The Obama Administration is furious with Prime Minister Benjamin Netanyahu over his decision to shelf important evidence in a global lawsuit against Hamas terrorism in order to protect friendly relations with China.
That according to a weekend report in Israel's largest daily newspaper, Yediot Ahronot.
Netanyahu hurriedly summoned Israeli Ambassador to the US Michael Oren last week in order to better understand the situation in Washington, the newspaper revealed on Friday.
In a tense meeting in Jerusalem, Oren explained that from American's viewpoint, Netanyahu had surrendered to terrorism to avoid straining ties with China.
The whole episode began back in 2005 when it was discovered that Hamas headquarters in Syria had transferred six million dollars to private accounts under the names of two young Palestinians at the Bank of China. From there, the money was sent to Gaza.
Some of that money was later tied to a 2006 suicide bombing that claimed the life of 16-year-old American citizen Daniel Wultz, along with 10 other victims.
Wultz's mother is a cousin of US Representative Eric Cantor, leader of the Republication faction in the House of Representatives. The high profile death lead to a legal claim against the Bank of China in 2009, during which testimony was requested from Israeli security official Uzi Saya.
Saya's testimony was to begin in 2012 with Netanyahu's blessing. But, Beijing reportedly threatened to cancel Netanyahu's May 2013 visit to China if he allowed the testimony to proceed.
Netanyahu acquiesced, and Saya never testified, which enraged those in Washington who had been carefully building the case against the Bank of China and its complicity in Muslim terrorism.
Oren reportedly told Netanyahu last week that if he fails to work calm the situation, the ambassador himself could be subpoenaed to explain Israel's behavior and provide the testimony Saya never did.