Abstract:
In October 1984, an Egyptian delegation signed an agreement with Argentina in Buenos Aires to begin development of the 3.2 billion Condor-2. The delegation secretly represented Iraq, which contracted to fund much of the project, that the Egyptians and Iraqis call the "Badr-2000." Messerschmidt (MBB) was the primary contractor for the project and provided design and planning help, as well as "simulation laboratories and mission-control units based on advanced American computers." North Korea and other Soviet-bloc countries are reported to have given assistance as well. The European Condor technicians are also thought to have helped Iraq upgrade its Scud-B missiles for use against Iran.

In July 1988, United States intelligence sources said that the ultimate aim of the $3.2 billion Condor-2 project is to provide Egypt and Iraq each with 200 missiles comparable to the Pershing II, and enable the two countries to produce such missiles indigenously. Argentina is also to receive "hundreds of millions" through the sale of solid-fuel engines to their partners, as well as a share of the missiles which would enable them to strike at the Falkland Islands from the mainland. The Condor-2 is planned to incorporate a French-built advanced inertial guidance system, and will consist of two stages. Intelligence sources expect it to be tested in late 1988.