CHINA SENDS STEEL TO IRAN FOR USE IN MISSILE PROGRAM

ISRAEL LINE FRIDAY, MAY 29, 1998

  According to United States sources, China has recently transferred about
1,000 tons of specialty steel to Iran amid suspicions that it is being used,
at least in part, for Teheran's missile program, HA'ARETZ reported.  U.S.
intelligence discovered the shipment after it had already arrived in Iran,
the sources said.
  Two months ago, Azerbaijani authorities, tipped off by U.S. intelligence,
intercepted the transfer of 22 tons of stainless Russian steel along their
border with Iran.  U.S. officials said they believe the steel could be used
to make fuel tanks for Scud missiles.
  It is believed that this recent Chinese shipment was at the heart of Prime
Minister Benjamin Netanyahu's meetings with the Chinese this week in Beijing.
  Israel Radio, KOL YISRAEL, reported that Prime Minister Netanyahu stopped
in Uzbekistan after visiting China and met in Tashkent with Uzbeki Prime
Minister Sulatnov, Foreign Minister Kamilov and President Islam Krimov.
  Netanyahu and Krimov discussed Russia's arming of Iran and the imminent
threat of Iran's emerging nuclear capability.
  Israel has placed great importance on its relationship with Uzbekistan, a
Muslim country of 23 million people which is concerned with the spread of
Islamic fundamentalism from Iran.  Uzbekistan is one of the countries
supporting the American embargo on Iran.
  Adviser to the Prime Minister, Uzi Arad, is scheduled to meet in
Washington today with Frank Galucci, the U.S. official specializing on the
issue of Russian military aid to Iran.  Arad is also scheduled to meet with
National Security Council and State Department officials, focusing on the
continued aid of Russian companies to Iran's missile and nuclear programs.
  Arad will also be briefed on the recent meeting between U.S. Secretary of
State Madeleine Albright and Syrian Foreign Minister Farouk a-Shara.