HIGHLIGHTS: Downing Street Well Aware Planes Could Be Used for Aggressive Acts in Occupied Territories||Jack Straw to Make a Statement to Clarify Government Position||Government in Breach of Election Promise||Government Facing Criticism for Change of Rules|| STORY: Britain is breaking its own embargo on arms sales to Israel by selling military components via the United States, a British newspaper reported Sunday. (Read photo caption)

The Observer said navigation and targeting equipment for F16 fighter planes destined for Israel was to be sold to the United States, where the aircraft are being built.

The paper quoted a senior government figure as saying there was "a 'clear understanding' the fighter planes could be used for aggressive acts against the Occupied Territories."

The prime minister's Downing Street offices would not comment on the deal, but admitted the increasingly global nature of arms production made embargoes harder to enforce.

At least 1,435 Palestinians and 548 Israelis have been killed since the Palestinians began an uprising against Israeli occupation in the West Bank and Gaza Strip in September 2000.

A spokesman told Reuters the home secretary (interior minister) would make a statement this week to clarify the government's position.

"Jack Straw will be setting out the position this week. There is no new policy but there is guidance based on existing criteria to take account of the new reality of multi-national assembly lines for major defense contracts," the spokesman said.

Tony Blair's Labor government declared a new era of "ethical foreign policy" shortly after coming to power in 1997, saying in future Britain would impose tough criteria for weapons sales.

ANGER OVER ARMS SALES TO ISRAEL

The UK government is facing criticism over plans to modify arms exports guidelines to allow military aircraft components to be sold for US fighter planes destined for Israel.

'WOOING EXERCISE'

Shadow foreign secretary Michael Ancram reacted cautiously to the disclosure that the guidelines on weapons exports were to be changed.

"I think that we have to be very careful that in terms of arms exports that we do make the proper distinction between those arms which are necessary for the protection of a state and those which could be used internally for the suppression of people," he told Sky News's Sunday with Adam Boulton programme.

The Observer newspaper said the Ministry of Defence was keen on the contract as part of a "wooing exercise" to get US military business.

Menzies Campbell, Lib Dem foreign affairs spokesman, described it as a "dispiriting" response to events in the Middle East.
Labour MP Alice Mahon warned: "It is outrageous, given what is happening in the Middle East."

Labour MP Llew Smith said: "How we can get into a position of exporting arms via a third country to Israel, which is invading the occupied territories on an almost daily basis, is beyond my comprehension."

PHOTO CAPTION

Asian women protest against the sale of British arms to Pakistan and India, outside Downing Street, London, June 8, 2002. Pakistan's foreign minister today urged restraint after shooting down an Indian spy plane, while its military said the incident said the industry showed the country's readiness to defend every inch of its land. REUTERS/Michael Crabtre