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U.S. objection on Phalcon deal irks Israelis

By Kesava Menon

TEL AVIV, AUG. 25. While there have been no official pronouncements on reports concerning U.S. objections to the sale of an Israeli airborne early warning system to India, resentment is growing here over the idea that the U.S. might try to stop the sale. Analysts, and officials speaking in private, believe Washington has no basis to object to the sale.

Ha'aretz, reputed Israeli newspaper, reported earlier this week that the U.S. would oppose the sale of

the Phalcon early warning system. According to an unnamed U.S. official, source of the story, Washington believes that India's acquisition of the system will unsettle the military balance between India and Pakistan and further destabilise the sub- continent. The U.S. is trying to get Israel to sign an agreement whereby Israeli arms sales to four countries will be monitored by the U.S. Although the U.S. promised it would not exercise a veto in respect of armament deals, the transaction with India is being threatened with such a veto.

The U.S. had recently blocked the sale of the Phalcon system to China. Analysts here criticised Tel Aviv for the manner in which it went about cancelling the contract. They point out that the Government did not gain anything from the U.S. for acceding to its demand and at the same time only succeeded in irking the Chinese.

Some Israeli papers pointed out that the Chinese President, Mr. Jiang Zemin, did not receive Israel's Regional Cooperation Minister, Mr. Shimon Peres, when he visited China recently. (Mr. Peres went to China - as he has come to India - to explain Israel's position on the talks held with the Palestinians at Camp David last month). The papers said this was a deliberate snub intended to show Beijing's displeasure over the cancellation of the contract.

While the Israel Government had drawn part of the criticism for the cancellation of the China deal, there was an undercurrent of resentment at the U.S. arm-twisting. This resentment is becoming far more pronounced over the reported U.S. objection to the Indian deal. In the case of China, analysts point out, the U.S. had a plausible argument - that China's possession of the system could be detrimental to American forces if they were drawn into a conflict between China and Taiwan. But the reasons cited in support of the objection to the Indian contract are not considered valid in any way.

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