(Reuters) - The United States will negotiate carefully with Boeing to build the next generation of tanker aircraft, U.S. Defense Secretary Robert Gates said on Thursday.
Gates said a rival's withdrawal from the multibillion dollar competition should not create further delays.
"We will certainly be sharpening our pencil when it comes to negotiating with Boeing," Gates said at a military base at an undisclosed location in southwest Asia.
Northrop Grumman withdrew from the competition earlier this week, charging the United States Air Force's rules of favoring rival Boeing.
I don't see any reason for this outcome to bring further delays," said Gates, in his first public comments on the issue.
