Israeli sale and transfer of critical US technology
Regional-Israel, Politics, 5/14/1999

A joint US - Israeli laser defense program designed to protect Israel against Katyusha attacks, sometimes used in south Lebanon fighting, may be enabling Israel to transfer classified US military technology to China.

In January, the US Washington Times daily reported that the US Defense Intelligence Agency believes that Israel has shared the technology it has received during the development of the project, the Tactical High-Energy Laser (THEL), with China. The paper cited sources familiar with a DIA report as saying that the agency suspects that the technology was shared and that the Israeli government agency Rafael obtained "restricted" technology from a US defense contractor. The suspicions were brought about by reports from the contractor involved, the report said, and contractor TRW Space and Electronics Group stopped supplying information to the Israelis due to the transfers to Rafael.

The DIA report said that there are reports that "Chinese weapons technicians" are working in secret with Israeli Aircraft Industries, another contractor on the project, Washington Times reported.

The laser project was begun in 1996, and according to a report published Tuesday by the Israeli daily Haaretz, it will not be ready for testing until early 2000. Haaretz added that the project has cost $132 million so far and that the Israeli government, which it said has paid for about a third of the project, is considering halting its involvement. Haaretz said that TRW has been responsible for about $30 million in cost overruns, prompting the Israeli reconsideration.

Reports that Israeli is selling advanced military technology to China are not new. The US Heritage Foundation said in a 1996 report, titled "China's Purchase of Russian Fighters: A Challenge to the U.S." that, "Israel maintains a quiet but significant military technology relationship with China." The report added, "Advanced military technology from Russia and Israel plays a major role in China's effort to modernize its military forces." However the Heritage Foundation report made no allegation that Israel is selling US military secrets as part of its military support for China.

The US Washington Report on Middle East Affairs magazine said in its April/May 199 issue that US suspicions of Israeli leaks of US military technology to China were first publicly acknowledged in a 1996 report by the US Office of Naval Intelligence entitled "Worldwide Challenges to Naval Strike Warfare." It added that the Israeli attempts to obtain restricted information regarding the THEL project included information that would have increased the power and range of the weapon. It called Israel "by far the worst offender for reselling" the US military technology it obtains, noting that the ONI repeated its charges in its 1997 report.

The Washington Report on Middle East Affairs also compared the lack of attention that has been given to the reports regarding the THEL project to the current US media focus on alleged Chinese spying on nuclear technology. While the nuclear spying allegations are subject to media attention and congressional action, the report said, "The revelations about Israel, however, have received no such media coverage or congressional interest."

It added that there has only been one major newspaper article about the THEL allegations, and "There have been no television news reports about it, and not one member of congress has called for a review of U.S.-Israel technology-sharing agreements (of which there are many)."

The Washington Report on Middle East Affairs added that there are a number of reasons why Israel tries to gain access to restricted U.S. military technology, "all of which are harmful to U.S. interests."

The General Accounting Office, an investigative arm of the US Congress in its report 1996 report "Defense Industrial Security: Weaknesses in U.S. Security Arrangements With Foreign-Owned Defense Contractors" said about "country A" (identified by the Feb. 22 Washington Times as Israel) that :
"According to a U.S. intelligence agency, the government of (Israel) conducts the most aggressive espionage operation against the United States of any U.S. ally. Classified military information and sensitive military technologies are high-priority targets for the intelligence agencies of this country. (Israel) seeks this information for three reasons: (1) to help the technological development of its own defense industrial base, (2) to sell or trade the information with other countries for economic reasons, and (3) to sell or trade the information with other countries to develop political alliances and alternative sources of arms. According to a classified 1994 report produced by a U.S. government interagency working group on U.S. critical technology companies,(Israel) routinely resorts to state-sponsored espionage using covert collection techniques to obtain sensitive U.S. economic information and technology. Agents of (Israel) collect a variety of classified and proprietary information through observation, elicitation, and theft.

The following are intelligence agency examples of (Israel) information collection efforts:

An espionage operation run by the intelligence organization responsible for collecting scientific and technologic information for (Israel) paid a U.S. government employee to obtain U.S. classified military intelligence documents.

Several citizens of (Israel) were caught in the United States stealing sensitive technology used in manufacturing artillery gun tubes.

Agents of (Israel) allegedly stole design plans for a classified reconnaissance system from a U.S. company and gave them to a defense contractor from (Israel).

A company from (Israel) is suspectecd of surreptitiously monitoring a DOD telecommunications system to obtain classified information for (Israel) intelligence.

Citizens of (Israel) were investigated for allegations of passing advanced aerospace design technology to unauthorized scientists and researchers.

(Israel) is suspected of targeting U.S. avionics, missile telemetry and testing data, and aircraft communication systems for intelligence operations.

It has been determined that (Israel) targeted specialized software that is used to store data in friendly aircraft warning systems.

(Israel) has targeted information on advanced materials and coatings for collection. A (Israel) government agency allegedly obtained information regarding a chemical finish used on missile reentry vehicles from a U.S. person," the report said.

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