DARYN KAGAN, CNN ANCHOR: We understand there is news coming out of the Mideast Peace Summit currently being held at Camp David between the Israelis and Palestinians. For the latest, let's bring in our White House correspondent, Kelly, Wallace. Kelly, what do you have? KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT; Well, Daryn, this news is related to an issue, something that has been a very tense subject between Israel and the United States. We have learned, CNN has learned, that Israel has informed the United States and China, it will not continue with the sale of the Phalcon to China. Now this is a $250 million airborne radar system that would basically warn against any incoming missiles. This had been a very tense issue between the United States and Israel. The Israeli prime minister's spokesman tells CNN that they have decided that this is the right decision. As for why the Israelis have made this decision, the spokesman says: Obviously, we are aware of America's concerns and interests. Now Israeli sources tell CNN that the Israelis came to the summit knowing that if they were going to get any U.S. assistance for any possible peace agreement between the Israelis and the Palestinians, the sale of this controversial radar system to China would have to be, quote, "off the table." President Clinton had been pressing Israeli Prime Minister Ehud Barak very hard to not go forward with the sale. An administration official tells CNN that the administration has been informed that Israel plans to not go forward with this. But as for any further comment, the official is deferring to White House press secretary Joe Lockhart, who will be holding a briefing just about a half our from now -- Daryn.</s>KAGAN: Kelly Wallace, there at Camp David, thank you very much for that latest information.
Middle East Peace Summit: Israelis Will Not Sell Radar System to China