A joint committee of both houses of the US Congress yesterday approved an aid package of $155 million for Israeli missile defense programs, including the Arrow anti ballistic missile, and the David's Sling rocket interception system. The amount is $17 million more than the designated sum for these projects in the 2008 fiscal year, and $75 more than the original White House proposal.
The aid package is part of the Defense Appropriations Bill for the 2008 fiscal year. The bill will require the approval of both houses of Congress, but this will be given as a matter of course. The bill will then be presented to President George W. Bush, who will probably sign it before the end of November, ahead of the peace conference at Annapolis, should it actually go ahead.
As is the case every year, the lion's share of the funds, $98 million, will be earmarked for the Arrow program. $37 million of this will used to finance the joint production activity at Boeing Corp. (NYSE: BA), and Israel Aerospace Industries Ltd. (IAI), and the rest for ongoing R&D.
During his visit to Washington last month, Minister of Defense Ehud Barak said that Israel and the US had agreed to improve the capabilities of the Arrow anti-ballistic missile, to make it capable of intercepting enemy missiles at a higher altitude than the current generation of the system can reach. The new generation of the Arrow missile, Block 3, will, in effect, be able to intercept missiles from outer space. Reports in the defense industry media allege that IAI has already begun work on the design of the Arrow 4.
The package also includes $37 million for the continuing development of the David's Sling system for the interception of missiles with ranges of 40-250 kilometers (such as the Katushya rockets that hit communities in northern Israel during the Second Lebanon War). Defense industry professionals believe the development will became operational in six years. A further $20 million will be earmarked for the design and development of a high-altitude missile interception system.
In February, the US Missile Defense Agency extended the financing for the Arrow System upgrade and joint trials program by a further five years. Israeli sources told "Globes" then that this was a significant achievement for the Arrow program and a sign of the US's recognition of its technology and capabilities, although as with any federal budgeting, it will still require approval from Congress. As has been the case in previous years, US legislators not only approved the extended financing but even added to it.
Published by Globes [online], Israel business news - www.globes.co.il - on November 8, 2007
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