Malaysia will order two new diesel submarines from France under a $1 billion contract. The subs will be of the Scorpene-class. The deal includes providing the Malaysian Navy with a refurbished Agosta-70 submarine to use for training. (This boat will be used by Malaysian crews from a French base for four years, then transferred to Malaysia.) The two new Scorpenes will be delivered in 2007. They will carry torpedoes and French-made or US-made anti-ship missiles.--Stephen V Cole