Saudi Arabia will start an aircraft industry by assembling British Typhoon jets and fabricating some parts (http://www.imra.org.il/ -- Independent Media Research & Analysis).
Iran has its own, advanced military industry. Jordan has started one. Countries that get these industrial newcomers started jeopardize future business and influence in restraining their bellicosity.
The U.S. ties U.S. military aid to Israeli purchases of U.S. military products. That way, Israel forfeits some of its own Army purchases. Israel had to drop its own aircraft industry, despite technical success but with cost overruns. The U.S. also demands that Israel terminate valuable deals, though the U.S. does sell and even give arms to Israel’s main enemies. Keeping Israel dependent, the U.S. periodically threatens and does withhold certain equipment from Israel.
U.S. foreign aid often is a cover for U.S. subsidy, contradicting the U.S. pretense of favoring free trade. Israel remains hooked on its foreign aid, not that it remains a major part of Israel’s budget, but subsidy has that corrupting effect.
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