While restrictive German export regulations theoretically bar the sale of weapons to crisis areas, an exception was made in the case of Israel. But with the excuse of Germany‘s “special responsibility” to Israel the German government reinterpreted its arms export guidelines in Israel’s favour .
In the 1970’s Israel depended on a fleet German manufactured Gal-class Type 206A coastal submarine. Germany provided Israel with three Dolphin class submarines after the first Gulf War. Two of the subs were supplied free of charge. The third submarine was purchased at the low cost of $270 (original price $500million) . In July 2006, Israel placed a contract for two additional Dolphin submarines with an option on a third. Some reports suggest that the torpedo hatches on the Dolphin submarines acquired by Israel have been widened to accommodate nuclear missiles .
Additionally, Israel is expected to purchase over 100 Dingo II APVs for approximately $100 million. The multi-purpose Dingo II is an air-transportable, armoured, mine-proof troop transport vehicle, designed for high mobility in any type of terrain. It is manufactured by an American firm under license from the German Krauss Maffei Wegmann Company. (First Germany did not allow the transfer of these vehicles due to being used in occupied territory, however they later agreed on sending them giving the reason as to them being „for test purposes“.)