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I heard something similar, I believe reported by the television news program “60 Minutes”, but the report I remember was about the Phalanx missile defense system not recognizing the Exocet as an “enemy” missile since it was a NATO weapon.

Edit: Note that I’m working off of very old memories, and the 60 minutes reports may not have been accurate.

None of the UK ships had Phalanx at that point in time, so it can't have been that.

FWIW, I was in high school at the time and I remember something similar.

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