http://www.janes.com/defence/news/jdw/jdw060306_1_n.shtml

Israel admits resuming defence exports to China

By Alon Ben-David JDW Correspondent
Tel Aviv

The Director General of Israel's Ministry of Defence (MoD), Jacob Toren, 
announced on 1 March that "Israeli companies have resumed defence 
exports to China".

Toren would not elaborate on the nature of the new contracts, which have 
been at the heart of a long crisis between Israel and the US.

Toren took office in September 2005 after his predecessor Amos Yaron was 
forced to resign under pressure from the US Department of Defense (DoD), 
which accused Yaron of misleading it on the nature of Israeli defence 
exports to China.

The crisis was resolved in August 2005 when Israel signed a statement of 
understanding with the US, pledging to restructure its agencies 
regulating defence exports and to consult the US on any sale that might 
compromise US interests.

It is unclear whether Toren's remarks were meant to demonstrate Israeli 
independence or reflect a genuine resumption of defence ties with China. 
However, he did say: "Companies will come and see us [at the MoD] and we 
will judge on a case by case basis with or without consultation with the 
US. We are two independent countries which respect each other's relative 
interests."

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