Democratic Palestine : 4 (ص 36)
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- Democratic Palestine : 4 (ص 36)
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1Al!, founded by David Ben Gurion in 1953° , manufactures
the Kfir C-2 fighter plane, the Arava short-take-off-and-landing
transport plane (well suited to counterinsurgency)? , the Hawk
and Gabriel missiles (in its MBT division which also makes
bomb release systems and perimeter security systems), and
the Westwind jet sold as an executive business aircraft but
which converts to a fighter plane; seven per month are being
sold to private buyers in the United States.'° The Shafrir missile
is acopy of the AIM 90/G and AIM9 L missiles manufactured by
Raytheon" in the U.S. and including U.S. made compo-
nents.'2 IAl’s Bedek aviation division does overhaul, mainte-
nance, and training, operates nine international airlines, and
trains local personnel for many national airlines."
The new Israeli fighter, the Lavie'* (which the Israelis want
U.S. aid to produce)'®, was to have Pratt & Whitney 1120 jet
engines'®; to date the United States has not released the
technology the Israelis need to produce all its parts.'” How-
ever, the latest plans are for the Israelis to produce the engines
under license"®, a step which some Israeli economists believe
could distort and bankrupt the economy still further.'? The
Lavie is designed to carry Israeli nuclear warheads.*°
The delta-wing Kfir fighter plane, incidentally, is an
upgraded French Mirage, using an American produced Gen-
eral Electric J79-17 engine, based on blueprints stolen by the
Mossad, the Israeli overseas intelligence service, after Gen-
eral de Gaulle stopped sales to the Israelis in 1967. A few years
later the Mossad illegally spirited war boats out of France.”!
IMI makes the Merkava tank, the Uzi submachine gun,
and the Galil assault rifle, itself a refinement of the Soviet-
designed Kalashnikov or AK-477. IMI also profits from Uzi
sales via a Belgian licensee and from the Galil via a Dutch
firm.23 IMI estimates that one hundred countries have pur-
chased one million Uzis since 1953.74 The Merkava is based
on the British Chieftain with an engine from the American Tele-
dyne Company. The Carter administration allowed Israel to
use $107 million in U.S. military aid to develop it and to cancel
an order for 175 M-60 tanks, both unprecedented.”
The largest private arms company, Sultam, which
specializes in military electronics, is owned primarily by Koor,
which is owned by the Histadrut, the Israeli labor federation.”
The Histadrut has substantial investments throughout the
Israeli economy including in armaments. With 20 to 25 percent
of Israeli workers employed by its companies, the Histadrut is
the second largest employer after the government itself, which
employs just under 40 percent of the workers.?”
Sultam general manager Yakov Lior told the Jerusalem
Post (April 27, 1979), «Sultam exports its products to forty
countries. Among Sultam’s products are complete systems of
cannons and mortars, together with optical instruments,
auxiliary instruments, and various sorts of munitions including
night sabotage materials, lighting devices, grenades, and.
smoke bombs.»2° One of Sultam’s hottest items is its 155-mil-
limeter howitzer.7? Shlomo Zevdelovitch, one of Sultam’s foun-
ders, was described as «one of the biggest arms manufactur-
36
ers and traders in the world. Among his other deals, he served
as middle man in the gigantic sales of Israeli arms to various
countries in Europe, Asia, Africa and other regions. »°°
Together, IAI, IMI, Koor (Sultam and Tadiran), Elron, and
Rafael produce more than 90 percent of Israeli arms exports.°!
In May 1983, Koteret Rashit reported that the firms
involved in arms sales «have been joined by several veterans
of Israeli Military Intelligence who specialize in electronic sur-
veillance. Among their customers: countries in South America.
High officials of the Lebanese Phalangists have also expres-
sed interest in the products of this firm» .°?
Foreign Investment in Israeli Arms Production
Foreign investment is also heavy in Israeli arms firms;
U.S. companies play the largest role with such names as
American Electronics Laboratories, Aeronautics Corporation
of America, Gerber Scientific, Control Data Corporation,
Motorola, General Telephone & Electronics, Rockefeller
Brothers and Associates, Intel Corporation, TRW, Teledyne,
and Rand Information Systems, to name only a few, heavily
involved.
In 1977, the Economist reported that the Israeli govern-
ment turned to South Africa for capital to develop «the next
generation of Israeli warships». In return the South Africans
were to receive the first four or five new boats.** Tadiran, the
third largest Israeli arms exporter and a subsidiary of the His-
tadrut’s Koor and General Telephone & Electronics (Tadiran is
44.64 percent owned by each and 10.72 percent owned by its
employees)**, and South Africa’s Consolidated Power, have
formed a large electronics combine specializing in military
electronics and computers.** In 1970, Tadiran negotiated a
licensing agreement with C.F.Fuchs, Ltd. for the production of
highly sophisticated electronic equipment it developed.*’ The
Israeli and South African subsidiaries of Motorola operate sev-
eral joint ventures.*? Iskor, which manufactures half of Israeli
steel, is 51 percent owned by Koor, i.e. by Histadrut, and 49
percent owned by the South African government-owned steel
corporation, Iscor.°° Koor also has a South African subsidiary,
Iskoor Steel Services Company. These are only a few exam-
ples of joint Israeli and South African arms production and
economic collaboration. More than 250 South African firms
belong to the very active South Africa-lsrael Chamber of
Economic Relations.”
The Israeli government offers considerable inducements
to new investors: 70 percent of initial capital (30 percent grant
and 40 percent at 8 percent interest; with Israeli inflation over
130 percent in 1982, this is virtually interest-free)*' and up to
half of research and development costs. The would-be inves-
tor also gets subsidies for training and plant and premises ren-
tal costs, low or waived customs duties, and a flat corporate tax
of 33 percent suspended for the first five years.*
The U.S. Department of Commerce reported that in 1976
Israeli workers «produced less than half as much as U.S. work-
ers» but were paid, including benefits, «less than one third» as - هو جزء من
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