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Politics : DON'T START THE WAR

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To: AK2004 who wrote (9194)2/18/2003 5:59:00 PM
From: Elmer Flugum  Read Replies (2) of 25898
 
Foreigners Exact Trade-Offs From U.S. Contractors

nytimes.com

"Israel, too, raises eyebrows. It is one of two countries — Egypt is the other — that receive direct American military aid to buy American-made weaponry; but unlike Egypt, Israel insists on offsets.

In 1999, according to the Commerce Department, the United States gave Israel $1.86 billion in military aid, with the requirement that the bulk be spent on American goods. With this money, Israel has pitted American contractors against one another. Lockheed and McDonnell Douglas were once in an offset competition for a $2 billion fighter jet deal. Because of the technology it gained through these offsets, Israel has developed its own weapons systems and competes against American contractors for orders.

Critics have called Israel's actions double dipping, and the Commerce Department asked Congress to halt it in 1998, but the proposal had no political support."
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