Israelpolitik by Lorena De Vita

Author:Lorena De Vita [Vita, Lorena De]
Language: eng
Format: epub
Tags: History, Europe, Germany, Middle East, Israel & Palestine, Political Science, International Relations, Diplomacy
ISBN: 9781526162540
Google: T_iAzgEACAAJ
Publisher: Manchester University Press
Published: 2022-01-25T01:00:51+00:00

The Finnish connection

As revolutionary zeal swept across the Arab Middle East and political uncertainty spread throughout most Western capitals, on the quiet banks of the Rhine five men had gathered in the elegant halls of the Hotel Königshof, in Bonn, to talk business.72 The five had different backgrounds and goals, but they all shared a keen interest in the weapons procurement industry. The question on the table was whether the Finnish firm Tampella would be willing to negotiate a deal to provide the West German armed forces with grenade launchers and ammunition. With the signing of the Paris Treaties in 1954, the three Western powers had invited the Federal Republic to join NATO and allowed it to start the process of rearmament. Chancellor Adenauer promised that West Germany would reach a 500,000-man strong army within three years – a very ambitious goal, which was further complicated by a lack of equipment. The Defence Ministry soon turned to other countries in its search for tanks, aircraft, and warships.73 By 1957, established French ammunition supplies had become expensive, while equivalent Finnish products promised to be cheaper and just as good. But there was a problem. A 1948 peace agreement signed between Finland and the Soviet Union committed the Helsinki government to hindering any future German rearmament plans. A Finnish–West German arms deal risked seriously irking the Soviets, with potentially disastrous consequences. How could the five avoid upsetting the Soviets and at the same time seal the deal between the Finnish firm and the West German Defence Ministry? Shlomo Zabludowicz suggested a creative answer to this thorny question.

Polish-born businessman Zabludowicz had survived five years in Auschwitz, losing most members of his family in the Holocaust. After the camp’s liberation he relocated to Finland, from where he supported the Jewish Agency’s arms procurement efforts as the first Arab–Israeli war was in the offing.74 Now based in Tampere, Zabludowicz had made his name as a resourceful arms dealer. Among other activities, he had founded Soltam Ltd, a company jointly owned by the Luxembourg-based company Salgat, which in turn belonged to Tempella, and by the Israeli-based firm Soleh Boneh. The solution sketched by Zabludowicz foresaw that Tempella would order the grenade launchers and ammunition via Salgat, and that these would be produced in Israel by Soleh Boneh based on the original Finnish design.

Involving the Luxembourg- and Israel-based firms in the project was a brilliant solution – one that shielded the Finnish company and government from any possible Soviet accusation of working for the rearmament of the West German state in breach of the 1948 peace agreement. The fact that the Finnish representation in the Federal Republic at that time was also based in Cologne, just like the Israeli Mission, may have also smoothed the transaction logistics.75 And so, in October 1958, the deal was finalised, following Zabludowicz’s design. Having concluded this DM12 million transaction, the Bundeswehr authorities concluded that they would not need to embark on any more grenade launcher purchases for at least a decade.

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