Statement by a Spokesman for PM Barak on Israel, China, and the Phalcon System
Press Center at Camp David, Maryland
July 12, 2000

The Israeli prime minister, Ehud Barak, sent a letter to the Chinese president and expressed his sorrow that Israel, who is right now together with the United States in the midst of an effort to achieve historic decisions which are related to her vital interests, will not be able, under the current circumstances, to continue in the implementation of the Phalcon project.

Prime Minister Barak informed President Clinton about his decision in their meeting last night.

The decision was taken on the background of the need to help intimate relations with the U.S., the administration and Congress, in this period of the summit, and the discussions in the summit and the period that will follow the summit, and on the background of the American objection to the deal.

Prime Minister Barak informed the Chinese president in a letter that was transferred to him through the director-general of the Ministry of Defense, Amos Yaron, that Israel will continue to look for ways to implement the deal, in understanding with the United States, if the circumstances will change.

Israel attaches great importance to her relations with China, to the continuing development of those relations, and will act according to that. Thank you very much.