Thursday, January 2, 2003
Israel suspends defence exports to China
PTI Jerusalem, January 2
Complying with a new American demand, Israel has suspended all contracts on the export of arms and security equipment to China.
Although surprised by the American request some three weeks ago, Israel, despite its qualms, decided to comply with the demand to freeze defence exports to Beijing, defence ministry sources were quoted as saying by Ha'aretz newspaper on Thursday.
"This is simply a new American dictate, and we didn't have any choice in the matter," a defence ministry official told the daily, apparently referring to American pressure earlier which led to the cancellation of a signed deal to sell Phalcon spy plane to Beijing.
The controversial deal with Beijing, which included the installation of a Phalcon early warning radar on a Russian-built aircraft by Israel Aircraft Industries (IAI), was scrapped by Israel following intense pressure from the Bill Clinton Administration in 2000 with Beijing expressing anger over the move and demanding compensation.
The move had strained relations between Israel and China and the Jewish state settled the matter after paying compensation.
While there were fears that the new American demand could harm Israel's relations with China, defence officials said the freezing of ties will probably not cause significant economic damage to Israel.
They said Defence Ministry Director-General Amos Yaron would "track down" the web of security ties with China, the daily reported.
The American demand stems from the fact that given close security cooperation between Washington and Jerusalem, sophisticated US technology could flow to China via Israel.
There were indications that Washington was considering formulating a new strategic policy towards Beijing, and until such a policy was devised, the Bush Administration had decided to make every effort to prevent the supply of arms and advanced military technology to China, the daily said.
It quoted one senior Israeli official as saying that Washington actually aimed at removing Israeli firms from the Chinese market while devising a policy shift towards Beijing that would enable American companies to export arms to China.
"Security ties between Israel and China exist, and will continue in an orderly way. Periodically, concrete issues arise that require more discussion between ourselves and China and between ourselves and the US, and these talks influence specific subjects," a defence ministry spokesman was quoted as saying by the daily.
Analysts said US objections were based on the contention that access to sophisticated defence technology would provide China with a decisive military edge in any standoff with Taiwan.
They also contend that China, while aiming to maintain hegemony in the region, is trying to contain Japan and India from emerging as powerful competitors.
Israel, believed to be China's second largest arms supplier after Russia, is the fifth largest exporter of weapons in the world following the United States, Russia, China, and France.
Israel wants to sell three Phalcon spy planes to India and the advanced negotiations are believed to be underway in this regard.
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