1. (S) MOD DG Amos Yaron expressed concern March 3 to
visiting Commerce U/S Kenneth Juster about signals that
France might be ready to reverse its restrictive policy on
arms sales to China. In a March 4 follow-up meeting, Rami
Yungman of the MOD pol-mil bureau told polmiloff that the
sources of GOI concern were the tone of President Hu's recent
state visit to France and informal signals the GOI has
received from French officials that the GOF intends to
reverse the arms sales policy that it has followed with China
since Tiananmen.



2. (S) Yaron plans to raise the possible change in French
policy with USD(P) Feith and A/S Bloomfield during his March
10-11 visit to Washington. A change in French policy, Yaron
suggested, could have implications for U.S. policy,
including, he hinted, U.S. expectations about Israeli arms
sales to China. Yungman said Yaron would also raise the
topic with his French MOD counterpart, Marc Perrin de
Brichambaut, during a bilateral strategic dialogue in Paris
immediately following the U.S. visit.



3. (C) Yungman said he did not expect DefMin Mofaz to raise
the issue either in Paris or Washington, both of which Mofaz
will visit during the week of March 8. Septel reports other
issues Mofaz and Yaron plan to raise in Washington.

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