LIFTING CHINA EMBARGO COULD SPUR ISRAELI SALES

WASHINGTON [MENL] -- The U.S. Defense Department has warned that the liftingof the European Union embargo on China could spur renewed Israeli militarysales to Beijing. A Pentagon report to Congress, entitled "The Military Power of the People's Republic of China," asserted that Israel and Russia were leading suppliers to Beijing's military. The annual report said the lifting of the EU embargo would spark intense competition that would include Israel for military sales to the People's Liberation Army.