- The Washington Times - Saturday, July 20, 2002

The State Department announced yesterday it is sanctioning eight companies and two persons for selling weapons components to Iran in violation of U.S. arms-proliferation laws.
Spokesman Richard Boucher declined to identify the nationality of the companies or people, but other officials said they involved Chinese firms.
The decision to impose the penalties was made July 9, Mr. Boucher said.
"The actions that we're taking are actions under the Iran-Iraq Arms Nonproliferation Act of 1992 and/or the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991," Mr. Boucher told reporters.
Administration officials said eight Chinese companies are being sanctioned under the action, along with two persons, a Chinese national and an Indian national.
Mr. Boucher made the comments in response to a report in yesterday's editions of The Washington Times disclosing the weapons-proliferation sanctions.
Mr. Boucher said the sanctions would restrict the companies' access to U.S. technology. He added that complaints in the past have shown they have "a pretty severe impact."
Administration officials told The Times the sanctions were imposed based on intelligence reports of three cases of sales of advanced conventional arms and chemical- and biological-weapons components to Iran.
The transfers took place between September 2000 and October 2001.
The State Department notified the Chinese government of the sanctions on Thursday, the officials said.
The sales that triggered the sanctions included advanced conventional weapons and goods related to biological-weapons control and elimination, the officials said.
"We will be reporting to Congress shortly, and at that point, we'll publish details in the Federal Register," Mr. Boucher said, declining to provide further details.
The spokesman said eight of the 10 entities are being sanctioned under the 1992 law and two entities are being sanctioned under the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991. That law requires sanctions to be imposed for contributing to Iran's chemical-weapons program.
The sanctions imposed under the 1992 law will prohibit the entities from buying goods from the U.S. government and bars the U.S. government from issuing export licenses to American businesses that want to sell to the companies for two years, Mr. Boucher said.
The chemical- and biological-weapons law sanctions limit U.S. government purchases from the sanctioned companies or imports from them for at least 12 months, he said.
"I would note that in some of these cases, some of these entities are already under sanctions and, therefore, the sanctions are cumulative on those entities," Mr. Boucher said. "But some of these entities are new."
It was the fourth time since September that the Bush administration has imposed sanctions on Chinese companies for selling arms or weapons technology to rogue states.


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