The Reagan Administration isdiscussing a deal with Cairo under which Egypt would build the
U.S. M-1A1 battle tank, a high-speed weapon packed with laser
and other technology, Pentagon officials said.
    But they denied a Washington Post report that the
Administration has already approved a production license, which
would entail transfer of sensitive technology to Egypt.
    "We have been talking with Egyptian officials about also
producing the tank, but there is a long way to go before any
decision is made," one Pentagon official, who asked not to be
identified, told Reuters.
 Reuter
