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New CIA report links China to Libyan missile program

SPECIAL TO WORLD TRIBUNE.COM
Friday, July 28, 2000

WASHINGTON -- China has increased sales of missile components and nonconventional weapons to Libya and Iran, U.S. intelligence sources said.

The assertion is contained in a new CIA report that has been relayed to Congress. The nonclassified version of report is to be released soon.

Among the findings of the report is that China has sold missile parts to Libya, Middle East Newsline reported. China has also sold cruise missiles to Iran, strategic weapons technology to North Korea and nuclear components and missiles to Pakistan, congressional sources said.

Many of the findings, the sources said, represent a confirmation of the classified version of a CIA report released earlier this year that reviewed proliferation during the first six months of 1999. They include reports that China has increased the export of missile components, technology and experts to Libya constructed a second M-11 missile plant in Pakistan and relayed components and expertise for Iran's solid-fueled ballistic missile program.

The report said that North Korea has also delivered to Iran 12 engines critical to Teheran's efforts to build the Shihab-4 and Shihab-5 missiles. Pyongyang has provided missile technologies and assistance to Libya, and is believed to be constructing a missile factory in Sudan for Iraq.

In addition, the sources said, Russia was found to have provided Iran's missile programs with specialty steels and alloys, tungsten coated graphite, wind tunnel testing facilities, gyroscopes and other guidance technology, rocket engine and fuel technology, laser equipment, machine tools, and maintenance manuals.

"The behavior thus far of Russia and China makes it appear unlikely that either government will soon effectively reduce its country's sizable transfers of critical technologies, experts, or expertise to the emerging missile powers," Sen. Fred Thompson, the chairman of the Senate Committee on Governmental Affairs, said. "The next [CIA] report is due out any day now, and it isn't much different, I am told."

In June, Robert Walpole, the CIA official in charge of strategic and nuclear assessments, told the Governmental Affairs subcommittee on International Security, Proliferation, and Federal Services that countries as North Korea, Iran, Syria and Libya are increasing their trade and cooperation to help each other's missile programs.

"Many of the rogue states and other countries seeking these weapons of prestige, coercive diplomacy, and deterrence are working hard to develop an indigenous capability -- which requires the acquisition of dual use items from the industrialized countries of the West," Walpole said.

Congressional sources said the report will also disclose China's use of the U.S. capital market to finance missile and strategic weapons programs. Earlier this year, they said, PetroChina attempted to raise $10 billion to finance its operations in Sudan.

In addition, the California Public Employees' Retirement System has invested millions of dollars of employee pension funds in four companies linked to the Chinese military or Chinese espionage. They are Cosco Pacific, China Resources Enterprise, Citic Pacific, and Citic Ka Wah Bank.

Friday, July 28, 2000

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