Events
1992, Israel was accused of illegally transferring Patriot anti-missile technology to ChinaCox ReportNegotiations on the Phalcon appeared to have begun around 1994, when Yitzhak Rabin was prime ministerA formal agreement with China was signed in July 1996 by Prime Minister Benjamin Netanyahu.On a state visit to Moscow in March 1997, Netanyahu managed to convince the Russians to join the deal.a formal compensation package was concluded in March 2002 by Prime Minister Ariel Sharon.Washington was informed about the [Phalcon] deal as early as 1996, if not beforeUS expresses disagreement:
25 October 1999, when the already modified Russian aircraft landed at Ben-Gurion Airport
Citing security threats that the Phalcon could pose to American forces in the Pacific region, the United States suddenly reversed its earlier position and objected to the sale of the spy plane.in 2000, U.S. Rep. Sonny Callahan, chairman of a powerful House subcommittee, vowed to to block $250-million in aid unless Israel canceled its sale of a radar system to China. The deal, which Congress feared would give China an edge in any conflict with Taiwan, was later scrapped.The visit of a Congressional delegation and U.S. Defense Secretary William Cohen to Israel in early 2000 underscored the magnitude of the problems facing U.S.-Israeli relationsthe Israeli decision to cancel the deal came just hours before Congress was to vote on the suspension of financial aid to Israel.on July 12, 2000, Barak announced the cancellation of the deal right in the middle of the intense Camp David negotiations with the Palestinians
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