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Tuesday, August 31, 2010     INTELLIGENCE BRIEFING

Israel having second thoughts on purchase of Joint Strike Fighter

JERUSALEM — Israel's Cabinet has expressed last-minute reservations to a multi-billion-dollar procurement of the Joint Strike Fighter from the United States.

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A senior minister has warned that a U.S. proposal to sell up to 20 F-35 fighter-jets could backfire on Israel. Finance Minister Yuval Steinitz, a close ally of Prime Minister Benjamin Netanyahu, said the plane was too expensive and would not contain Israeli subsystems, particularly radars and electronic warfare.

"The Cabinet must examine the significant economic aspects," Steinitz said.

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The Cabinet has been asked to ratify a decision by the Defense Ministry to accept a U.S. draft Letter of Agreement for JSF. Defense Minister Ehud Barak has argued that the $2.7 billion JSF deal marked a vital requirement for the Air Force and a test of Israel's strategic cooperation with the United States.

Officials said the United States has offered to begin training Israeli pilots on JSF over the next year. They said the Defense Department and Lockheed Martin have raised the prospect of up to $4 billion in offsets from the deal.

But during a session on Aug. 22 Steinitz urged the Cabinet to insist that Israel be given a greater share of production subcontracts for the F-35. Several ministers, including Infrastructure Minister Uzi Landau, supported Steinitz.

Cabinet sources said Netanyahu did not allow the ministers to debate the JSF deal, which called for the first aircraft to arrive in Israel in 2015. Netanyahu said the issue must be discussed in a closed forum of the so-called inner Cabinet.

"Maybe the debate should be held in the forum of seven ministers," Netanyahu said.



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