U.S. Deputy Undersecretary of Defense Dov Zakheim believes Israel should abandon plans to build its second-generation jet fighter plane, the Lavi. Instead, he said Israel should use the funds, mainly U.S. military assistance grants, to beef up its navy with more missile boats and submarines.
Zakheim, the Pentagon’s chief costs expert, met with ranking Defense Ministry officials and Israel Defense Force senior officers here last week. His message disappointed his Israeli hosts, though his opposition to the Lavi has long been known.
The Israelis maintain that the production figures on the Lavi projected by Zakheim and other Pentagon officials are unrealistically high and that the Israeli cost-per-unit figures are more realistic.
The American suggestion that Israel build more missile boats and submarines also poses financial and technical problems. Israel has never built submarines, and U.S. naval shipyards build only nuclear subs. They have not built conventional undersea craft for decades.
The Americans have suggested two West German shipyards and Zakheim proposed that Israel pay for the vessels in goods or services rather than cash. But the Israelis say the costs are too high for a barter deal.
On the other hand, the U.S. is interested in building missile boats for Israel, although Haifa Shipyards has considerable experience with that type of craft and is badly in need of orders.
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