-Caveat Lector-

http://www.haaretzdaily.com/hasen/pages/ShArt.jhtml?itemNo=102287&contrassID=1

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Peace at any cost is a Prelude to War!

China seeking $1 billion from Israel for aborted Phalcon deal

By Amnon Barzilai, Ha'aretz Correspondent




Beijing is seeking $1 billion damages and compensation from Israel for
Jerusalem's decision, under pressure from the U.S., to cancel the sale of
Phalcon command and control aircraft to China.

Israel is ready to pay compensation but was shocked by the amount China asked
for during a visit to Beijing last month by reserve Maj. Gen. Amos Yaron,
director-general of the Defense Ministry.

Meanwhile, there's been progress in the planned sale of three Phalcons to
India, according to Defense News weekly, which quoted Israeli defense
establishment sources as saying that the deal could be signed within 2-3
months.

That deal has Russia supplying India with Ilyushin transport planes, and
Elta, a subsidiary of the Israeli Aircrafts Industries, will be the main
contractor for the refitting of the plane with the advanced early warning and
radar systems.

Despite the reports of the Chinese demand for $1 billion, Defense Ministry
officials say that nothing has been settled yet. Defense News quotes a
ministry source who says that the compensation could go over half a billion
dollars.





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