The German-made tank transmission can be defined as "Made in USA".
A solution has been found to the German arms embargo against Israel, imposed because of the confrontation with the Palestinians.
The embargo threatened to derail production of Israel's new Merkava Mk.-4 tank. Developed in an IDF workshop, the tank uses a German-built transmission system.
A senior defense establishment source told ''Globes'' is for the transmissions to be built in a US plant affiliated with the German manufacturer. The products will probably be designated as "Made in the USA". The transmissions delivery timetable will therefore not be affected.
Ministry of Defense director general Amos Yaron added, "We have no problem in principle with Germany about the procurement of the transmission systems for the new tank."
Israel does not rule out taking action against countries embargoing the arms purchases from or sales to Israel. This trade totals only $100 million a year.
Published by Globes [online] - www.globes.co.il - on June 27, 2002