Israel Aircraft Industries (IAI) and Lockheed Martin are discussing the possibility of producing a special version of the Arrow tactical anti-ballistic missile system in the USA for possible use by the US Army and for export customers.

The talks, which began recently, have concentrated on defining the US Army's requirements for a system such as the Arrow.

The meetings were attended by representatives from the MLM division of IAI, responsible for Arrow development, and Lockheed Martin's Electronics & Missiles division of Orlando, Florida, which builds the weapon's terminal radar seeker.

Sources related to the discussions say there is mutual interest in co-operation on the Arrow, but deny that the initiative is connected to the problems with the Theatre High Altitude Air Defense anti-ballistic missile programme being pursued by the US company.

Interest in anti-ballistic missiles is growing rapidly as the proliferation of long-range missile developments continue in the Middle East and Asia. Most recently, Iran caused alarm in the USA and Israel when it launched its first Shahab-3 ballistic missile prototype

Israeli intelligence assessments estimate that, within a year, Iran will be capable of launching the weapon to its full 1,300km (810 miles) range. On 22 July, the prototype, based on North Korean No-Dong missile technology, was launched to a range of 800km.

Russia has also helped in the development of the missile and Israeli sources say that Iran is already working on a 2,000km-range missile, the Shahab-4. As a result the USA has imposed sanctions on seven Russian companies and research institutes because of missile technology transfer concerns.

Turkey has expressed interest in the Arrow because of the proximity of several neighbours armed with ballistic missile technology. The country, already a large customer for Israeli weapons, was briefed on the system by Israel recently, following US approval. The USA is funding most of the development of the Arrow and its approval is needed before briefing a third party about the system.

Lockheed Martin has increased its co-operation with Israel on weapon systems. The Rafael Python-4 air- to-air missile may be manufactured by Lockheed Martin now that the US company has agreed to market the missile to existing and future F-16 clients. It produces Rafael's AGM-142 Popeye stand-off missile locally.

Source: Flight International