U.S. to withhold technology over Israeli arms to China

WASHINGTON -- The United States has acknowledged that it is withholding technology to Israel because of its weapons sales to China.

U.S. officials provided what appears to be the first explanation to a refusal by the Defense Department to release software codes of the Apache Longbow computers. Israel has signed an agreement in principle to purchase the upgrade of 12 Apaches to the advanced Longbow model.

Pentagon officials said the Clinton administration did not intend to impose a blanket ban on technology transfer. But, Pentagon spokesman Kenneth Bacon said, the policy is "much more likely to have an effect on very specific programs involving technology programs rather then on the general support."

The administration has again raised Israeli arms sales to China amid threats by Beijing to use force against Taiwan to impose unification. The threats have alarmed Congress.

Both Pentagon and State Department officials said Israeli weapons deals with Beijing have increased and involve more sophisticated systems. They point to an Israeli-Russian project to provide an airborne early-warning system to China worth $250 million. China has denied the deal.

Israeli officials have lobbied the administration to lift the ban on the software codes for the Longbow. Some officials said Israel is prepared to abandon the sale unless the codes are released.

The tiff between Israel and the United States comes as an Israeli delegation continued their meetings with U.S. officials regarding future strategic relations. Sources said one option being raised is a U.S.-Israeli defense pact.

Israeli sources said other proposals raised by the Israeli delegation include guarantees that Israel can maintain nuclear deterrence after a peace treaty with Syria and raising Israel's status to that of Britain and Canada regarding technological cooperation.