China has surprised Israel with a massive $2 billion compensation claim over the cancellation of the Phalcon airborne early warning aircraft programme. The USA forced Israel to abandon the Phalcon sale to China in 2000 by threatening to cut military aid to Israel. Tel Aviv expected a claim of around $500 million. Israeli sources says China does not expect to get the full $2 billion, but the figure reflects Beijing's anger. China had already paid $200 million for the first Phalcon.
Source: Flight International
