- The Chinese are angry with the United States over what
a Chinese minister called "American interference" in arms deals
between China and Israel.
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- Pressure from the Bush administration has forced Israel
to renege on two important arms deals that were completed and signed in
the past several years.
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- In an interview with the Hebrew daily Haaretz, Information
Minister Zhao Qizheng called it "another example of American hegemony
and a breach of international trade laws." Zhao also criticized Israel
for giving in to American pressure, saying, the incident "is not a
positive one in establishing relations between the two countries."
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- First the U.S. forced Israel to cancel a signed deal
to supply Phalcon early warning systems to China in 2000, a move that cost
Israel millions of dollars in compensation. Now, the U.S. is demanding
that Israel not return Harpy drones that belong to China to the Chinese.
The unmanned aircraft are in Israel for upgrading.
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- The Bush administration has imposed a series of sanctions
on Israel's military industries over the issue of sales to China and the
U.S.-Israel relationship has been said to be at a "crisis" by
Israeli leaders.
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