← Autodidact Archive · Original Dissent · Sertorius
Thread ID: 1379 | Posts: 5 | Started: 2002-06-22
2002-06-22 11:06 | User Profile
**U.S. aid to Israel subsidizes a potent weapons exporter ** Wed Jun 19, 9:37 PM ET By JIM KRANE, AP Technology Writer
NEW YORK - At an arms trade fair in Paris this week, Israel showed the world's military shoppers fruits of its high-tech arms industry, including its Merkava tank, unmanned spy planes and the planet's most sophisticated missile defense system.
ÃÂ With its tourist industry all but shuttered by a 21-month Palestinian uprising and high-tech in a slump, the Jewish state depends deeply on the foreign currency earnings of its weapons industry, now the world's 10th largest.
Deftly marketed missiles, radar and other products from Israeli companies now compete with those of top-tier arms producers including the United States, reaping about dlrs 2 billion of a dlrs 27 billion yearly worldwide market, said Kuti Mor, deputy director general of Israel's Ministry of Defense.
In France, Turkey, The Netherlands and Finland, Israeli companies have edged such U.S. firms as Raytheon, Northrop Grumman and General Atomics out of arms deals worth hundreds of millions of dollars in recent years.
The irony, experts say, is that tens of billions of U.S. tax dollars and transfers of American military technology helped create and nurture Israel's industry, in effect subsidizing a foreign competitor.
No other country receives as much U.S. aid or freedom to plow it into its own export industries as Israel, say experts in academia, industry and the U.S. government.
"It's allowed them to advance faster than Lockheed or Boeing or Hughes would have liked," said David Lewis, a doctoral candidate at Rutgers University who has researched Israel's defense industry for a forthcoming book.
While the United States gets certain benefits from its 50-year partnership with Israel ââ¬â political leverage, a proving ground for new weapons and intelligence cooperation among them ââ¬â critics point to a serious downside.
"It's a new concept for most people." said Joel Johnson, a vice president at the Aerospace Industries Association of America, which represents many of the largest U.S. arms producers. "We give them money to build stuff for themselves and the U.S. taxpayer gets nothing in return."
The rationale, said Richard Fisher, a defense analyst with the Jamestown Foundation, is that Washington is willing to sacrifice some defense industry competitiveness in order to give Israel incentive to make peace.
Supporters of Israel tend to view the transfers of U.S. technology and funds as good for both countries' economies, akin to post-World War II assistance for Europe and Japan.
"It's true that Israel sometimes competes with the U.S., but so do all those countries," said Mark Regev, a spokesman at the Israeli Embassy in Washington, D.C. "Is it that different than American aid to Japan, or the Marshall Plan in western Europe?"
Beyond competing with U.S. armaments, Israeli weapons also flow to countries off-limits to American companies. Its weapons buttress the arsenals of nations such as China that the United States considers strategic competitors, alarming U.S. military planners.
Last year, U.S. surveillance planes flying along China's coast were threatened by Chinese fighter jets armed with Israeli missiles.
During the series of airborne confrontations, a Chinese jet crashed after colliding with a U.S. spy plane, killing the Chinese pilot and disabling the U.S. plane. The incident sparked a bitter diplomatic row as China detained the American crew for 11 days.
Had Chinese fighter pilots been given the order to fire, they could have brought down the U.S. planes with Israeli Python III missiles.
U.S. technology given to the Israelis in the form of the Sidewinder missile was used in the development of the Python, said Larry Wortzel, former U.S. Army attache in Beijing and now a military analyst at the Heritage Foundation.
U.S. defense chiefs say Israel sold China the missiles without informing the United States.
"Generally speaking, we're not in favor of such capable weapons systems being proliferated to a variety of nations around the world," Rear Adm. Craig Quigley said in a Pentagon ( news - web sites) briefing last year. "That's a good missile, and its capabilities are considerable."
In 2000, Israel bowed to U.S. pressure and canceled the sale to China of its AWACS-style airborne early warning radar planes. The director general of Israel's finance ministry, Ohad Marani, said Israel typically discusses arms sales with the Americans.
"We don't sell systems that upset the Pentagon," Marani said.
Israel's arms industry nevertheless continues to put great emphasis on the Chinese market, hawking its spy planes and radar systems at recent trade shows in Beijing and Singapore.
China may unveil as early as this year its new J-10 jet fighter, which experts say is modeled on Israel's Lavi. The Lavi, now discontinued, was based on the U.S. F-16 and built with dlrs 1.3 billion in aid from Washington.
"There's no doubt in my mind that the F-16 is the Lavi and the Lavi is, in substance, the J-10," said Wortzel.
In fact, Israel's arms industry now leads America's in areas such as the instruments used for fighter aircraft targeting, Fisher said. "We're now reaching a point that the U.S. military looks to Israel as a source of advanced technology."
Even critics of U.S. largesse are quick to note that Israel's weapons industry also owes its success to the country's world-class science education and its urgent security needs. Luring emigres from the former Soviet weapons industry has also helped.
The U.S. role, however, is formidable.
Since 1976, Israel has received more U.S. assistance than any other country, with the largest aid flows beginning after Israel and Egypt made peace in 1979.
Washington currently gives Israel about dlrs 3 billion per year, two-thirds of it in military grants, the Congressional Research Service says. As U.S. civilian aid is phased out at Israel's request, military grants are expected to reach dlrs 2.4 billion by 2007.
Alone among U.S. aid recipients, Israel is allowed to use about a quarter of its military aid to develop its own arms production rather than for flat-out purchases of U.S. arms, according to the Congressional Research Service.
Other aid recipients wishing the same must seek State Department approval, a difficult process, said a department spokeswoman who spoke on condition of anonymity.
Though Israel is the wealthiest country to receive U.S. aid ââ¬â with a per capita income higher than Greece or Spain ââ¬â the largesse triggers little opposition in Congress or among the U.S. electorate. Elsewhere, it can provoke deep resentment. To many of the world's Muslims, it places the U.S. taxpayer on the Israeli side of its conflicts with Arabs.
U.S. foreign policy experts such as Richard Perle, a senior Pentagon official in the Reagan administration, say there's reason behind Washington's generosity.
The aid is an "inducement to get Israeli concessions in the Middle East," said Perle, though he called it "unfortunate that the Israelis have been so willing to sell to the Chinese."
Asked about the situation, U.S officials who monitor foreign arms transfers called it too politically charged to discuss publicly.
"There's not a whole lot we can comment on," said Jay Greer, spokesman for the State Department's Bureau of Political-Military Affairs. "It's a sensitive matter."
In private conversations, however, U.S. officials said there is no doubt Israel is afforded special latitude to develop and export equipment made with U.S. help.
And indeed, American and Israeli companies aren't just competitors. Israeli firms often team with U.S. counterparts, trading technology for lobbying access to the U.S. military, said Barbara Opall-Rome, Tel Aviv-based reporter for Defense News.
The Pentagon has also granted Israel permission to demand so-called "offsets," or contract givebacks, on American hardware bought with U.S. aid.
Offset agreements require U.S. arms companies to spend or invest a portion of the contract's value inside the purchasing country. Other countries, including Egypt, South Korea ( news - web sites), Turkey and Greece also get them.
The agreements often transfer part of a production line ââ¬â and U.S. jobs ââ¬â to a foreign country.
For instance, in 1999, Lockheed Martin awarded Israel dlrs 900 million in offsets on a single dlrs 2.5 billion sale of F-16s, even though Israel used U.S. military grants to pay for the planes.
It was just one example, analysts say, of how the combination of U.S. aid, technology and political favors have given Israel an unprecedented leg up on the competition.
"The Israelis wouldn't be where they are today if they didn't have the Americans behind them," said Bjorn Hagelin, an arms sales researcher at the Stockholm International Peace Research Institute.[/QUOTE] [url=http://story.news.yahoo.com/news?tmpl=story&u=/ap/20020620/ap_wo_en_po/israel_arms_competitor_3]http://story.news.yahoo.com/news?tmpl=story&u=/ap/20020620/ap_wo_en_po/israel_a rms_competitor_3://http://story.news.yahoo.com/news?tm...ms_competitor_3://http://story.news.yahoo.com/news?tm...ms_competitor_3[/url]
Quote from the original poster of this article. No matter where one`s sympathies lie in the ongoing blood letting in the Middle East I think that he sums it up quite well about the U.S. -S
**It's quite amazing, isn't it?
The U.S. GIVES Israel BILLIONS in aid. ÃÂ They use it to oppress and kill defenseless Palestinians creating world uproar and hatred especially in the Arab world. ÃÂ And, Israel sells the technology given to them to China posing a real threat to the national security of the U.S. ÃÂ China can use those Israeli weapons to shoot down American planes. ÃÂ Not only do the American taxpayers GIVE Israel BILLIONS, the U.S. government also okays the transfer of manufacturing jobs to Israel thereby taking many jobs away from Americans.
And, to top it off, the government doesn't even want to talk about it, ... because "it's a sensitive matter."
Makes one ill.
STOP THE AID GIVEAWAY TO ISRAEL !!**
another related article: [url=http://story.news.yahoo.com/news?tmpl=story&u=/ap/20020620/ap_wo_en_po/israel_arms_sales_box_3]http://story.news.yahoo.com/news?tmpl=story&u=/ap/20020620/ap_wo_en_po/israel_ar ms_sales_box_3://http://story.news.yahoo.com/news?tm... ms_sales_box_3://http://story.news.yahoo.com/news?tm... ms_sales_box_3[/url]
My thanks to "Lincoln Lad" for originally posting this on another forum. The emphasis in the article are his. -S
2002-06-22 11:13 | User Profile
L.L.,
This is a great post and I intent to post it elsewhere.
****While the United States gets certain benefits from its 50-year partnership with Israel ââ¬â political leverage, a proving ground for new weapons and intelligence cooperation among them ââ¬â critics point to a serious downside.
Yep, we have seen some of that legendary "leverage" recently. We have also seen some of that "intelligence cooperation" in the past like the time the Israelis didnt want to allow us to look at that T-72 tanks captured from the Syrians in the Bekaa valley in82.
****In France, Turkey, The Netherlands and Finland, Israeli companies have edged such U.S. firms as Raytheon, Northrop Grumman and General Atomics out of arms deals worth hundreds of millions of dollars in recent years.
That really great to know they are doing so well. Seeing how they are rolling in the Shekels we can now cut our foreign aid to them.
"It's a new concept for most people." said Joel Johnson, a vice president at the Aerospace Industries Association of America, which represents many of the largest U.S. arms producers. "We give them money to build stuff for themselves and the U.S. taxpayer gets nothing in return."
I`ll say! I wish I could get a sweetheart deal like that. This would make a good episode for the old "Twilight Zone" series. :D
****Supporters of Israel tend to view the transfers of U.S. technology and funds as good for both countries' economies, akin to post-World War II assistance for Europe and Japan.
But of course! Yeah, the Marshall Plan. Lets see, how long did the Marshall Plan last for Europe? Ten years at the most? The "Marshall Plan" for has been going on since the founding of this country- 54 years. This crap has lasted longer than the Cold War. Hmmm. Well, who are we to complain, its for the "only democracy in the Middle East!"
Then we read all this about Red China and Israel.
"Generally speaking, we're not in favor of such capable weapons systems being proliferated to a variety of nations around the world," Rear Adm. Craig Quigley said in a Pentagon ( news - web sites) briefing last year. "That's a good missile, and its capabilities are considerable."
No, we arent in favor of this, but we wont say anything about it either because we are afraid of being called "antisemitic" and worse if we do. And that`s not even taking in account the arm twisting, blackmail and bribery that no doubt go on in backrooms.
** In 2000, Israel bowed to U.S. pressure and canceled the sale to China of its AWACS-style airborne early warning radar planes. The director general of Israel's finance ministry, Ohad Marani, said Israel typically discusses arms sales with the Americans.
"We don't sell systems that upset the Pentagon," Marani said. **
Only if we are caught and the JCS raises enough hell about it. I bet that in the near future that this plane will be built by Israel for Red China, but hey, if it is only G.I.s who are killed one day then who cares? The important thing here is Israel First, Foremost and Always.
**U.S. foreign policy experts such as Richard Perle, a senior Pentagon official in the Reagan administration, say there's reason behind Washington's generosity.
The aid is an "inducement to get Israeli concessions in the Middle East," said Perle, though he called it "unfortunate that the Israelis have been so willing to sell to the Chinese."**
Yes, and some of us know that reason too and it has nothing to do with Perle`s line of bullshit above either. That is a throwaway for the lemmings.
"unfortunate that the Israelis have been so willing to sell to the Chinese."
Right. Hey Richard, why don`t you give Sharon and Bibi a phone call and complain about it? Anyone with any brains at all knows that you are involve with them up to your eyeballs.
This is absolutely disgusting.
Additional comments about this article. [url=http://www.newsmax.com/cgi-bin/ubb/postings.cgi?action=editpost&forum=Middle+Eastern+Affairs&number=41&topic=001244.cgi&ReplyNum=000001&TopicSubject=U.S.+subsidizes+Israeli+weapons+exporter+who+sell+to+China]http://www.newsmax.com/cgi-bin/ubb/posting...o+sell+to+China[/url]
2002-07-03 22:59 | User Profile
Happy Independence Day bump to you people!
2003-11-20 09:32 | User Profile
Israel's weapons exports skyrocket, making it friends and money PETER ENAV, Associated Press Writer Tuesday, November 18, 2003 é2003 Associated Press
URL: sfgate.com/article.cgi?file=/news/archive/2003/11/18/international0156EST0428.DTL
(11-18) 22:56 PST JERUSALEM (AP) --
With an arsenal ranging from the Uzi to attack drones and airborne early warning systems, Israel has quietly transformed itself into one of the world's top defense exporters.
Defense News has ranked Israel as No. 3 based on 2002 contracts, and an Israeli expert told The Associated Press the country was now considered to be in the top five. Growing sales to Turkey and India, two major new markets for Israel, have driven the surge.
The country's success as a weapons exporter comes against the backdrop of three years of Israeli-Palestinian violence that has stifled Israel's economic development and deepened its isolation.
Until this summer, Israel's Defense Ministry refused to publish statistics on arms sales, although some figures had been provided in background briefings. The subject remains sensitive, especially because of some critics' charges that Israel passes on American military technology to third countries.
Defense Ministry figures show Israeli weapons export contracts were worth $4.1 billion in 2002 -- up from $2.6 billion the previous year. Israel's overall exports are around $30 billion.
In June, Defense News ranked Israel 3rd in defense exports, behind only the U.S. and Russia. The magazine, a U.S. weekly specializing in military issues, said those countries had defense exports of $13.2 billion and $4.4 billion, respectively.
But there is no consensus on the exact numbers, in part because some countries use contracts for their totals and others use actual deliveries.
Efraim Inbar of Tel Aviv's BESA Center for Strategic Studies estimated that the top five defense exporters -- not necessarily in this order -- were now the United States, Russia, France, Britain and Israel.
Richard Grimmett of the Congressional Research Service in Washington, applying a strict standard, credits Israel in his latest annual report with contracts of only $1 billion in 2002, placing it eighth -- although if Israel's figures were accepted, here, too, it would be third behind the United States and Russia.
Grimmett could not explain the discrepancy but said that "definitions count and countries have different ways of tabulations... We don't count letters of intent or memoranda of agreement."
A major reason for Israel's recent surge was a $700 million deal to upgrade Turkish tanks, according to Barbara Opall-Rome, Tel Aviv correspondent of Defense News.
In addition to India and Turkey, other large markets for Israeli weapons systems include the United States, Singapore and Sri Lanka.
Some Israeli weapons have gone to controversial buyers -- the Pinochet regime in Chile, for example, or Li Peng's China in the wake of the Tiananmen Square Massacre in 1989.
Today, Defense Ministry spokeswoman Rachel Niedak-Ashkenazi says, a parliamentary committee must give its approval for all Israeli weapons transfers, and the Defense Ministry prevents weapons systems from going to countries with checkered political records.
Some 200 arms manufacturers operate in Israel, but five companies -- the state-owned Israel Aircraft Industries, or IAI, Israel Military Industries and Rafael, and privately held Elbit and Elrisa -- account for about 90 percent of all foreign sales.
Israeli and foreign analysts say Israel's evolution into a big time arms exporter reflects the lessons learned from fighting five wars in 55 years, and the close working relations between the Israel Defense Forces and Israeli defense industries. It also comes from knowing what to sell and where to sell it.
Israel has also benefited from its ties to the United States and access to U.S. technology. Much of Israeli avionics is based on U.S. know-how.
Missiles, pilotless aircraft and the upgrading of existing weapons systems are special areas of strength for the Israeli defense industry.
Israel Aircraft Industries had $2.1 billion in defense sales in 2002, 75 percent of them exports. Israeli and foreign media have reported that India accounts for at least 50 percent of its foreign sales.
In September, India agreed to purchase four PHALCON airborne early warning systems, which consist of IAI avionics fitted onto Russian Ilyushin airliners. The deal, worth an estimated $1 billion, will come into force when final details are worked out.
IAI is also angling to sell India the Arrow missile defense system, which it is developing together with the Chicago-based Boeing Company.
Because of Boeing's participation, the U.S. government will have to give its permission for any Arrow deal to go through.
This worries some Israeli defense officials. In 2000, the United States vetoed an intended $2 billion PHALCON sale to China, ostensibly because of American fears of an increased threat to Taiwan and to U.S. pilots in the event of war with China.
The deals may have even broader strategic value, said Yitzhak Shichor, an Asian expert at Israel's University of Haifa.
"India has close relations with Iran, which Israel sees as a nuclear threat," Shichor said. "The diplomatic leverage accruing to Israel from the Indian weapons sales could help it in this area."
Shichor said the same process may also be at work in Turkey.
Israeli weapons sales there have amounted to $3 billion since 1996, including modernization of U.S-made F-4 and F-5 jet fighters and co-production of air-to-ground missiles.
Shichor noted that the Israeli air force regularly trains over Turkish airspace, and Israeli and Turkish intelligence services share information about military developments in Syria and Iran.
"Turkey is very important to Israel's interests," he said. "Weapons sales have helped to warm the relationship."
é2003 Associated Press
[url=http://www.sfgate.com/cgi-bin/article.cgi?f=/news/archive/2003/11/18/international0156EST0428.DTL]http://www.sfgate.com/cgi-bin/article.cgi?f=/news/archive/2003/11/18/international0156EST0428.DTL[/url]
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Until this summer, Israel's Defense Ministry refused to publish statistics on arms sales, although some figures had been provided in background briefings. The subject remains sensitive, especially because of [u]some critics'[/u] charges that Israel passes on American military technology to third countries.
Yes, like me.
Seeing how the U.S. is responsible for funding this, one would think that the amount of military "aid" to Israel could be reduced instead of being raised. -S
2005-09-24 16:19 | User Profile
On the one hand the US blocks EU weapons sales to China and on the other permits Israel to peddle it's wares to seemingly anyone it feels likes. If Israel is proliferating western weapons technology then more fool you.
Whilst Israel's dependence on arms sales and industrial espionage is hardly making the world a safer place. To be fair to the Jews I think that even they recognise that this is neither a viable or particularly responsible way to be carrying on.
Greg
"I found myself back in the sepulchral city resenting the sight of people hurrying through the streets to filch a little money from each other, to devour their infamous cookery, to gulp their unwholesome beer, to dream their insignificant and silly dreams. They trespassed upon my thoughts. They were intruders whose knowledge of life was to me an irritating pretence, because I felt so sure they could not possibly know the things I knew." - Heart of Darkness : Joseph Conrad [pg.102]