Fernandes discounted suggestions that the United States was concerned at the timing of the proposed sale of the Phalcon early warning system, with India and Pakistan locked in a standoff following an attack on parliament in New Delhi on December 13.

"We have been very categorically assured that there is no change as far as Phalcon is concerned. There is no substance in whatever has been spread about this Phalcon issue," he told reporters after meeting US Defense Secretary Donald Rumsfeld and Vice President Dick Cheney.

Fernandes was responding to reports that the United States, which has spent weeks trying to pull Pakistan and India back from the brink of war, was concerned about the timing of the Phalcon transfer.

State Department deputy spokesman Philip Reeker said Monday that the United States strongly backed the sale, though said that questions of timing would be the subject of discussions between US and Israeli officials.

"We actually support the transfer of that. We're discussing with the government of Israel -- consulting further with them about the transfers ... the system's capabilities and the timing," he said.

The India-Israeli deal involves three Phalcon Airborne Warning and Control Systems (AWACS), and is worth an estimated one billion dollars.

Israel last year bowed to US pressure to drop a similar deal to supply Beijing with its advanced early warning system, which Washington feared could upset the strategic balance between China and Taiwan.

The Phalcon issue may come up in general discussions during US Undersecretary of State for Arms Control John Bolton's current trip to Israel for regular consultations on non proliferation, US officials said.

Fernandes on Thursday signed an agreement with Rumsfeld which clears the way for revived US arms sales to India and greater military-to-military cooperation after a three year break.

The United States cut off military ties with India and Pakistan after their back-to-back nuclear weapons tests in 1998. Related Links
Phalcon Radar System
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