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Peace at any cost is a Prelude to War!
Beijing using front companies to grab U.S. arms technology
By Bill Gertz
THE WASHINGTON TIMES
China is buying U.S. weapons technology illegally through front
companies in Hong Kong and Singapore, U.S. intelligence officials
said. Top Stories
• Greenspan boosts Bush tax-cut plan
• Clinton aides accused of theft, vandalism
• China demands U.S. stop 'interfering' on human rights
• Democrats demand Ashcroft apologize
• Clinton plan puts Israel at risk, Sharon aide says
According to sensitive intelligence reports, China last month
acquired "radiation-hardened" integrated circuits from a U.S. company
that were shipped to China from Singapore, said officials familiar
with the reports.
The Chinese company involved in the diversion was identified as
the China Aircraft and Space Technology Co.
In a second activity, a Chinese missile-manufacturing firm
purchased American-made communications-test equipment from a U.S.
company based in Hong Kong. The U.S. company was not identified under
intelligence-collection rules.
Both sales were reported to senior U.S. officials early last
month and are a sign that Beijing is continuing aggressively to
acquire U.S. weapons-related goods for its military-modernization
program.
All military-related goods sold from the United States to China
require an export license. However, Chinese companies secretly have
been purchasing embargoed technology and hardware under export rules
relaxed during the Clinton administration.
The intelligence reports bolster the findings of a special
congressional committee that stated in a 1999 report that the use of
Hong Kong companies "is a common [Chinese] tactic for illegal
transfer of technology."
In a related development, China is continuing to sell missile-
related equipment to Iraq and Iran in apparent violation of its
pledge last fall to curb such transfers, said officials who spoke on
the condition of anonymity.
The officials provided a briefing to The Washington Times to
highlight what they said were ongoing Chinese sales of weapons and
missile technology to rogue states, in violation of official pledges
by Beijing to curtail such transfers.
"The Chinese appear to be selling everything to everybody," said
one defense official.
In November, the Clinton administration announced it would not
impose sanctions on China for selling missile technology to Iran and
Pakistan after Beijing promised to curb further sales. Iran and
Pakistan, however, were slapped with sanctions.
A Chinese Foreign Ministry spokesman said in a statement at the
time that China had no plans "to assist, in any way, any country"
developing nuclear-capable ballistic missiles.
Regarding the Iraqi missile-related sales, the officials said a
delegation of representatives of a Chinese company was set to travel
to Iraq last month to discuss the sale of "missile-related guidance
and test equipment."
The company is offering gear to be used in testing missile
inertial guidance systems, which are key components of long-range
missile systems.
The company was using what U.S. officials said is a "cover name"
to mask the true nature of the sales trip. The company was identified
as the Shandong Arts and Crafts Co.
A Pentagon report on arms proliferation made public earlier this
month stated that Iraq is working on two short-range missiles that
are providing a base for building long-range missiles, should U.N.
sanctions on the country be lifted. The report noted that Iraq "may
have ambitions for longer-range missiles, including an ICBM
(Intercontinental Ballistic Missile)."
Additionally, a Chinese company has recently been shipping
specialty metals and chemicals used in missile production to Iran,
the officials said. The seller was identified as Norinco, the acronym
for China North Industries Co., which was linked by federal
investigators in 1996 to smuggling of AK-47 assault rifles in Los
Angeles.
The Iranian buyer was identified as the Shahid Bakeri Industrial
Group, a defense-related company involved in Iran's missile program.
The Pentagon report stated that despite "numerous pledges" not
to sell weapons to rogue states, "Chinese entities have supported
some nuclear, chemical and missile programs in countries of
proliferation concern, driven by China's overall strategic interests
in South Asia and the Middle East and by domestic economic pressures."
The report noted China's sales of missile-related goods to Iran,
Libya and North Korea.
According to the officials, in addition to its own weapons-
proliferation activities, China covertly is helping North Korea buy
and sell missile goods.
In November, a North Korean company based in China sent
specialty steel used in missiles to Egypt, the officials said, noting
that the steel is controlled under the 29-nation Missile Technology
Control Regime.
That same month, the U.S. administration waived sanctions on
China based on promises from Beijing to tighten export controls on
missile-related goods.
Also in November, a North Korean company in Japan purchased a
U.S.-made high-speed video camera used in missile development from an
unidentified American company.
The camera was shipped from the United States to Egypt, and then
was transferred to Russia and China before finally reaching North
Korea, the officials said.
CIA and White House spokesmen had no immediate comment on the
proliferation activities of China and North Korea.
A Chinese Embassy spokesman could not be reached for comment.
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