TEL AVIV, Israel, Oct. 12 (UPI) -- Israeli defense officials say the Jewish state is reviewing the sale of advanced weapons systems to longtime ally Turkey after Ankara's Islamic government, its eyes on the Muslim world, canceled joint military exercises scheduled for later this month.
A decision to cut off military sales to Turkey would be a major blow to Israel's defense industry. It is the most sophisticated in the region but depends on exports to keep production lines running to equip Israel's armed forces.
The growing strains between the two countries, stemming largely from Ankara's increasing criticism of Israel's occupation of Palestinian territory, have imperiled a strategic alliance forged in 1996 that cemented military and intelligence ties.
Despite the mounting tension, the two countries have continued to do business over the last year even as Turkey has sought to project itself as a regional power and a defender of the Muslim world.
Israel is one of Turkey's main military suppliers and over the years has refurbished a wide range of Turkish equipment, and sold Ankara all manner of electronic equipment in which Israel's defense industry specializes.
In December 2008, subsidiaries of the state-owned Israel Aerospace Industries, flagship of the country's defense sector, and Elbit Systems signed a $140 million contract to provide the Turkish air force with targeting pods.
Israel Military Industries recently completed a $700 million contract signed several years ago to upgrade Turkey's fleet of 900 aging M60 Patton main battle tanks.
Israel Aerospace Industries has also provided Turkey with advanced long-range Heron unmanned aerial drones.
Even so, according to The Jerusalem Post, Israel "was not invited in September to present a proposal for a missile defense system that Turkey is interested in buying, though it asked U.S., Chinese and Russian companies to bid."
The Post quoted Defense Ministry officials as saying that several Turkish requests for military systems that were being considered by the ministry's Foreign Defense Assistance and Defense Export Organization, known as Sibat, would now be reviewed in light of the strained diplomatic relations with Ankara.
For now, the Israeli government has sought to play down the chill in relations.
Deputy Foreign Minister Danny Ayalon said Sunday: "Turkey is very important, and our relationship is very strategic. Turkey is very important for the stability and promotion of peace in the Middle East."
Relations between the two countries have been deteriorating since Turkey's Islamic-oriented Justice and Development Party, or AKP, took power in 2002 under the leadership of charismatic Prime Minister Recep Tayyip Erdogan.
They nosedived sharply Jan. 29 when Erdogan stormed out of a debate on Israel's invasion of the Gaza Strip in December 2008 at the World Economic Forum in Davos, Switzerland.
Erdogan accused Israel of "barbarian acts" during the 22-day Gaza war in which some 1,400 Palestinians, most of them civilians, were killed by vastly superior Israeli forces.
Erdogan yelled at Israeli President Shimon Peres: "You know well how to kill people."
Then on Sunday, Ankara announced the postponement of the international section of the Anatolian Eagle air exercises, which have been held annually in central Turkey with Israel, the United States and NATO countries since 2001.
Erdogan has been under growing domestic pressure to exclude Israel from the maneuvers while its warplanes continue to attack Gaza.
The United States and Italy have since pulled out of the exercises to protest Ankara's decision.
Under the 1996 alliance between the Jewish state and Turkey, a Muslim country, albeit ideologically secular, Turkey became Israel's best friend in the Muslim world.
The alliance, one of the most significant in the Middle East, stemmed from a recognition of mutual security interests. Both countries were isolated regionally and at that time shared common foes in Syria, Iran and Iraq.
But all that changed when the AKP rose to power. In large part, this was due to the reduced influence of Turkey's military, a key driver behind the 1996 alliance and which has wielded immense political power for the last century.
