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U.S. SHUTS DOWN JOINT ISRAELI PROJECTS

WASHINGTON [MENL] -- The Defense Department has been quietly suspending joint military projects with Israel.

U.S. government sources said several key projects with Israel have been suspended or significantly slowed down in 2005. They said the slowdown has been gradual and could soon affect major projects, such as the Arrow-2 missile defense program.

"It's all about China," a government source said. "The Pentagon, with full support of the administration, does not want to deal with Israeli products or technology that could be sent to China."

One casualty of the Pentagon decision has been the Mobile Tactical High Energy Laser project. The U.S. Army has refused to request funding for the joint Israeli-U.S. program for fiscal 2006 despite high interest in a laser system to defend against missiles, rockets and mortars.

NOTE: The above is not the full item.

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