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http://www.worldpolicy.org/projects/arms

U.S. Military Assistance and Arms Transfers to Israel:
U.S. Aid, Companies Fuel Israeli Military

A World Policy Institute Issue Brief
By Frida Berrigan and William D. Hartung
July 20, 2006

Contact:
Frida Berrigan, 212-229-5808 ext. 4254, [EMAIL PROTECTED]
William D. Hartung, 212-229-5808 ext. 4257, [EMAIL PROTECTED]


Introduction

Much has been made in the U.S. media of the Syrian- and Iranian-origin
weaponry used by Hezbollah in the escalating violence in Israel and
Lebanon. There has been no parallel discussion of the origin of Israel's
weaponry, the vast bulk of which is from the United States.  "The billions
of U.S. arms and aid it provides every year gives the Bush administration
substantial leverage in pressing Israel for a cease fire in its attacks on
Lebanon," notes William D. Hartung, a Senior Fellow at the World Policy
Institute in New York.  "Without at least discussing U.S. military support
for Israel, it will be difficult-- if not impossible-- for Americans to
understand the options available to our government in this crisis," argues
Frida Berrigan, a Senior Research Associate at the Institute.

During the Bush administration, from 2001 to 2005, Israel has actually
received more in U.S. military aid than it has in U.S. arms deliveries.
Over this time period Israel received $10.5 billion in Foreign Military
Financing - the Pentagon's biggest military aid program - and $6.3 billion
in U.S. arms deliveries. The aid figure is larger than the arms transfer
figure because it includes financing for major arms agreements for which
the equipment has yet to be fully delivered. The most prominent of these
deals is a $4.5 billion sale of 102 Lockheed Martin F-16s to Israel. "When
it comes to getting arms from the U.S., Israel has money in the bank,"
noted Hartung.

There are precedents for U.S. criticism of Israel's use of weapons in
human rights abuses, including "extrajudicial killings" and "excessive use
of force."  In the State Department's human rights reports for 2003, 2004,
and 2005, incidents mentioned include missile strikes on a refugee camp
that killed six people and wounded 19; the shooting and killing of four
Palestinian children; the demolition of Palestinian homes using tank
shells, heavy machine guns, and rockets (deemed an excessive use of
force); the use of rocket fire in targeted killing of leaders of Hamas;
the killing of 47 civilian bystanders in an operation aimed at suspected
terrorists in the occupied territories; and the use of tank shells,
machine-gun rounds and rockets fired from aircraft against Palestinian
towns and cities that were sources of Palestinian shooting attacks. The
human rights reports do not indicate the origins of the weapons used in
these cases of excessive force, targeted assassinations, and failure to
protect civilians in
retaliations against Palestinian attacks. However, given that the many of
Israel's tanks, ground attack planes, attack helicopters, and
air-to-ground missiles are of U.S. origin, it is likely that U.S. weapons
were used in at least some of these attacks.

During the last major Israeli incursion into Lebanon, in 1981, the Reagan
administration cut off U.S. military aid and arms deliveries for ten weeks
while it investigated whether Israel was using weapons for "defensive
purposes," as required under U.S. law. At the end of that period, then
Secretary of State Alexander Haig suggested that one could "argue until
eternity" about whether a given use of force was offensive or defensive,
and the ban was lifted. But at least the Reagan administration took some
action, which is more than can be said thus far about the administration
of George W. Bush.

This is not to suggest that Hezbollah is without its own sources of
weaponry. A New York Times article on Monday, July 17, 2006 cites Israeli
defense experts as it describes Hezbollah's possession of at least a few
hundred Fajr missiles, including a "Syrian produced model" of the Fajr-3
which smashed into a railway maintenance building in Haifa on Sunday,
killing eight people and wounding as many as 20. Hezbollah reportedly has
its disposal a few hundred of the Iranian origin Fajr-3 and Fajr-5
missiles, which have a range of 30 to 45 miles and carry large explosive
payloads. The same article mentions the Iranian C-802 radar guided missile
that sank an Israeli civilian ship, and the shipment of Syrian rockets
intercepted and seized by Israeli military forces. One source has asserted
that Hezbollah has thousands of missiles, but does not provide information
on their designation or range.

On the other side of the ledger, the United States is the primary source
of Israel's far superior arsenal. For more than 30 years, Israel had been
the largest recipient of U.S. foreign assistance and since 1985 Jerusalem
has received about $3 billion in military and economic aid each year from
Washington. U.S. aid accounts for more than 20% of Israel's total defense
budget.

Israel's dependence on Washington for aid and arms means that the Israeli
military relies on spare parts and technical assistance from the U.S. to
maintain optimum performance in battle. This point was underscored on July
14th, when the Pentagon's Defense Security Cooperation Agency supported an
Israeli request for JP-8 jet fuel worth up to $210 million. Although this
fuel will not be delivered immediately, it will allow Israel to replace
fuel used in bombing runs in Lebanon. The Pentagon describes the deal as
follows:

"The proposed sale of the JP-8 aviation fuel will allow Israel to maintain
the operational capability of its aircraft inventory. The jet fuel will be
consumed while the aircraft is in use to keep peace and security in the
region. Israel will have no difficulty absorbing this additional fuel into
its armed forces."


U.S. Weapons in Israel's Current Military Arsenal

The bulk of Israel's current arsenal is composed of equipment supplied
under U.S. military aid programs. For example, Israel has 226
U.S.-supplied F-16 fighter and attack jets, 89 F-15 combat aircraft, over
700 M-60 tanks, over 6,000 armored personnel carriers, and scores of
transport planes, attack helicopters, utility and training aircraft,
bombs, and missiles of all kinds - air-to-air, air-to-ground,
surface-to-air, and air-to surface.


Weapons Sales and Grants

Israel is one of the United States' largest arms importers. Between 1996
and 2005 (the last year for which full data is available), Israel took
delivery of $10.19 billion in U.S. weaponry and military equipment,
including more than $8.58 billion through the Foreign Military Sales
program, and another $1.61 billion in Direct Commercial Sales.

In 2005 alone, documents from the Departments of Defense and State show
that Israel received $2.76 billion in weaponry and military hardware from
the United States, and another $629 million in defense services like
maintenance and training. This figure includes transfers of $188 million
in miscellaneous missile spare parts, $7.1 million in tank components,
$155 million in ship components, $1.3 million in explosives and $720,000
anti-personnel riot control chemicals.

Recent military sales to Israel include propulsion systems for "fast
patrol boats" worth more than $15 million from MTU Detroit Diesel; an $8
million contract to Lockheed Martin for high tech infrared "Navigation and
Targeting" capabilities for Israeli jets; and a $145 million deal with
Oshkosh Truck Corp to build more than 900 armor kits for Israel's Medium
Tactical Vehicles.


U.S. Military Aid to Israel

As mentioned above, despite its relatively small size, Israel is the
largest recipient of U.S. foreign military assistance.  Over the past
decade, the United States has transferred more than $17 billion in
military aid to this country of just over 6 million people. In 2005,
Israel received $2.25 billion in Foreign Military Financing, and President
George W. Bush's budget request for 2007 includes an additional $2.24
billion in FMF aid for Israel.

The United States sees its military aid as going to "help foster stability
in a historically volatile region," and to support Israel's "multiyear
defense modernization plan." In its 2007 request for military aid
submitted to Congress, the Department of Defense also mentioned helping
its ally "meet cash flow requirements" to procure F-16 fighter planes,
Apache Longbow Attack helicopters, field vehicles and advanced armaments.

Foreign Military Financing represents a significant chunk of the Israeli
defense budget, most of which is spent in the United States on U.S.
weapons. In addition to this "special relationship," the Congressional
Research Service report on U.S. Foreign Assistance to Israel enumerates a
number of other special concessions from the United States around this
aid.

Unlike other countries, Israel receives its Economic Support Funds in one
lump sum early in the fiscal year rather than in four quarterly
installments. This forces the U.S. to pay more in interest for the money
it borrows to make lump sum payments-- between $50 million and $60 million
per year according to Agency for International Development officials.

While other countries primarily deal with the Department of Defense when
arranging to purchase military hardware from U.S. companies, Israel deals
directly with U.S. companies for the vast majority of its military
purchases in the United States. Other countries have a $100,000 minimum
purchase amount per contract, but Israel is allowed to purchase military
items for less than $100,000.

Finally, the United States underwrites Israel's research and development
of weapons-and has contributed billions of dollars to Israeli systems like
the Merkava tank and the Lavi ground-attack aircraft.

In November 2003, the first of a new batch of 102 F-16s for Israel rolled
off the production line in Texas. The $45 million per copy F-16I Sufa is
part of a $4.5 billion deal between manufacturer Lockheed Martin and
Jerusalem. The Sufa F-16 fighter planes are co-manufactured with Israel.
The Israeli defense company Lahav is providing customized avionics.


U.S. Aid Provides U.S. Leverage Over Israel

Given the billions of dollars of aid it provides to Israel every year and
the central role of U.S.-supplied weaponry in the Israeli arsenal, the
United States has considerable leverage that it could use to promote a
cease fire in the current conflict between Israel and Hezbollah before
more Israeli and Lebanese civilians are killed and displaced.  President
Bush needs to go beyond vague calls for "restraint" to demands for a cease
fire between Israel and Hezbollah, bringing in other key actors in the
region, including Iran and Syria.


==========

The Arms Trade Resource Center was established in 1993 to engage in public
education and policy advocacy aimed at promoting restraint in the
international arms trade.

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