BAE-EADS merger poses security issues, says Boeing "There are national security questions, industrial questions, and those will have to be dealt with," said Dennis Muilenburg, head of Boeing's defence arm, adding that it was "a serious matter that needs to be scrutinised." Mr Enders said talks with governments, including the US, UK, France and Germany, were "constructive and advanced," adding there were concerns over national security and jobs. He also identified potential synergies for the first time - picking out military aircraft, defence electronics, missiles and cyber security as sectors where there could be cost-cutting. All governments must back the deal or it will face collapse. Britain's "golden share" in BAE means it can veto any merger or takeover. BAE is also understood to be demanding that Germany and France loosen their grip on EADS by giving up their right to nominate board members and vote as a block. Leading French and German ministers will hold talks on Thursday, before Angela Merkel and Francois Hollande discuss the potential tie-up at a meeting on Saturday. It is understood France and Germany intend to establish a common position on the merger. However, a spokesman for Ms Merkel's CDU party warned that a merger must not see "a Franco-British company created out of a Franco-German company." Speaking in Berlin, Mrs Merkel said: "We know that progress in Europe depends in a major way on our co-operation. So we have the task of finding solutions that are good for Europe. In his letter, Mr Enders wrote: "If we succeed and if the EADS shareholder pact can be dissolved, our governance will be significantly simplified and "normalised."" He said he was trying to accommodate government "concerns and national security interests... within the framework of our envisioned transaction," adding: "Good governance is a key prerequisite for both companies, it's the "go" or "no go" for this project!" Mr Enders admitted: "Combining BAE Systems and EADS is a bold proposal, yes, but it is absolutely in line with Vision 2020, our long-pursued strategy. No doubt, we have some serious work to do - and that goes particularly for our investor-relations teams - to convince shareholders and investors that we are on track to build a stronger growth platform with more resilient financials and better shareholder returns. But I'm convinced we have a very good... story to tell.