TRANSCRIPT: MARCH 26 JOHN HOLUM BEIJING PRESS CONFERENCE
(Need tools to implement nonproliferation treaties)

Beijing -- The United States and China both have a great deal to learn about the most effective ways of controlling exports in terms of technology proliferation, in particular, setting up enforcement mechanisms, according to acting Under Secretary of State for Arms Control and International Security Affairs John D. Holum.

During a press conference following his meetings with Chinese leaders in Beijing March 26, Holum said: "I think we have a common understanding that we have been successful in recent years in building much better global regimes to prevent the proliferation of weapons of mass destruction. We have extended the Nuclear Non-proliferation Treaty; we have completed a Comprehensive Test Ban Treaty; we have joined together as original members of the Chemical Weapons Convention; and we expect to collaborate in strengthening the Biological Weapons Convention.

"But the next necessary step is to make sure that we have the tools in place to effectively implement those treaties at a time when the flow of technology around the world is increasingly difficult to control. This is an area I think we and the Chinese will be working together on for the indefinite future, and we certainly expect to intensify our collaboration as part of the security dialogue that we continued today," he said.

Holum described his visit to Beijing as part of the October 1997 agreement between President Clinton and President Jiang to deepen the dialogue on security issues between the United States and the People's Republic of China. During the visit, he said, he and Chinese arms control officials consulted on common efforts to promote peace and stability in Asia, to advance international arms control, and to prevent the proliferation of weapons of mass destruction and missiles.

In particular, he said, they exchanged views on recent developments concerning the Korean Peninsula, including our common efforts to advance the Four Party Peace Talks process.

"We agreed on the importance of strengthening the Biological Weapons Convention, a high priority of President Clinton, to help address the threat posed by the proliferation of biological weapons.

"We discussed implementation of the Peaceful Nuclear Cooperation Agreement and also ways of expanding our mutual efforts to prevent the spread of missiles and chemical weapons. We also exchanged views on the possibility of peaceful space cooperation," he said.

Following is a transcript of the press conference:

(begin transcript)

PRESS CONFERENCE BY
JOHN D. HOLUM
ACTING UNDER SECRETARY OF STATE FOR ARMS CONTROL
AND INTERNATIONAL SECURITY AFFAIRS
AND THE DIRECTOR OF THE ARMS CONTROL AND DISARMAMENT AGENCY

Beijing, China March 26, 1998

HOLUM: Thank you. It is a pleasure to be back in Beijing. In October 1997, President Clinton and President Jiang agreed to deepen the dialogue on security issues between the United States and the People's Republic of China. To advance this effort, we held two days of talks this week -- very productive discussions with Vice Foreign Minister Zhang on the full range of arms control, nonproliferation and international security affairs issues. I also met with Foreign Minister Tang, Vice Foreign Minister Yang, and PLA Deputy Chief of Staff General Xiong.

In particular, we consulted on our common efforts to promote peace and stability in Asia, to advance international arms control, and to prevent the proliferation of weapons of mass destruction and missiles. Let me mention several areas of interest:

We exchanged views on recent developments concerning the Korean Peninsula, including our common efforts to advance the Four Party Peace Talks process.

We agreed on the importance of strengthening the Biological Weapons Convention, a high priority of President Clinton, to help address the threat posed by the proliferation of biological weapons.

We discussed implementation of the Peaceful Nuclear Cooperation Agreement and also ways of expanding our mutual efforts to prevent the spread of missiles and chemical weapons. We also exchanged views on the possibility of peaceful space cooperation.

In our meetings, we agreed to increase and intensify our efforts and discussions in the security area in anticipation of the visit of President Clinton to China in June. I expect to meet with Vice Foreign Minister Zhang again in the near future to continue our consultations and to help prepare for the upcoming meeting between our Presidents.

Finally, I just want to thank Minister Zhang and the Chinese delegation to the talks for their hard work, constructive efforts, and for their hospitality.

I'll be happy to take your questions.

Q: I just would like to know what is your evaluation about the Korea situation and when do you and the Chinese expect to go on with the Four-Party Talks?

HOLUM: Well, we don't have a timetable set. We are very disappointed, of course, that the talks broke up without making progress this past week. We now consider that the ball is in the North Koreans' court. Before talks resume they will have to make a decision.

Q: Can I ask you, Mr. Holum, do you accept that China has told something less than the whole truth in the past in terms of its surreptitious sales to Iran and other countries, and if you do accept that, what leads you to believe they are telling the whole truth now or in the future on nonproliferation issues?

HOLUM: I don't want to get into characterizing what they have said and what they have not said, and getting in to that kind of a by-play. I think our impression is that China has lived up to the specific commitments it has made. For example, in 1996 China made a commitment not to cooperate or participate in unsafeguarded nuclear facilities, nuclear projects. As near as we can tell, they have lived up to that commitment. They have more recently made an agreement or commitment to us not to engage in continuous nuclear cooperation with Iran and again our information suggests they are in compliance with that agreement. So I think, by and large, once the Chinese make a commitment they are strongly inclined to stand by it.

Q: I'm from AP. There was a report a few days back in the Washington Times that the United States had decided to offer China access to missile technology now barred if Beijing agrees to end exports of missiles to Iran, Pakistan and other countries. Is that something you discussed during these talks?

HOLUM: Well, missile proliferation is a long-standing very high priority for this Administration and it clearly was one of the key issues discussed in our talks. We have a very strong interest in promoting restraints on missile-related exports in accordance with the Missile Technology Control Regime guidelines and in this regard we have been encouraging China to strengthen its controls of missile-related exports, so that clearly has been a matter of discussion this week.

Q: Is the United States Government satisfied that China is no longer engaged in nuclear cooperation with Iran and that it is not selling or giving missile technology to Iran?

HOLUM: We will continue to have questions in both areas, I am sure. One of the key concerns we have is to continue working -- particularly on the missile question -- to have more explicit reconciliation of our approaches on that issue with respect to Iran. So in that case we are trying to advance the process of further undertakings. In both areas, when we have a concern, when we have the information suggesting there may be something amiss is to consult with Chinese colleagues to try to work out the details and thus far that process has been quite productive and successful.

Q: Two slightly off-the-wall kind of questions. One is there is a report in Hong Kong today that there had been something of the imposition of martial law in Korea or some kind of in fighting in North Korea, are you aware of any significant change in the political scene in Pyongyang? And if so what sort of change in recent weeks? Second question relates to another report actually by the same paper a few weeks ago about a small company Macau buying a semi-built Ukrainian aircraft carrier I think for tens of millions of dollars in sort of range supposedly to launch as a floating resort, are you are aware of any sale of Ukrainian sale (inaudible)

HOLUM: Not aware (inaudible)??

Q: Just to add another off-the wall question? On North Korea, did the Chinese give you any sense of just how serious these military maneuvers that are going on there -- or that were going on there -were? Are they concerned about it? Was it different from other military maneuvers that took place?

HOLUM: We didn't discuss specific, on the ground activities. Our main focus in the discussions was on the Four Party peace talks. As you know, the Chinese chaired the most recent session and performed a very constructive role and made a very diligent effort to try to make progress in the talks. That was unsuccessful, and we are continuing to consult on how to advance that process, but I would leave it to others to deal with day to day operational events.

Q: Two questions, one kind of off-the-wall, one not so much. The off-the-wall is could you elaborate on the cooperation in the space program, if there is any possibility of perhaps a Chinese astronaut on the shuttle or participation in their planned manned flights? And the second one is was there any mention of the issue of arm sales to Taiwan by the United States?

HOLUM: On the former, we did talk in very general terms about the possibilities of space cooperation, not specifically about astronauts, but more generally about, for example, commercial space launches from China. That kind of activity in fact, goes back quite a number of years. As long ago as 1989 we were, the United States was, engaged in peaceful space launches. That is an area of some promise economically, and it was discussed at the Clinton-Jiang summit in October of last year, and we had some further discussions of that kind of activity this week.

Q: I wonder if you could get in to the specifics of that kind of cooperation in space, or with the launches of commercial --. What kind of channels would need to be gone through to develop that area? And on the peaceful uses of nuclear technology, were there any other movements in that area with regard to the coming summit?

HOLUM: I apologize, I have to back-up because I just realize that I didn't answer the second part of the previous question. May I answer yours since it follows on with space and go back to the Taiwan arms sales question? (Audience agrees.)

The main avenue of work on space collaboration clearly would be through the respective space agencies of the two countries. And then it is a question of organizing individual commercial enterprises that are interested in launching payloads into space by using Chinese boosters. There is a quota system in place on space launches. We have a quota on the number of launches we would allow, and one of the things we are looking at is increasing the quota of space launches here. I might add that those are all conducted under security arrangements that ensure that there is no unexpected or unplanned technology.

In the case of arms sales to Taiwan, that subject did come up, and the Chinese side presented their views, and we presented ours, including of course the judgment that our arms sales with relationship to Taiwan is based on the 1982 communique as well as on our Taiwan Relations Act legal obligations. The sales are purely for defensive purposes, and they are conducted with restraint as specified in the 1982 communique. This is an issue that, I'm sure, will continue to be a part of our regular dialogue.

Q: You said that in the past when the U.S. has discovered things amiss in terms of technology proliferation, you have raised it with your Chinese colleagues. As I understand, their response often has been that these sorts of transfers have occurred beyond the reach of central control, so I wonder whether in your discussions today with any officials, especially General Xiong, whether you got into details about how China might firm up its central control over this sort of thing.

HOLUM: One of the things that we are particularly interested in is advancing collaboration in the area of export controls. My colleague from the Department of Commerce Under Secretary Bill Reinsch has been with us on this delegation, and we have looked into both dual-use ammunition export control collaboration, and we expect that that will continue. We both have a great deal to learn about the most effective ways of controlling exports, in particular, setting up enforcement mechanisms. I think we have a common understanding that we have been successful in recent years in building much better global regimes to prevent the proliferation of weapons of mass destruction. We have extended the Nuclear Non-proliferation Treaty; we have completed a Comprehensive Test Ban Treaty; we have joined together as original members of the Chemical Weapons Convention; and we expect to collaborate in strengthening the Biological Weapons Convention. But the next necessary step is to make sure that we have the tools in place to effectively implement those treaties at a time when the flow of technology around the world is increasingly difficult to control. This is an area I think we and the Chinese will be working together on for the indefinite future, and we certainly expect to intensify our collaboration as part of the security dialogue that we continued today.

Q: (Inaudible. Main focus was the nature of Chinese assurances regarding non-proliferation issues.)

HOLUM: I'm sorry, I'm not going to get into specific back and forth with the Chinese Government. As I said, our basic conclusion is that the Chinese have lived up to the specific commitments they have made to us. When we have concerns we raise them, and so far we have been able to resolve them.

Q: Have you received any assurance from the Chinese side regarding its missile and nuclear sales to Pakistan and also my second question, I would like to have your comments regarding India's new government's plan to review its nuclear policy. Thank you.

HOLUM: We discussed, without going into specifics, we did discuss the entire range of missile and nuclear related matters. And we had I think a useful and productive discussion on that subject. In the case of the Indian government's formation and its plans, our view has consistently been that any government in India or Pakistan should act with restraint, and avoid provocative steps that could lead to competition, on the -- - in South Asia, that wouldn't be productive or useful for either country. We will obviously be watching and consulting with the Indian Government as it forms its policy in this area.

Q: By the time President Bill Clinton arrives in China for the summit meetings it will also be the time for the election in Cambodia. So we would like to know whether the two presidents will discuss anything related to the problems in Cambodia, especially the election?

HOLUM: It is hard to say at this point. I'm sure they will have a very comprehensive discussion on regional and global issues. But I think at this stage we are still in the early planning for the summit and I would hesitate to, other than the specific subjects we discussed today, I would hesitate to rule any particular topic in or out of the agenda.

Q: How about the peaceful use of...(question inaudible)

HOLUM: Well that would be outside of the government's preview. As you know, this past week, I guess it was last week, the deadline expired for congressional action on the activation of the Agreement on Peaceful Uses of Nuclear Energy. That means that the private sector is now free to participate in nuclear projects, peaceful nuclear projects in China. Those will obviously have to be commercially viable and there will be commercial arrangements negotiated between the companies. For example, Westinghouse or General Electric and relevant Chinese officials can now proceed. The government will not be conducting that activity -- it will be done by the private sector.

I might add that we are very pleased that it was possible to activate that agreement which has been in place since 1985, but has been held up because, largely because of nuclear related proliferation concerns. In this area, China has taken a number of significant steps in the recent past. In 1992, of course, it joined the nuclear non-proliferation treaty. It has undertaken since 1996 not to participate in unsafeguarded nuclear programs in other countries and in 1997, it joined the Zainger? Committee -- the suppliers group under the nuclear non-proliferation treaty -- to ensure that that wouldn't occur. It is also in the context of the summit and the activation of the agreement, (China) agreed not to limit its nuclear cooperation, its further nuclear cooperation with Iran. It has taken steps to adopt an effective national export control system on nuclear materials, and again we believe that China is honoring these commitments. By the same token the United States is happy to proceed with the Peaceful Nuclear Cooperation Agreement.

Q: If I could get you to clarify a little bit, you just said that when discrepancies come to the attention of the U.S. side you raise it with the Chinese side and it gets resolved. Could you just flesh out a little bit for us what sort of resolution happens on these occasions.

HOLUM: Well I don't want to go into specific cases, it is a little hard to do that, to amplify without doing that, what the typical procedure would be. We would say, we have some indication or some evidence that there may be a transaction of a certain kind under consideration, would you look into it, and the Chinese side would look into it and give us the reassurance we need that nothing is underway in violation of our agreements. So it not a -- - it is an irritative (inaudible?) process.

Q: You mentioned about the space quota. Could you elaborate. There is, I understand, a sort of flaw price in terms of rocket launching prices. Is the quota you are talking about related to the number of satellite launches or the actual rockets used in that, what space quotas are you talking about?

HOLUM: It is a quota on the number of payloads, U.S. origin payloads that could be launched on Chinese boosters.

Q: (Inaudible)

HOLUM: To allow an expansion of space cooperation.

Q: (Inaudible)

HOLUM: Well to some extent it's been advanced at the summit. It is a subject that is likely to be discussed further in our security channel. But no specific decisions have been made as yet.

Q: What is the quota now?

HOLUM: I don't know specifically what it is.

Q: Just want to follow up on AP's question, you mentioned that missile export was a topic of discussion. Was there any progress, any concrete progress on that topic?

HOLUM: Well I can't point to and won't suggest that there are agreements based on our discussions this week. That wasn't the purpose of our discussions. What we wanted to do was lay ideas on the table. We have a great deal of additional work to do at the experts' level and in further consultations. What encourages me is among other things, the fact that we tend to approach these issues from a common perspective. And that we have specific plans for follow-up discussions both at the political level and my level and at the expert level. These discussions will continue leading up to the summit and will also continue after the summit. And I feel based on the past record, particularly in the nuclear area, that there is reason to believe we could make progress.

Thank you very much.

(end transcript)

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