Article: Europe's defense contractors get hit; the end of the cold war leads to big financial losses, legions of layoffs and a troubled future.

For months, Bruno Revellin-Falcoz, vice president for technology and cooperation at Dassault Aviation, has crisscrossed the English Channel to meet secretly with Dick Evans, chief executive of British Aerospace. Less often, Revellin-Falcoz travels over the Rhine for talks with Jurgen Schrempp, head of Deutsche Aerospace. These discreet contacts have a clear purpose: With the cold war over and defense budgets shrinking, Europe's leading military contractors are seeking cross-border collaborations to prop up their business. If these efforts succeed, the massive duplication of research, development and production, which has long weakened West European arms makers, could be ...

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