Report says Germany could halt Israel submarine deal over settlements 31Oct11 October 31, 2011

Haaretz  -  30 October 2011

Germany has threatened to suspend the delivery of a nuclear-capable submarine to Israel, in protest at the country’s settlement policy, according to a media report released Sunday.

Government sources confirmed to Der Spiegel news magazine that Germany may withhold a Dolphin submarine commissioned by the Israeli military.

Israel already owns three strategically important Dolphin submarines, the weekly magazine reported, while two more are being built in the German harbor city of Kiel.

Earlier this year, the German government granted the equivalent of $191 million to help Israel buy a sixth Dolphin submarine – a deal that is now reportedly threatened by Berlin’s objection to the country’s settlement policy.

In September, Israel gave the go-ahead for the construction of 1,100 homes in Gilo, a part of Jerusalem that was captured from Jordan in the 1967 Six Day War.

The government regards Gilo as a Jewish suburb of Jerusalem, while Palestinians and most of the international community considers it an illegal settlement.

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