Conflict Studies Research Centre

Middle East Series 05/43

Cooperation in the Israeli-Turkish Defence Industry

Eugene Kogan

Key Points

`It appears that the Turkish government selected Israel Military Industries, the official Israeli upgrade company in 2000 as part of efforts to further develop its strategic ties with Israel … If we remember that Turkey in the first place received the M-60 tanks from the US for free, it was not a fair decision to go for a sole-source deal with the Israelis.´74 

In other words, the US officials were very disappointed with the Turkish government’s decision. In addition, the US has put pressure on the Turkish government to back off from this decision. In March 2002 IMI finally won the contract to upgrade the M-60 tank, beating several American companies, which were backed by heavy pressure on the Turkish government from the US administration. Throughout the negotiations, American companies and the US administration exerted pressure on Turkey to purchase American tanks. In response, Turkey pressed Israel to lower its prices, and IMI eventually agreed to cut the price from $US1 billion to $US700 million.75 

Prime Minister Ariel Sharon has permitted 800 Turkish construction workers to work in Israel as part of IMI’s deal to upgrade the M-60 tanks. Under the military agreement that includes mutual procurement, the money that workers earn and send home will be deducted from the sum that Israel is obliged to spend in Turkey.

On the UAV contract, The contract called for the payload to be made by a local firm, and the state-owned Aselsan got the job. SSM asked the two bidders to grant warranties for the payload Aselsan will develop. According to the official, General Atomics refused to take technical and financial responsibility for a critical part that would be developed by a local company. The Israeli team agreed to it.76 Undoubtedly, IMI and Elbit Systems work together with Aselsan on the M-60 upgrade and IMI and Aselsan’s work on integration of the dispensers on the helicopters helped both sides to get to know each other and assess each other's weaknesses and strengths. As a result, IAI and Elbit Systems were ready to grant warranties to Aselsan. However, it can also be said that quite often the Israeli defence companies are ready to take a risk with the local manufacturer and, as a result, win the tender.

under the auspices of Shimon Peres, who succeeded Rabin after Rabin was assassinated in December 1995. They provide for joint air and naval exercises, access to port facilities and the opportunity for the Israeli air force to train over the Anatolian plateau. 

a delegation of Turkish Air Force pilots have flown Israel’s Lavi prototype fighter to test a fire control radar system developed by Elta.56 A squadron of Turkish F-16s was in Israel in June 1998 to receive training on testing grounds jointly run by the Israeli Air Force and the defence company Rafael. The range included various types of air defence systems that Israel has acquired to duplicate enemy tactics to shoot down aircraft.

in 1997 Turkey and Israel, in a noteworthy development, had initiated a large-scale assessment project to evaluate threats against both countries, in an effort to prepare for and initiate joint measures in the event of future instability in the Middle East.

Turkey and Israel are the strongest, most reliable US allies in the Middle East and their partnership benefits US strategic interests

On 1 May 2005 Ehud Olmert, Israel’s Deputy Prime Minister and Minister of Trade and Industry and Sami Guclu, Turkey’s Minister of Agriculture and Villages signed a bilateral industrial research and development agreement, covering high-tech, electronics, space, agriculture and biotechnology.77 It is important to underline three important aspects of the agreement: high-tech, electronics and space, because they point to the direction of further co-operation between the two countries. As far back as July 2002 officials from both countries said they had renewed talks on the estimated $US250 million spy satellite programme suspended in April 2001 in response to the Turkish government's wide austerity measures aimed at containing Ankara’s economic crisis. 

The Turkish defence official noted that Ankara had requested information regarding the extent to which Israel’s MoD would be willing to share technologies associated with the Ofeq-5 satellite.78 The Turkish government consider the space issue to be of great importance.

Israel agreed to buy 50 million cubic metres of water from Turkey per year for the next twenty years. Israeli Prime Minister Ariel Sharon and Turkey’s Minister of Energy Zeki Cakan reached the deal at a meeting in Jerusalem. A joint statement released after the talks said that, `Although the final price has not been reached, a joint committee was set up to discuss and finalise the issue of water transportation from Turkey to Israel´. In the barren Middle East, water is a strategic issue as well as one of survival. In early March 2004 Israel signed an agreement to buy water from Turkey.