To: kumar who wrote (99073 ) 5/25/2003 5:15:21 AM From: Doc Bones Respond to of 281500 The real problem with Phalcon / AWACS was that Israel wanted to sell it to China. After we apparently taught them how to build it, we didn't want them to sell it to our potentially greatest adversary in the future. It took some considerable time to persuade them not to do this deal, and you wonder what Clinton promised in return: Springing Israeli spy Jonathon Pollard perhaps, or a Marc Rich pardon. This might seem to be an embarrassment for those who tout Israel as a completely dependable ally of the U.S., in Congress for example, but they are not easily embarrassed. Doc ******* U.S. warns Israel over sales of military technology to China November 12, 1999 WASHINGTON (CNN) -- President Bill Clinton said the U.S. military had "good reason to have questions" about plans by Israel to sell an advanced radar system to China. But the president said he wanted to hear the full facts of the case before deciding what action to take. "Our people have questions, and they had good reason to have questions, but sometimes when you hear these things, it's not always right," he said. Clinton's comments came Thursday -- after it was revealed that Secretary of Defense William Cohen had earlier this year delivered a stern warning to Israel that its "growing defense relationship with China is creating concern" and might jeopardize the granting of future U.S. financial aid. Cohen made his comments to Israeli Prime Minister Ehud Barak during a meeting in late October, according to a U.S. official who asked not to be named. Israel wants to mount an early warning radar system similar to the one carried aboard the U.S. AWACS plane on a Russian-made aircraft and sell it to China Radar system similar to U.S. AWACS Israeli officials said Thursday that the planned sale to China of the $250 million airborne early warning radar system known as the "Phalcon" would go ahead. The system, comparable to the one on the U.S. AWACS plane, will be built into a Russian-made cargo aircraft. The New York Times reported that U.S. officials were deeply concerned that the sale of the system would enhance China's ability to threaten Taiwan. The Pentagon also was questioning whether the sale involved American technology, the report said. There are tight legal restrictions on the resale by trading partners of military technology that originated in the Unites States. "We have raised it with them because whenever any of our friends sell sophisticated equipment that might be American in nature ... then we raise that," said Clinton. An Israeli spokesman said no U.S. technology was involved. Israel: Deal should be no surprise Israeli Embassy spokesman Mark Regev said the radar deal should not have been a surprise to U.S. officials. "The United States was aware of this particular project for a number of months," said Regev. Regev said Israel has an elaborate system of checks and controls on defense-related exports by Israeli corporations and gives "very high consideration" to its special strategic and political relationship with the United States. China building its military capability Israel, noted for its sophisticated technology and its constant updating of military equipment to defend against potential Arab foes, is a major arms merchant. In the last five years, sales of Israeli military technology to China have declined significantly, but the Pentagon is still concerned over the enhancement of China's military power. China is moving to build up its force capability in many areas, including long-range ballistic missiles, amphibious warfare and the acquisition of a "blue-water navy," which is seen as a departure from China's historical emphasis on a primarily coastal navy. CNN's Chris Plante, The Associated Press and Reuters contributed to this report.edition.cnn.com