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Defense News January 17, 2010 Israel Seeks German Arms-Aid Deal 1B Euro Package To Include Surface Ships, Submarines By Barbara Opall-Rome -The proposed acquisition, Israeli defense and industry...depends not only on significant German funding, but on Washington's permission to use annual military aid to pay for raw materials, subsystems and engine parts destined for the non-U.S. ships. -Israel has asked Germany to finance one-third of the new surface-undersea package under terms similar to a 2005 deal that allowed Israel to acquire two new air-independent propulsion Dolphins for only two-thirds of the 1 billion euro program. -Aside from the proposed arms-aid package, the two governments are expected to discuss nonproliferation initiatives and new bilateral as well as international means of rolling back Iran's nuclear program. The two governments also will attempt to clarify and, where possible, harmonize respective policies regarding Lebanon, Syria, the West Bank and Gaza, including Israel's perceived use of disproportionate force in its Cast Lead...campaign early last year. Tel Aviv: Germany and Israel are intensifying negotiations over a nearly 1 billion euro ($1.45 billion) naval procurement package, a considerable portion of which Israel hopes to fund from a combination of German and U.S. aid. The Israeli-proposed arms-aid deal - to be discussed Jan. 18 in Berlin at a special joint meeting of the German and Israeli cabinets - involves an additional Dolphin diesel-electric submarine, torpedoes and two German-built warships. The ships - stretched, 2,200-ton versions of the Meko A-100 - are the Israel Navy's preferred alternative to the U.S.-built Littoral Combat Ship (LCS), which the service rejected last year as unaffordable because of cost growth. At first, Israel lobbied to build the German ships under license at home, with the Israeli Treasury footing initial costs to establish a local warship-building industry. But under the latest incarnation of the deal, Israel is proposing to build the ships in Germany, where they will be outfitted with Israeli radar and a comprehensive combat weapons suite. ThyssenKrupp Marine Systems (TKMS), the Hamburg-based consortium building submarines for the Israeli Navy, is to be prime contractor, with Israel Aerospace Industries (IAI) the likely lead integrator. The proposed acquisition, Israeli defense and industry sources here say, depends not only on significant German funding, but on Washington's permission to use annual military aid to pay for raw materials, subsystems and engine parts destined for the non-U.S. ships. Altogether, U.S.-produced content could reach $200 million for the estimated $650 million, two-ship program, which the Navy hopes to fund with Foreign Military Financing (FMF). In parallel, the program will draw on so-called U.S. Offshore Procurement funding - the portion of annual aid authorized for conversion into local shekels - to outfit the ships with Israeli technologies. Hitting Germany Up for One-Third Israel has asked Germany to finance one-third of the new surface-undersea package under terms similar to a 2005 deal that allowed Israel to acquire two new air-independent propulsion Dolphins for only two-thirds of the 1 billion euro program. Both submarines contracted under the 2005 deal are still under construction in Germany, with first deliveries planned for 2012. They will join Israel's three-Dolphin fleet, operational since 2001; two of the Dolphins were fully funded by Germany, and costs for the third were shared evenly by the two countries. The Israel Navy formally submitted its request for the new submarine-surface ship package last autumn, and representatives from the two countries have been meeting to hammer out details at the working level ever since. Berlin's consent to elevate the matter for discussion this week by Chancellor Angela Merkel and Prime Minister Benjamin Netanyahu and their respective defense ministers indicates progress toward reaching some kind of agreement, Israeli sources here said. .... Shimon Stein, a former Israeli ambassador to Germany who was heavily involved in negotiations leading up to the 2005 submarine deal, declined to discuss specifics of the new Israeli-proposed package. In general, however, he said the prospect of new Israeli orders would benefit a German shipbuilding industry hard-hit by economic crisis. Similarly, he said the Merkel-led government has demonstrated political goodwill toward Israel in numerous areas, including its condemnation of Iran's nuclear weapons drive and mediating efforts to secure the release of an Israeli soldier held in the Hamas-controlled Gaza Strip. "Merkel is positively disposed to Israel's security needs and will be understanding of the escalating threat situation," Stein said. .... Several key Israeli ministers will accompany Netanyahu to the cabinet meeting in Berlin, each with a staff of experts prepared to address specific issues that may arise in bilateral efforts to upgrade political, economic and security ties. This week's summit follows a joint meeting in Jerusalem of the Israeli and German cabinets held in 2008 to mark Israel's 60th year of statehood. Aside from the proposed arms-aid package, the two governments are expected to discuss nonproliferation initiatives and new bilateral as well as international means of rolling back Iran's nuclear program. The two governments also will attempt to clarify and, where possible, harmonize respective policies regarding Lebanon, Syria, the West Bank and Gaza, including Israel's perceived use of disproportionate force in its Cast Lead anti-rocket campaign early last year. =========================== Stop NATO http://groups.yahoo.com/group/stopnato Blog site: http://rickrozoff.wordpress.com/ To subscribe, send an e-mail to: rwroz...@yahoo.com or stopnato-subscr...@yahoogroups.com Daily digest option available. ============================== --------------------------- ANTI-NATO INFORMATION LIST --^---------------------------------------------------------------- This email was sent to: arch...@mail-archive.com EASY UNSUBSCRIBE click here: http://topica.com/u/?a84x2u.bNM5nn.YXJjaGl2 Or send an email to: antinato-unsubscr...@topica.com For Topica's complete suite of email marketing solutions visit: http://www.topica.com/?p=TEXFOOTER --^----------------------------------------------------------------
