Defense Ministry confessing all to US over China sales
Jerusalem Post  | 6-11-05 | ARIEH O'SULLIVAN
 

The Defense Ministry is cracking down on all trade to China by defense industries, pledging to report to the United States all dual-use sales to Beijing, defense sources said.

The move came amid a deepening crisis with the Pentagon, which sees China as a potential rival and does not want to see it armed with sophisticated weapons. Israel has agreed to a de facto US veto on some defense sales by Israel. To enforce this the Pentagon has imposed a number of sanctions restricting defense transfers between Israel and the United States.

The dispute between the Pentagon and the Defense Ministry involved a radar-hunting Harpy drones that the United States believes Israel is currently upgrading for Beijing.

Washington has sought clarifications over the matter for months, with senior Pentagon officials singling out Defense Ministry Director General Amos Yaron in particular for misleading them over Israel's arms transfers to China.

Israeli industry sources also revealed to The Jerusalem Post that the anger with Israel over sales to China has led to the boycott of the Defense Ministry's representative in New York, Brig.-Gen. (res.) Yekutiel Mor.

Defense Ministry officials moved to downplay reports of a worsening crisis with the Pentagon, saying the matter was being quietly worked out.

"The Defense Ministry is holding discrete and pertinent talks with the United States to solve the misunderstandings, which it does not believe need to make public," a statement issued by ministry spokeswoman Rachel Naidek-Ashkenazi stated.

Israel has sold billions dollars of arms and military equipment to China since such deals began in the early 1980s. At one point, China was Israel's largest arms customer.

The Associated Press reported that the United States demanded details on 60 recent Israeli security dealings with China. It also wants Israel to reevaluate its system for supervising arms deals, and wants to sign a joint understanding with Israel regulating future arms sales.

In the meantime, Washington has frozen Israel out of the development of Lockheed Martin Corp.'s F-35, a next-generation warplane being developed with several foreign participants.

It has also suspended cooperation on development of an advanced imaging system for Israeli forces, frozen collaboration on the Hunter 2 unmanned attack aircraft, and suspended the delivery of parts of night-vision equipment to the Israeli army.

Leading the Israeli team in talks with the Pentagon is Maj.-Gen. (ret.) Herzl Bodinger, a former commander of the Israeli Air Force.

Israel sold China the Harpy, manufactured by Israel Aircraft Industries, in 1999. Some were returned to Israel for routine maintenance, but the United States believes they are being upgraded. The US is opposed to China having these advanced weapons because they could be used against American forces or its Taiwan ally in a possible future showdown.

Recently, Defense Minister Shaul Mofaz issued a directive banning all Israeli defense and security firms from visiting China or even discussing business with Beijing, unless they receive written approval from Defense Ministry.

Reporting on Israeli sales of arms to Washington represented the first time Israel would do so to a foreign power.

Washington provides Israel with $2.1 billion in defense grants annually. The bulk of this sum be spent in the United States.