Approved For Release 2000/08/08 : CIA-RDP96-00789RQG0200210004-3
    CPYRGHT
    CPYRGHT
                            utzpahl",
    What's the Chinese WoOd for Ch
              hen Iran began launch
         ing Silkworm missiles
         W
         against gulf sbipping, the
         political debris fell half 'a
         n es
         world away. C
    ewor
    ArniaCOSt WLUV d9ttlEt r?,Wu
    the arms trade with China's abroa~.Jgj year alom
    leaders. Washington is par-
    ticularly troubled that the
      ul
    8 es ven i add
         Chinesedenythe a] +illion,
    with_pho~,~ n~ ti ' geopolitical
                                      reasons
    as
               when coilfront
    Pa
    0 evl ent talk
    ,4vti ~ Idence: gleaned as well. In a rec
    e aY~l 0 -ranking for-
    lah4much to Washington'B with one high
    &Ir Teign visitor, Deng described
    outrage. After a series of
         futile protests'to the Chi- Teheran as "gripped with re
         -, ,__ rt~,6T_Ra-n_d wor& ligious fanaticism" and said
         nese government, the Rea- 16%'_n2~'Vt'ne finesX
    gan administration has ex- for chutzpah, but there must it was important to "retain
    acted a penalty, postponing be one, because they sure the capacity to influence
    trade measures that would have it," says one frustrated Iran." In particular, China
    have allowed China to buy State Department official. is trying to parry Moscow's
    faster American mainframe China~s main motive is the latest efforts to court the
    computers and more accu- old-fashioned one: money, Teheran mullabs. Beijing
    rate semiconductor equip- Under Deng Xiaoping's eco- seems to covet a power-bro-
    ment. During a visit to Bei- nomic reforms, the Chinese ker role in the gulf. China's
    _jing this we6k,,U.S. Under government has encouraged military sells weapons to
    S,-r.retary of State Michael the military to help pay its, Iraq too.
    NEWSWEEK: NOVEMBER 9,1987 59
    CPYRGHT
    and are petitioning the Gov-
    ernment for a larger quota of
    visas.
    THE GULF
     Sun
    Market
    h -kw m i
    In ilkwcwms
         For months the Reagan Ad
         ministration has protested
         China's role as one of Tran's
         ain arms supp
    m liers, while
    Beijing has denied the allega-
    tion. Last week Adininistra-a
    don o4icials said they have ev.
    idenco, that new Chinese arms
    S pine 11
         hi cluding sophisti
         ntiship missiles,
         nave arrived in Tehran since
         ftrlY October. More than 100
         #6w -PilkwOrrn missiles, the
         type that were used in recent
         attacks on Kuwaiti shipping,
         ire 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 Muiahedin, 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.
    Approved For Release 2000/08/08 CIA-RDP96-00789ROO0200210004-3
    79