CIA-RDP96-00789R000200210004-3

Approved For Release 2000/08/08 : CIA-RDP96-00789R000200210004-3
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CPYRGHT
TIMES + 9 NOVIST
WARD- NETWORK
DEPARTMENT OF DEFENSE
The gulf: deadly Silkworm or thisplay
CPYRGHT
7
ENSWEEK- 9 NOV 87
What's the Chinese Word for Chutzpah?
When Iran began launch-
ing Silkworm missiles
against gulf shipping, the
political debris fell half a
world away. China makes
the mobile, 20-foot Silkworm
and peddles it to the ayatol-
lah -- much to Washington's
outrage. After a series of
futile protests to the Chi-
nese government, the Rea-
gan administration has ex-
acted a penalty, postponing
trade measures that would
have allowed China to buy
faster American mainframe
computers and more accu-
rate semiconductor equip-
ment. During a visit to Bei-
jing this week, U.S. Under
Secretary of State Michael
Armacost will again raise
the arms trade with China's
leaders. Washington is par-
ticularly troubled that the
Chinese deny the sales-even
when confronted with pho-
tographic evidence gleaned
from aerial reconnaissance of:
cargo unloading at the Irani-
an port of Bandar Abbas.
don't know the Chinese word
for chutzpah, but there must
be one, because they sure
have it," says one frustrated
State Department official.
China's main motive is the
"old-fashioned one: money.
Under Deng Xiaoping's eco-
nomic reforms, the Chinese
government has encouraged
the military to help pay its
own way through arme sales
abroad. Last year alone Ira-
Han purchases of missiles
and other Chinese weapons;
totaled $1 billion. But Chi-
na has geopolitical reasons
as well. In a recent talk
with one high-ranking for-
eign visitor, Deng described
Teheran as "gripped with re-
ligious fanaticism" and said
it was important to "retain
the capacity to influence
Iran." In particular, China
is trying to parry Moscow's
latest efforts to court the
Teheran mullahs. Beijing
seems to covet a power-bro-
ker role in the gulf. China's
military sells weapons to
Iraq too.
NEWSWEEK : NOVEMBER 9, 1987 59
CPYRGHT
and are petitioning the Gov-
ernment for a larger quota of
visas.
THE GULF
Bull Market
In Silkworms
For months the Reagan Ad-
ministration has protested
China's role as one of Iran's
main arms suppliers, while
Beijing has denied the allega-
tion. Last week Administra-
tion officials said they have ev-
idence that new Chinese arms
shipments, including sophisti-
cated C-801 antiship missiles,
have arrived in Tehran since
carly October. More than 100
new Silkworm missiles, the
type that were used in recent
attacks on Kuwaiti shipping,
are also said to be destined for
Iran as part of two arms deals,
one for $1.3 billion in 1983 and
another for $600 million early
last year.
A spokesman for the Peo-
ple's Mujahedin, an Iranian re-
sistance group, said last week
that China not only continues
to sell Silkworms to the Aya-
tullah Khomeini, but that last
year more than 100 Revolu-
tionary Guards and Iranian
military men traveled to China
for missile training. The
spokesman said some of these
trainees serve in the 26th Sal-
man Missile Brigade, the unit
responsible for the Silkworm
attacks on Kuwait launched
from the Iranian-occupied Fao
peninsula in Iraq.
79
Approved For Release 2000/08/08 : CIA-RDP96-00789R000200210004-3