SABRE
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It was not Zia, it was the PAF Air Chief at the time. The F-20 either way came Pakistan with a Grumman team, in the mid 80s. They were offering license production as well. Publicity went bad when 2 test pilots met their own fates while demonstrating their aircraft at air shows, led to cancellation after that. The F-20 was not a downgraded version, yet a standard one being offered to everyone.
I mentioned Zia because Carter offered him F-16 (possibly F-16/79) during their meeting in White House on 3rd October 1980. Zia just said that as its the election year & that the US pres (Carter) is busy with that the matter should be put off until more opportune date.
As far as F-20 is concerned, I did not find out who (personally) rejected it. You may be right in saying that it was CAS.
Yes, there was an offer of co-production with PAC as well as to India.
I didn't say F-20 was a downgraded version. I said it was an upgraded version of F-5E. It was initially called F-5G. It was part of FX Program with F-16/79 (downgraded F-16) competing against it. Both aircraft were cancelled once Reagan retracted Carter's 1977 directive & thus making standard F-16 available to all buyers. Nobody showed any interest in either of the FX aircraft and after 6 years of marketing the F-20, Northrop failed to find a buyer. Thus, cancelled it. The two crashes previously, of course, did not help the matter.