After U.S.-Israel relations continue to strengthen during President Reagan’s second term (1985-1989), the two nations sign an MOA that designates Israel as a “major non-NATO ally of the United States,” a status which Israel had long sought. Israel was now entitled to preferential treatment in bidding for Department of Defense contracts, as well as lower prices on U.S. defense equipment. This is the fourth strategic cooperation agreement signed between Israel and the Reagan administration in eight years. Source
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