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Taken from http://www.defensenews.com/story/defens ... /21184117/11:30 a.m. EST January 4, 2015
TEL AVIV — Israel has asked Washington to preserve cut-rate costs and generous terms of a proposed package of up to six V-22 tilt-rotor aircraft pending an ongoing reassessment of procurement priorities driven by last summer's Gaza war.
Proposed prices, delivery schedules and deferred payment allowances guaranteed in a Pentagon-crafted letter of offer and acceptance (LOA) expired Dec. 10.
Israel didn't sign the LOA, but now wants to freeze its terms, which reduced the estimated $1.3 billion package by nearly half, expedited deliveries and allowed deferred payment through low-interest commercial loans essentially secured by the promise of future-year military aid.
In interviews here, officials said they appreciated the extraordinarily generous US offer and the personal support of Defense Secretary Chuck Hagel and senior US Navy and Marine Corps leaders.
As of Jan. 2, the Pentagon had not responded to the Defense Ministry's written request to keep terms of the LOA on ice pending the post-war reassessment of investment priorities.
Long Arm Vs. Ground Maneuvering
The proposed V-22 package is not the only program to be shelved, stretched or staggered due to the ongoing reassessment, which defense and industry sources note is is being conducted under conditions of budgetary limbo at home and rapidly escalating regional threats.
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