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Report: Germany could halt Israeli submarine deal over settlements
Oct 30, 2011, 12:15 GMT
Berlin - Germany has threatened to suspend the delivery of a nuclear-capable submarine to Israel, in protest at the country's settlement policy, according to a media report released Sunday.
Government sources confirmed to Der Spiegel news magazine that Germany may withhold a Dolphin submarine commissioned by the Israeli military.
Israel already owns three strategically important Dolphin submarines, the weekly magazine reported, while two more are being built in the German harbour city of Kiel.
Earlier this year, the German government granted 135 million euros (191 million dollars) to help Israel buy a sixth Dolphin submarine - a deal that is now reportedly threatened by Berlin's objection to the country's settlement policy.
In September, Israel gave the go-ahead for the construction of 1,100 homes in Gilo, a part of Israeli-occupied East Jerusalem captured from Jordan in the 1967 Middle East War.
Israel regards Gilo as a Jewish suburb of Jerusalem, while Palestinians and the international community consider it an illegal settlement.
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