Israel to compensate China over abrogating planes deals

The chairman of the foreign relations and defense committee at the Israeli Knesset David Magen said on Wednesday that Israel will give compensations to China after abrogating a contract to sell radar planes of AWACS type.

The Israeli radio unveiled that Israel will pay compensation to China at a cost of USD 350 million, according to the agreement signed with Beijing.

The former Israeli prime minister abrogated in July 2000 a contract stated to provide China with Falcon planes of "Elusion 76" type equipped with AWACS radar system for warning. China had paid advance money of USD 200 million to buy the first plane of a total cost of USD 250 million. The contract stated to sell four similar planes to China.