Israel is looking for a US defense company as a partner to produce the Arrow anti-missile system for export. Since the US provided 60% of the $2 billion that paid for Arrow, the US has a veto power over any exports, but seems disposed to allow them to key allies. US defense contractors are interested in Arrow as it would provide them with more technology that might help in the US missile defense program, and it is expected that Arrow could become a major export item for many countries. The Israelis plan to deploy the first battery of Arrows at an air base in the center of the country on 15 March, with a second battery (in the north) next year and a third (in the south) in 2002. Construction of the northern base is being delayed by a legal challenge by local residents who do not want it in their neighborhood. --Stephen V Cole