Poland signs £2.2bn deal for American F-16 fighters

Poland signed a £2.2bn deal yesterday for American F-16 jet fighters, sealing the biggest defence order from a former Soviet bloc country.

Alongside the purchase of 48 planes from the Lockheed Martin Corp, Polish and US officials concluded a compensating agreement for American investment in Poland worth at least £4.8bn. It includes business deals with Polish manufacturers and transfer of advanced technology over 10 years.

The deals underscore ties with Washington that have deepened with Polish participation in the Iraq war

"Today we have a new quality and a new momentum in Polish-US economic relations," the US ambassador, Christopher Hill, said at the signing ceremony at an air force academy in Deblin, 60 miles south of Warsaw.

The F-16swill replace Soviet-made MiG fighters as Poland upgrades its military to Nato standards. It joined the alliance in 1999.

Poland chose the US government-backed bid over the Swedish-British Gripen and France's Mirage 2000, whose makers accused Polish officials of making a politically influenced choice. Talks on the business deals were completed a day after Poland signed a treaty in Athens to join the EU next year.