German Drone Upgrade Feels Heat Amid U.S. Spying Dispute

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Diplomatic tensions between Germany and the U.S. stoked by allegations of spying are spilling over into German government plans to upgrade the military’s drones, said lawmakers who sit on parliament’s Defense Committee.

Espionage activities that prompted Chancellor Angela Merkel’s government to expel a U.S. intelligence official yesterday compound German concerns over “black box” modules in U.S. bidder General Atomics Aeronautical Systems Inc.’s MQ-9 Reaper drones, said the lawmakers. That might help tip the balance in favor of awarding the contract to Israel Aerospace Industries’ Heron TP fliers.