TEL AVIV Ñ Israel plans to sell 10 communications satellites to
China in a deal that could top $1 billion and would compensate Beijing for its payments for the Phalcon early-warning airborne system. The Phalcon deal was canceled in 2001 after heavy pressue on Israel by the United States.
China has already agreed to purchase two Amos High-Powered
communications satellites from the state-owned Israel Aircraft Industries in
a $180 million deal. Israeli defense officials said Beijing has agreed to an
option for the purchase of another eight satellites by the end of the
decade.
The IAI executive said China had been concerned that the Amos deal would
be blocked by the United States. In July 2000, Israel, under U.S. pressure,
suspended the sale of the Phalcon early-warning airborne system to Beijing.
Last year, Israel formally cancelled the sale.
"The negotiations were lengthy and full of obstacles and crises," Nissan
said. "Part of the problem was the cancellation of the Phalcon deal. We
tried to convince them our satellites were the most suitable. We told them
we would supply satellites that would even be a step above the Amos-2
satellite currently being manufactured in Israel."
"We obtained a signed commitment to buy the next satellites," IAI's MBT
division general manager Yitzhak Nissan told the Tel Aviv-based Globes
business daily.
IAI executives said China has not commited itself to purchase the other
eight satellites. They said that instead Beijing has signed an agreement
that contains an option for additional facilities.
Nissan said that MBT's orders backlog has reached $1 billion with the
purchase of two Amos systems by China.
IAI signed a contract last month with China's Hong Kong Space
Technologies for the delivery of the first two satellites. The HKSAT-1 and
HKSAT-2 satellites, based on the Amos, will be delivered to China for launch
beginning in 2003. Each satellite will include 20 Ku band transponders and
has a shelf life of 12 years.
Nissan said the Amos HP will be superior to the Amos-1 satellite that
has been in orbit since 1996. Another Amos-class satellite is scheduled for
launch in 2007.
Hong Kong Space and Technologies was formed in 2001 by a group of
private Hong Kong investors and partners in the communications satellite
include China Aerospace Ltd. Science and Technology Group Corporation, Sino
Satellite Communications Company Limited [Sinosat] and IAI. China Aerospace
Science and Technology Corp. would provide the Long March launcher to boost
the satellite. Sinosat will provide the ground service.
