An Israeli firm said Tuesday it would sue the U.S. Army for suddenly cancelling an $8 million order for gasmasks after the first consignment was delivered. According to Menahem Kalir, general manager of Rabintex Industries in Bet Shean, the cancellation was a reprisal for Jonathan Pollard’s spy activities in the U.S.
Kalir denied as “baseless” the Army’s claim that the contract was terminated because of late deliveries. He said the cancellation order was received immediately after the first batch of masks was received in the U.S. early in March.
Kalir said his firm invested $2 million to produce the masks. Cancellation of the contract may force the plant to close down, adding mass unemployment to the troubles of Bet Shean, a development town, he said.
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