Israel plans to compensate China for the cancellation of a $250-million deal, for the sale of Phalcon Airborne Warning and Control System (AWACS) radar aircrafts, Israeli press reports stated. In June of 2000, Labor government Prime Minister Ehud Barak canceled the deal under American pressure.
The US feared at the time that the technology acquisition could upset the military balance between China and Taiwan. Beijing is demanding substantial damages for the cancellation of the sale.
Israel's outgoing ambassador to Beijing, Orah Namir, recently criticized the shelving of the deal which she said had damaged previously "extremely cordial" relations, reported AFP. The United States provides Israel with approximately three billion dollars in aid each year. — (menareport.com)
© 2001 Mena Report (www.menareport.com)
