U.S. eyes potential $65 million bomb sale to Israel

By Jim Wolf

WASHINGTON (Reuters) - The Bush administration announced on Friday what would be the first officially disclosed sale of U.S. military equipment to Israel since the end of Israel's armed conflict with Lebanon in 2006.

In a notice to Congress, the Pentagon's Defense Security Cooperation Agency said Israel had requested as many as 3,500 MK-84 "general purpose" bombs, spares and repair parts plus U.S. government technical assistance in a deal worth up to $65 million if all options are exercised

General Dynamics Corp. would be the prime contractor. Such congressional notices are required by law for sales that meet certain thresholds, and Congress can block a proposed sale.

"Israel's strategic position makes it vital to United States' interests throughout the Middle East," the notice said.

It said U.S. policy has been to promote Middle East peace, support Israeli commitment to peace with its Arab neighbors, enhance regional stability and promote Israeli readiness and self-sufficiency.

"It is vital to the U.S. national interest to assist Israel in developing and maintaining a strong and ready self-defense capability," the Pentagon added.

The last notification of a proposed sale to Israel meeting public disclosure requirements occurred July 14, two days after the start of the 2006 Lebanon war, and involved a sale of JP-8 aviation jet fuel worth up to $210 million.

On January 29, the State Department said Israel "likely" violated an agreement with Washington in its use of U.S.-made cluster bombs during its war with Hezbollah guerrillas in Lebanon.

A U.S. investigation began after reports that three types of U.S.-origin cluster munitions were found in southern Lebanon and were responsible for civilian deaths. Israel has said it deployed such arms in line with international law.

In a separate notice to Congress on Friday, the Pentagon disclosed a proposed sale to Turkey of MK-54 torpedoes and related equipment valued at up to $105 million.