Investigators are also looking at Israel's particular expertise in the illegal sale of US military technology to countries like China and India. Fraudulent end-user certificates produced by Defense Ministries in Israel and Turkey are all that is needed to divert military technology to other, less benign, consumers. The military-industrial-complex/neocon network is also well attested. Doug Feith has been associated with Northrup Grumman for years, while defense contractors fund many neocon-linked think tanks and "information" services. Feith, Perle and a number of other neocons have long had beneficial relationships with various Israeli defense contractors.
This from the World Policy Institute in 2002:
The real danger comes in Israel's habit of reverse engineering U.S. technology and selling to nations hostile to U.S. interests. Israel's client list includes Cambodia, Eritrea, Ethiopia, the South Lebanon Army, India, China, Burma and Zambia. The U.S. has most recently warmed up to India and is now in fact competing with Israel for arms sales there, but the other Israeli customers remain dubious at best.There's more at the link
Perhaps the most troubling of all is the Israeli/Chinese arms relationship. Israel is China's second largest supplier of arms. Coincidentally, the newest addition to the Chinese air force, the F-10 multi-role fighter, is an almost identical version of the Lavi (Lion). The Lavi was a joint Israeli-American design based upon the F-16 for manufacture in Israel, but financed mostly with American aid. Plagued by cost overruns, it was canceled in 1987, but not before the U.S. spent $1.5 billion on the project.
Last April, when the Navy EP-3E surveillance plane was forced to land in China after a Chinese F-8 fighter flew into its propeller, photos show Israeli built Python 3 missiles under the fighter's wings.
If Israeli weapons sales to China induce misgivings, including the most recent U.S. blocked sale of Israel's Phalcon airborne radar, the beneficiaries of Chinese arms transfers of Israeli-American technology are even more disturbing. In 1996, as disclosed in the UN Register of Conventional Arms, China sold over 100 missiles and launchers to Iran, along with a handful of combat aircraft and warships. Even worse, in 1997 the New York Daily News reported that Iraq had deployed Israeli-developed, Chinese PL-8 missiles in the no-fly zones, endangering American pilots.
Americans deserve to know where their money is being spent, and how money allocated for friends and technology shared with friends can all too easily end up in the wrong hands, threatening all parties involved. At a minimum, discussions on a new security framework for the Middle East should include plans to monitor and restrict Israeli transfers of U.S.-origin military equipment to potential adversaries. Otherwise, this deadly technology could come back to haunt U.S. and Israeli forces in future conflicts.
(thnx Miguel for the article)