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WORLD : Israel Tests U.S.-Backed Rocket

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<i> From Times wire services</i>

In a dramatic response to Iraqi threats, Israel today launched the first test of the U.S.-financed Arrow missile that is being developed to combat short-range ballistic missiles.

Israel radio said the missile was launched at 3:40 p.m. at an undisclosed location. It left a short trail of fire and a small ring of smoke, said a radio reporter.

The radio report said the launch was a direct response to Iraqi President Saddam Hussein’s threat on Wednesday to launch a missile attack on Israel. Saddam made the threat after alleging that Israeli warplanes had been painted with American colors in preparation for an attack on Iraq.

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Today’s missile launching was attended by officials from Israel Aircraft Industries, which is developing the Arrow, and by American representatives, the report said.

Washington provided 80% of the $158-million cost of the first phase of the project.

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