U.S., Israel to hold summit on China-sale dispute

JERUSALEM [MENL] -- Israel and the United States have agreed to a high-level meeting to resolve the sale of the Phalcon airborne early-warning system to China.

Israeli officials said the meeting would take place between Prime Minister Ehud Barak and President Bill Clinton and include delegation of technical experts from both countries.

"We're very concerned about that sale and I've talked to Prime Minister [Ehud] Barak about it extensively," Clinton said. "And as you know there's a lot of concern about that in the Congress so we're still working on that."

Deputy Defense Minister Ephraim Sneh will fly to Washington to begin the talks with the Clinton administration on the Phalcon. The decision to send Sneh comes as a Chinese military delegation is touring Israeli defense industries to consider new arms purchases from Israel.

Defense sources said Israel Aircraft Industries, the contractor of the Chinese project, has virtually installed the Phalcon in the Il-76 cargo jet. They said a Chinese team has already undergone training in the system.

The London-based Jane's Defence Weekly reports that Beijing has prepared contingency plans should Israel be forced to cancel the Phalcon deal. The magazine said Russia is negotiating the lease and possible sale of its Beriev A-50/A-50U airborne early warning and control system to China.

In Beijing, a Foreign Ministry spokesman called on Washington to stop interfering in relations between Israel and China. The spokesman said no country has the right to interfere in the relations of another country.

But the spokesman refused to answer a question of what Beijing would do if the United States succeeds in pressuring Israel to cancel the Phalcon deal.