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Sunday, October 03, 2010

Dispute over article freezes France-UAE arms talks

RafaleA row over a French newspaper article is behind the breakdown of talks for a sale of French warplanes to the United Arab Emirates worth $5-6 billion, a senior French government source said on Friday.

UAE officials were angry about a June 26 article in Le Figaro, owned by conservative politician Serge Dassault, whose family-controlled Dassault Aviation made the Rafale, government officials said.

The newspaper said the UAE used Israeli technology to help secure its borders. Business with Israel remains a sensitive subject in the Gulf where most countries including the UAE have no relations with the Jewish state.

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