March 17,
2008: Israel is in danger of losing its biggest customer for weapons. Over the
last six years, Israel has sold nearly five billion dollars worth of arms to
India. The biggest single item, with sales of nearly half a billion dollars,
has been the Barak anti-missile systems for ships. The Barak system uses small
missiles to shoot down incoming anti-ship missiles. Israel weapons have a solid
reputation for reliability and effectiveness. Israeli success in several wars
adds to the appeal of their armaments. U.S. and Israeli arms manufacturers
often work together, which also gives Israel an edge when selling their
equipment.
But yet
another Indian corruption investigations uncovered what appears to be large
bribes paid to Indian officials, to make those Barak sales happen. That cast a
shadow on a deal, from last year, when India and Israel agreed to work together
to develop a longer range version of the Israeli Barak anti-aircraft system.
The new system (Barak II) would have a range of 50 kilometers, and take five
years to develop. India and Israel were to split the $300-400 million
development costs, and the new system will be used by both countries, and sold
to others as well. But now Barak II is on hold, and the details of the
financial arrangements being closely scrutinized.
