The Insitute of National Security Studies asserted that a proposed U.S. sale of aircraft, upgrades and precision-guided munitions to Riyad would not harm Israel, Middle East Newsline reported. INSS said in a report that Saudi Arabia would not use the U.S. weapons against the Jewish state.

"At the same time, military assistance to the Gulf states sends a strong signal to Iran by emphasizing American commitment to the security of those states," the report said. "The criticism voiced in Teheran following the administration's announcement indicates that this signal was clearly understood."

"Apart from sending symbolic representatives in past wars, the Saudis have never actually acted against Israel," the report, entitled "The Saudi Arms Deal," said. "And in array of serious threats to Saudi basic interests, Israel hardly figures at all.

"Moreover, the Saudi interest in preserving good relations with the West and ensuring the flow of oil actually requires tranquility on the Israeli front," the report said. "Even a different regime, no matter how radical it might be, would find it difficult to ignore these realities."

Authored by Yiftah Shapir, a leading Israeli analyst, the report said the latest U.S. arms proposal was discussed for several years with Riyad. The report said the administration has sought to use the huge arms package to ensure Saudi support for the U.S. military presence in Iraq.

Shapir said Washington has also sought to counter Russian influence in the Middle East, which could include the return of the Russian Navy to the eastern Mediterranean. The administration was also said to have used the proposed sale to help the U.S. defense industry.

"The U.S. administration is providing open support for American defense industries in the face of fierce competition by other large suppliers," the report said. "In the Gulf region, this primarily means competition with British, French and, to a lesser extent, Russian manufacturers. In the particular case of Saudi Arabia, it may even involve a hope of getting the Typhoon deal canceled."

Israel, which would receive a 25 percent increase in U.S. military aid, has sought to reduce the scope of the U.S. arms package to Saudi Arabia. The report said a key concern was the U.S. export of the Joint Direct Attack Munition, a kit that converts general purpose bombs into precision munitions.

"Israeli objections to previous Saudi arms deals have also been raised and rejected -- because of America's special interest in its relationship with Saudi Arabia," the report said. "Again on this occasion, in the face of administration determination, excessively virulent Israel opposition would only have produced anger in Washington. So on this occasion, Israel chose instead to temper its response. In return, it will now receive an upgraded security assistance package of its own."