DATE=7/8/2000 TYPE=CORRESPONDENT REPORT TITLE=CHINA-US-ARMS (L) NUMBER=2-264194 BYLINE=ROGER WILKISON DATELINE=BEIJING CONTENT= VOICED AT: INTRO: The United States and China have ended two days of talks on arms control and non-proliferation issues, thus resuming a dialogue that was suspended after NATO bombed China's embassy in Yugoslavia last year. VOA correspondent Roger Wilkison reports top US negotiator John Holum told reporters in Beijing the two sides made progress but did not resolve their differences on several key issues. TEXT: Each side had their concerns going into the talks. China is adamantly opposed to US plans for a national missile defense it fears will upset the global strategic balance and neutralize its own limited arsenal of intercontinental ballistic missiles. And it is especially angry about an Asia- based theater missile defense Washington says it needs to protect its troops and allies in the region. Beijing is convinced this so-called TMD will be used to shelter Taiwan and thwart China's efforts toward reunification with the island. Mr. Holum, who spoke with reporters shortly after the failure of a test of the proposed national missile defense system, acknowledged China's concerns. He says he sought to reassure the Chinese that such a system would not be aimed at China but did not say what the Chinese response was. And, in an indication that the two sides are still far apart on the much more touchy TMD issue, he says no decision has yet been made on whether to incoporate Taiwan into the system. /////HOLUM ACTUALITY///// We don't rule out the possibility that sometime in the future, Taiwan may have TMD capability. We may assist Taiwan. But we haven't made that decision. The only decision we've made is, when the technology becomes available, we will use it in defense of our forces. /////END ACTUALITY///// Mr. Holum also says the United States will continue to deliver defensive weapons to Taiwan as long as China continues deploying offensive weapons aimed at the island Beijing regards as a wayward province that must be brought back into its fold. China decries such deliveries as a violation of Sino-US agreements and as interference in its own internal affairs. The US official, who met for two days with a Chinese delegation led by Vice Foreign Minister Wang Guangya, says he believes China has upheld its commitment not to supply certain types of missiles to Pakistan and other countries. But he says Washington worries that Beijing may still be providing Islamabad with missile- related technology, such as weapons-grade steel and guidance systems. /////HOLUM ACTUALITY///// They have committed in fairly broad terms.to specific curtailment of all-out missile transactions. What's unclear, and a matter of some dispute between us and them, is the extent to which that reaches technology. And it's technology that is the area of concern. /////END ACTUALITY///// Mr. Holum says legislation pending in the US Congress that would impose sanctions against China if it is found to be helping other countries acquire nuclear or missile capabilities is unnecessary. He says that, despite differences over major non-proliferation issues, China has become an active and constructive participant in several arms control schemes. /////HOLUM ACTUALITY///// We have a common interest in preventing proliferation. Neither country sees it as being in their interest. And we're trying to approach it from that standpoint: to make this a cooperative, constructive effort in which we share information and try to resolve problems. /////END ACTUALITY///// The US arms negotiator says his talks in Beijing were a good start but that there is a long way to go before the major issues dividing the two sides are resolved. (signed) NEB/RW/PLM 08-Jul-2000 07:23 AM EDT (08-Jul-2000 1123 UTC) NNNN Source: Voice of America .