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September 15, 1999

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Sanctions likely against China, Pak for missile transfers: US

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C K Arora in Washington

The Clinton administration has hinted at the possibility of imposing sanctions against China and Pakistan in the wake of new evidence that the Communist state might have transferred medium-range M-11 missiles to Islamabad.

''We believe that the transfer of complete M-11 missiles to Pakistan could meet requirements for triggering sanctions under the US missile sanctions law,'' State Department spokesman James Foley said.

The reply was in reference to an unclassified US intelligence report, which states publicly for the first time that Pakistan has received M-11 missiles from China. The national intelligence estimate on foreign missile developments was released on September 9.

He recalled that the US had made ''determinations of sanction- ability and imposed sanctions on Chinese and Pakistani entities for M-11-related transfers in 1991 and 1993, and ''we will certainly do so again if the facts warrant such a result."

Foley said the possible transfer of M-11 missiles, with a range of about 250 miles, was a matter of ''grave national security importance'' to the United States. A national intelligence estimate concluded that the transfer took place. But, Foley said policy and legal determinations had yet to be made.

He said an intelligence judgment was not a sufficient basis for applying technology-transfer sanctions. ''It depends to a large extent on the nature of the evidence underlying that judgment, and before the law can be triggered, all the various elements of the missile sanctions law must be satisfied,'' he added.

''If we believe that the case can be made within the law on such a violation, we will impose sanctions,'' he remarked.

However, according to a Beijing report, Chinese foreign ministry spokesman Sun Yuxi said he was aware of the report and dismissed it as an old allegation.

The intelligence report was declassified on Thursday, just two days before President Bill Clinton and Chinese President Jiang Zemin met in New Zealand in connection with the APEC Forum meeting. One US official said sanctions against China could add up to ''big bucks.'' However, they would not materially affect Pakistan as it was already under sanctions for its May 1998 nuclear tests.

The sanctions may result in denial of high-technology equipment to the Chinese organisation involved in the transfer. They also would extend to activities of the Chinese government relating to development of Missile Technology Control Regime missiles or MTCR components or affecting production of electronic and space systems or equipment and military aircraft.

Said Foley, ''We have traditionally required a high standard of evidence in making sanctions determination, given the potentially serious consequences or implications of imposing sanctions, particularly in the areas of national security, foreign policy, and economic relations.''

UNI

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