The lengthy dispute between the US and Israel concerning Israeli arms exports to sensitive countries is about to end, after Israel signed a memorandum containing significant restrictions.
Israel Ambassador to the US Daniel Ayalon said that Minister of Defense Shaul Mofaz would sign the memorandum on his visit to the US in July, after which Israel’s participation in the F-35 Joint Strike Fighter (JSF) project would be renewed. Israel was excluded from the project in protest against its willingness to upgrade Harpy attack unmanned aerial vehicles (UAV) for the Chinese Air Force.
”Israel’s willingness to sign the memorandum is not surrender; it’s a great achievement,” Ayalon said. “Such a memorandum would have prevented regrettable affairs, such as the Phalcon and the Harpy.” Ayalon added that Israel had an interest in increasing supervision of technology exports. “This settlement will tighten the partnership with the US, and in any case, our interests coincide.”
According to Ayalon, the memorandum will expand penetration of US markets, where the potential is greater than in any other country, by Israeli defense industries. It will also upgrade technological cooperation with the US. “Close allies of the US, such as the UK and other NATO countries, have signed similar agreements,” Ayalon noted.
Lengthy negotiations over the content of the memorandum were held in recent months. An Israel Ministry of Defense delegation headed by Maj. Gen. (Res.) Herzle Bodinger will visit Washington tomorrow to determine the final wording. Bodinger will deal with any residue from the Harpy affair, while Zvi Shtauber and Zvia Gross will concentrate on the wording to be signed by Mofaz.
As in the Phalcon affair, the US will not indemnify Israel for compensation to China for violating the contract. Israel Aircraft Industries will refuse to pay, and the burden will fall on Israeli taxpayers.
The initial reaction by Israeli defense industries was deep disappointment. They fear that the US will restrict their freedom to do business. Sources said that the UAV deal would be the last defense deal with China in the near future, and the effect on Israeli relations and civilian trade with China could not be predicted.
On the other hand, Ministry of Foreign Affairs sources said that relations with the US were “immeasurably” more valuable than with any other country. The Prime Minister’s Office and Ministry of Defense share this view.
Published by Globes [online] - www.globes.co.il - on June 26, 2005