-Caveat Lector-
January 26, 2001
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.
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.
=================================================================
Kadosh, Kadosh, Kadosh, YHVH, TZEVAOT
FROM THE DESK OF:
*Michael Spitzer* <[EMAIL PROTECTED]>
~~~~~~~~~~~~~~~
The Best Way To Destroy Enemies Is To Change Them To Friends
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