TEL AVIV (Jul. 13)
Defense Minister Yitzhak Rabin and Finance Minister Moshe Nissim have concluded that the Lavi fighterplane project must be abandoned for budgetary reasons and will present a joint proposal to scrap it, Israel Radio reported Monday.
The report said they have informed Premier Yitzhak Shamir they intend to submit their proposal to the Cabinet shortly. According to Israel Radio, they told Shamir that there was no way to increase the defense budget and without extra funds, Israel’s second generation jet fighter could not be produced. Shamir was reported to have replied that he wanted to continue examining the alternatives.