From: gaojeng@durras.anu.edu.au (J. Gao)
Subject: CND-Global, Sat, September 12, 1992
Summary: CND
Keywords: CND
Organization: Computer Services Centre, Australian National University
Date: 12 Sep 92 06:02:37 GMT

              * * *  C h i n a   N e w s   D i g e s t  * * *

                              (News Global)

                        Saturday, September 12, 1992

Table of Contents                                                # of Lines
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1. News Brief (6 Items) .................................................55
2. France Seen Approving Jet Fighters' Sale to Taiwan ...................25
3. Taiwan Seeks Diplomatic Gains in European Arms Deals .................70
4. US Allows China to Buy Six U.S.-Made Satellites ......................30
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1. News Brief (6 Items) .................................................55
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[AP, 9/11/92] WASHINGTON -- The State Department strongly objected to a
Chinese decision to sell Iran a nuclear reactor on grounds it might be used
to develop nuclear weapons. The department said Iran's conduct in recent
years makes the transaction "highly imprudent." The agreement was
announced yesterday during a visit to Beijing by Iranian President Hashemi
Rafsanjani.  U.S. officials said Iran is expected to reach agreement on a
nuclear power deal with Russia later this month. Iran agreed to subject the
Chinese reactor to international safeguards, but State Department spokesman
Richard Boucher said the possibility of an Iranian attempt to build nuclear
weapons could not be ruled out. (From: Jian Liu)
                             ____  ____  ____

[AP-DJ, 9/10/92] HONG KONG -- China slightly devalued its currency Friday
for a second straight day, in its continuing effort to gradually bring the
yuan in line with its estimated market value. The unit's value was cut 0.07%
to a buying rate of 5.4890 yuan to the dollar from 5.4851 yuan, following
the previous day's 0.61% reduction from 5.4514 yuan. While the currency has
been devalued 5.1% since April 1991 when the government initiated a series
of frequent minor adjustments, it has occasionally been upvalued, as well.
The process began with the dollar at 5.2090 yuan. Government officials have
reiterated in recent months their desire to make the yuan fully convertible
on world markets. The yuan's black market rate is currently around seven
yuan to the dollar. (From: Jian Liu)
                             ____  ____  ____

[UPI, 9/11/92] BANGKOK, Thailand-- An association of 15 Asian and Pacific
states Friday called for "immediate and decisive action" to conclude
the Uruguay Round of trade negotiations in order to "forestall
protectionist pressure and instill confidence in markets." The fourth
conference of the Asia Pacific Economic Cooperation forum ended with a
declaration affirming "APEC's unwavering commitment to achieving the
strengthened international trading system that will result from the
successful conclusion of the Uruguay Round of multilateral trade
negotiations." (From: A CND Reader)
                             ____  ____  ____

[UPI, 9/10/92] BEIJING -- Yugoslav Prime Minister Milan Panic will visit
China for talks next week, the Chinese Foreign Ministry announced Thursday.
Panic  is  to  spend  Sept.  14  to  16 in Beijing on a "working visit,"
according  to  Foreign  Ministry  spokesman  Wu  Jianmin,  who  added  that
officials arranged the visit "not long ago." "The  two  sides  will  exchange
views  on the situation in the former Yugoslavia,  bilateral  relations  and
international issues," the spokesman said. He  reiterated  Chinese calls for
a peaceful resolution to the fighting in the former Yugoslavia, saying, "We
hope that a proper settlement will be found through peaceful means."
(From: Zhao Hua)
                             ____  ____  ____

[AP-DJ, 9/11/92] BEIJING -- The southern Chinese province of Hainan will
launch an all-economics news television channel in October, an official
newspaper reported Friday. The People's Daily (Renmin Ribao) said the Hain
an Economics Broadcast Channel would broadcast economic news for 14.5 hours
every day. It is believed to be the first such station in China.
(From: Jian Liu)
                             ____  ____  ____

[AP-DJ, 9/11/92] HONG KONG -- Chia Tai International Ltd. has signed
agreements to participate in a series of property developments and other
ventures worth more than 1.5 billion yuan with the municipal government of
Shenyang, the capital of northeast China's Liaoning province. The Hong
Kong-listed property and restaurant subsidiary of Thailand's Charoen
Pokphand Group, signed five property ventures involving 960 million
yuan and four others projects worth 620 million yuan, according to Xinhua,
China's official news agency. (From: Jian Liu)

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2. France Seen Approving Jet Fighters' Sale to Taiwan ...................25
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>From: Jian Liu
Source: AP-DJ, 9/10/92
By: Jeremy Mark

TAIPEI -- Only a week after the U.S. abandoned a longstanding prohibition
on the sale of advanced warplanes to Taiwan, France also appears to be moving
to approve the sale of jet fighters, the Asian Wall Street Journal reported
Friday.

Senior French officials say a formal decision hasn't been made yet, but they
indicate that Paris is ready to sell Mirage 2000-5 jets to the Taiwanese
military. News media reports in Taiwan say the sale will involve 60 Mirage
jets costing a total of 2.6 billion U.S. dlrs.

Although there remain some doubts that the sale will be announced soon, it
nonetheless would be a major victory for Taiwan's arms procurement effort.
Not only would it give its air force another modern fighter, but it would be
a symbolic breakthrough with European arms makers, who never before have
supplied aircraft to the island nation.

For France, the Mirage sale is seen as a life line for struggling Dassault
Aviation SA. It hasn't received a jet fighter export order in more than three
years.

French Industry Minister Dominique Strauss-Kahn told reporters that the
government hadn't given final authorization for the sale because Dassault
hasn't yet submitted a final request. But he added, "If a (favorable)
decision were to be made, the government wouldn't consider it an aggression
toward the People's Republic of China."

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3. Taiwan Seeks Diplomatic Gains in European Arms Deals .................70
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>From: A CND Reader
Source: UPI, 9/11/92
By: George Wehrfritz

TAIPEI -- Taiwan's quest for advanced European weapons is more than a bid
to ensure adequate defense against China -- it is aimed at giving Taipei a
higher international profile.

With $90 billion in foreign reserves and an annual defense budget
surpassing $10 billion, experts say Taiwan now is looking to cash in on
its economic muscle to form substantive ties with nations which
recognize China's communist government.

"To buy weapons from different sources is regarded as a tactic to
achieve more widespread international contact and cultivate friendships,
" said National Taiwan University political scientist Lu Ya-li.

Following President Bush's approval last week of the sale of 150 F-16
fighters to Taiwan, officials in Taipei made it clear that efforts to
diversify sources of weapons would continue.

"We welcome any decision from any friendly country to help us
upgrade our defensive capabilities," said government spokesperson Jason
Hu.

Unidentified French government sources said Paris had agreed in
principle to follow the U.S. lead and sell some 60 Mirage 2000-5 jet
fighters to the island in a deal worth $2.6 billion.

If completed, trade experts predict the Mirage sale could prompt
several other European nations to reconsider longstanding bans on
weapons transfers to Taiwan.

"If people around you are moving, you will try to take the same
opportunities," said one European trade official based in Taipei.

The two nations most likely to review their positions on arms sales
to Taiwan are Germany and the Netherlands.

Pressured by China, both countries early this year rejected multi-
billion dollar offers from Taipei to buy advanced warships and
submarines.

And like the United States, both nations have defense industries in
recession and desperate for new contracts.

Nationalist Chinese forces have ruled Taiwan since being driven from
the mainland by communist armies in 1949. Taipei still claims to rule
all of China and Beijing has never ruled out a military assault against
the island.

China, since taking Taiwan's United Nations seat in 1971, has mounted
a highly successful diplomatic campaign to bar the Nationalist
government from international organizations and isolate Taipei.

Only 29 nations currently have diplomatic relations with Taipei, as
opposed to 137 recognizing Beijing.

Taiwan in recent years has countered Beijing with a pragmatic
diplomatic agenda aimed at establishing nonofficial trade links with
nations that recognize China.

Analysts say arms sales are part of this effort aimed at winning
Taiwan the international backing needed to enter organizations like the
General Agreement on Tariffs and Trade, or GATT.

"Every European country that agrees to sell arms to Taiwan sends a
signal that it supports us," said defense analyst Chang You-hua. "If
the day comes that France, America, Great Britain, Germany, Italy, and
Japan back Taiwan's return to the United Nations, would Beijing ever
break ties with all of them?"

Taiwan military officials, stressing the diplomatic importance of
arms deals with Europe, have begun lobbying the Bush administration not
to block the Mirage sale, sources said.

Analysts say Taipei is wary of offending Washington by courting
Europe's defense industry.

"We have to be very careful," said Professor Lu. "The United
States is still Taiwan's main source of international contacts."

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4. US Allows China to Buy Six U.S.-Made Satellites ......................30
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>From: Jian Liu
Source: AP-DJ, 9/11/92

WASHINGTON -- Waiving legislative restrictions, the U.S. State Department
announced Friday that China will be allowed to buy six U.S.-made
communications satellites, a decision that could yield worth more than 650
million dlrs for U.S. exporters.

Legislative restrictions imposed after the crackdown on pro-democracy
demonstrators in China in June 1989 barred the export of satellite technology
unless the administration issued a waiver.

State Department spokesman Richard Boucher said the decision announced
Friday was based on national security interests.

"These exports will help reduce our trade deficit with China and provide
jobs for American workers," Boucher said.

He said two of the satellite projects are in production and together are
worth about 150 million dlrs. The other four projects are in the technical
discussions stage. Successful completion of these discussions could yield
well over dlrs 500 million to American manufacturers, Boucher said.

The exports affected are for the APSART, Asiasat 2, Intelsat VIIA, STARSAT,
AfriStar and Dong Fang Hong 3 satellite projects. The satellites may be
launched on Chinese vehicles.

Boucher said an inter-agency export control review of these projects
concluded that the safeguards proposed by the manufactures are adequate to
protect U.S. technology from diversion or unauthorized access by China.

He said the decision results from an agreement by China to observe the
guidelines of an international agreement aimed at curbing missile
proliferation.

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