announced its intention to withdraw most U.S. troops from Syria and diplomatic efforts are underway to bring an end to the 17-year-old war Afghanistan.

 

But the most pressing short-term issue is likely to be Iran. Earlier this week the Pentagon said it was sending a carrier strike group and bombers to the Middle East after U.S. intelligence signalled possible preparations by Tehran to stage attacks against U.S. forces or interests.

 

Shanahan is expected to be confirmed by senators, though he could face a tough confirmation process because of his tenure at Boeing.

 

Lawmakers have previously expressed concern about undue influence on the Pentagon from defence companies.

 

Ties between Boeing and the Trump administration run deep, with Trump using the company's products and sites as a backdrop for major announcements.

 

Boeing, the world's largest planemaker, is facing one of the biggest crises in its 103-year history following the disasters on Lion Air in Indonesia last year and another on Ethiopian Airlines in March, which together killed all 346 on board.

 

The Pentagon inspector general started the investigation of Shanahan in March for allegedly promoting Boeing in Pentagon meetings and disparaging competitors. But a report published on April 25 said none of the allegations were substantiated.

 

Defense secretaries have traditionally come from a political or policy background, serving as a counterweight to the military brass in decision making. Mattis, a retired Marine general, was one of the few former military leaders to become secretary.

 

Mattis implicitly criticized Trump in his resignation letter for failing to value allies who fight alongside the United States, including in places like Syria.

 

Shanahan is unlikely to be an effective counterweight to Trump's often impulsive decision making. He toured the U.S. border with Mexico in February in what was seen as a show of support for Trump's planned border wall.

 

BOEING TIES

Shanahan has been serving in an acting capacity since the start of the year, making him the longest acting defence secretary ever. He joined Boeing in 1986 and spent more than three decades there, working on the 737 and 787 Dreamliner commercial airplanes.

 

Shanahan was also the president and general manager of Boeing Missile Defense Systems and worked on the Apache, Chinook and Osprey military aircraft.

 

Trump himself has been a strong proponent of military products made by U.S. defence companies. In phone calls and public appearances with world leaders, Trump has gone further than any of his predecessors to act as a salesman for the U.S. defence industry.

 

A senior administration official, speaking on condition of anonymity, said Shanahan believed that he was answerable to Trump and it was his job to implement decisions made by the president.

 

In February, the chairman of the Senate Armed Services Committee, Senator James Inhofe, said he did not think Trump would nominate Shanahan. But since then, officials say Inhofe has privately told Shanahan he would back him.

 

"We need a confirmed leader at the Department and, after working with him closely over the last few months, I welcome his selection," Inhofe said in a statement on Thursday.

 

During Shanahan's Senate confirmation hearing to be deputy defence secretary in 2017, the committee's then-chairman, John McCain, voiced deep concern about giving the deputy job to an executive from one of the five corporations accounting for the lion’s share of U.S. defence spending.

 

"I have to have confidence that the fox is not going to be put back into the henhouse," said McCain, who died in August.

 

(Reporting by Steve Holland and Idrees Ali; Writing by Idrees Ali and David Alexander; Editing by Eric Beech and Alistair Bell)

 

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-- © Copyright Reuters 2019-05-10
Posted
1 hour ago, Puchaiyank said:

I imagine Boeing's stock will go up based on the government defense contracts they will be receiving...????

We don't agree on many things. On THIS? HELL yes!

  • Like 2
Posted

That constantly revolving door is still spinning. From corporations to govt and then back again with top salaries. Well past time to stop this behaviour. 

  • Like 2
Posted
1 hour ago, webfact said:

Shanahan is unlikely to be an effective counterweight to Trump's often impulsive decision making. He toured the U.S. border with Mexico in February in what was seen as a show of support for Trump's planned border wall.

 

Gee, I wonder if Shanahan has and will play the same toe-the-line game with his old employer and big-time defense contractor, Boeing?  Draining the swamp?  After working for Trump, I wonder where will Shanahan go for his next job?

 

Donald obviously didn't listen to former general and Pres. Eisenhower regarding his warning of the emerging military-industrial complex?  As warned way back in 1961 by this former top military leader:

 

"This conjunction of an immense military establishment and a large arms industry is new in the American experience....Yet we must not fail to comprehend its grave implications. Our toil, resources and livelihood are all involved; so is the very structure of our society."

http://avalon.law.yale.edu/20th_century/eisenhower001.asp

 

Funny, another former military man also warned us, as in the OP:
 

2 hours ago, webfact said:

During Shanahan's Senate confirmation hearing to be deputy defence secretary in 2017, the committee's then-chairman, John McCain, voiced deep concern about giving the deputy job to an executive from one of the five corporations accounting for the lion’s share of U.S. defence spending.

 

"I have to have confidence that the fox is not going to be put back into the henhouse," said McCain, who died in August.

 

Posted

It has gotten so ridiculous. The guy he picked to run the irs was the one guy who publicly stated Trump should not release his tax returns. The self interest is beyond a joke, it is just completely beyond ridiculous.

Posted
2 hours ago, ezzra said:

Hopefully he'll do a better job than the designing of the 737 MAX-8...

Trump picked him because he knows all about cover-ups obviously ????

Posted
44 minutes ago, spidermike007 said:

Trump again raids the bottom of the barrel, for a pick. He has made a career and now has made a presidency, out of picking low quality, unqualified candidates. No defense secretary should ever get the job without a military background. Just like no candidate should ever qualify for president without having served in the armed forces. They have no perspective. They know nothing about sending men and women into harms way. They are all just another Cheney. An ignorant fool, hellbent on expressing power. 

 

Granted, a high quality candidate would not want to work for Trump. Who would want him as a boss? Best to work for someone you can respect. But, still? He could not do better than this? Is this how he expresses his so called "patriotism?"

Couldn't agree more and I think you've hit the nail on the head when you mention '... high quality candidate would not want to work for Trump', as I think this is what is happening. The toxic 'agree with me or you're out' mentality of Trump (as well as truly onerous policy choices) does not lend itself to attracting top quality applicants and in turn has ensured that Trump has the record for highest White House Staff turnover (including the cabinet), in history https://www.nytimes.com/interactive/2018/03/16/us/politics/all-the-major-firings-and-resignations-in-trump-administration.html

I suppose no one should be surprised when the guys catch phrase was 'You're fired' but I don't think even his most ardent fans thought it would be happening quite as often as it has.   

  • Like 2
  • Sad 1
Posted

I doubt Boeing stock will see a bump:

 

1.  The C-17is at the end of it’s production life.

2.  The C-46 Tanker(retrofitted B767) contract has been awarded to Boeing.

3.  The F-35 program(the most expensive DOD contract ever) was awarded to Lockheed Martin.

 

Boeing’s woes are going to be in the B737 Max and how well the B777X program does.  Both are civilian airliner programs.  

 

Don’t know much about the new SECDEF but with less than two years remaining in this administration I doubt any major contracts will be awarded to Boeing.  

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