Mofaz warns against any unauthorized deals with China

Defense Minister Shaul Mofaz convened the heads of some 50 of the leading defense industry firms in the country Monday, and warned that they must get written permission from the ministry for any trip they or their representatives make to China, or for starting any business negotiations with the Chinese even if they are selling civilian equipment that happens to be manufactured in an Israeli defense plant.

The CEOs were told ahead of time that it was about the crisis in relations with the U.S. in the wake of military sales to China. Some ministry department chiefs also attended the meeting.

Mofaz told them that Israel has a supreme interest in ending the dispute with Washington over military sales to China.

"We have made a commitment to the U.S. and I have no intention of breaking it," said Mofaz. "I insist on full transparency by all the industries regarding any activity in China."

He therefore demanded that the CEOs make sure to have formal approvals from the Defense Ministry for every commercial contact, anticipated sale or even visits by representatives of the defense industry companies to China. Mofaz further warned that they take what he said in "the widest possible interpretation" lest there be any mistakes, "because I am against mistakes, even if they were made in error."

A dispute over the 1999 sale of Harpy UAVs made by Israeli companies to China erupted earlier this year, and has cast a shadow over Pentagon-Defense Ministry ties. The U.S. suspects there was another deal or an Israeli upgrade of the aircraft already purchased by China, but Israel has denied that vehemently. Washington has demanded Israel not return the parts sent for upgrading.

	Defense Minister Shaul Mofaz convened the heads of some 50 of the leading defense industry firms in the country Monday. (Nir Kafri)