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Wednesday, Aug. 17, 2005

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  The Bush administration had complained about Israel's intention to service spare parts for unmanned Harpy aircraft already sold to China.

The administration objected on grounds it would upgrade China's anti-radar aircraft.

Several rounds of talks were held in Washington, the last in July, before the agreement was signed by Defense Secretary Donald H. Rumsfeld in Washington and Israeli Defense Minister Shaul Mofaz in Israel.

The text is classified and was not provided to reporters, but Ayalon provided some details in an Associated Press interview Tuesday at the Israeli Embassy.

"It ends the dispute," he said. "This is the most important thing. It creates a basis for renewed confidence and cooperation between the two defense establishments."

Ayalon said the understanding did not encompass details of any proposed deal. "It deals with principles," he said. "And the major principle is mutual consultation."

"I can assure you Israel will be extra-careful now," he said.

"There are no winners, there are no losers," Ayalon said. "This is a win-win situation. Both parties win strategically."

However, he also said Israel would not do anything to hurt its good relationship with the United States, a longtime ally that provides more than $2 billion a year in economic and military aid to Israel.

Pentagon spokesman Bryan Whitman said the United States will not have a veto power over any possible arms sales, but U.S. officials will be informed and have a chance to express their opinion.

The Pentagon has complained about several potential Israeli sales to China, including the Israeli plan to service spare parts for unmanned Harpy aircraft. The Pentagon regards the Chinese military as a potential long-term adversary and opposes Western countries providing China with military upgrades.

A senior Israeli official, insisting on anonymity because of the sensitivity of the issue, said Israel was unlikely to try to implement the contested arrangement with China.

In response to some possible sales, the Pentagon restricted Israel's access to the Joint Strike Fighter program, which is to create a new multirole jet fighter designed to replace the F-16 for the United States, Israel and several European fighter inventories.

Under the new agreement, Israel also agreed to exercise greater control over arms exports by restructuring its internal processes for approving them. Several ministries will now work with the Israeli Defense Ministry before those exports are approved, Whitman said.

It was not immediately clear whether any of Israel's commitments would require approval by its legislature.

Whitman said the agreement would begin to restore U.S. confidence in Israel's ability to protect sensitive technologies. However, Israel will not immediately be restored to the Joint Strike Fighter program.

In a statement, the Pentagon and Israeli Defense Ministry said the agreement was "designed to remedy problems of the past that seriously affected the technology security relationship between their defense establishments and which begins to restore confidence in the technology security area."

Additional steps will be forthcoming in the next few months, the statement said.

Five years ago, the United States pressured Israel to cancel plans to sell Phalcon reconnaissance aircraft to China. The canceled deal caused considerable tensions between Israel and China and cost Israel hundreds of millions of dollars.

© 2005 The Associated Press

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