The President's Loan

This chapter is a cross-sectional study of 1999–2003 U.S. Government promotion of F-16 fighters to Poland, with competition from European manufacturers while Poland championed European burden sharing. Unlike the previous chapter on the United Arab Emirates, this chapter shows more evidence of offset encouragement, with a White House-endorsed $3.8 billion repayable Foreign Military Financing loan – subsidizing the aircraft purchase despite Poland’s 100% offset obligations on Lockheed Martin and defying policy norms against U.S. foreign aid where recipients attach offset obligations. A three-step process shows (1) international causation with relative gains concerns involving the fighter aircraft competition and European burden sharing; (2) domestic alignment through Lockheed Martin, Texas politicians, executive branch officials, and congressional support; and (3) executive branch encouragement, including U.S. ambassador-facilitated meetings and an F-16 flight for Poland’s prime minister. Putnam’s two-level game explains U.S. executive branch actors negotiating with Polish counterparts on behalf of domestic stakeholders when industry interests converged with national interests. Poland’s post-Cold War “New Europe” alignment with U.S. policy on Iraq amplified motivations, in contrast to “Old Europe” opposition. Offsets overcame constraints, fostering U.S.-Poland ties and alliance interoperability, while underscoring encouragement for defense exporters as a tool for advancing American national security.