Despite a slowdown in Russian aid, Iran continues development of its long-range Shihab-4 missile.

Western and Middle East intelligence sources said the Shihab-4 project has been largely taken over by China. They said the reports of a suspension of the missile program are the result of Iranian disinformation.

"They are being pressured, particularly by the European Union, to stop Shihab-4," a senior intelligence source said. "So, there have been stories put out that Shihab-4 has been suspended. But the truth is far from that."

Iran and EU representatives met this week in Teheran to discuss trade relations and strategic issues. On Monday, Iranian Foreign Minister Kamal Kharazi is scheduled to visit Brussels in continuation of the dialogue.

EU officials have complained to Iran that they might be forced to participate in a U.S. missile defense system because of the threat from Iran's Shihab-4. The missile is said to have the capability to strike much of southern Europe.

The intelligence sources, who include those from the United States, provide the following account of the Shihab-4 program. They said that over the last year the transfer of Russian missile technology has been significantly reduced under President Vladimir Putin.

Last month, the Russian government drafted a list of dual-use products that require export licenses. The list was drafted in cooperation with the Defense Ministry.

The Russian slowdown in technology transfer to Iran has resulted in China's return to the Shihab-4 program. The Chinese, the sources said, have provided China with technology for both solid-fuel engines and specially-treated metal required for the missile. They said much of the Chinese technology was originally obtained from Moscow.

The greatest help being provided by Chinese, the sources said, is in simulation testing. Beijing has been testing components of the Shihab-4 through the use of supercomputers. The supercomputers reduce the need for flight testing, the result of which is that the West, particularly the United States, is uncertain of Iran's progress in the missile program.

Much of the supercomputers and simulation systems were obtained from the United States, the sources said.

Previous U.S. assessments asserted that Shihab-4 could be ready by next year. The sources said the Shihab-4 program is actually the development of two missiles. One is that of a range of about 2,400 kilometers. The second is of a missile with a range of 5,500 kilometers, sometimes called the Shihab-5.

The sources said the biggest challenge for the program is in integration of the missiles. They said Russia has provided the technology for the engine as well as helped design the fuselage for the missile.

The Shihab-4 program was a key subject during the visit by Israeli Prime Minister Ariel Sharon to Moscow on Tuesday. The subject was also discussed last week in Washington during the official strategic dialogue with the United States. Israeli Defense Minister Binyamin Ben-Eliezer is expected to resume the talks during his planned visit to Washington next week.

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