China told UN fiber optics project was civilian contract

WASHINGTON — The United States has determined that a Chinese project to improve Iraqi anti-aircraft systems was concealed as a civilian contract.

U.S. officials said a Chinese company accused of installing fiber-optic cables to improve Iraqi air defenses had told the United Nations that the export was that of telecommunications and switching systems. Once the equipment arrived in Baghdad, they said, fiber optic cables were laid to link air defense batteries and radar.

On Feb. 16, British U.S. warplanes attacked the air defense batteries around Baghdad in what was termed an unsuccessful attempt to destroy the underground cables laid by the Chinese company, Huawei Technologies. Huawei received $34 million for the Iraqi project.

The Washington Post reported on Saturday that China applied in April 1999 to the UN sanctions committee for approval of the export to Baghdad of "telecommunications equipment and switching systems." Britain and the United States demanded more details before they would endorse the Huawei contract.

U.S. officials said they suspect China shipped the fiber-optic cables without waiting for UN approval. They were then laid by Chinese technicians to link radar networks and air defense systems.

Britain and the United States have warned that they would withhold contracts until they could obtain verification that dual use items such as telecommunications and other systems would not be used for the Iraqi military. About $500 million worth of telecommunications and transportation systems have been held up by the two Western allies.

In Baghdad, Iraqi officials said two people were killed and others wounded in an explosion on Friday near a railroad station. Iraq accused Israel and the United States as being responsible for the attack.