The Israeli government will pay $350 million to China as compensation for scrapping a deal to supply up to four Phalcon airborne early warning systems.
The agreement was reached in Beijing during talks between Amos Yaron, director general of the Israeli defence ministry, and Chinese officials.
Last December China filed a $2 billion claim over the cancellation of the deal, which followed pressure from the USA on Israel to pull out.
Israel had expected a claim of around $500 million. China has already paid $200 million for the first Phalcon system and the first aircraft to be converted had arrived in Tel Aviv when the deal was cancelled.
Source: Flight International
