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U.S. and Israel Agree on Joint Production of Ships and Missiles

April 18, 1985
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U.S. Secretary of the Navy John Lehman announced here Wednesday that Israel will build three diesel-powered submarines for its navy, with financial and technological assistance from the U.S.

He said that in addition to these arrangements, an agreement has been initialed for the joint design by Israel and the U.S. of a new naval missile and that the U.S. Navy will purchase another squadron of the Israel-manufactured Kfir jet fighter planes.

Lehman arrived in Israel Monday on a five-day visit as guest of the Israel Navy. His announcement means a new lease on life for the financially troubled Haifa Bay Shipyards which had faced complete shutdown or at least large scale dismissals for lack of orders.

Israeli initially intended to purchase the submarines from the U.S. But apparently the American shipyards which specialize in undersea craft–notably General Dynamics and the Electric Boat Co. — are geared exclusively to the production of nuclear submarines and can no longer build diesel boats. The latter are powered by diesel engines on the surface and by battery-powered electric motors under water.

Lehman said Wednesday “I am very pleased to announce that the (U.S.) Navy has been so pleased with the performance and effectiveness of the Kfir jet that I have requested, and we have agreed in principle, to proceed with another squadron of Kfirs for our naval training.” The Israeli-designed Kfirs have been used by the U.S. Navy to similate Soviet aircraft in training exercises.

Lehman, who took a short cruise on an Israeli missile boat and inspected the Haifa Bay shipyards, had lavish praise of Israel’s navy, the smallest component of the Israel Defense Force. He said he was greatly impressed by its very high standards of preparedness, training and morale.

After meeting with Defense Minister Yitzhak Rabin Monday, he said the U.S. would continue to cooperate with Israel to seek joint solutions to problems raised by its defense needs. Rabin outlined the Israel Navy’s needs and its ideas on how the U.S. can help meet them.

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