Al-Quds city, Nov 6, SPA -- The U.S. has reinstated Israel'sparticipation in the Pentagon's next-generation fighter jetdevelopment project, after suspending it over a proposedIsraeli arms deal with the Chinese, the Defense Ministrysaid Sunday. Israeli Defense Minister Shaul Mofaz and U.S. Secretary ofDefense Donald Rumsfeld discussed the matter in Washingtonon Friday, the Associated Press quoted the ministry as saying. The decision to bring Israel back into the project was thelatest sign that the two countries had mended relationsstrained by Israel's since-abandoned plan to upgrade droneaircraft sold earlier to China. The Pentagon regards China as a potential long-termadversary, and as part of the spat, the Pentagon restrictedIsrael's access to the Joint Strike Fighter program, whichis to create a new fighter to replace the F-16 for theUnited States, Israel and several European countries. In August, the two countries announced an understandingresolving the dispute, which requires Israel to inform theU.S. in advance about possible arms sales to China. The fighter program is worth an estimated $50 million toIsraeli defense contractors.--SPA1236 Local Time 0936 GMT www.spa.gov.sa/300829