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December 27, 2001

Israel is negotiating to find a US partner to build the Arrow-2 anti-missile in the US, as this would allow it to use $200 million in US foreign aid funds. The problem is that no contractor is interested. Boeing turned down the deal because of US limits on the technology it could sell Israel. Raytheon lost interest given US export restrictions that would have made it impossible to market the missile to other countries. And Lockheed Martin wasn't interested since the deal would compete with its own interceptor programs.--Stephen V Cole