DATE=7/12/2000
TYPE=CORRESPONDENT REPORT
TITLE=U-S / ISRAEL / CHINA (L UPDATE)
NUMBER=2-264362
BYLINE=LUIS RAMIREZ
DATELINE=THURMONT, MARYLAND
CONTENT=

VOICED AT: 


INTRO:  Bowing to U-S concerns, Israel is calling off 
a deal with China for the sale of an aircraft equipped 
with advanced early warning radar technology. V-O-A's 
Luis Ramirez reports the announcement came during the 
Middle East peace summit at Camp David outside 
Washington.

TEXT:  The announcement came from Israeli spokesman 
Gadi Baltiansky, who spoke to reporters in Thurmont, 
Maryland, near the site of the ongoing Middle East 
peace talks.

            /// BALTIANSKY ACT ///

      We have informed the U-S and China about our 
      intention not to continue with the PHALCON deal.
      
            /// END ACT ///

Mr. Baltiansky said he did not want to get into the 
reasons for the cancellation, but he said Israel is 
aware of American concerns and interests.

The United States had opposed the 250 million dollar 
deal, citing concerns that it may shift the balance of 
military power in the Taiwan Straits and endanger U-S 
forces.  Some members of Congress had threatened to 
block military aid to  Israel  if it went ahead with 
the sale.

Speaking at a news briefing, White House spokesman Joe 
Lockhart welcomed the Israeli announcement.

The deal involved the sale of one plane equipped with 
PHALCON early warning radar technology to China, with 
an option for Beijing to buy several more aircraft and 
equipment in the future.

Analysts say Israel heeded the United States' calls to 
scrap the sale as a precondition for sending more U-S 
military aid that Israel would need to implement the 
security terms of an Israeli-Palestinian peace accord. 
(SIGNED)

NEB/LR/AMAHL/KBK




12-Jul-2000 13:41 PM EDT (12-Jul-2000 1741 UTC)
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Source: Voice of America
.