Jiang arrives in Israel amid Phalcon uproar

JERUSALEM [MENL] -- Chinese President Jiang Zemin arrives in Israel as officials acknowledge heavy U.S. pressure not to sell Beijing an airborne early-warning system.

Jiang on Wednesday arrived for a week-long visit, the first by a Chinese head of state. He is expected to visit Israel Aircraft Industries Ltd., Lod, and discuss future sales of IAI's Phalcon airborne early-warning system.

Israel, in cooperation with Russia, have sold China a modified Il-76 cargo jet that contains the Phalcon. The move has prompted a furor in Washington and some members of Congress have threatened to cut off U.S. military aid to the Jewish state.

The sale was also raised by President Bill Clinton during his meeting on early Wednesday with Prime Minister Ehud Barak. U.S. officials said the Phalcon sale threatens the balance of power in the Taiwan straits.

Foreign Minister David Levy said his government is trying to reach an understanding with the United States that will ensure that the current sale of the Phalcon will not be halted. The system is said to have been completed and being installed in the Il-76.

"The United States has to understand that we are a country like every country," Levy said on Wednesday. "Things like this cannot be concluded by an order. We can't tell the Chinese that our promise is not a promise and our signature is not a signature."

Defense Minister Ephraim Sneh acknowledged that Israel could gain $1 billion from the sale of another 4 Phalcon systems to China. He pointed out that Britain and France competed for the Chinese project.

"I'm sure that Britain would not have been placed in this situation," Sneh said. "We are talking about one plane. We don't think one plane can change the military balance. This is a defensive system."

But U.S. officials said the Phalcon system could endanger U.S. troops in the Taiwan straits. They pointed to rising tension between China and Taiwan.

"Israel must understand that the sale of this kind of technology to China at a time when there are great tensions between China and Taiwan could have an impact of changing the strategic balance," U.S. Defense Secretary William Cohen said.

Cohen warned that China could sell Israeli technology to Israel's enemies such as Iran and Iraq. "And so it is, in my words, counterproductive, for the Israelis to pursue this kind of technology exchange with, or the sale of this technology, to China. And we have expressed that very openly and very forcefully."

"Many members of Congress are getting increasingly concerned that by exporting this technology it poses a threat, potentially to U.S. forces, and to strategic stability, and ultimately perhaps even to Israel itself," Cohen said. "And so it could have a variety of consequences that I can't say at this point what the impact would be."

During Jiang's visit, Israel and China will sign two cooperative agreements, one involving technology research. Israeli exports to China rose 58 percent in 1998 to $190 million. In a recent deal, the Israeli startup Voltaire Advanced Data Security Ltd. signed $15 million deal to provide the Chinese government with security software.