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China to probe firms that US fear evade Iran sanctions: US

by Staff Writers
Washington (AFP) Oct 18, 2010
The United States said Monday it has raised concerns with China that some Chinese firms may be evading UN Security Council sanctions against Iran, adding Beijing had promised to investigate.

State Department spokesman Philip Crowley indicated that the concerns were raised by envoy Robert Einhorn during meetings in late September with the Chinese in New York during the UN General Assembly and in Beijing.

"We did provide some information to China on specific concerns about individual Chinese companies and the Chinese assured us that they will investigate," Crowley told reporters.

The Washington Post reported late Sunday that the United States believes some Chinese firms are helping Iran improve its missile technology and develop nuclear weapons and has asked Beijing to prevent such activity.

Citing an unnamed senior US official, the Post said the request was conveyed during a visit to Beijing last month by a US delegation led by Einhorn, the State Department's special adviser for nonproliferation and arms control.

Einhorn gave his Chinese counterparts a "significant list" of companies and banks that the United States thinks are violating UN sanctions against Iran without authorization from the Chinese government, the report said.

US intelligence believes that several Chinese companies have been providing restricted technology and materials to Iran's military programs while some Chinese banks were backing these deals, the paper noted.

Most of the deals concerned Iran's missile program, according to The Post.

A senior official from a Western intelligence agency said Chinese firms were also discovered selling high-quality carbon fiber to Iran to help it build better centrifuges, which are used in enriching uranium, the paper noted.

In 2008, for example, Iran obtained 108 pressure gauges, which are critical to the functioning of a centrifuge, from one Chinese company, The Post said.

The report said a year earlier, a small company in the Chinese port city of Dalian provided Iran with a range of sensitive materials, including graphite, tungsten copper, tungsten powder, high-strength aluminum alloys and high-strength steel, again for its nuclear program.

That firm allegedly received payment from Iran via US banks, the paper said.

"My government will investigate the issues raised by the US side," The Post quoted Wang Baodong, a spokesman for the Chinese embassy in Washington, as saying.

earlier related report
China insists it respects Iran sanctions
Beijing (AFP) Oct 19, 2010 - China insisted Tuesday it was implementing UN sanctions against Iran after Washington said it had asked Beijing to look into whether some Chinese firms were evading the restrictions.

"We maintain that all countries should implement Security Council resolutions on the Iranian nuclear issue in a comprehensive and earnest manner," foreign ministry spokesman Ma Zhaoxu told reporters.

"China has always been honest in implementing and fulfilling our international obligations and has taken an active part in diplomatic efforts to solve the issue."

China is Iran's closest trading partner and has major energy interests in the Islamic republic, which Western governments suspect of seeking to develop nuclear weapons capability.

Tehran strongly denies the allegations, but Beijing still voted for a fourth set of UN sanctions against Iran in June over its refusal to freeze uranium enrichment.

The Washington Post reported late Sunday that the United States believes some Chinese firms are helping Iran to improve its missile technology and develop nuclear weapons, and has asked Beijing to prevent such activity.

US State Department spokesman Philip Crowley confirmed on Monday that Washington had provided information to Beijing about individual Chinese companies, "and the Chinese assured us that they will investigate".

Ma said China had made its "position clear" to the United States, without further elaborating.

Crowley indicated that the concerns were raised by US envoy Robert Einhorn during meetings in late September with the Chinese in New York and in Beijing.

According to the Post, Einhorn gave his Chinese counterparts a "significant list" of companies and banks that Washington believes are violating UN sanctions against Iran without authorisation from the Chinese government.

US intelligence believes that several Chinese companies have been providing restricted technology and materials to Iran's military programmes while some Chinese banks were backing these deals, the paper noted.



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