U.S. Pressure to Affect Israel’s Lavi Vote

The U.S. State Department’s surprise public call for Israel to scrap its controversial Lavi jet fighter program will definitely influence a key Cabinet vote on the project expected this weekend, officials here predicted Wednesday. But they said the final decision remains too close to call.

Given Washington’s nearly total funding of the Lavi project to date, Israeli officials were quick to acknowledge the Reagan Administration’s right to speak out on the project. But there was an undertone of annoyance in their remarks at what was seen as the particularly heavy-handed manner in which the Americans did so.

“I was sorry that it had to come to this,” commented a Knesset (Parliament) member who favors canceling the program. “I would prefer that these decisions would be taken without these reminders.”

In an unusual public statement on Tuesday, State Department spokesman Charles Redman said: “Given the budgetary realities we and Israel face, we believe a decision by Israel to terminate the Lavi would be in the best interests of both our countries.”

Added Redman: “Both the United States and Israel estimate production costs of a magnitude which could not be funded within our security assistance program to Israel without crowding out other important projects.”

The announcement was featured under front-page banner headlines in most of the major Israeli newspapers Wednesday.

In addition, Israeli officials confirmed that Secretary of State George P. Shultz had sent personal messages to Prime Minister Yitzhak Shamir, Foreign Minister Shimon Peres, Defense Minister Yitzhak Rabin, Finance Minister Moshe Nissim and Economics Minister Gad Yaacobi urging that the multibillion-dollar Lavi project be cancelled.

Long Meeting Scheduled

A spokesman for Shamir said Wednesday that the Cabinet has scheduled a lengthy meeting on the program for this Sunday and added that the prime minister “hopes” a final decision will be made at that time.

Shamir stressed in an Israeli television interview broadcast Wednesday night that whenever it is made, “the decision will be Israeli.”

Asked by Israel radio earlier Wednesday whether the American message would be weighed by the Cabinet, Peres replied: “Obviously, yes.”

Peres has been a key proponent of continuing the project, which he sees as important to national prestige as well as to security and the economy. However, he told state radio, “it’s inconceivable the government would ignore the decision of the defense minister and general staff in such a serious matter.”

Rabin has said that unless funds are found elsewhere to supplement America’s $1.8-billion annual military aid package, the Lavi will have to be dropped. And a reputed majority of senior military officers are opposed to continuing the project for fear of starving other vital programs of needed money.

About $1.5 billion has been spent developing the Lavi so far, and two prototypes are completing a program of test flights. But according to the latest estimates, it is now expected that the Lavi will cost Israel about $2.5 billion more than it would cost to buy a comparable fleet of American-made F-16 jets.

Finance Minister Nissim has threatened privately to resign if the Cabinet approves continuation of the Lavi, according to government sources. He warned earlier this week that to build the plane would require a $2,000 tax increase on every Israeli family, an increase they are ill able to afford.

Nevertheless, an extraordinary joint meeting of the Knesset’s finance and foreign affairs committees last Sunday voted 22-6 in favor of continuing the project. Three lawmakers abstained in the non-binding ballot, and about one third of the committee members were absent.