LONDON -- Britain is breaking its own embargo on arms sales to Israel by selling military components via the United States, a British newspaper reported on Sunday.

***The Observer*** said navigation and targeting equipment for F16 fighter planes destined for Israel was to be sold to the United States, where the aircraft are being built.

The paper quoted a senior government figure as saying there was "a 'clear understanding' the fighter planes could be used for aggressive acts against the occupied territories".

The prime minister's Downing Street offices would not comment on the deal, but admitted the increasingly global nature of arms production made embargoes harder to enforce.

At least 1,435 Palestinians and 548 Israelis have been killed since the Palestinians began an uprising against Israeli occupation in the West Bank and Gaza Strip in September 2000.

A spokesman told Reuters the home secretary (interior minister) would make a statement this week to clarify the government's position.

"Jack Straw will be setting out the position this week.

There is no new policy but there is guidance based on existing criteria to take account of the new reality of multinational assembly lines for major defense contracts," the spokesman said.

Tony Blair's Labour government declared a new era of "ethical foreign policy" shortly after coming to power in 1997, saying in future Britain would impose tough criteria for weapons sales.

bc-arms-britain arms-britain:britain breaks own arms embargo to israel-paper london, july 7 (reuters) - britain is breaking its own embargo on arms sales to israel by selling military components via the united states, a british newspaper reported on sunday.

the observer said navigation and targeting equipment for f16 fighter planes destined for israel was to be sold to the united states, where the aircraft are being built.

the paper quoted a senior government figure as saying there was "a 'clear understanding' the fighter planes could be used for aggressive acts against the occupied territories".

the prime minister's downing street offices would not comment on the deal, but admitted the increasingly global nature of arms production made embargoes harder to enforce.

at least 1,435 palestinians and 548 israelis have been killed since the palestinians began an uprising against israeli occupation in the west bank and gaza strip in september 2000.

a spokesman told reuters the home secretary (interior minister) would make a statement this week to clarify the government's position.

"jack straw will be setting out the position this week.

there is no new policy but there is guidance based on existing criteria to take account of the new reality of multi-national assembly lines for major defence contracts," the spokesman said.

tony blair's labour government declared a new era of "ethical foreign policy" shortly after coming to power in 1997, saying in future britain would impose tough criteria for weapons sales.