DATE=3-8-01

TYPE=CORRESPONDENT REPORT

NUMBER=2-273420

TITLE=CHINA IRAQ - (L)

BYLINE=JIM RANDLE

DATELINE=BEIJING

CONTENT=

VOICED AT:

INTRO: U-S diplomats say Chinese officials have told the American ambassador to Beijing they will ensure that Chinese companies comply with United Nations sanctions on Iraq. The assurance follows allegations that Chinese workers were helping improve Iraqi air defenses. V-O-A's Jim Randle reports from Beijing.

TEXT: A US embassy spokesman says Chinese officials gave the reassurances

to Ambassador Joseph Prueher Monday, following U-S reports that Chinese experts were helping Iraq install high tech mlitary communications systems in violation of U-N rules.

An embassy statement says the Chinese government 'reiterated' its understanding of China's responsibilities to uphold U-N Security Council sanctions, and has 'taken steps' to ensure that Chinese companies abide by these resolutions.

A report published in the Wall Street Journal says Chinese officials admitted that the companies were working in Iraq, but insisted that they were working on a civilian rather than a military project. U-N sanctions ban all military sales, and most civilian trade.

Chinese Foreign Ministry spokesman Zhu Bangzao said he knew nothing of a meeting this week with Ambassador Prueher. He repeated China's flat denial that any of its companies are breaking the rules.

/// ZHU ACT in CHINESE, ESTABLISH AND FADE TO... ///

Mr. Zhu said China's companies have not assisted Iraq in building the fiber optic defense system. And the Chinese government will continue to implement the relevant U-N resolutions concerning Iraq in a responsible way.

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Military sales to Iraq were banned by the United Nations after Iraq invaded Kuwait in 1990.

The allegations against China first appeared after U-S and British warplanes bombed an Iraqi facility February 16th, trying to destroy new communications facilities that make Iraqi air defenses better coordinated and more likely to hit U-S and British

planes patrolling Iraqi airspace. Those flights are supposed to protect minority groups in Iraq from attack by Baghdad's troops. (Signed).

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