JERUSALEM, Aug 17: Israel’s defence ministry and the Pentagon announced in a joint statement on Tuesday that they had resolved a crisis sparked by an arms contract between Israel and China.

“The United States and Israeli departments of defence have concluded an agreement designed to resolve the problems that have seriously damaged their relations,” the statement said.

Israel’s ties with the United States took a major hit from the row over a controversial weapons deal under which Israel was to upgrade a consignment of drones it had sold to China.

Washington imposed a series of sanctions on Israel’s defence industry over the deal to upgrade Harpy Killer drones, amid concerns that advanced US defence technology contained in Israeli equipment could be used against Taiwan. —AFP