1973 Nixon–Pompidou meeting
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1973 Nixon–Pompidou meeting
Despite the export license being rejected, both the French and GE continued to push the Nixon Administration for permission to export the F101 technology. Efforts continued throughout the months following the rejection, culminating in the engine becoming an agenda topic during the 1973 meeting of Presidents Nixon and Pompidou in Reykjavík. Discussions at this meeting resulted in an agreement that allowed the development of the CFM56 to proceed. Contemporary reports state that the agreement was based on assurances that the core of the engine, the part that GE was developing from the military F101, would be built in the U.S. and then transported to France in order to protect the sensitive technologies.[10] The joint venture also agreed to pay the U.S. an $80 million royalty fee (calculated at $20,000 per engine predicted to be built) as repayment for the development money provided by the government for the F101 engine core.[4] Documents declassified in 2007 revealed that a key aspect of the CFM56 export agreement was that the French government agreed not to seek tariffs against American aircraft being imported into Europe.[11]
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