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Israel bows to U.S. on tech exports to China, Russia, India, Pakistan

Special to World Tribune.com
MIDDLE EAST NEWSLINE
Wednesday, August 30, 2000

TEL AVIV - The United States and Israel are close to an agreement on Israeli arms exports controls and technology transfers.

The agreement stipulates that Israel must consult with the U.S before concluding any defense deals with Russia, India, China and Pakistan.

The U.S. originally stipulated 25 countries that Israel would not be permitted to trade with without prior approval but Washington has modified its demands.

Israel continues to raise concerns over U.S. arm sales to Arab countries, including the sale of 80 F-16 fighter jets to the United Arab Emirates. But an agreement on arms exports controls between Israel and the U.S. is unlikely to impose limitations on U.S. exports to countries that don't recognize the State of Israel, Israeli sources said.

Washington is also demanding that Israel participate in a joint technology committee with the U.S., intended to investigate complaints that Israel illegally transferred U.S.-manufactured components to third countries.

Israel recently bowed to U.S. pressure and cancelled a $250 million to sell the Phalcon airborne early warning system to China. China has since threatened to sue Israel for $500 million in damages and has forbidden Israel to sell the aircraft, demanding that it be delivered to Beijing.

Meanwhile India is also interested in purchasing the Phalcon but military officials in New Dehli have expressed concern over Israel's ability to deliver on the deal.

The United States and Israel have reportedly reached an agrement that the U.S. will compensate Israel Aircraft Industries for the cancellation of the Phalcon sale but no details were available as to the extent of the compensation. Senior defense ministry sources said that the compensation would be included in a special strategic aid package to Israel, Ha'aretz said Monday.

Defense Ministry Director-General Amos Yaron is scheduled to meet with U.S. officials Wednesday to discuss the arms exports control agreement and Israel's request for U.S. funding for a multi-million dollar project to develop drones capable of attacking missile launchers and ground-to-ground missiles.

On Monday, Israeli Prime Minister Ehud Barak made a one-day visit to Ankara to try and improve Israel's chances of winning several Turkish defense contracts.

Israel is currently bidding for contracts worth several hundred million dollars, including the upgrade of 180 U.S.-manufactured MIAI Abrams main battle tanks, unmanned aerial vehicles worth $300 million and anti-tank missiles.

Turkey also wants to acquire the Arrow anti-ballistic missile system which is a joint Israeli-U.S. project. Final approval for the transfer of technology depends on the U.S.

Wednesday, August 30, 2000


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