Administration tolerating Russia's arms sales to Iran

WASHINGTON — The Clinton administration has acknowledged that Moscow is not being held to honor a 1995 agreement that bans Russian arms sales to Iran.

Administration officials said Washington and Moscow differ over the interpretation of the 1995 understanding signed by then-Russian Prime Minister Viktor Chernomyrdin and U.S. Vice President Al Gore. U.S. officials said the ban was meant to stop all future arms sales as well as weapons shipments from the end of 1999.

But the administration officials acknowledge that Russia continues to ship arms to Iran and disputes the meaning of the agreement. Moscow says the ban was conditional and ensured the shipment of all weapons ordered by Iran before the understanding.

President Bill Clinton raised the issue of arms sales by Moscow during his meeting on Wednesday with his Russian counterpart, Vladimir Putin, in Brunei. Administration officials said Putin reiterated Moscow's commitments to halt proliferation of missiles and weapons of mass destruction.

But the officials said Putin did not concede to the U.S. interpretation of the 1995 accord, drafted four years before he assumed power in the Kremlin. They said Putin denies that Moscow agreed to a date for the termination of existing weapons shipments.

"This is an ongoing discussion with the Russians," a senior administration officials said. "We believe that that memorandum of understanding has served a very useful purpose in achieving transparency about Russia's arms contracts -- conventional arms contracts with Iran, and in limiting that flow. We will be concerned to continue doing so in the future, and the Russians appreciate this."

The administration official acknowledged that the 1995 accord was not certain of a termination date of Russian weapons shipments to Iran. "In terms of what came up in this meeting, that's correct," he said.

Officials said the United States and Russia are trying to reach agreement that would clarify the 1995 accord, which Republican congressional leaders maintain violate a 1992 law that prevents arms shipments from being sent to Iran or Iraq.

Israeli officials who followed the U.S. efforts said the final months of the Clinton administration has demonstrated that Washington has failed to stop Russian weapons and missile technology to Iran. The officials said Russia has provided nuclear weapons technology to Iran despite Moscow's pledges to maintain a policy of nonproliferation.

The issue of Russian nuclear technology to Iran was discussed on Wednesday when Russian Foreign Minister Igor Ivanov met Israeli National Security Adviser Uzi Dayan.

Instead, the Clinton administration has urged for a relaxation of export controls that would grant Russia advanced computers and other high technology. Congress stopped the White House and on Monday Clinton signed legislation that maintains current controls on the export of sensitive technology with military applications.

Since 1994, Clinton has been trying to ease export controls. The legislation continues on current export controls until August 2001.

A key issue for Clinton's successor is the fate of the Iran-Libya Sanctions Act, passed in 1996 and which penalizes foreign companies that invest more than $40 million in the energy sector of either country. Analysts said the sanctions law might be regarded as too expensive for the U.S. energy industry, which has watched French companies grab lucrative Iranian contracts.