Few allies are more strategically and economically dependent on the US. No ally that annually receives large foreign aid subsidies spies actively on its patron. Further, few close allies have conducted both economic and traditional strategic espionage against the US. Wholly apart from espionage, no US ally has more frequently violated contractual obligations and laws relating to US national security. The various categories of illegal behaviour include the fraudulent diversion of US foreign aid, the illicit re-transfer of sensitive US technologies to third parties, and the violation of end-use restrictions on US military items transferred to Israel.

Amid espionage scandals from Johnathan Pollard to Franklin Lawrence, Israel’s motivations appear to be threefold. First, to strengthen its industrial base, to sell/trade the information to/with other countries (especially China) for profit, and to sell/trade the information to/with other countries to develop favourable political ties and alternative sources of arms and intelligence.

Key Judgement 1. The historical constancy of Israeli economic espionage will likely render the country a strategic liability of the US.

Key Judgement 2. It is highly likely that Israel will rebuke any allegations of espionage in the US.

Key Judgement 3. Israeli espionage operations are unlikely to disrupt US-Israeli intelligence cooperation.