US warns Israel against arms sales to China

US warns Israel against arms sales to China:

Jerusalem, June 22 (PTI) Concerned over a possible escalation between China and Taiwan, the United States has warned Israel against future arms sales to Beijing, particularly weapons that could inhibit US military action in the region.

With China and Israel reportedly resuming the defence cooperation after settling the Phalcon dispute, Washington has contended that arms sales to Beijing could come up against American opposition, especially if the weapons sold are capable of inhibiting US military actions in the region, English daily `Ha’aretz’ reported.

Earlier in March this year, Israel agreed to pay China 350 million dollars in compensation for scrapping the signed deal of Phalcon spy plane sale to Beijing under tremendous US pressure, putting an end to a long-running dispute.
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Link: http://in.news.yahoo.com/020622/20/1qjoh.html
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Israel Aircraft Industry (IAI), which specialises in high-tech weaponry and space technology, was building the airborne early warning system for installation on Chinese Air Force’s Ilyushin plane before stiff pressure from Washington forced the cancellation in July 2000.

Washington had contended that the spy plane would give China a strategic advantage over America’s AWACS aircraft by giving the Chinese advanced over-the-horizon radar-detection capabilities during any possible conflict with Taiwan.

`Ha’aretz’ quoted sources here as saying that though the financial compensation for the Phalcon imbroglio has primarily settled the dispute with Beijing, the Jewish state has to find some way “to appease” Chinese President Jiang Zemin who has personally felt insulted since he was made to believe during his visit here in April 2000 that the Phalcon deal was through