Mixed messages threaten Israel's missile defense programs

Talk of defense budget cuts in Israel could be used as an excuse in Washington to shelve the Arrow program.

Israel's supporters in Washington warn that funding for joint US-Israel missile defense programs, such as the Arrow and David's Sling, could fall victims to misleading messages coming out of Israel, and which are designed for domestic consumption, according to US "Defense News."

Defense News reports, "For some months, defense officials have been hyping the ostensibly debilitating impact on readiness and military modernization of budgetary shortfalls, citing a spectrum of programs from the Merkava tank to the US funded Iron Dome for suspension or delay."

Thus the magazine quotes IDF deputy chief of staff Maj. Gen. Yair Naveh as telling the Knesset Foreign Affairs and Defense Committee on February 13 that a decision has been made to postpone purchase of David's Sling and the Arrow 3 system. He said, "We have no possibility to create the means for modernization. Even after we cut into our flesh the IDF lacks NIS 3 billion."

A former Ministry of Defense official told "Defense News" that the US and Israel have obligations about joint financing of the Arrow and David's Sling and the inability or unwillingness of one of the sides to fulfill those commitments would reopen the financing agreements for the projects anew, and require new talks which would not be in Israel's interest.

The source said, "This is not the time to create doubt in anyone's mind as to Israel's need or commitment to these two programs." He condemned the irresponsible behavior and attempts to manipulate the level of financing for these military programs.

He added, "It is one thing to threaten to cancel the Mekava and then let the 200-some firms and their employees who depend on that program for their livelihood …. Lobby the government for more funding. But it's another thing entirely to brandish these hard-earned joint programs with the US government."

An investigation by "Globes" in Washington found that Israeli comments about freezing joint programs have begun to create a sense of discomfort among Israel's friends. A pro-Israel legislator told "Globes" "The Israelis must be careful. Perhaps they are not aware that today there are technologies that enable the world to know what is said in Jerusalem within ten seconds."

Sources in Washington told "Globes" that the bickering in Israel over funding joint military programs has not yet caused a crisis. Senior US legislators have spoken to their Israeli counterparts and sources say there is special sensitivity on the topic. "Matters have lit a warning light in Washington. People are beginning to pay attention."

Thus if cuts are implemented, whether the programs based on joint funding will be cancelled or suspended, will be a completely different matter, these sources say. In such an instance we will see a dispute between the two countries. The root of the dispute will be even more simple. The US will say, "If the Israelis are prepared to stop funding programs that are vital for their national security, why do we need to inject capital into these programs, especially at a time when the Pentagon's budget is being cut.

In the words of one source, "Israel needs to protect itself against the possibility that unfriendly elements in Washington will conjure up the notorious column written by Walter Pincus in the "Washington Post" last October entitled "US needs to reevaluate its assistance to Israel." That article opened a public debate on reducing or even discontinuing US military aid to Israel. Sources in Washington believe that that article is etched into the collective awareness of the US Defense Department and there is great sensitivity regarding its fallout.

The article said, "The Israeli cabinet reacted to months of demonstrations against the high cost of living there and agreed to raise taxes on corporations and people with high incomes ($130,000 a year). It also approved cutting more than $850 million, or about 5 percent, from its roughly $16 billion defense budget in each of the next two years. If Israel can reduce its defense spending because of its domestic economic problems, shouldn’t the United States which must cut military costs because of its major budget deficit consider reducing its aid to Israel?"

The article also said, "Among reductions now being discussed in Israel is a delay in purchasing more Iron Dome systems beyond those to be paid for by the United States’ $205 million. In addition, the Israeli military may freeze its spending on other missile defense systems, the very ones for which Congress approved additional funding this year."

An Israeli defense industry executive told "Defense News" that "It took several years to convince the Pentagon to support MoDs preferred Arrow-3 solution for the exoatmospheric intercepts of Iranian Shahab-class ballistic missiles."

"I'm sure that there are many in the Pentagon and in many companies who would welcome any excuse to shelve the program," he said.

Published by Globes, Israel business news - www.globes-online.com - on February 22, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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