US slaps sanctions on arms firms

2003-07-03 20:56

Washington - The United States on Thursday imposed sanctions on five Chinese firms and one North Korean company for arms sales to Iran that it said could "make a material contribution to weapons of mass destruction or missiles."

The punitive sanctions, announced by the State Department in the Federal Register, were imposed on the final day of a visit here by a senior Chinese diplomat, vice foreign minister Wang Yi, who had been meeting with US officials to discuss North Korea and more general non-proliferation issues.

"A determination has been made that five Chinese and one North Korean entities have engaged in activities that require the imposition of measures pursuant to ... the Iran Nonproliferation Act of 2000," the department said.

That law "provides for penalties on entities for the transfer to Iran of equipment and technology controlled under multilateral export control lists or otherwise having the potential to make a material contribution to weapons of mass destruction (WMD) or missiles," it said.

The exact nature of the items sold was not disclosed.

The penalties have been imposed against the Taian Foreign Trade General Corporation of China, the Zibo Chemical Equipment Plant of China, the Liyang Yunlong Chemical Equipment Group Company of China, China North Industries Corporation (Norinco) and the China Precision Machinery Import/Export Corporation (CPMIEC).

The North Korean firm was identified as the Changgwang Sinyong Corporation.

Several of the companies are already subject to US sanctions for similar sales.

Thursday's sanctions include a ban on any US government contracts with the named companies, a ban on any US assistance to them, a ban on US arms sales to the firms and a ban on US export licenses for the sale of any controlled munitions.

- AFX