BRITAIN is poised to clinch huge defence orders in the Middle East, it

was disclosed last night.

Racal Radio has won a #1.5m contract to supply its Jaguar military

radio to Oman to be fitted into the country's new British-built

Challenger 2 tanks. It is likely that a number of other Gulf states will

buy Jaguar to fit into their armoured vehicles, including the American

M1 and the French Leclerc tanks.

The Gulf states, which form the Gulf Co-operation Council, are anxious

to have radio interoperability between their various armoured vehicles.

The countries include Saudi Arabia, Oman, Kuwait, and the United Arab

Emirates.

''Racal radios are likely to be used in vehicles such as American

tanks in the Gulf because of the need for interoperability in GCC

countries,'' said a senior Ministry of Defence source.

The Jaguar radio is already in use in 42 countries worldwide,

including the Gulf states.

Racal chief executive David Elsbury said yesterday: ''We are currently

responding to the requirement for tactical radio communications systems

from a number of countries within the Middle East.''

Racal also announced orders worth more than #15m for colour monitors

for the fleet of Nato Awacs airborne early warning aircraft and Royal

navy frigates.

Vickers unveiled a new armoured fighting vehicle at the exhibition

called the Mark Eleven, which is expected to secure significant orders

in Africa and possibly the Far East and Middle East.

The vehicle combines an armoured personnel carrier with a 105mm gun

giving it the firepower of a main battle tank.

Mr George Gibson, regional sales manager for Vickers, said: ''The

feedback has been tremendous. It appears to be what the customer

wants.''

However, there was concern in the industry about a new Treasury

clampdown on MoD expenditure.

Clear signs of the defence cuts were the failure of the Ministry of

Defence to announce any new contracts at the exhbition, and a display

with one of the Army's obsolete Chieftain tanks.

A consortium of GEC-Marconi, Royal Ordnance, Vickers, and Perkins

Engines is marketing 800 upgraded tanks as the Chieftain 2000, which it

hopes to sell to Pakistan and other countries looking for a cheap tank

option.