Israel: Defense Ministry preventing non-military deals with China
The Ministry of Defense internal security unit is investigating entrepreneurs negotiating deals with China.
Ronit Vardi 29 Jun 05 17:04
Sources inform "Globes" that in recent months, the Ministry of Defense internal security unit (MALMAB), headed by Yehiel Horev, has been investigating Israeli entrepreneurs who negotiated transactions of technology having no significant military content with Chinese business concerns.
The investigations concerned possible trade in technology that the ministry formerly routinely approved for marketing in China. No significant military technology is involved, but tension in Israel-US relations over Israeli military exports to China has made the ministry’s attitude towards these matters stricter. Permits for negotiations and deals with China have in effect been suspended.
A senior defense industry official said this week, “It’s impossible even to lay a hand on a telephone to call there.”
Matters have reached such a state that security companies that marketed security services for the preceding Olympic Games in Greece are unable to freely conduct business negotiations with China to participate in tenders worth billions in the organization of the next Olympic Games in Beijing. These companies fear that they may lose the chance to participate in these tenders.
In recent months, the US has demanded that Ministry of Defense director general Amos Yaron, Horev, and representative in New York Brig.-Gen. (res.) Yekutiel Mor be fired, due to the deal for upgrading Harpy unmanned aerial vehicles (UAVs) for China.
An agreement ending the dispute between Israel and the US in that affair is slated for signing in the next few days, under which Israel will agree to severe restrictions on its defense exports. Yaron will resign his position after disengagement from the Gaza Strip is implemented.
Published by Globes [online] - www.globes.co.il - on June 29, 2005
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