Israel, Germany deny submarine deal reports (Roundup)

Jul 23, 2010, 14:42 GMT

Tel Aviv - Israel and Germany denied reports Friday that the two countries were negotiating over the sale of a sixth German-made submarine with financial support from Berlin.

'As a result of various reports in the media, the defence ministry wishes to clarify that no negotiations exist on the purchase of another submarine between the government of Israel and the government of Germany,' an Israeli statement said.

'Hence also the issue of (financial) assistance in purchasing one is irrelevant,' the ministry added.

The US journal Defense News reported in its latest edition that the government of German Chancellor Angela Merkel had rejected an Israeli request to buy a sixth naval submarine from Germany at a price subsidized for up to one-third of the normal cost.

The journal said the request also included two warships and torpedoes.

It said the rejection was conveyed to an Israeli delegation in Berlin on July 7, after a year of negotiations.

It quoted Israeli defence officials, including the defence ministry's director-general, Udi Shani, as confirming the request and as expressing understanding for its rejection because of Germany's economic troubles, but also disappointment.

Israel already has three Dolphin submarines, while another two are on order from a German shipyard, greatly subsidized by the German government.

In Berlin, Merkel's spokesman Ulrich Wilhelm told reporters that no 'concrete negotiations' over a sixth submarine had been taking place, and that no financial assistance had been agreed. Wilhelm would not rule out that the government would talk with Israel on the issue.

Germany, along with other European governments, has expressed strong criticism of Israel's naval blockade of Gaza. The sale of submarines has been criticised because of their potential use to carry nuclear weapons.