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July 25, 2001
1823 IST

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China uneasy about Indo-Israeli Phalcon deal

China is uneasy about a reported Indo-Israeli deal under which India will purchase three Phalcon early-warning aircraft, a sophisticated force multiplier which was denied to Beijing under intense pressure from the United States last year.

"The Chinese side has paid attention to the concerned reports," foreign ministry spokeswoman Zhang Qiyue said when asked whether Beijing was concerned about the reported deal between India and Israel.

China was furious in July last year when Israel cancelled a $250 million deal for a Phalcon under US pressure. It had also expressed its displeasure over Washington's interference in its bilateral relations with another country.

China's official Xinhua news agency reported recently that the Israel Aircraft Industries and the Indian defence ministry signed a $2 billion defence agreement on July 16.

Under the agreement, the largest deal is the sale of three Phalcon early-warning aircraft and the upgrading of India Air Force planes in cooperation with Russia, it said.

PTI

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