Boeing has suspended discussions aimed at establishing a US production base for the Israel Aircraft Industries (IAI) Arrow anti-tactical ballistic missile until technology transfer matters are resolved.

Boeing, IAI and the Israeli defence ministry had been exploring possible Arrow co-production opportunities. Boeing has not revealed the issues involved, nor does it predict when they might be brought to some kind of resolution.

Israeli sources say Boeing's decision is driven by an unwillingness to invest in Arrow before knowing the new US administration's technology transfer policy, particularly in light of US objections to selling the Elta Green Pine radar - part of the Arrow system - to India.

Boeing says "it looks forward to continuing our positive relationship through a variety of opportunities." The US and Israel jointly funded Arrow development.

As a result of Boeing's decision, Israel is considering seeking Washington's approval to export Arrow without US support. Israeli sources say Japan and Turkey have expressed an interest.

Source: Flight International