ISRAEL REELS FROM PHALCON CANCELLATION

TEL AVIV [MENL] -- Let's call him Avi. Avi is the head of a medium-sized Israeli defense contractor whoacknowledges mixed feelings to the news that Israel cancelled the sale ofthe Phalcon airborne early-warning system to China. One one hand, thecancellation freed up contracts with the United States his company has beenbidding for.