Being a loyal supplier of naval equipment for many years, Germany is considered a safe choice for Israel. Germany already provided two Dolphin class submarines to Israel at no cost and waived part of the cost for the remaining three. The reason for the generous German gesture is the understanding that claims for increased compensation for remaining survivors of the holocaust will be deferred.
Source: http://defense-update.com/features/2010/january/israelnavy190110.html
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