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DATE=7/13/2000 TYPE=CORRESPONDENT REPORT TITLE=CHINA-ISRAEL-US (L) NUMBER=2-264388 BYLINE=ROGER WILKISON DATELINE=BEIJING CONTENT= VOICED AT: INTRO: China has reacted with restrained anger at Israel's cancellation of a deal to sell Beijing a 250- million-dollar airborne radar system and indirectly accused the United States of meddling in its foreign relations. Correspondent Roger Wilkison reports Chinese ire over the scrapped sale comes as visiting Defense Secretary William Cohen tries to get Sino-U-S military relations back on track. TEXT: The United States firmly opposed the sale of the sophisticated Phalcon radar system to China. U-S officials say they fear it might one day be used to threaten the security of Taiwan and endanger US aircraft in an eventual Sino-U-S conflict. Israel announced late Wednesday that it would not go ahead with the deal. Without naming the United States or Israel, Chinese Foreign Ministry spokesman Zhu Bangzao let it be known, through an interpreter, that China was not happy about their roles in canceling the sale. /// INTERPRETER ACT /// No other country has the right to interfere in the bilateral cooperation that China has with other countries. At the same time, it is also our view that the agreement and understanding reached between states should be honored. /// END ACT /// China has never publicly admitted that it was buying the Phalcon system. Spokesman Zhu refused to say how the cancelled sale would affect Israel's growing commercial and military relations with Beijing. Defense Secretary Cohen says Chinese President Jiang Zemin expressed concern about the scrapped deal in their 90-minute meeting, but he refused to go into any detail about their talks. Mr. Cohen is in China trying to re-establish military ties between Beijing and Washington. Those relations have been hit with a barrage of Chinese criticism over Washington's plans to build a national missile defense as well as a regional (theatre) missile defense. China says both systems are destabilizing and fears they, like Washington's pressure on Israel to cancel the radar sale, are aimed at containing its rise to great power status. Mr. Cohen says Washington does not want to contain China, but engage it. /// COHEN ACT /// China cannot be contained. It is folly for anyone to think that could be the case. It is a futile policy should one ever try to construct it. China is a great and growing power. It is important that it be integrated into the international economy, the global economy, and international regimes. And we believe that we are pursuing that in a variety of ways. /// END ACT /// Earlier in a speech to Chinese military officers, Mr. Cohen insisted that the need for a U-S national missile defense is driven by the spread of missile technology to potentially hostile nations. He also said that, despite last month's inter-Korean summit and signs of a lessening of tensions on the peninsula, North Korea still represents a potential threat, given its huge army and its missile program. Washington says the national missile defense is aimed at protecting vulnerable areas of the United States from such countries as North Korea, Iraq, and Iran - despite protests from China, Russia, and several of Washington's European allies. (SIGNED) NEB/HK/RW/JO/RAE 13-Jul-2000 09:15 AM EDT (13-Jul-2000 1315 UTC) NNNN Source: Voice of America .