The "Chinese crisis" between the US and Israel

This article discusses the latest development in an issue which seems to have received almost no mainstream media coverage in the US.  But it's an important piece of American policy in the Middle East:  U.S. demands Israel change defense export practices by Ze'ev Schiff Ha'aretz 02/27/06.

It's about a dispute between the US Defense Department and Israel over the export of sensitive military technology to China in particular, but other nations, as well.  This article even calls it a "crisis".  Such a disagreement might come as a surprise to those who are aware how uncritically the Bush administration has supposed the Likud-led government in Israel over the Palestinian territories and other issues in the region.

Basically, this says that Israel has reorganized its Defense Department to set up a new systematic review on military exports, an action meant to mollify Rummy and the Bush administration.  But Schiff also writes that the Americans aren't entirely happy with the limited role assigned to the Israeli Foreign Ministry, which is presumably more receptive to the American concerns.  He gives the following general status:

"The Chinese crisis" caused a rift between Israel and the Pentagon on several levels. A number of contacts were frozen by the Americans, who said Israel could not be trusted in the area of sensitive technological exports, both American and Israeli, which might reach "dangerous addresses." Most of the limitations were removed slowly. [Israeli Defense Ministry legal adviser Tzvia] Gross outlined the expected changes in the twice-yearly U.S.-Israel meeting on defense matters that took place recently. The American delegation to the meeting was headed by John Killen, head of the State Department's Bureau of Political-Military Affairs, and Peter Rodman, Assistant Secretary of Defense for International Security. The American delegates expressed their satisfaction with the plans, but said that it remained to be seen how Israel would enact the decisions.

Schiff also notes, "The Americans demanded in the meeting that Venezuela be added to the list of countries Washington considered 'problematic' countries and to which defense exports should be limited".