Report by David Gulast, Voice of America - 2002-05-10

The United States is imposing sanctions on companies in China, Armenia, and Moldova for selling technology and equipment to Iran that may be used in efforts to produce weapons of mass destruction. This is the third time in less than a year that the U.S. has identified Chinese institutions as violators of non-proliferation laws. The Bush administration, in an action reflecting U.S. concerns over Iran's military efforts, is sanctioning an unspecified number of companies in China, Armenia, and Moldova for violating a two-year non-proliferation law targeting Iran. Under these sanctions, which are set to last for two years, these companies will be barred from trading with the U.S. government or participating in any U.S. aid programs, and will not be allowed to purchase weapons or related goods from American companies in transactions requiring U.S. export licenses. Richard Boucher, spokesperson for the U.S. State Department, confirmed that the sanctions would be applied to the companies and not the countries where they are based. Mr. Boucher stated that these penalties are imposed based on the non-proliferation law concerning Iran and due to the transfer of technology and equipment listed on dual-use export control lists. Only the companies and institutions named will be subject to these sanctions, and the sanctions do not cover the governments of China, Armenia, and Moldova. In fact, we appreciate the efforts made by Armenia and Moldova in the area of non-proliferation. U.S. officials have criticized China's record on non-proliferation, which has become a chronic issue in bilateral relations. In January, three Chinese entities, two companies and an individual who was an export broker, were punished for their dealings with Iran, and in September of the previous year, sanctions were imposed on a Chinese metalworking factory in connection with the sale of missile-related equipment to Pakistan. Mr. Boucher, in response to reporters' questions, said it is still unclear what the latest sanctions will actually mean for the affected companies, as this depends on their dealings with the United States. The Bush administration has submitted a report on these violations to the U.S. Congress, and the sanctioned companies will be identified later after the findings are published in the U.S. government's official newspaper, the Federal Register. A public report released last year by the Central Intelligence Agency indicated that Iran is one of the most active countries seeking to acquire nuclear, chemical, and biological weapon systems and ballistic missiles. President Bush, in his January speech to Congress on the state of the union, described Iran, along with Iraq and North Korea, as an axis of evil, referring to what he called Iran's relentless pursuit of such weapons.