The US sells lots of weapons to a lot of people. Many times we "black box" technology so they can't see how it works or limit it's capabilities. It's only natural that even our closest allies circumvent these measures. So good for the Aussies! At least we can trust them not to sell the secrets to the Russians or Chinese. Not so for the Israelis though...

Isn't it solidly against the interests of the Israelis to sell secrets to the Russians or Chinese?

Depends. Here is a case where it wasn't:

-Israelis recruit a DOD employee(Jonathan Pollard) to spy for them during the Cold War.

-He tells them how to crack our naval codes.

-They sell the codes to the Russians in exchange for Jewish Ukrainian refugees.

Israel is a democracy and the Arabs in Israel are reproducing faster than the Jews in Israel. So if they want to continue to be "The Jewish State" they need immigrants to keep the majority. So in that case is was in their interest.

Great story from the New Yorker about it: http://www.freerepublic.com/focus/fr/576453/posts

Thanks for that link.