Israel may reject Turkish arms request
YAAKOV KATZ and HAVIV RETTIG GUR , THE JERUSALEM POST Feb. 1, 2009
www.jpost.com/servlet/Satellite?cid=1233304655740&pagename=JPArticle%2FShowFull

As Turkish-Israeli diplomatic relations continue to crumble, the close ties
between the two countries in other areas are being reexamined as well.

The Defense Ministry is considering rejecting a number of requests by Turkey
to purchase advanced Israeli-made military platforms, officials told The
Jerusalem Post on Sunday.

The IDF and the Turkish military enjoy strong ties, but there is growing
concern in Israel that the military could be losing its power and influence
within and over the government.

"Turkey is eyeing moderate Arab countries and is hoping to strengthen its
ties with them," one senior defense official explained. "Just like we don't
sell advanced military platforms to Jordan and Egypt, we may decide not to
sell to Turkey."

According to officials, several Turkish requests recently submitted to the
Defense Ministry's Foreign Defense Assistance and Defense Export
Organization (SIBAT) will need to be reviewed due to the change in political
ties between Jerusalem and Ankara. The officials would not reveal which new
military platforms Turkey had requested.

The defense establishment is concerned that the diplomatic crisis with
Turkey may also lead Ankara to annul an arrangement allowing the Israel Air
Force to train and fly in Turkish airspace.

"No one knows yet how this will affect our relationship on a defense level,"
explained one official. "We need to wait to see how this plays out."

While defense officials reconsider the country's military ties to the
Turkish state, other government officials worry about the significant
business ties between the two economies.

Non-military trade accounts for almost $4 billion annually, 60 percent of it
in Turkish exports to Israel.

Tourism is another enormous source of revenue for the Turkish economy, with
580,000 Israelis visiting Turkey last year according to government figures.
Since the start of the diplomatic row over Operation Cast Lead, flight
bookings to Turkey have dropped by 70%.

However, "despite all the talk, no joint economic initiatives between the
two states have been canceled," a senior Israeli diplomatic official told
the Post Sunday. In particular, plans for a joint Israeli-Turkish
infrastructure and energy corridor between the ports of Ceyhan and Haifa are
still under way.

"But people are starting to talk about the direction Turkey is taking," the
official added.

Politically, "Turkey's natural inclination is not toward Iran and Syria, but
toward Europe and the US. Turkey wants to have regional influence - what
could offer this more than a real role as a mediator between warring parties
in the region?" asked the official.

That mediating role has been severely damaged by Turkish Prime Minister
Recep Tayyip Erdogan's excoriation of the Jewish State during the three
weeks of fighting in Gaza. A senior diplomatic official told the Post over
the weekend that Erdogan, and Turkey under his leadership, had "lost all
credibility as an honest broker" in regional negotiations.

In the field of defense, two Israeli companies most likely to lose out from
a collapse in ties are Israel Aerospace Industries (IAI) and Rafael Advanced
Defense Systems Ltd.

In December, subsidiaries of IAI and Elbit Systems signed a $140 million
deal to supply the Turkish Air Force with targeting pods. Israeli Military
Industries (IMI) recently completed a $700m. deal signed several years ago
with Turkey to upgrade the country's fleet of aging Patton-series M60 tanks.
IAI also recently supplied Turkey with its advanced long-range Heron
unmanned aerial vehicle.

Sources in defense industries expressed hope that the crisis with Ankara
would pass and would not have a negative impact on sales to Turkey.

"Despite the soured diplomatic ties, there are very good relations between
the two militaries," explained one official. "Israel has several contracts
with Turkey that have been signed, and there is no reason to believe that
they will not be upheld."