• Published 17:14 25.03.10
  • Latest update 20:27 25.03.10

Exclusive / Despite row, U.S. and Israel sign massive arms deal

Israel will purchase three new Hercules C-130J airplanes at cost of nearly a quarter billion dollars.

By Amos Harel Tags: Israel news

As Prime Minister Benjamin Netanyahu was in Washington this week absorbing the full wrath of the Obama administration, the Pentagon and Israel's defense establishment were in the process of sealing a large arms deal.

According to the deal, Israel will purchase three new Hercules C-130J airplanes. The deal for the three aircrafts, designed by Lockheed Martin, is worth roughly a quarter billion dollars. Each aircraft costs $70 million.

The aircrafts were manufactured specifically for Israeli needs, and include a large number of systems produced by Israel's defense industry.

The deal will be covered by American foreign assistance funds. The Pentagon will issue a formal announcement on the matter on Thursday evening.

America and Israel have still not reached an agreement regarding the purchase of the Lockheed F-35 war plane. It is still not clear when that deal, which is estimated to be worth more than $3 billion, will finally be sealed and carried out.

If that deal is signed in the near future, Israel will likely receive its first F-35 in 2014.

Defense Minister Ehud Barak in the U.S. this week.

Photo by: (AP)
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  • 61. 0 0
    no big deal
    • art
    • 29.03.10
    • 04:41

    C 130's no big deal The big deals were the multi billion deals withuae and saudis for awac updates, radar, SAMs f15's f16's tomahawks missile boats, GPS bombs, etc all of which can be used against Israel even easier than against iran

  • 60. 0 0
    You're absolutely 100% wrong
    • CW
    • 28.03.10
    • 17:22

    First the U.S. is giving Israel 250$ of aid here, and secondly in 2007 the U.S. signed a bill that start dispersing 30$ billion to Israel over the subsequent 10 years. Also, conflating criticism of Israel with anti-Semitism is also intellectually backrupt.

  • 59. 0 0
    No more killing
    • Jeff Ray
    • 28.03.10
    • 16:13

    The one state solution is the only solution. Racial equality should be the goal of all peace loving people.

  • 58. 0 0
    No need for these planes, is there?
    • David
    • 28.03.10
    • 09:42

    What is going on? These are transports for moving equipment quickly over a distance. Why on earth would Israel need this capability? IDF assets are already stationed in this tiny country where needed. If they need to relocate, use the highways. What's going on? Since these are paid for by the U.S., the deal must be aimed primarily at boosting Lockheed and the weak U.S. arms industry, not really for Israel. Maybe they wiil fly around at air shows or something

  • 57. 0 0
    39. Buying US planes with US money - big deal
    • David
    • 28.03.10
    • 04:39

    There is an agreement that requires Israel NOT to manufacture its own planes.That's to protect the US manufacturers.The US did this trick to Canada,too.It is only normal that the US has to pay something for such arrangements.Israel can built fighter planes at least as good as the American ones.

  • 56. 0 0
    US-Israel masive arms deal
    • Harbans Singh
    • 27.03.10
    • 22:12

    funny, what is the surprise in it. US[Jews} and Israel {Jews] sign massive arms deal? However, from HEALTH CARE bill and Jewish lobby's opposition, especially Florida members' opposition. will roll the US-Israel relations down the slope now.

  • 55. 0 0
    #1, To Buy you PAY
    • Avi
    • 27.03.10
    • 20:28

    Yes, it's the US tax payer's money, but when used by Israel to BUY stuff from a US manufacturer (like the money goes from the US Treasury (or whatever) to a US company, where, hopefully, American citizens work. So the US is subsidizing it's own industry.

  • 54. 0 0
    Each plane is 70 mill but deal worth 750???
    • Avi
    • 27.03.10
    • 20:23

    Quote: The deal for the three aircrafts, designed by Lockheed Martin, is worth roughly a quarter billion dollars. Each aircraft costs $70 million. A quarter billion dollars = 250, not 750 mill

  • 53. 0 0
    #50 Arnold. Ha, ha, here it is again. Just for you. : )
    • Maureen Ann
    • 27.03.10
    • 09:56

    Haaretz 26 March 2010 "NATO chief calls for new missile defenses to counter Iran." By News Agencies. ... Nuclear strike on Iran? ... http://www.haaretz.com/hasen/spages/1159407.html Reuters AlertNet 26 March 2010 "Israel could use tactical nukes on Iran (Washington) thinktank" http://www.alertnet.org/thenews/newsdesk/LDE62O2HI.htm

  • 52. 0 0
    Paul #28 read #43
    • bbl
    • 27.03.10
    • 01:24

  • 51. 0 0
    Maureen Ann- going nuclear
    • arnold
    • 27.03.10
    • 00:23

    Putin and Obama have discussed and most likely have come to an agreement to reduce their nuclear arsenals to about 1500 warheads each. That is enough fire power to wipe out mankind ten-fold. Where you come up with ideas about Israel using nuclear weapons against Iran is strictly inside your grey matter- nowhere else. HA HA to you

  • 50. 0 0
    #31 J Frank Mortimer's Voodoo economics
    • J Thomas
    • 26.03.10
    • 20:43

    I like Israel, but it bugs me when people make this stupid argument. I will make it simple. Imagine that the US government sends one dollar to Israel, and Israel gives it to an Israeli who visits the USA and buys a Macdonalds McDouble. I am in line behind him, and I want a McDouble. "Sorry, we gave it to him." Say that Israel instead spends the dollar on a rivet from Lockheed. Lockheed pays the dollar to a Lockheed employee who stands in front of me at Macdonald's and eats my McDouble. Say Israel instead buys a bullet from Britain, the british trade the dollar for part of a pound, and the American who had the pound eats my McDouble. Any way it goes, the dollar comes back and buys something from Americans, something that Americans work to make and then don't get to use. Because we gave it to Israel. Maybe it's right to give stuff to Israel. But you don't do me any favors when you spend my money in the USA. Maybe you do Lockheed a favor. I don't much like Lockheed.

  • 49. 0 0
    What was in the US/Israel arms deal - Nukes?
    • Maureen Ann
    • 26.03.10
    • 15:41

    US Think Tank: Israel could use 'tactical nukes against Iran.' What was in the latest arms deal signed by Obama/Netanyahu. And why is America talking about using nuclear weapons when Obama is supposed to be working with Russia to cut the stock pile of nuclear weapons world wide. The talk of Israel using nuclear weapons against Iran will turn the spotlight on Israel's nuclear facilities and ambiguous nuclear stash, AND will show Israel up for being a nuclear hypocrite. Ha, ha!

  • 48. 0 0
    LOL. 3 Planes is a massive arms deal?
    • Paul
    • 26.03.10
    • 05:24

    Do you guys really have to spin everything? Look deeper. Your request for bunker buster bombs to hit Iran has been aborted. google it. Face facts. You spit in our face at every opportunity and expect us to kiss your butts in appreciation. Obama's the best!!

  • 47. 0 0
    David # 15- accounts payable
    • Arnold
    • 26.03.10
    • 03:51

    David, do not waste your breadth with these bashers. For years I have been trying to explain economics 101 to them. All those bashers do is gripe about their tax money. They do not see the big picture of what business and trade is all about. Ask them what the Muslim countries do with USA handouts. They buy US Stars and Stripes flags and then the gasoline to burn them.

  • 46. 0 0
    Removing the spin
    • Mark Lincoln
    • 26.03.10
    • 03:40

    That this 'deal' dates back to July 2008, long before Barak Obama was elected, much less president the reality is that this story is nothing but 'spin.' The 'message' we are to learn is that there is no trouble, no problem, that everything is absolutely fine between Israel and the USA. Amos Harel is not Ze'ev Schiff. He pimps the story he is given. But he could at least be honest enough to tell Israeli's the truth. Israel requested this deal two years ago and it is no sign that there is no tenstion between the Obama administration and Israel.

  • 45. 0 0
    Steve from fantasy land
    • Mark Lincoln
    • 26.03.10
    • 03:36

    "I'm placing an order - 20 Stealthy Fighter Bombers that could reach Teheran from Israel and return." - Steve Without refuling? No stuch beast. The B-2 can do the job, but twenty would cost you something like $40 billion. "Multiple War Head Missile Systems that can Reach Teheran from Israel." - Steve Israel has not tested a MRV much less a MIRV. "5 nuclear submarines with missle launching capability. Deliver to Israel ASAP" - Steve Perhaps Russia has some mothballed Yankee boats it wishes to sell. Has something like LSD been added to the water in 'chicagoland'?

  • 44. 0 0
    US covers only 15% of Israel`s Yrly Military Budget?
    • Mark Lincoln
    • 26.03.10
    • 03:31

    "US covers only 15% of Israel`s Yrly Military Budget" - Mark True, but can Israel afford to expand settlements if the US didn't subsidize it's defense budget?

  • 43. 0 0
    #2 Contract involves phasing out of older C-130s, order is larger
    • Mark Lincoln
    • 26.03.10
    • 03:17

    "#2 Contract involves phasing out of older C-130s, order is larger" - Victor The total order is for 9 C-130J-30 aircraft plus spare parts and the ultimate cost will be $1.9 billion dollars. For details of the original deal announced on 30 July 2008, see: http://www.asdnews.com/news/17196/Israel_-_C-130J-30_Aircraft.htm

  • 42. 0 0
    Matityahu Hanavi - #2
    • Mark Lincoln
    • 26.03.10
    • 03:13

    "I dont get it - how does 70 million * 3 = 750 000 000." - Matiyahu Hanavi The additional $40 million is made up of spare parts for the C-130J-30 aircraft. This 'deal' actually dates back to July 2008, but Amos Harel would like you to believe it is a 'new' deal proving that the Obama administration is in Netanyahu's pocket. For details see: http://www.asdnews.com/news/17196/Israel_-_C-130J-30_Aircraft.htm

  • 41. 0 0
    That's...
    • bibi
    • 26.03.10
    • 03:11

    Angry at us but still wanting us to buy your planes. That's might white of you. THANKS!

  • 40. 0 0
    [david] "no free aid? we're not takers?"
    • AB
    • 26.03.10
    • 03:05

    But the article says "The deal will be covered by American foreign assistance funds."

  • 39. 0 0
    Buying US planes with US money - big deal
    • Tyrone Jackson
    • 26.03.10
    • 01:06

    Big deal. The US subsidizes the Israeli economy with stuff like this. We give you money, you buy our weapons, and you treat our President like he's Netanyahu's servant.

  • 38. 0 0
    PEACE NEGOTIATIONS A CRUEL AMERICAN HOAX
    • S. Thomas
    • 26.03.10
    • 00:16

    War machine deals like this go a long way to demonstrate to the rest of the world just how totally lacking in credibility the USA is in their claimed support for meaningful peace negotiations with the Palestinians - or with anyone else for that matter.

  • 37. 0 0
    planes
    • ol' Case
    • 25.03.10
    • 23:48

    In addition to the fact that American aid to Israel is largely and beneficially spent in the US, all the Israel bashers (e.g. "Stop giving my tax money to the Zionists!") need to understand that Israel imparts some rather important technology advances to the US military.

  • 36. 0 0
    New Arms Deal Cargo Transport Planes and What Else?
    • Jon
    • 25.03.10
    • 23:46

    This article is a very positive sign that strategic business as uusual continues between the US-Israeli alliance. I am confused about the headline describing the deal as "Massive" with respect to just 3 aircraft and 70 million a piece does not add up to 3/4 of a billion dollars. What else is in this arms package?Hopefully even more potent Bunker Busters for IAF "delivery" to Iran since sanctions will unlikely be effective.

  • 35. 0 0
    USA & Israel agree
    • conservative
    • 25.03.10
    • 23:46

    USA & Israel agree to disagree on housing. Build the 1600 homes and more. Conservatives support You.

  • 34. 0 0
    Military planes for Israel
    • Tim
    • 25.03.10
    • 23:26

    Let me get this straight: Israel will "purchase" plains from US with the money US gives them... What a bargain! Can I get on that? I'd love to fly aroung in an F-15 bombing whomever I don't like, especially people I displaced and anslaved, so I could grab their land and wipe out their civilization! And just to make sure that there is peace in region, I'll obliterate anyone who disagrees with me!

  • 33. 0 0
    Bunker buster bomb delivery service!!
    • Dean M. Blake
    • 25.03.10
    • 22:59

    WOW!!! that's what you need to deliver the new biggest bunker buster bombs. The sale says more than you realize about who is going to deliver the 'drop' on the Iranian underground uranium refinery plants. The new bomb is soooo physically big to be so powerful you need this Hercules plane to deliver them, only 2 to an aircraft. The Russian prototype bomb has been tested. The USA version is ready for testing. Looks like Israel get first dibs.

  • 32. 0 0
    US/Israel weapons deal.
    • Maureen Ann
    • 25.03.10
    • 22:58

    Covered by US foreign assistance fund... that would sure help Netanyahu "absorb the full wrath of the Obama Administration!"

  • 31. 0 0
    To Silvienne #24 and all Americans
    • J. Frank Mortimer
    • 25.03.10
    • 22:32

    Silvienne #24 of the USA asks "can we keep our money, too?" Absolutely yes, Silvienne, with pleasure. So many Americans and Israelis are unaware of the fact that the money that the 94% ($2.34B) of the USA foreign aid that Israel gets ($2.50B, as of 2007) must be returned as weapons purchases. The balance amounts to $23 per Israeli citizen per year, about 6 cents per day, which is a poor price for selling one's independence, I think. And for you, Silvienne, the cost to you is 52 cents per year per US citizen. Keep it.

  • 30. 0 0
    Arms deal
    • Boxcar Ira
    • 25.03.10
    • 22:15

    A little spat over settlements isn't going to stop the global military industrial complex from making money- are you kidding?

  • 29. 0 0
    To David #15 (not free aid, we are not takers)
    • izi
    • 25.03.10
    • 22:00

    So I guess that 3 billion free money from our tax money doesn't count right? Well can we have the money back then or Isarel going to countinue to have its hand streached, begging for more?

  • 28. 0 0
    worth $210m but
    • J
    • 25.03.10
    • 21:46

    Israel needs to incorporate their systems on the plane which cost more money. Small price to pay for the safety of their troops.

  • 27. 0 0
  • 26. 0 0
    #20 J. Frank Mortimer
    • Tony Silver
    • 25.03.10
    • 20:37

    I agree with you

  • 25. 0 0
    #20, J. J. Frank Mortimer, don't need our money, right?
    • Silvienne
    • 25.03.10
    • 20:28

    Glad to see that, as you dislike your only ally America so much, we can keep our money, too, right?

  • 24. 0 0
  • 23. 0 0
    I'm Placing an Order
    • Steve
    • 25.03.10
    • 20:16

    Pentagon, Purchase Order: 20 Stealthy Fighter Bombers that could reach Teheran from Israel and return. Multiple War Head Missile Systems that can Reach Teheran from Israel. 5 nuclear submarines with missle launching capability. Deliver to Israel ASAP. Ask Ehud Barak if he needs anything else.

  • 22. 0 0
    Have I got a deal for you!
    • Hugh
    • 25.03.10
    • 20:02

    Can the U.S. afford to give Israel the money to buy this stuff? And, after the events of the last several days, why would it want to?

  • 21. 0 0
    US covers only 15% of Israel's Yrly Military Budget
    • Mark
    • 25.03.10
    • 20:00

    Whenever a story about Israel/U.S. military trade comes up the Israeli bashers love to squawk in mindless fashion: "US taxpayers paid for that". Not true! Israel receives apprx $2.3billion in U.S. military aid from a total annual budget of apprx $15billion. That's only 15% of military expenditures...so the majority of equipment Israel buys from the US is paid for by Israeli taxpayers. It also benefits the US by subsidizing America's struggling defense industry and restricts Israel's ability, with the entire $15billion, to buy equipment from other nations at lower prices. In the end the aid is smart business by both nations and amounts to a discount to a loyal client!!

  • 20. 0 0
    Warmongers as always
    • J. Frank Mortimer
    • 25.03.10
    • 19:53

    The Big Satan is, as always igniting and fueling wars anywhere it can, as long as its not on the American Mainland. One clear motive is to sell its overpriced weapons to at least one side, preferably both. We must keep America out of the Middle East at all costs, and restore Israeli independence. Americans value corporate profits, we value human life. Watch how they work: They need to weaken Israel now so that the Arabs will keep attacking it fearlessly, otherwise the conflict might end. So don't use American weapons, ignore all their advice and instruction as to how to achieve peace with our neighbors. That might work. The opposite has failed.

  • 19. 0 0
    hmmm what would be needed if millitary conflict with iran???
    • watcher
    • 25.03.10
    • 19:20

    i wonder if israel alone could afford that? us conflicts in iraq and afghanistan are at a cost of 1 trillion dollars currently . meaning if ther was a millitary conflict with iran comming...israel would never be the only party on one side. isnt there a cheaper way to get rid of the iranian regime???

  • 18. 0 0
    Some simple maths
    • Cynic #2
    • 25.03.10
    • 19:11

    The plane costs US$70million. It takes a SAM missile costing US$10,000 to bring it down. This is good business for the military industrial complex.

  • 17. 0 0
    The military industrial stimulus package
    • Realist
    • 25.03.10
    • 19:02

    Lifting America out of recession and deterring Iranian aggression at the same time.

  • 16. 0 0
    Hey I'm learning hebrew by the way
    • Hani
    • 25.03.10
    • 18:57

    Despite all that I say I have nothing against the Israeli people just the policies but you'll be my friend one day.

  • 15. 0 0
    not free aid, we're not takers
    • david
    • 25.03.10
    • 18:55

    hello all of you on this site who like to continually bash Israel. Whether you are Jewish or not, so many don't get it. We bought these planes. They weren't given to us. We are not takers. We work hard for what we get. So next time you want to berate the Jews and say the United States should stop sending money and weapons to Israel for free, remember this!!!

  • 14. 0 0
    #6, china pales in comparison
    • courtney
    • 25.03.10
    • 18:49

    eddie, china military budget is just over $40 billion, the US is over $600 billion... and if they cant even produce baby formula that isnt tainted with lead, why on earth would you trust their military equipment?

  • 13. 0 0
  • 12. 0 0
    #2
    • ram
    • 25.03.10
    • 18:36

    worth roughly a quarter billion dollars. quarter=0.25 quarter billion=0.25*1bil=250mil

  • 11. 0 0
    its simple matityahu hanavi
    • raffi
    • 25.03.10
    • 18:23

    "The deal for the three aircrafts, designed by Lockheed Martin, are worth roughly a {{QUARTER BILLION DOLLARS}}. Each aircraft costs $70 million" so 70*3=250~!!!

  • 10. 0 0
    Obamas fake feud with Israel while funding and ...
    • Al
    • 25.03.10
    • 18:19

    arming them to the teeth ? Obama kinda reminds me of the last USA president , and the one before that , and the one before that ...

  • 9. 0 0
    US subsidises itself
    • eddie
    • 25.03.10
    • 18:17

    #2 worth roughly a quarter billion dollars = ~205, or 210M US aid - is aid to US companies like Lockheed Martin. The money keeps their factories rolling. Israel is a beneficiary, but in return they have to dance to America's tune, or face the conequences. Solution - China is the way forward, and they have bogger military budget, and will soon be #1 economy in the world!

  • 8. 0 0
    Roughly $250 Matthew
    • Jacob Blues
    • 25.03.10
    • 18:08

    $70 million (roughly *3 = around $210 million or close to 1/4 of a billion, which is $250 million.

  • 7. 0 0
    70 * 3 = 210m
    • Sefet
    • 25.03.10
    • 18:06

    70 x 3 = 210m. The rest is probably a maintenance and parts contract.

  • 6. 0 0
    #2 Contract involves phasing out of older C-130s, order is larger
    • Victor
    • 25.03.10
    • 18:04

    than initial scheduled delivery.

  • 5. 0 0
    @ #2
    • Eric
    • 25.03.10
    • 17:58

    It says 1/4 of a billion. 70 x 3=210 000 000. Or almost 1/4 of a billion. And its bought like a loan. the US govt gets to print an extra 210 Mil in cash, invest in US jobs and domestically made products, and Israel pays slowly (saving it money), and gets new Hurcs (if you don't know why they are big for Israel, go research Operation Entebbe). Its a win win for everyone involved

  • 4. 0 0
    #!, To Buy you PAY
    • David
    • 25.03.10
    • 17:55

    Israel is not paying for the arms. America's taxpayers like me are paying for what Israel is getting. Nice to be like Barak and "buy" something you don't pay for!Still, Netanyahu is talking as if he were the PM of a superpower!

  • 3. 0 0
    i wouldn't hold my breath on F-35's
    • but you can :)
    • 25.03.10
    • 17:48

    please do

  • 2. 0 0
    each plane is 70 mill but deal worth 750???
    • matityahu hanavi
    • 25.03.10
    • 17:39

    I dont get it - how does 70 million * 3 = 750 000 000.

  • 1. 0 0
    buy
    • bikpet
    • 25.03.10
    • 17:23

    BUY????