U.S. Presses Israel on India Deal

Under American pressure, Israel grudgingly has agreed to suspend the sale of an advanced airborne radar warning system to India. Washington fears that the sale will increase tensions between India and Pakistan, as the Bush administration wages war in Iraq and keeps a watchful eye on North Korea.

Israeli sources in Washington told the Forward that Israel has agreed to defer the $1 billion sale of the Phalcon Awacs system, but has not canceled it.

The American request comes as the Bush administration is asking Congress to approve a generous aid package for Israel, featuring a $1 billion grant to cover defense-related expenses and $9 billion in loan guarantees. According to the Israeli business daily Globes, the United States conditioned the $1 billion grant on Israel's suspending the deal.

The American request is reminiscent of one made by the Clinton administration in August 2000, when it pushed Israel to cancel a $250 million sale of the Phalcon to China. Then, the United States was worried that the early warning system could be used by China against American forces in case of a military conflict over Taiwan. Israel unsuccessfully attempted to use its friends on Capitol Hill to beat back the administration's opposition. The short showdown strained relations between Jerusalem and Washington, and between Israel and China. Israel had to financially compensate the Chinese.

The India deal is somewhat different. Israeli sources say that the United States, having previously granted its approval, is only asking Israel to put the deal on hold, not to cancel it. Israeli sources said Washington was "in the picture" on all contacts between Israel and India concerning the deal.

Under contracts signed between Israel and the United States, Washington has the right to veto any Israeli sales of weapon systems that involve American-made components or American technology.

The Israel-India security relationship was bolstered in recent years, with much help from the American Jewish community. Israel reportedly is India's largest weapons supplier.