Here is a transcript of a ques- A: Extensive technical in- tion-and-answer session with Mr. struction and training in system Broder: operation and maintenance. This Q: The disintegration of the So- is the unique component we pro- viet Union made Eastern bloc vide. It displays a willingness to systems readily accessible at off- allow the client to share our tech- the-rack prices, and impelled nology and cumulative experi- Western countries to sell more ence. aggressively. How did this affect Q: How extensive are IAI's IAI? business relations with the Unit- A: It's true that there are new ed States, and are there signs the difficulties. However, we also are volume of business is decreasing? benefiting from new markets. A: The United States is our The peace process opened the for- largest client. There is a tradi- mer Third World, or bloc of coun- tional tension between IAI and tries that never did business with U.S. firms, but in the final analy- us. In addition, the process was sis the U.S. is an open capitalist also conducive to opening Euro- market which is so vast that you pean markets closed because of really don't need more than a embargos, such as Britain and small fraction. France. The general trend today Q: What military and civilian is toward more openness. Com- products does IAI sell to the Unit- petition is obviously greater and ed States? more aggressive, but I prefer the A: IAI is the only non-U.S. firm new situation over the old. that supplies the U.S. military Q: Do you still market with three products considered weapons under the slogan "IDF "major systems," or products battle proven" or are you more in- jointly developed with U.S. com- clined today to emphasize com- panies. We supply the U.S. mil- petitive prices? itary with the Hunter UAV (unmanned aerial vehicle, or pi- lotless plane). We have co-devel- oped the Arrow anti-ballistic missile with the United States. Two other products are the MLM-manufactured Night Tar- geting System and a mine-plow- er for tanks. (MLM is an IAI A: The best calling card we subsidiary). As for civilian products, our have is the fact that the system we want to sell is being used by Astar executive jet has been sold the IDF. The client knows that to companies in the United this is a mark of quality. One of States and we are currently the problems we face, not that I working on the Galaxy, an im- am complaining, is that we can- proved Astra. We also sell up- not market any system unless its grading services for Boeing and sale was approved by the IDF. MacDonnell Douglas jets and jet Sometimes, a system or sub-sys- engines. Q: Have orders from the IDF tem is being used by the IDF for five, six, even seven years before gone down? A: The IDF is our second we can export it. It's a qualitative edge the IDF has and is reluc- largest customer after the Unit- tant, for good reason, to compro- ed States. The market is un- doubtedly shrinking as a result mise. Q: That means you are mar- of a smaller defense budget in keting 7-year-old systems as real terms and consequently state-of-the-art, while in fact they there are constraints of smaller buying power. We do not develop are almost a decade old. A: That's a price we have to systems unless the IDF requests pay. But today's clients are picky them. Q: How much do you spend on and demand alterations and modifications for their needs. research and development? A: Our R&D is divided into two That's good for us because our rel- ative edge is in providing up- parts. Self-R&D is allocated from grading and modifications partly IAI's budget. Then there is client- because the system is several requested R&D, which is what years old, and we have the bene- we expend in terms of R&D for fit of experience in dealing with systems we export. This is a trib- ute of excellence from our clients it. Q: What do you offer the client that they trust our R&D for their in addition to the system as an needs. Overall, 30 percent of IAI's budget is for R&D. ❑ extra competitive edge? Orders in 1994 amounted to $1.46 billion. MEMOS Do you have an item for "Memos"? Please send it to Steve Stein at The Jewish News, 27676 Franklin, Southfield, MI 48034. A picture would be appreciated. It can be col- or or black-and-white, but it must be in focus. If you wish to have the picture re- turned, you must enclose a self-addressed, stamped envelope. chard 1111111/ Celebrate Spring in a New BMW Warm Lip to These Great Leasing Deals! 1995 BMW 325i $379* MO./30 MOS. Fully equipped including electric sunroof, ABS brakes, automatic transmission, power windows, power steering, power mirrors, dual airbags, alloy wheels and much, much more! 1995 BMW 525ia $469*mo./30 MOS. 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