ISRAEL has accused Britain of imposing a covert arms embargo that could compromise its air defences in a war against Iraq.

The diplomatic dispute between Washington’s two closest allies centres on Israeli protests that Britain has delayed the export of key spare parts without which Israel may have to ground its ageing fleet of Phantom fighter-bombers.

“This is a major cloud in our bilateral relations with Britain,” Victor Harel, a senior Israeli Foreign Ministry official, said last night.

British officials deny imposing any boycott, covert or otherwise, but confirm that all military exports to Israel are carefully scrutinised to ensure that they are not used against Palestinians in the occupied territories. “We won’t export anything that could be used for external aggression or internal repression,” a Foreign Office spokesman said.

The most crucial Phantom spare parts are ejector-seat charges. The British-made devices, which hurl a pilot to safety, are among 140 military items whose delivery has been delayed since the outbreak of the Palestinian intifada in September 2000, Israeli defence officials said.

One Israeli government official charged Britain with undermining his country’s defences against President Saddam Hussein. He blamed a Europe-wide failure to accept that Israel’s actions against Palestinians in the West Bank and Gaza were “self-defence against terrorism”.

“We are talking about aircraft which are for the self- defence of Israel when we are facing Iraq at this point. I think we should have a much better understanding on the British side of our position,” he said.

“They may also be trying to appease the Arab countries by saying, ‘Look, we don’t have a pro-Israeli policy - you have to help us in the big picture with Iraq.”

Israeli officials said that Jack Straw, the Foreign Secretary, ignored the appeals of Binyamin Netanyahu, the Israeli Foreign Minister, during a meeting before Christmas. They fear an arms ban is part of a concerted British effort to improve relations with the Arab world ahead of a war with Iraq, even at the expense of Anglo-Israeli ties.

Tony Blair has recently launched a charm offensive in the Arab world. Last month he hosted President Bashar Assad of Syria in London. This week he met President Mubarak of Egypt, then travelled to Jordan to see King Abdullah. Later this month the Prime Minister is hosting a conference on reforming the Palestinian authority that Israel has already dismissed as a sham.

Britain approved 128 export licence requests from January to November 2001, rejecting 77. Licences revoked since Israeli forces re-entered Palestinian areas in force after September 2000 include weapons sights, bombing computers, target-designating equipment, torpedoes and demolition devices.

The Foreign Office said the scrutiny was necessary because Israel had provided false assurances about the non-use of British equipment in the occupied territories.

Israel claims the restrictions have gone to ludicrous lengths, blocking even items such as searchlights for police helicopters and specially-made target bullets for Israel’s rifle-shooting team.

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