TEXT: U.S. IMPOSES CW SANCTIONS AGAINST CHINESE ENTITIES
(Statement by State Dept. Spokesman Nicholas Burns)

Washington -- On May 21, the U.S. Government imposed trade sanctions on five Chinese individuals, two Chinese companies, and one Hong Kong company for knowingly and materially contributing to Iran's chemical weapons program.

In a statement released May 22, State Department Spokesman Nicholas Burns said the sanctions, authorized under the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991, were imposed against individuals and entities, and not against the governments of China or Hong Kong.

"We have no evidence that the Chinese or the Hong Kong Governments were involved in the specific transfers that have provoked these sanctions," Burns said.

The sanctions, which will last for a minimum of one year, prohibit the U.S. Government from procuring any goods or services from the sanctioned entities or persons, and prohibit the importation into the United States of any products produced by the sanctioned entities.

Following is the text of the statement:

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U.S. DEPARTMENT OF STATE

Office of the Spokesman

For Immediate Release          May 22, 1997

STATEMENT BY NICHOLAS BURNS, SPOKESMAN

U.S. Imposes CW Sanctions Against Chinese Entities

On May 21, 1997, pursuant to the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991, the U.S. Government imposed trade sanctions on five Chinese individuals, two Chinese companies, and one Hong Kong company for knowingly and materially contributing to Iran's chemical weapons program. These individuals and companies were involved in the export of dual-use chemical precursors and/or chemical production equipment and technology.

As noted today in the Federal Register, trade sanctions are imposed on:

Liao Minglong (Chinese citizen)

Tian Yi (Chinese citizen)

Chen Qingchang (a.k.a. Q.C. Chen)

(Chinese citizen)

Pan Yongming (Chinese citizen)

Shao Xingsheng (Chinese citizen)

Nanjing Chemical Industries Group (NCI)

(Chinese company)

Jiangsu Yongli Chemical Engineering and Technology Import/Export Corp. (Chinese company)

Cheong Yee Limited (Hong Kong company)

The sanctions are against these individuals and entities, and not against the governments of China or Hong Kong. We have no evidence that the Chinese or the Hong Kong Governments were involved in the specific transfers that have provoked these sanctions.

The sanctions prohibit the U.S. Government from procuring any goods or services from the sanctioned entities or persons, and prohibit the importation into the United States of any products produced by the sanctioned entities. The sanctions will last for a minimum of one year, after which the sanctions can be terminated or waived as stipulated in the law. The U.S. has imposed sanctions under this same law against companies and persons in other countries.

The U.S. has been raising its concerns about the actions of Chinese firms and individuals with the Chinese Government for some time. We have stressed to the PRC our common desire to stop CW proliferation and have encouraged China to adopt stricter export controls and to improve their implementation.

The Chinese Government has stated publicly on numerous occasions that it is committed to and has abided by the Chemical Weapons Convention (CWC), and that it is opposed to the development of chemical weapons by any nation. The U.S. hopes that this action will serve to encourage the Chinese Government to improve further its export controls, so as to prevent Chinese entities from assisting Iran's chemical weapons program in the future.

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