U.S. Accuses Israel Of Tech Smuggling Plot WOLF BLITZER Special to The Jewish News W ashington — The U.S. Justice Depart- ment has accused Israel of participating in a conspiracy to smuggle re- stricted technology for the manufacture of tank cannon barrels out of the United States. The Israeli Embassy in Washington has flatly denied the allegation. "We are confi- dent that any review will establish that Israel Military Industries (IMI) and the Government of Israel and its employees had acted in full compliance with U.S. laws and regulations:' Embassy spokesman Yossi Gal said. The Pentagon, so far, has not yet issued any formal statement on the dispute, which resurfaced when the Justice Department an- nounced that a Connecticut company, NAPCO Inc., had agreed to pay $750,000 in fines for violating U.S. export law by smuggling equipment and technology to Israel for manufacture of the 120 mm tank barrel cannons. The guilty plea followed a two-year investigation by the Justice Department, the Customs Service and other U.S. law-enforcement agencies. The issue was first publi- cized when federal agents raided NAPCO's headquar- ters in 1985. At that time, Israel also denied any wrong- doing, insisting that NAPCO was solely responsible for ob- taining the required export licenses. A year earlier, in 1984, NAPCO had signed a con- tract with IMI to construct a factory in Israel that would use a new and highly sophis- ticated technology to chromeplate the interiors of 120 mm cannon barrels "without having first ob- tained a validated export license from the United States Department of Com- merce," according to court papers. The new technology enables the tank barrels to be produced faster, and at less cost, than older processes. In 1984, the papers said, Israel had made plans with NAPCO to build a in Israel at a cost of approximately $1.9 million. NAPCO's profit was projected to be between $150,000 to $200,000. The contract stipulated that NAPCO was responsible for obtaining "whatever licenses were necessary for the expor- tation of technology and equipment to Israel." The court papers said that NAP- CO subsequently informed IMI that no export licenses were required. But the court documents also said that around the time that the contract was signed, IMI advised NAPCO that the facility would in fact be used to chromeplate (the interior of) 120 mm cannons. "Because IMI's development of this cannon was secret, however, IMI asked NAPCO not to refer to the cannon as such but instead to refer to the 120 mm cannon as a `hydraulic cylinder,' " the papers said. "Thus, in all communications between Israel and NAPCO concern- ing the facility, the 120 can- non was referred to as a 'hyn- draulic cylinder? " Israeli officials insisted that they had accurately informed the Pentagon about the pro- posed factory. Indeed, they said that they had written documentation to prove that they had not misled the Defense Department, al- though they refused to make it available. Israeli officials said they expect the Pentagon eventually to back up the Israeli version. The Washington Post quoted a U.S. Justice Department of- ficial as saying that the U.S. foreign aid program financed construction of a facility in Israel that is now using smuggled American technology. The official added that the papers filed in court make it clear that Israel did in fact try to hide the purpose of the plant when seeking U.S. government financing for the project. LUGGAGE OUTLET For the finest in Luggage - Business Cases - Small Leather Gifts - Handbags And Unique Gifts - ALL AT DISCOUNT PRICES NOW IN NOVI NOVI WEST OAKS MALL (Directly across from Twelve-Oaks Mall) Bet. Builder's Square And Mainstreet 347-0930 LIVONIA UTICA Montgomery Wards Shelby Corners Wonderland Mall 422-3909 731-7870 BERKLEY 3116 W. 12 Mile Rd. Berkley, MI (Between Greenfield And Coolidge) 545-7393 SOUTHGATE 18617 Eureka 283-7750 Retail 11;;9eeCIII SALE PRICE $2850.00 Retail E781:1;CUE SALE PRICE $1875.00 Retail Wolpe Warning On Ethiopia Sanctions Washington (JTA) — The chairman of the House foreign affairs subcommittee on Africa has warned that proposed congressional sanc- tions against Ethiopia could hurt the ability of the United States to help Jews in Ethiopia. Sanctions "if imposed, might very well jeopardize the access and network of support that have been created," Rep. Howard Wolpe (D-Mich.) told the National Council of Jewish Women last week. 72geecCia SALE PRICE $1800.00 JEWELERS INC. 32940 MIDDLEBELT RD., FARMINGTON HILLS, MICHIGAN 48018, OR 855-1730