Weapons of Mass Destruction (WMD)

DATE=09/06/01

TYPE=CORRESPONDENT REPORT

NUMBER=2-280106

TITLE=CHINA / SANCTIONS REACT (L-ONLY)

BYLINE=LETA HONG FINCHER

DATELINE=BEIJING

CONTENT=

VOICED AT:

INTRO: China is lashing out at the United States for imposing sanctions

on a Chinese weapons producer. As Beijing Correspondent Leta Hong

Fincher reports, the Bush Administration says the targeted Chinese

company sold missile technology to Pakistan.

TEXT: Chinese Foreign Ministry Spokesman Zhu Bangzao says the U-S

decision to impose sanctions on a Chinese company for exporting arms is

"groundless and irresponsible." The United States Saturday said the China Metallurgical Equipment Corporation had sold missile parts and technology to Pakistan, in violation of a Sino-American agreement that China would halt all missile exports.

///ZHU ACTUALITY IN CHINESE, UP AND UNDER///

Mr. Zhu told a news conference Thursday China could not accept what

he called "the hegemonic act of the United States." He demanded the

sanctions be immediately repealed. He says, after in-depth

investigations, China concluded the metallurgical equipment company

never engaged in improper activities and that the U-S allegation

was erroneous.

Last November, Beijing promised Washington it would not help other

countries develop ballistic missiles capable of delivering nuclear

weapons and pledged to improve its system of controlling

missile-related exports. In exchange, Washington agreed to waive

sanctions against China for past missile transfers to Iran and Pakistan

and said it would resume processing licenses for U-S satellite launches

in China.

But Saturday's decision by the Bush Administration to sanction a Chinese

arms producer also means U-S companies will not be permitted to

launch satellites on Chinese rockets.

///ZHU ACTUALITY IN CHINESE, UP AND UNDER///

Mr. Zhu says China has strictly upheld its promise under the

agreement, but that the United States failed to honor its own

commitment. He urged Washington to lift its sanctions or risk

undermining Sino-American efforts to reduce weapons proliferation. (signed).

NEB/LHF/WD