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  Monday 11 March 2002
Israel To Update Tanks For Turkey
by Metehan Demir
Source: The Jerusalem Post

March 11 2002 - Turkey has awarded TAAS-Israel Industries the tender for modernizing 170 of its US-made M-60 tanks, ending a years-long dilemma over the fate of the aging weapons. The contract, which includes the transfer of technology to develop third-generation tanks, is worth some $668 million.

In announcing the deal after a lengthy meeting on Friday, Turkey's Prime Minister Bulent Ecevit said his country chose the Israeli company because of the price it offered and its ability to conclude the project on time.

Sources in Ankara told the Post Ecevit was concerned about harsh reactions from Muslim countries should an Israeli firm win the tender. Senior defense and military officials, they said, convinced Ecevit that the upgrade is a pressing need of the Turkish Armed Forces. Any further delay in the decision would directly damage the military's modernization plans, which were already hampered during the country's severe economic crisis, the officials added.

Negotiations were interrupted several times during the past three years over huge gaps between Israeli and Turkish pricing of the deal. At first, Ankara had started negotiations for the project with IMI-TAAS without opening a tender. Two companies - Turkish FNSS-Nurol and US General Dynamics - were later included, but were eliminated by the Turkish authorities.

Prime Minister Ariel Sharon, Defense Minister Binyamin Ben-Eliezer, and IDF Chief of General Staff Lt.-Gen. Shaul Mofaz played key roles in the tender, intensively lobbying for the bid during visits to Turkey last year.

Turkey decided to restart negotiations with IMI-TAAS over the tank modernization deal two months ago, after having asked it to lower its price to from $1 billion to $550-650 million.

The tanks will be modernized in a Turkish military factory in the central Anatolian town of Kayseri; subcontracted Turkish firms Aselsan and MKE will provide local input. The engine thrust, fire, and maneuverability of the tanks will be renovated with computerized systems.

The tender is the third Turkish modernization program won by Israel. IAI won a project to upgrade F-4 and F-5 fighter jets, and TAAS won a $110m. tender last month to equip Turkish helicopters with electronic warfare systems.


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