DATE= 2/22/01

TYPE=CORRESPONDENT REPORT

NUMBER=2-272882

TITLE= CHINA-IRAQ (S)

BYLINE= LETA HONG FINCHER

DATELINE= BEIJING

CONTENT=

VOICED AT:

INTRO: China is vigorously denying U-S allegations it aided Iraq in repairing air defense systems - possibly in violation of United Nations sanctions against Iraq. Beijing Correspondent Leta Hong Fincher reports.

TEXT: Chinese Foreign Ministry Spokesman Zhu Bangzao says U-S reports about Chinese aid to Iraq are futile and merely an attempt to divert public opinion from American and British air strikes against Baghdad.

Mr. Zhu told reporters Thursday that - as a permanent member of the U-N Security Council - China has always strictly and seriously carried out all U-N resolutions on Iraq. He says the United States and Britain circumvented the Security Council by unilaterally taking military action against Iraq.

Secretary of State Colin Powell questioned China's ambassador to Washington Wednesday about reports Chinese workers had helped to install fiber-optic cables in Iraq. U-S officials say the cables would improve Iraq's air defense capability, thereby violating U-N sanctions.

China has long called for an end to economic sanctions against Iraq, although it says that Baghdad must comply with all U-N Security Council resolutions. (signed).

NEB/LHF/HB/PFH