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 thePeople's Republic of China," asserted that Israel and Russia were leadingsuppliers to Beijing's military. The annual report said the lifting of theEU embargo would spark intense competition that would include Israel formilitary sales to the People's Liberation Army.