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Turkey demands Israel buy water in exchange for tank contract

Special to World Tribune.com
MIDDLE EAST NEWSLINE
Thursday, March 21, 2002

TEL AVIV Ñ Turkey has linked the launching of the upgrade of the M-60A1 main battle tank to a multi-year Israeli purchase of water.

Israeli officials and industry sources said Ankara has warned that it will not sign a contract with the state-owned Israel Military Industries unless the government of Prime Minister Ariel Sharon approves a $350 million water purchase over the next 10 years. In early March, Turkey announced an award to IMI for the upgrade of 170 M-60 tanks for $668 million.

The officials and sources said Turkey's Defense Ministry has linked all future military contracts with Israel to a water purchase. Last year, Israel disqualified a Turkish bid to supply 50 million cubic meters of water a year, a move that angered Ankara. Instead, the Sharon government decided to examine water desalination to ease the current shortage.

The officials said IMI has not received formal notification of the M-60 award despite an announcement by Prime Minister Bulent Ecevit. They said Ankara's demand for nearly 50 percent in offsets appears impossible without an Israeli decision to purchase Turkish water.

Alon Liel, a former director-general of Israel's Foreign Ministry and involved in the water project, said Israel stands to pay what he termed is a "huge fine" unless it fulfills its offset agreement for the tank modernisation. He said Turkey's Defense Ministry has allowed Israel to purchase water from the Mangavat River as part of the M-60 upgrade project.

"The Israeli government must commit to offset purchases of about $300 million in exchange for the project it was awarded," Liel said. "There is no other way to fulfill this request without buying Turkish water. If this won't take place, then the Israeli defense establishment will have to pay a huge fine for failure to honor its agreement."

Israel's Defense and Foreign ministries have urged the government to reopen the water project and choose a contractor to transport Turkish water without a bid. The ministries have warned of a Turkish backlash if Ankara is rebuffed in efforts to sell water to Israel.

On Wednesday, Israel's ministerial committee on the economy approved the purchase of 50-100 million cubic meters of water from Turkey. The decision called for the immediate import of the Turkish water but did not elaborate on arrangements.

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