http://www.defensenews.com/story.php?F=742841&C=mideast
Posted 03/28/05 09:55 Israel Restricts Firms' Contact With China By BARBARA OPALL-ROME, TEL AVIV Israeli Defense Minister Shaul Mofaz has barred local firms from visiting, discussing or in any way developing business in China without the express, written permission of the defense ministry. The drastic edict, delivered personally by Mofaz to Israeli industry chiefs March 20, is one of several high-level efforts to patch up U.S.-Israeli strategic cooperation following American accusations that Israel is secretly supplying arms to China. Mofaz will meet March 29-30 in Washington with U.S. Defense Secretary Donald Rumsfeld, Defense Undersecretary Paul Wolfowitz and other senior executive branch and legislative officials, hoping to rebuild relations damaged by a 2004 report by the U.S.-China Economic and Security Review Commission, which concluded that Israel was "second only to Russia as a weapon system provider to China and as a conduit for sophisticated military technology." Israeli officials passionately insist such concerns are baseless. "We're trying to convince the Americans in a variety of ways that their suspicions are not based on reality," said retired Maj. Gen. Amos Yaron, Israeli MoD director-general. "There's a big gap between what they think is reality and what we know is a reality We're not going to do anything to jeopardize U.S. security interests. Full stop. The rest is nonsense, lies." Yaron said his ministry has provided exhaustive documentation to the contrary and has worked through a bilateral group established in 2003 to inject greater transparency about Israeli transfers to China. Chaired by Lisa Bronson, deputy undersecretary of defense for technology security policy and counterproliferation, the commission has reviewed more than 100 cases of alleged Israeli transactions with the People's Republic of China, all but four of which, according to Yaron, have been closed. Yaron said he expected all outstanding issues to be resolved to Washington's satisfaction in the coming months. In his meeting with Israeli industry leaders, Mofaz warned against all unauthorized contacts with China or its agents, not only in the realm of potential defense sales, but with regard to so-called dual-use items that could be perceived by Washington as benefiting the People's Liberation Army (PLA). "One of the minister's highest priorities is to end this crisis as soon as possible, hopefully in the next few months," an MoD source said. "And because we're in such a sensitive period, he was unequivocal in insisting that every meeting, visit, discussion or trade show participation requires formal approval in advance." Bronson declined comment. Longstanding Suspicions Washington complaints about Israeli arms sales to the PLA date to the early 1980s and have involved Lavi fighter aircraft and radar technology, air-to-air missiles, thermal targeting systems and allegations Israel gave China U.S. Patriot air defense missile technology — a charge Israel denies. In 2000, intense pressure by then-U.S. President Bill Clinton and leaders from both houses of the U.S. Congress forced Israel to terminate a potential $1 billion deal to equip the PLA Air Force with Phalcon early warning planes. The latest crisis centers on a 1997 sale of Harpy radar-killing drones, several of which China returned last year to prime contractor Israel Aircraft Industries, Lod, for what officials here insist was routine maintenance. Pentagon officials suspect China sent the systems back for upgrades. In a March 23 report in Israel's daily Ha'aretz newspaper, veteran defense analyst Ze'ev Schiff noted that the matter came to a head several months ago during meetings in Washington, when Douglas Feith, U.S. defense undersecretary for policy, asked Yaron if Israel was still selling or maintaining spare parts for the Harpy. According to Schiff, Yaron telephoned key staffers back in Israel for specifics regarding Feith's question, was told Israel was not providing the parts to China, and informed Feith accordingly. "One week after his return to Israel, a shipment of spare parts arrived from China for repair. Yaron dispatched an emissary to the Pentagon to report the matter. This new report raised a storm, and an accusation that Yaron had deceived Feith," Schiff wrote. Since then, Feith and other Pentagon leaders have refused to meet with Yaron, Kuti Mor, the head of MoD's purchasing mission in New York, and other MoD representatives. Mofaz was forced to appoint a special emissary, former Israel Air Force Commander Herzl Bodinger, to work with the Pentagon on the arms transfer issue. Bodinger's liaison efforts between the Pentagon and MoD have helped resolve the disputes, but military and industry sources here say the near-paralysis in normal working relations between the two has begun to affect ongoing bilateral initiatives, including Israel's role in the Joint Strike Fighter, upgrades to the Joint Direct Attack Munition and Israeli contributions to the U.S. Army's Future Combat Systems program. Moreover, Israeli industry executives say their U.S. suppliers are facing inordinate delays in what used to be routine U.S. State Department export license approval. "The standard review process that used to take no longer than two months is now dragging out to eight months or more." "There's a heavy, dark cloud hanging over the relationship that has begun to effect us all," a second Israeli industry executive said March 24. "Even though industry-to-industry and military-to-military relations are continuing apace, the cloud at the highest policy levels needs to disappear." Prior to Mofaz's arrival in the U.S. capital, Bodinger will provide Wolfowitz with additional defense trade data and detailed responses to numerous questions submitted to the Israelis by relevant DoD agencies. According to Schiff, Bodinger has received "no less than 500 questions from the Americans" on the issue. The Ha'aretz defense analyst noted that in the past four years, since the termination of the Phalcon deal, Israel has sold only about $35 million worth of equipment and items to China. Moreover, that amount was diffused among 164 Israeli companies, Schiff wrote. Meanwhile, Israeli MoD sources said they hope Mofaz, in his planned meetings with Rumsfeld and senior Pentagon officials, will pave the way toward quick resolution of the ongoing rift. • E-mail: [EMAIL PROTECTED] ------------------------ Yahoo! Groups Sponsor --------------------~--> Take a look at donorschoose.org, an excellent charitable web site for anyone who cares about public education! http://us.click.yahoo.com/_OLuKD/8WnJAA/cUmLAA/TySplB/TM --------------------------------------------------------------------~-> -------------------------- Want to discuss this topic? Head on over to our discussion list, [EMAIL PROTECTED] -------------------------- Brooks Isoldi, editor [EMAIL PROTECTED] http://www.intellnet.org Post message: osint@yahoogroups.com Subscribe: [EMAIL PROTECTED] Unsubscribe: [EMAIL PROTECTED] *** FAIR USE NOTICE. This message contains copyrighted material whose use has not been specifically authorized by the copyright owner. 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