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IMMEDIATE RELEASE

Release No: 071-00
February 16, 2000

POSSIBLE FOREIGN MILITARY SALE TO ISRAEL ANNOUNCED

The Government of Israel (GOI) has requested a possible sale for defense services for the construction of two infantry training bases and a storage and logistics base for a reserve armored division. The U.S. Army Corps of Engineers will provide planning, design, acquisition, construction administration, and management services for this program. The estimated cost is $200 million.

The construction of the proposed bases is part of United States assistance to Israel in support of the Wye River Memorandum (the "Wye River Accords"), a Middle East Peace agreement signed on Oct. 23, 1998. The implementation of the Wye River Accords necessitates that certain Israeli Defense Forces military facilities, along with their respective units, be relocated from occupied territory in the West Bank. By providing military facilities in Israel, the proposed sale of defense construction services will assist the GOI in relocating military units from occupied territory. As the proposed sale will provide only facilities for relocating military units, it should have no adverse impact on the regional military balance.

This proposed sale will contribute to the foreign policy and national security of the United States by helping to improve the security of a friendly country which has been and continues to be an important force for political stability and economic progress in the Middle East.

The military facilities to be constructed under the terms of the proposed sale are needed to provide facilities for military units being relocated under the terms of the Wye Rive Accords. The proposed sale partially implements United States commitments made to Israel in connection with the Wye River Accords. The identity and location of the prime or principal contractor(s) have not been determined. There are no offset agreements proposed in connection with this potential sale.

Implementation of this proposed sale will require the assignment of 20 U.S. Government representatives to Israel for three years. The number of contractor representative required in-country to support the program will be determined after prime or principal contractor(s) has been determined.

There will be no adverse impact on U.S. defense readiness as a result of this proposed sale.