The tough line of the Bush Administration on arms sales by its allies to China seems to be paying off. A longstanding dispute between Washington and Jerusalem over Israel's decision to upgrade unmanned drones that it sold to China in the 1990s looks close to being resolved. Talks are under way for an agreement that could allow the U.S. to sign off on Israeli weapons sales to third countries, including China and India. Israeli officials say the flap could be resolved by the end of July. The Bush Administration also scored a diplomatic victory recently when the European Union bowed to pressure to retain its embargo on weapons sales to China. The EU had planned to lift the ban in June.
Edited by Rose Brady