http://www.wrmea.com/backissues/0296/9602018.html
Israeli Military Strategy in
Turkey
Ha'aretz, Sept. 27, 1995
By Ze'ev Shiff
The deal between Israel and Turkey for the overhaul of
Turkey's Phantom warplanes to the tune of about $600 million
is the biggest yet defense project that Israel has had with
a Muslim state. It should not be regarded as a mere economic
transaction, but as a major development in the strategic
cooperation of Israel with an important state in the Middle
East. The deal is only the tip of an iceberg of extensive
military cooperation. American defense industries may feel
hurt as a result of this deal, but it may be assumed that
the White House and the State Department view
Israeli-Turkish cooperation and the project positively
because of its broad strategic value.
Three neighbors are problematic from the Turkish point of
view-Iraq, Iran, and Syria. These are states also hostile to
Israel. The Turkish government surely wants to convey the
signal that, in the regional balance of forces, it has a
strong and stable friend like Israel. Both seek stability in
the region and conform with U.S. interest in such stability.
Turkey also wants to carry out a modernization of its army
and Israel can assist in this endeavor.
One should keep in mind the struggle of both Israel and
Turkey against terrorism and Turkey's growing fear of an
increase of extremist Islamic terror. Here, too, there is
room for cooperation, although Israel does not want to be
dragged into the bloody struggle with the Kurdish
underground which finds shelter in Syria, as the Turkish
intelligence knows. Turkey is an important member of NATO
and its army is the second largest in the alliance. However,
much of the Turkish military equipment is outdated and
requires replacement.
The modernization will cost Turkey some $10 billion in
the next several years while Turkey is burdened with bad
economic conditions and a large foreign debt. The debt
burden has grown because of the loss of revenues from the
flow of Iraqi oil through the Turkish pipeline.
It is in Israel's interest to extend relations with
Turkey. First the level of diplomatic relations was raised,
then a military attaché was sent and a document of
understanding was signed defining defense relations between
the two states. The military security dialogue continues and
this week the director of the Defense Ministry, David Ivri,
returned from Turkey. One example of the closer diplomatic
relationship is the air-fueling maneuver that was carried
out in May 1994 when Turkish planes were refueled by an
Israeli plane.
The negotiations on the Phantom agreement continued for a
long time. The Turkish air force has six squadrons with 165
Phantom planes. Israel has experience in renovating and
transforming this plane into the Kurnas 2000. The overhaul
prolongs the operational life of the Phantom by 15 to 20
years. A modern American radar and an advanced computerized
aeronautical system were introduced into the Phantom,
including an improved electronic combat and navigation
system. The capability of the plane to participate in a
ground battle has also been improved. U.S. and German
companies also competed for the deal in Turkey. In the
beginning, Israel took part in the bid of the American radar
producer Norden, whose system is installed in the new
Israeli Phantoms. But this bid failed. Norden asked for $5
million for each radar system. So as not to lose the deal,
Israel, through the Elta Company, proposed to produce a
similar radar for only about $3 million and won the bid.
Elta has now to prove to the Turks that the performance of
its radar is adequate. In August an agreement was signed
that included a technical and financial framework for the
overhaul of 54 Phantoms, 30 of them to be overhauled in
Israel.
As expected, the success of Israeli Aircraft Industries
(IAI) angered Norden and other U.S. companies. Norden has
accused Israel and Turkey of unfair practices in testimony
before the U.S. Congress. The main accusation is against
IAI, a former partner of Norden, blamed for giving Turkey
misleading information. Norden will ask the U.S.
administration to take steps for cancellation of the deal
with Israel. Probably Norden will be prepared now to offer
lower prices and will turn to circles in Turkey who oppose
making any contacts with Israel.
For our part, the problem of the Turkish deal is
financial. The Turks demand that payments begin only after
two years in the five-year deal. Thus, interim financing is
needed by IAI, putting heavy pressure on the company. It
owes the banks about $300 million. An ugly struggle has been
going on between the company and the banks about this debt.
It is little wonder that the banks do not want to finance
the deal with Turkey and they are not interested in the
strategic importance of the deal.
The finances thus become a matter for the finance
minister and the prime minister to act upon. The finance
minister has already committed himself to not allow the
Phantoms deal to be lost. What also bothers him is how to
make sure that, on Jan. 1, 1997, when the IAI wage
agreements expire, the company does not collapse
financially.
