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03-05-2004, 08:12 AM
Israel, India sign $1.1 billion Phalcon deal
By ARIEH O'SULLIVAN
Israel and India signed on Friday a deal to sell three spy planes for $1.1 billion - the largest defense sale in the history of Israel.
The deal was signed in New Delhi between Israel Aircraft Industries subsidiary Elta and the Indian Air Force, in the presence of IAI CO Moshe Karet and Maj-Gen.(res.) Yossi Ben-Hanan of the Defense Ministry.
On Sunday, the security cabinet was unanimously approved the deal.
It came as OC Air Force Dan Halutz was visiting India on a four-day tour, and following years of negotiations not only to tailor-make the AWACS (airborne warning and control system) aircraft suitable for India, but to ensure that Washington would not disapprove of selling such an advanced strategic-weapons system.
After years of negotiating, last October, Israel, Russia and India signed a diplomatic deal for the sale which paved the way for business negotiations to be finalized. Russia is supplying the Ilyushin-76 aircraft where the Israeli advanced radar will be assembled. Moscow had been delaying the deal trying to negotiate better terms.
The AWACS are basically the same as the Phalcon that was offered to China in 2000. They are based on the converted Russian transport aircraft and include the phased array L-band conformal radar produced by Elta. China signed a $250 million deal for one Phalcon with the option for seven more.
But Washington vetoed that deal, arguing that such an aircraft would increase the threat to Taiwan and endanger US pilots in the event of war with China.
Israel was forced to pay $320m. in compensation to Beijing when it canceled the deal.
The Phalcon will give India a force multiplier by acquiring airborne warning and control systems that can detect aerial threats and serve as a platform to direct combat jets to targets.
India's rival Pakistan has objected to the deal, saying it would upset the balance of power in South Asia. But the US did not object to the sale of the Phalcon to India. Last year, Washington itself lifted its own sanctions on most military sales to India, imposed in 1998 after India and Pakistan tested nuclear weapons.
Defense Ministry director-general Amos Yaron was clearly delighted Sunday with the government approval and the impending deal which he helped forge.
About the IAI Phalcon: http://www.israeli-weapons.com/weapons/aircraft/phalcon/Phalcon.html
By ARIEH O'SULLIVAN
Israel and India signed on Friday a deal to sell three spy planes for $1.1 billion - the largest defense sale in the history of Israel.
The deal was signed in New Delhi between Israel Aircraft Industries subsidiary Elta and the Indian Air Force, in the presence of IAI CO Moshe Karet and Maj-Gen.(res.) Yossi Ben-Hanan of the Defense Ministry.
On Sunday, the security cabinet was unanimously approved the deal.
It came as OC Air Force Dan Halutz was visiting India on a four-day tour, and following years of negotiations not only to tailor-make the AWACS (airborne warning and control system) aircraft suitable for India, but to ensure that Washington would not disapprove of selling such an advanced strategic-weapons system.
After years of negotiating, last October, Israel, Russia and India signed a diplomatic deal for the sale which paved the way for business negotiations to be finalized. Russia is supplying the Ilyushin-76 aircraft where the Israeli advanced radar will be assembled. Moscow had been delaying the deal trying to negotiate better terms.
The AWACS are basically the same as the Phalcon that was offered to China in 2000. They are based on the converted Russian transport aircraft and include the phased array L-band conformal radar produced by Elta. China signed a $250 million deal for one Phalcon with the option for seven more.
But Washington vetoed that deal, arguing that such an aircraft would increase the threat to Taiwan and endanger US pilots in the event of war with China.
Israel was forced to pay $320m. in compensation to Beijing when it canceled the deal.
The Phalcon will give India a force multiplier by acquiring airborne warning and control systems that can detect aerial threats and serve as a platform to direct combat jets to targets.
India's rival Pakistan has objected to the deal, saying it would upset the balance of power in South Asia. But the US did not object to the sale of the Phalcon to India. Last year, Washington itself lifted its own sanctions on most military sales to India, imposed in 1998 after India and Pakistan tested nuclear weapons.
Defense Ministry director-general Amos Yaron was clearly delighted Sunday with the government approval and the impending deal which he helped forge.
About the IAI Phalcon: http://www.israeli-weapons.com/weapons/aircraft/phalcon/Phalcon.html