In the late 1980s, Kentron sold the designs for its ARD-10 loitering drone to IAI. IAI then used those designs to develop the Harpy which was first tested in 1989.[1]
In 2004, the Harpy became the focus of the effort by the United States to restrict arms transfers and the sales of advanced military technology to China. Sold to China in 1994 for around US$55 million, the loitering munitions were returned to Israel in 2004 under contract to be upgraded. The United States, fearing that the Harpy would pose a threat to Taiwanese and American forces in the case of a war with China,[2] demanded that Israel seize the loitering munitions and nullify the contract. According to Israel, the Harpy is an indigenously designed loitering munition, and does not contain any US-produced sub-systems.[3] In 2005, the loitering munitions were returned to China without being upgraded. This incident chilled relations between the United States and Israel, with Israel being suspended from its status as Security Cooperative Participant in the Joint Strike Fighter program. However, on 6 November 2005, Israel stated that it has been re-admitted into the program.[4]
