Israel Requests $642M in Missiles, Fuel

F-16I “Soufa”(click to view full) As part of the 1979 Camp David peace accords, the USA offered substantial long-term military aid packages to Israel and Egypt. Aside from the geopolitical considerations involved, these packages have been good for American industry because the dollars must be spent on American goods. While Egypt did not and does not have a significant independent defense industry, Camp David’s aftermath saw a major shift away from Soviet weaponry and toward American alternatives on land, sea, and air. The recent $850 million request for Abrams tanks is a good example. In contrast, Israel has a globally competitive defense industry; because it can allocate American foreign assistance dollars to pay American firms, however, the country always finds itself balancing investment in domestic capabilities and spending against its pool of “free” American industry purchases. Or even investing in American plants and jobs to produce Israeli designs. Amidst rumors of a planned attack by Iran, Syria, and Hezbollah in late 2007, Israel has made $1.1 billion worth of military purchase requests so far in August 2007. Almost all concern her air force, the Cheyl Ha’avir… RGM-84 Harpoon launch(click to view full) The procedure with DSCA announcements is that requested […]