Weapons of Mass Destruction (WMD)

DATE=03/06/01

TYPE=CORRESPONDENT REPORT

TITLE= U-S / CHINA DEFENSE (L)

NUMBER=2-273367

BYLINE=NICK SIMEONE

DATELINE=WASHINGTON

CONTENT=

VOICED AT:

INTRO: Secretary of State Colin Powell says the United States is carefully watching China's plans for increased military spending, with an eye toward whether this will pose a threat to U-S interests. V-O-A Correspondent Nick Simeone reports.

TEXT: Secretary Powell says the United States plans to ask China about its plans to increase defense spending by nearly 18 percent, calling the development something that needs to be monitored.

/// POWELL ACT 1 ///

We will be watching their buildup carefully to see how they spend this money, to see if it in any way is threatening to our interests in the region or whether it's just modernization.

/// END ACT ///

The increase in Chinese defense spending would be the largest in two decades, bringing Beijing's defense budget - at least the portion it makes public - to about 17-billion dollars. China says the increases will go mainly to salaries and technology upgrades. But Washington wants to know more.

/// POWELL ACT 2 ///

Is it just a defensive build up on their part? Is it just a modernization? Does it have some offensive potential. All of these are questions I think we should ask the Chinese, but I'm not prepared to say this creates a new state of conflict.

/// END ACT ///

Those questions will likely be put to Chinese Vice Premier Qian Qichen when he visits Washington later this month.

/// REST OPT ///

What will be carefully looked at is whether China's increased defense spending poses a risk to Taiwan, which Beijing considers a breakaway province and has threatened with military action in the past.

The United States is committed to taking what the Taiwan Relations Act calls unspecified actions if the island is attacked. The increase in defense spending by the Beijing government could prompt the White House and Congress to look favorably on Taiwan's requests to purchase high-technology weapons systems including patriot missiles. (Signed)

NEB/NJS/JWH