World

China Arms Sanctions Dropped

By CBSNews.com staff CBSNews.com staff

November 21, 2000 / 7:04 PM EST / CBS

The United States said Tuesday it was waiving sanctions against China for past missile technology transfers to Iran and Pakistan but imposing them on these two states for receiving the equipment.

"The U.S. side has decided to waive sanctions under U.S. law for past Chinese assistance to missile programs in Pakistan and Iran, and to resume certain commercial space interactions with China," State Department spokesman Richard Boucher said.

"Sanctions have been imposed upon Pakistani and Iranian recipients of the Chinese assistance," he added.

China was liable for sanctions because of the transfers of technology including whole missiles, in Pakistan's case, or in Iran's, of components to make them, Boucher said.

But President Clinton, who leaves office in January, had granted a waiver because China's foreign ministry had pledged to clean up its act on arms technology exports.

A senior State Department official said that in the case of Iran, China's pledge to control exports "can certainly make a big impact in terms of slowing down developments."

He said the shorter the range of missile, the less Iran's dependence on foreign technology. "If they want an advanced missile capability, the horse is not yet out of the barn."

U.S.-Sino relations have been gradually recovering since last year when U.S. jets on a NATO mission against Yugoslav President Slobodan Milosevic hit China's embassy in Belgrade in a bombing the United States has always said was accidental.

Though Boucher said the sanctions would have little impact on Iran because of an existing embargo, the announcement was unlikely to improve the tone of efforts to improve ties between the United States and reformist Iranian President Mohammad Khatami.

The World's Weapons

An annual report by the International Institute for Strategic Studies says that arms sales fell from 1998 to 1999, dropping from $58 billion to $53.4 billion.

Just over 49 percent of the arms traded internationally in 1999 came from the United States, up from 47.6 percent the year before. Britain sold 18.7 percent of the world's arms, France 12.4 percent, and Russia 6.6 percent—an increase from 4.6 percent in 1998 for the former Soviet Union.

On the receiving end, the Middle East topped all other markets in weapons bought, with Saudi Arabia leadig the pack with purchases worth $6.1 billion.

The total military budgets of all countries remained fairly steady, at $809 billion—with no decreases in military spending seen anywhere but Western Europe.

Boucher said existing sanctions also spelled limited impact on Pakistan, but that the new ones sent "a strong signal that the United States opposes these countries' missiles programs."

India and Pakistan are subject to U.S. sanctions because of their tit-for-tat nuclear tests of 1998.

Iran remains among seven nations labeled by the U.S. as state sponsors of terrorism for its opposition to the Middle East peace process, a designation which robs it of much U.S. aid.

What the United States calls Iran's desire for weapons of mass destruction also boosted arguments in the United States for a missile defense shield which would cost tens of billions of dollars to build but Mr. Clinton has deferred to his successor.

Boucher said the waiver meant the United States could resume processing licenses for commercial space cooperation with Chinese companies, and talks on extending a 1995 deal on international trade and commercial launch services.

But the U.S. government would impose a two-year ban on export licenses for commerce- and state-controlled items in all new U.S. government contracts on several entities in Iran and Pakistan, and their subunits and successor bodies.

In Iran, the Defense Industries Organization, defense ministry and Armed Forces Logistics Command were affected.

In Pakistan, the affected bodies were the defense ministry and Space and Upper-Atmosphere Research Commission.

Boucher said Beijing's foreign ministry had given a clear policy commitment not to help other states to develop ballistic missiles that could be used to deliver nuclear weapons.

A statement released by the Chinese Foreign Ministry carried by the official Xinhua News Agency said "China has no intention to assist, in any way, any country in the development of ballistic missiles that can be used to deliver nuclear weapons."

It also pledged to improve its export control system, including publishing at an early date a full list of missile-related items, including dual-use ones, Boucher added.

He said the waiver depended on Beijing keeping its promise. "In that connection, while the United States is waiving sanctions that would otherwise be imposed for past transfers to missile programs in Pakistan and Iran, the waiver does not apply to any transfers that might occur in the future."

He added, "We're confident that the next administration will follow this question closely."