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U.S. APPROVES ISRAELI PHALCON SALE TO INDIA

TEL AVIV [MENL] -- The United States has approved a proposed $1 billion sale of Israeli advanced early-warning systems to India.

Senior U.S. officials told Israel that the Bush administration no longer has reservations to the Israeli sale of the Phalcon airborne early-warning radar to New Dehli, Israeli government sources said. The sources said the White House move came amid Indian pressure as well as a new drive by President George Bush to launch the so-called roadmap toward a Palestinian state.

"There were numerous talks with the administration and they could not come up with one solid reason not to proceed with the sale except the Pakistan issue," an Israeli defense source said. "That was an argument that only India could respond to."

India and Israel have been negotiating for New Dehli's procurement of the Phalcon since 2001. India has expressed interest in three Phalcon systems.

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