QUESTION: Are you aware of a report in the Jerusalem Post alleging that Iran has received four nuclear warheads from Kazakstan -- actually that part is somewhat old -- with the help of Russian underworld figures, and that those warheads are still obviously in Iran and being maintained by Russian experts?

MR. RUBIN: I am aware of that report and I am looking for the misplaced location of its response. Let me just see out of curiosity where --

We understand that the Jerusalem Post is reporting that it has obtained Iranian Government documents which support previous reports that Iran acquired nuclear weapons. While we remain concerned about Iranian intentions to acquire nuclear weapons capabilities, we have no information suggesting that Iran is in possession of nuclear warheads acquired from the former Soviet Republic of Kazakstan.

We looked into this issue in 1992 after some reports of this kind surfaced, and concluded that there was no evidence to substantiate such claims. To my knowledge, no one in the US Government has seen the specific documents referenced in that report.

But we do believe Iran is pursuing a nuclear weapons program, and has an organized structure dedicated to acquiring and developing nuclear weapons by seeking the capability to produce both plutonium and highly enriched uranium, which are the critical materials for a nuclear weapon. We are aware of this through a variety of data, including information on Iran's procurement activities that are clearly at variance with a purely peaceful nuclear program.

QUESTION: Do you believe Iran has the bomb, or not, at the moment?

MR. RUBIN: I think I couldn't have stated it more clearly.

QUESTION: No, you said, from Kazakstan.

MR. RUBIN: Our view is that Iran does not have a nuclear weapon; and our view is that they are seeking a nuclear weapons capability; and our view is that this report, that Iran received nuclear weapons from Kazakstan, we have no reason to believe is true.

QUESTION: Well, the documents -- in your investigation in 1992, did it cover these alleged documents that have now been exposed?

MR. RUBIN: I don't know the answer to that, but there's a tendency for these kinds of stories to come out. They're usually based on the same sourcing, and they kind of come out every once in a while. We've got pretty good sources in terms of this kind of a question, and we have no information to substantiate that claim.

QUESTION: There's an article today that suggests that the State Department wants to take away the Pentagon's power to develop weapons systems. Can you address that?

MR. RUBIN: Yes, those bureaucratic struggle arguments don't resemble the meetings that I see; everyone is usually very friendly in the meetings that I see.

But let me say this - of course, I don't walk into the room when they're all screaming at each other. But there has been a long-standing process by which the Department of Defense has been responsible for ensuring that our programs are consistent with our arms control obligation. We and they are working closely together to see whether there are ways to make sure that process works best. That process goes on all the time. But as far as the specific claims in that article, they struck me as a little hyperventilating, as well.

QUESTION: On Japan, Prime Minister Hashimoto announced today the income tax cuts of $3.5 billion in order to revive the Japanese economy. Do you have any comment on that?

MR. RUBIN: Yes. It is encouraging that Japan is taking steps towards stimulating domestic demand. When we know the full details of the stimulus package, we in the markets will be better able to assess the impact. But of course, Japan has the second largest economy in the world, and its policies have an enormous effect on economic conditions in other Asian countries, in the US and worldwide. That's why the United States and other governments have indicated that a substantial fiscal stimulus in Japan is necessary to restore economic growth.

QUESTION: To go back to the last question, does the State Department think it's very important that they have a bigger say in the --

MR. RUBIN: No, what we think is very important is that the government does its best to make sure that its weapons programs are compliant. We are always working on ways to ensure that the government is doing its best. We like to do our very best here in government; and that's what we're always working to do.

With respect to any inter-agency low-level, one guy wants to sit in one meeting, another guy in another meeting, that happens all the time -- not all that different than it happens in your newspapers, when you're trying to rush in the door to be the one to report some story. But in this regard, people feel the process works quite well, and all they're trying to do is make sure it can work even better.

(The briefing concluded at 1:30 P.M.)