By Andrzej Stylinski
The Associated Press

WARSAW, Poland - Poland announced Friday it has chosen Lockheed Martin F-16 jet fighters to modernize its air force to NATO standards in an order worth $3.5 billion.

The move comes three years after the former Soviet bloc nation joined the western alliance.

Lockheed Martin beat out two rival European bids with a U.S. government-backed offer to supply 48 of the planes as well as weapons, pilot training and investment in Poland to help offset the cost of replacing Soviet-made fighters.

"This is an optimum solution for the military security of the state, and it meets our obligation as an ally," said Defense Minister Jerzy Szmajdzinski

The Gripen jet, made by Sweden's Saab and Britain's BAE Systems, was considered the U.S. plane's main rival, in part because it was cheaper and would have made a considerable difference for Poland's strapped budget. The French-made Mirage 2000 was also in the running.

But the F-16 had been seen as the most logical choice because it is widely used by NATO nations and Poles view the United States as their chief ally.

"The advanced F-16 will establish Poland's air force as an important contributor in NATO and an aviation leader in Central Europe," the U.S. Air Force said.

The chairman of Dassault Aviation, which makes the Mirage, claimed Poland chose politics over performance and price.

"The political element was the chief element, well beyond the quality or the price," Charles Edelstenne told French radio station France-Info on Thursday, even before the official announcement.

Gripen International spokesman Bjoern Magnusson said it was "a disappointing result for us, but at the same time it was expected that they would pick an American solution for a number of reasons."

Friday's announcement capped nearly a decade of debate in Poland about how to modernize its military. The country joined NATO despite Russian protests in 1999.

Washington padded Lockheed Martin's F-16 bid with the offer of a $3.8 billion loan to Poland with repayment terms of up to 15 years. Poland needs 48 fighter jets by 2008 to replace its Soviet-built MiGs and bring the country's military up to NATO standards.

The first 16 planes are to arrive in 2006, the other 32 within the next two years.