Nuclear and Missile Trade and Developments NUCLEAR- and MISSILE-RELATED TRADE and DEVELOPMENTS for SELECTED COUNTRIES, JULY-OCTOBER 1997

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Nuclear and Missile Trade and Developments NUCLEAR- AND MISSILE-RELATED TRADE AND DEVELOPMENTS FOR SELECTED COUNTRIES, JULY-OCTOBER 1997

by Michael Barletta, Clay Bowen, Kimber Cramer, and R. Adam Moody

The material in this overview is drawn from selected abstracts that appear in the Center for Nonproliferation Studies’ nuclear and missile databases. Transactions of nuclear and missile technologies, parts, and materials are listed according to the recipient country. Other developments are listed according to the country where the event or development took place.

Australia could trigger an arms race in China will return a Sun Microsystems ASIA Southeast Asia. supercomputer to the United States, which Bradley Perrett, Reuter, 8/25/97. Sun exported to China in 2/97 without a license. The supercomputer was supposed to be sent to the China Scientific Institute in CHINA Beijing but was directed instead to the Na- General AUSTRALIA tional Defense Science and Technology Uni- China’s Computer Institute of the National versity. The supercomputer may be used in Nuclear Defense Science and Technology University the design of nuclear weapons and ballistic On 9/23/97, Australia became the first coun- has developed the Galaxy-III, a missiles. try to adopt the International Atomic Energy supercomputer capable of performing 13 David E. Sanger, New York Times, 9/12/97, p. A17. Agency’s (IAEA) “Additional Protocol on the billion calculations per second. Program to Strengthen the Effectiveness and Beijing Review, 8/11/97-8/17/97, p. 31. Nuclear Improve the Efficiency of Safeguards,” com- The U.S. Arms Control and Disarmament monly called “93+2.” The protocol will be- According to a U.S. Office of Naval Intelli- Agency (ACDA) 1997 Annual Report noted come part of its safeguards agreement with gence (ONI) report on global maritime chal- that: “On May 11, 1996, China stated that it the IAEA. It will be signed by a number of lenges, China has been shipping critical would provide no assistance to other countries at the IAEA General Confer- military technology and material to Iran and unsafeguarded nuclear facilities. Our current ence in Vienna the week of 9/29/97. information does not provide a basis for con- Uranium Institute News Briefing, 9/23/97. Iraq to be used in their nuclear, chemical, and biological weapons programs. For the cluding that China has acted inconsistently with that statement. Questions remain about Missile 10/97 U.S.-Sino summit, the Clinton administration was working to lift the ban on ex- contacts between Chinese entities and ele- On 8/25/97, Australia announced that it is porting nuclear technology to China by ments associated with Pakistan’s nuclear considering the acquisition of a long-range putting into effect the 1985 U.S.-Sino weapons program. However, the information cruise missile such as the U.S.-built BGM- nuclear cooperation agreement. is not sufficient to reach a judgment of non- 109 Tomahawk. A spokesperson for Bill Gertz, Washington Times, [Online] http:// compliance with the NPT.” Australia’s defense ministry said that studies www.washtimes.com, 9/2/97. ACDA Annual Report, 1997, pp. 89-90. are continuing but no purchase is imminent. Analysts believe that such an acquisition by

132 The Nonproliferation Review/Winter 1998 Nuclear and Missile Trade and Developments

At its first meeting in Moscow, in early 7/ The Mod 2 is a developmental intermedi- fueled rocket with a five-ton payload capac- 97, the Chinese-Russian bilateral subcom- ate-range ballistic missile with advanced ra- ity. mittee on nuclear issues signed contracts to dar guidance. Upgrades to the CSS-5 are China Daily, [Online] http://www.chinadaily.co.cn/ build two VVER-1000 pressurized water being made at: the Tonghua launch complex cndy, 8/21/97. reactors (PWRs) in Lianyungang, near the North Korea border; the Lianxiwang Jiangsu province. Russian companies launch complex opposite Taiwan; the Since 1995, the U.S. Defense Intelligence Atomenergoexport and Zarubezhatomener- Jianshui launch complex near the Vietnam Agency (DIA) has been investigating charges gostroy are cooperating with the China Na- border; and the Datong field garrison in cen- made by an employee of the Army Testing tional Nuclear Corporation (CNNC) and the tral China. Laboratory in Aberdeen, New Mexico, that Chinese Nuclear Energy Industry Corpora- Bill Gertz, Washington Times, 7/10/97. two fellow employees were selling classified tion (CNEIC) on technical aspects of the missile information to China. The U.S. Fed- project. Officials at the U.S. Department of Defense eral Bureau of Investigation (FBI) is con- Nuclear News, 7/97, p. 18. (DOD) are attempting to block the export of ducting a related investigation. It has high-temperature furnaces by the U.S. cor- information indicating that the spy network A senior U.S. diplomat, speaking at a con- poration Consarc to China’s Northwest In- linking Aberdeen to China may first have ference hosted by the Carnegie Endowment stitute and the Shengyang Institute of Metals been opened during the Reagan administra- for International Peace, said that the United Research. A license was requested for the tion, which covertly sought to build up Iraq’s States has protested “at the highest levels” export of electron beam, vacuum arc, and military as a counterweight to Iran. This against China’s plan to build a uranium cold-hearth refining (or skull) furnaces. A policy continued during the Bush adminis- hexafluoride plant in Iran. A former Clinton letter signed by Northwest President Zhou tration. FBI investigators were told that the administration official added that the deal Liang stated that the furnaces would be used 1990 assassination of Canadian artillery ex- involved two facilities: a “gas-to-metal for the melting of rare metals for research. pert Gerald Bull in Brussels may have been plant”, which has already been built, and the However, the equipment has military appli- ordered by Iraq when it discovered that Bull uranium hexafluoride facility. cations and could be used in the miniatur- was selling information to China. Previously, Iran Brief, 7/3/97, p. 1. ization of warheads and the refinement of Bull had access to Aberdeen’s MIRV (multiple independently targetable re- supercomputers in order to do weapons-related research. At the time of his death, he The U.S. Central Intelligence Agency re- entry vehicles) technology. was developing the so-called “supergun” for leased a report stating that China is currently Barbara Opall, Defense News, 7/28/97-8/3/97, p. 1. Iraq and there had been widespread specu- the world’s leading exporter of ballistic mis- lation that he had been killed by Israeli sile, nuclear, chemical, and biological weap- China could improve the capabilities of its agents. ons technologies to Third World countries. cruise missiles with technology it will acquire Stephen Green, San Diego Union Tribune, 9/20/97, The report said that the leading importers of in a deal with Pratt & Whitney Canada p. A10. Chinese technologies are India, Iran, Paki- (P&WC). The China National South Aero stan, and Syria. Engine and Machinery Company (SAEC), a Tim Weiner, New York Times, 7/3/97, p. A8. subsidiary of Aviation Industries Corpora- On 9/29/97, China announced that it had tion of China, signed a contract with P&WC successfully tested a new long-range surface- on 1/15/97 to produce components for small to-air missile (SAM) with radar-evasion ca- On 10/21/97, Chinese Foreign Ministry pabilities. The test was held at an undisclosed spokesman Shen Guofang said that nuclear gas-turbine engines. U.S. defense officials and analysts say the engines could be modi- desert site. cooperation with Iran was stalled due to con- Jane Macartney, Washington Times, 9/29/97, p. A12. tract disputes. The announcement came just fied for use in cruise missiles, pointing out that production will take place in SAEC’s before the 10/97 Sino-U.S. summit. INDIA Washington Times, 10/22/97, p. A12. Zhuzhou factory, which builds WP-11 cruise missile engines. Nuclear Nigel Holloway, Far Eastern Economic Review, 8/ Prime Minister Inder Kumar Gujral told the Missile 14/97. Pratt & Whitney Company, [Online] http:// parliament on 8/7/97 that India will not aban- A classified report from the U.S. National www.pwc.ca, 1/15/97. don its nuclear program. “We are not going Air Intelligence Center says that China is to be deterred in following our nuclear policy replacing its CSS-2 (DF-3) liquid-fueled, On 8/20/97, China successfully launched its whether there is pressure, direct or indirect,” 2,700 km-range ballistic missile with two new Long March 3B (LM-3B) from the Gujral said. He added that India had become versions of the solid-propellant CSS-5 (DF- Xichang Satellite Launch Center in south- self-reliant in the production of heavy water. 21): the “Mod 1” and “Mod 2.” The report, west China. The LM-3B, designed and de- Harbaksh Singh Nanda, UPI, 8/7/97. Indolink: Head- leaked to the press, describes the Mod 1 as veloped by the China Academy of Launch line News from India, [Online] http:// www.indolink.com, 8/12/97. a mobile missile with a range of 2,150 km. Vehicle Technology, is a three-stage, liquid-

The Nonproliferation Review/Winter1998 133 Nuclear and Missile Trade and Developments

India is being forced to develop an indig- cept” by which hardware maintenance will “the world around us is made nuclear-weap- enous fast breeder reactor program because be done in shielded cells using remote han- ons free.” of an effective boycott by the world’s natu- dling equipment. KARP is also capable of Deccan Herald (Bangalore), 9/25/97; in FBIS-NES- ral uranium suppliers, officials at India’s reprocessing spent fuel from PHWRs. India 97-268, 9/25/97; All India Radio Network, (Delhi) 9/24/97; in FBIS-NES-97-267, 9/24/97. Department of Atomic Energy (DAE) said is also developing a nuclear export capabil- in 7/97. Indian officials blamed the Nuclear ity. According to The Times of Mumbai, the Suppliers Group (NSG) for having organized first shipment of Indian nuclear fuel to be Missile the boycott, which prevents acquisition of exported to the United States will consist of India intends to resume development of a natural uranium for India’s unsafeguarded 40 tons of zirconium oxide for the produc- long-range missile, according to Indian De- CANDU-type pressurized heavy water reac- tion of fuel bundles for nuclear reactors. fense Minister Mulayam Singh Yadev. De- tors (PHWRs). Officials of the NSG said that The Times (Mumbai), 9/9/97, p. 13; in FBIS-NES- spite strong international opposition, India India cannot obtain uranium from its mem- 97-252, 9/9/97. has “decided to accord high priority to the bers because the latest version of INFCIRC- next phase of the Agni program,” he said. 225, used as NSG guidelines, states that any Russian Minister of Atomic Energy Viktor Work on the Agni missile, which has a range export of uranium or other “source material” Mikhailov said on 9/10/97 that Russia and of 2,500 km (1,550 miles), was halted in may be made only on condition of full-scope India would sign an agreement to build a 1994 after criticism from the United States safeguards in the recipient state. nuclear power plant at Koodankulam. The and other Western countries that India was Mark Hibbs, NuclearFuel, 8/11/97, p. 8. Russian Ministry of Atomic Energy engaging in an arms race in South Asia. De- (Minatom) plans to supply two light-water fense scientists said they needed at least six- Prime Minister Gujral on 8/15/97 stated his reactors to India. The agreement is likely to to-eight more tests to perfect its accuracy and country’s opposition to a global treaty ban- be finalized in 1998, after which construc- to achieve its optimum range. The scientists ning nuclear testing, saying: “We will not sign tion can begin. said the Agni program’s next phase would the CTBT under any pressure unless it ap- Leonid Kotov, ITAR-TASS (Moscow), 9/10/97; in be development of solid fuel, unlike the tech- FBIS-SOV-97-253, 9/10/97; Interfax (Moscow), 9/ plies equally to all and countries that have nology demonstrator, which used a “fairly 10/97; in FBIS-SOV-97-253, 9/10/97; Deccan Her- inefficient” mix of solid and liquid fuels. these weapons agree to destroy them.” ald (Bangalore); 9/9/97, in FBIS-NES-97-252, 9/9/ Reuter, 8/15/97. 97. Washington Times, 8/11/97, p. A14. Rahul Bedi, Jane’s Defence Weekly, 8/6/97, p. 3.

Prime Minister Gujral said on 9/9/97 that India announced that it will allow interna- Wilson John, an official at India’s Defence India has the capability to make nuclear tional inspection of its two nuclear power Research Development Organization weapons and would retain the nuclear op- reactors at Kakrapar and Gujarat. Prime (DRDO) said that Indian defense engineers tion in order to meet “unforeseen circum- Minister Gujral said the opening of the plants were working on cruise missile technology. stances.” is part of an ongoing policy of peaceful use He described a cruise missile design based The Indian Express, [Online] http:// of nuclear energy and that the decision has on the Pilotless Target Aircraft platform. It www.expressindia.com, 9/9/97. been “unduly highlighted” by the news me- would have a turbofan engine and carry a dia. 1,200-1,800 kg warhead to a distance of Hans Blix, director-general of the Interna- All India Radio Network (Delhi), 9/16/97; in FBIS- 2,500 km (1,550 miles). The proposed cruise NES-97-259, 9/16/97; All India Radio Network, missile could be launched from air-, sea-, or tional Atomic Energy Agency (IAEA) said (Delhi) 9/18/97; in FBIS-NES-97-261, 9/18/97. in New Delhi on 9/8/97 that India’s attempt land-based platforms. to acquire foreign nuclear expertise could be Current Missile News, [Online] http://www.cdiss.org, blocked because of its refusal to sign the Prime Minister Gujral described his country 8/18/97. Treaty on the Non-Proliferation of Nuclear as surrounded by nuclear weapons, but said Weapons (NPT). India had no desire to “go nuclear” unless Defense Minister Mulayam Singh Yadav said The Hindu, [Online] http://webpage.com/hindu, 9/ forced to. “In the east, there is China, a full- that, if necessary, India’s Prithvi SSM could 9/97. fledged nuclear power. In the south, there is be moved close to the border with Pakistan Diego Garcia, an American nuclear power. in less than two hours. “The missiles have A fuel reprocessing plant in Kalpakkam has In the west, (the) Gulf region has been not been made to put in a museum,” he said. completed “cold commissioning” and in 9/ nuclearized by alien powers, and to the north, Jane’s Defence Weekly, 9/10/97, p. 27. 97 was in the last phase of pre-commission- the world is aware of Pakistan’s nuclear weapons program,” Gujral said in New York ing trials. This will be India’s third pluto- India announced on 9/28/97 that it has started on 9/23/97. He said India would support any nium producing facility, following those at producing the Prithvi surface-to-surface mis- global disarmament agreement that was Trombay and Tarapar. The Kalpakkam re- sile (SSM). The DRDO announced two ver- “genuinely nondiscriminatory,” but India processing plant (KARP) will introduce a sions of the missile: one with a 150 km (95 would not give up its nuclear option unless “more sophisticated hybrid maintenance con- miles) range to be deployed by the army, and

134 The Nonproliferation Review/Winter 1998 Nuclear and Missile Trade and Developments a 260 km (160 miles) version for the air force. power station will cost approximately $5 President Bill Clinton. A delegation of over The government said its missile program was billion and have six Russian 640 MW VVER 100 officials and journalists from nine coun- a response to military build-ups in China and reactors. The new power plant will be lo- tries and the EU attended the ceremony. Pakistan. cated 400 km north of Almaty, near Lake The White House, Office of the Press Secretary, 8/ Jane Macartney Washington Times, 9/29/97, p. 11. Balkash. Zarubezhatomenergostroy, the Rus- 19/97. Shin Na, Voice of America, 8/19/97. sian state enterprise that designs and builds India conducted the eleventh flight test of reactors for export, will act as general con- Work resumed on 10/6/97 at the Sinpo con- its Akash (Sky) surface-to-air missile at the tractor for the project. struction site after a five-day suspension. The NucNet Flash News, [Online] http://www.aey.ch/ halt was due to the discovery of a torn pic- Chandipur range on 10/3/97. The launch was nucnet, 8/27/97. Nuclear News, 9/97, pp. 28, 29. intended to evaluate the missile’s command Revmira Voshchenko, RIA-Novosti (Almaty), 8/5/ ture of North Korean leader Kim Jong Il in guidance system. Defense sources said the 97. the wastebasket of a South Korean worker. test went smoothly and the missile performed Korean Overseas Information Service, [Online] http:/ /www.kois.go.kr, 10/7/97. to expectations. All India Radio Network (Delhi), 10/4/97; in FBIS- KOREAN PENINSULA ENERGY TAC-97-278, 10/5/97. DEVELOPMENT ORGANIZATION KYRGYZSTAN (KEDO) Nuclear JAPAN The Kyrgyzstani Customs Inspection office Nuclear Japan will pay 20 percent of the cost of sup- said that the United States and Kyrgyzstan Plutonium for use in Japan’s mixed-oxide plying North Korea with light-water reactors. will work together to stop the flow of nuclear (MOX) fuel program was shipped from Asahi Shimbun reported that Japan will pay arms production technologies across the Cogema’s La Hague processing plant in $1 billion of the estimated $5 billion con- Kyrgyzstani border. The United States will France, to Belgonuclaire’s Dessel plant in struction cost through a long-term credit finance installation of equipment at customs Belgium. The 220 kg of plutonium is ex- arrangement. checkpoints and prepare courses for customs pected to be shipped to Japan by the end of Chosun Ilbo (Seoul), 7/7/97, p. 3. officials on how “to apprehend the passage 1997. Toshiba will produce the MOX fuel. of technologies pertinent to nuclear arms Nikkan Kogyo Shimbun (Tokyo), 7/7/97, p. 7; in On 7/22/97, 17 South Korean personnel went production.” The agreement was made dur- FBIS-JST-97-037, 7/7/97. to North Korea to begin work on the light- ing a visit of representatives from the U.S. water reactor project at Sinpo. On 7/26/97, Federal Bureau of Investigation (FBI) and On 7/8/97, Japan deposited its instrument of 63 additional South Korean workers will ar- the Customs Service. Kyrgyzstani officials ratification of the Comprehensive Test Ban rive. The South Korean Unification Minis- discussed strategies for the nonproliferation Treaty (CTBT) at the United Nations. Japan try said that construction equipment of nuclear arms and technologies and the is the first of 44 countries required to ratify weighing 9,000 tons is scheduled to be “creation of the appropriate legal base” in the treaty before it can enter into force. shipped to North Korea on 7/25/97. Kyrgyzstan with the U.S. delegation. Interfax (Moscow), 9/17/97; in FBIS-TAC-97-260, Kyodo, 7/9/97; in FBIS-TAC-97-190, 7/9/97. Reuter, 7/22/97. 9/17/97.

Missile KEDO opened a liaison office at Sinpo on NORTH KOREA The Japan Defense Agency (JDA) plans to 7/28/97. The office is staffed by Lee Hyon cut its annual budget by $7.8 billion by the Joo and Seo Hoon of South Korea’s Foreign Nuclear year 2000. Because of the planned decrease, Ministry, Takane Kazumasa of Japan’s For- The U.S. Arms Control and Disarmament the JDA has deferred a decision to work with eign Ministry, and John Hogg and Dennis Agency’s (ACDA) 1997 Annual Report the United States on a ballistic missile de- Droney of the U.S. State Department. stated that: “The United States has deter- fense program. Reuter, 7/28/97. mined that North Korea has not complied Nihon Keizai Shimbun (Tokyo), 8/28/97, p. 2; in fully with its NPT Article III (safeguards) FBIS-EAS-97-268, 9/25/97. On 8/19/97, KEDO and North Korea held a obligations. Serious questions remain regard- groundbreaking ceremony marking the start ing... the possibility that North Korea vio- KAZAKSTAN of construction of the light-water reactors to lated its NPT Article II obligation ‘not to be built in North Korea under the terms of manufacture or otherwise acquire nuclear Nuclear the 1994 U.S.-DPRK Agreed Framework. weapons or other nuclear explosive devices.’ Kazakstani and Russian officials have ar- Ambassador Paul Cleveland, the U.S. rep- However, the signing of the Agreed Frame- rived at “firm plans” to build a nuclear power resentative to KEDO’s executive board and work is significant as it requires North Ko- plant in Kazakstan, although no date to be- chairman of the board, attended the cer- rea to resolve these concerns. ...(North gin construction has been announced. The emony and delivered a message from U.S. Korea) has not allowed ‘special inspections’

The Nonproliferation Review/Winter1998 135 Nuclear and Missile Trade and Developments pursuant to the NPT.... North Korea’s efforts agreed despite the defection of two North asked Indian Prime Minister Inder Kumar to obstruct the full implementation of full- Korean diplomats to the United States and Gujral if the government had verified reports scope IAEA safeguards required by Article the subsequent cancellation by North Korea that Pakistan had deployed Chinese-built M- III of the NPT continue, as does concern of U.S.-DPRK missile talks, which were to 11 missiles near the India border. Kamala about North Korea’s nuclear intentions.” have occurred on 8/27/97. The United States Sinha, junior foreign minister, replied in writ- ACDA Annual Report, 1997, pp. 89, 90. will meet separately with North Korea during that the government is “aware of cred- ing the talks to discuss the defection and the ible reports in this regard.” During the week North Korean defector Hwang Jang Yop canceled missile talks. of 8/4/97, India accused China of supplying conceded that he did not have proof that CNN Interactive, [Online] http://www.cnn.com, 9/ M-11 missiles to Pakistan and helping North Korea had nuclear weapons at his first 11/97. Reuter, 8/27/97. Islamabad build a missile factory. major press conference in Tokyo on 7/10/ Reuter, 8/14/97. 97. He added, however, that countries such North Korea has begun deploying military as South Korea would be wise to assume that units with equipment to transport the U.S. officials have been negotiating with the such weapons exist. Nodong-1 ballistic missile. U.S. Pacific New York Times, 7/11/97, p. A10. Chinese Ministry of Foreign Affairs, urging Command Admiral Joseph Prueher said the China not to supply Pakistan with equipment preparations indicate either imminent de- that can be used to reprocess spent fuel from According to the South Korean Ministry of ployment of the missile, training exercises, its plutonium-producing Khushab reactor. National Unification, 90 percent of North or a ruse. Prueher said that no missiles had Mark Hibbs, Nucleonics Week, 8/14/97, pp. 8-9. Korea’s 8,000 spent fuel rods have been been sighted, only troops and trucks. canned for storage. The canning operation Bill Gertz, Washington Times, 9/27/97, p. A3. The Chashma nuclear power plant, Pakistan’s will be completed by the end of 1997. NAPSNET Daily Report, 8/18/97. second, will begin generating electricity in South Korea’s 1997-98 Defense White Pa- 1999 according to Pakistan Atomic Energy per includes information regarding North Missile Commission Chairman Ishfaq Ahmed. The Korea’s missile developments. The Nodong- 300 MW pressurized water reactor (PWR) North Korea’s 5/23/97 test launch of its new 1 missile, with a range of 1,000 km and the is based on the Chinese-designed Qinshan- AG-1 anti-ship cruise missile prompted capability to carry chemical or nuclear war- 1, and is being constructed by Chinese ven- many sources to portray it as a formidable heads, is believed ready for deployment. The dors and Pakistani subcontractors. The new weapon. However, U.S. defense officials White Paper also said that North Korea is project includes some technology transfer to said the missile uses “unimpressive, old tech- developing 1,500 km-range and 4,000 km- enable Pakistani engineers to design their nology” from Russian Styx and Chinese Silk- range missiles. own plants. worm missiles. The test launch, from the An Bill Tarrant, Reuter, 10/6/97. Nucleonics Week, 8/28/97. River army barracks site, was detected by a U.S. military satellite. James R. Asker, Aviation Week & Space Technol- PAKISTAN Prime Minister Nawaz Sharif acknowledged, ogy, 7/7/97, p. 21. Nuclear on 9/7/97, that “The issue of [Pakistan's] nuclear capability is an established fact. Pakistan’s top nuclear scientist, Qadeer Hence the debate on this issue should come According to U.S. diplomats, Chang Sung Khan, stated on 8/12/97 that the country’s to an end.” He urged the news media not to Il, North Korea’s ambassador to Egypt who nuclear program would continue despite discuss it further. Referring to Pakistan’s recently defected to the United States, is criticism from the West. “It is so central to nuclear program, Sharif said the country had unlikely to possess detailed information on our security, and national security is so dear progressed significantly, and that, “we have North Korean weapons exports to the Middle to us, that we don’t care who is saying what left that stage (initial development) far be- East. The diplomats said that the export of about our peaceful program,” Khan said. He hind.” ballistic missiles, anti-tank weapons, and added that efforts of scientists had placed other arms is usually conducted outside the Shahid Ahmed Khan, The Times of India, [Online] Pakistan in the “club of six or seven coun- http://www.timesofindia.com, 9/8/97. purview of North Korea’s embassies by us- tries capable of enriching uranium up to 95 ing dummy corporations and other interme- percent for use in weapons of mass destruc- diaries. However, Chang may shed light on tion.” He refused to respond when asked if The former director-general of Pakistan’s the state of North Korea’s relations with Pakistan actually possessed a nuclear device. Interservices Intelligence (IS), General weapons-seeking countries in the region. Imtiaz Gul, Washington Times, 8/13/97, p. 1. Hamid Gul, told a London news conference R. Jeffrey Smith, Washington Post, 8/27/97, p. A1. that his country was “coming to the brink” of fighting a nuclear war with India over the India accused Pakistan in 8/97 of develop- issue of Kashmir. He also called on the gov- On 9/11/97, North Korea agreed to partici- ing nuclear warheads for medium-range mis- ernment of Pakistan-occupied Kashmir pate in Korean Peninsula peace talks sched- siles with help from China. A lawmaker (PoK) to declare a jihad (holy war) over the uled for 9/18/97 in New York. Pyongyang

136 The Nonproliferation Review/Winter 1998 Nuclear and Missile Trade and Developments issue. Sinha. VIETNAM The Indian Express, [Online] http:// Reuter, 8/7/97. www.expressindia.com, 9/17/97. Nuclear According to Director of the Vietnam Atomic According to “reliable sources,” the Paki- Energy Commission Nguyen Tien, during On 9/19/97, the Chinese government ap- stani Space and Upper Atmosphere Research 1993-97, 268.65 kg of depleted uranium- proved the sale of two 300 MW steam gen- Corporation (SUPARCO) has prepared a osmium and 516.56 kg of non-weapon-grade erators and one 300 MW stabilizer by the new missile for research purposes. The mis- uranium were collected. Much of the uranium Shanghai Boiler Factory to Pakistan, for use sile, which can be used for military as well was from U.S. aircraft shot down during the at its Chashma nuclear power facility. This as space applications, is expected to have a Vietnam War. The Vietnamese government will be China’s first export of nuclear energy range of 1,000-1,500 km. has alerted the International Atomic Energy equipment. Chashma is being built under Jang (Rawalpindi), 10/2/97, pp. 8, 3; in FBIS-TAC- Agency (IAEA). contract with Shanghai Electric Corporation 97-276, 10/3/97. Reuter, 9/13/97. Group. Xinhua, 9/19/97; in FBIS-CHI-97-262, 9/19/97. SOUTH KOREA Missile In a speech to the United Nations on 9/22/ EUROPE 97, Prime Minister Nawaz Sharif offered to Air Force Chief of Staff Lee Kwang Hak begin discussions with India on a non-aggres- reported that an early warning system to de- sion pact and restraints on nuclear weapons tect North Korean Scud missile launches will and delivery systems. Sharif’s proposal in- be deployed in the Total Air Control Center at Air Force Operations Headquarters. South cluded an offer to demonstrate “mutual and ALBANIA Korea will also introduce the next genera- equal restraint in the nuclear and ballistic Missile (missile) fields.” tion SAM-X, which is reportedly capable of Hong Kong Standard [Online] http:// intercepting Scud missiles. On 8/7/97, Albanian police discovered 15 www.hkstandard.com, 9/23/97. Korean Overseas Information Service, [Online] http:/ Chinese HY-1 (NATO designation CSSC-2 /www.kois.go.kr, 10/9/97. Silkworm) SAMs and surface-to-surface missiles, which had been stolen on 7/20/97, Pakistani Prime Minister Nawaz Sharif, ad- in Lazarat near Gjirokaster. According to TAIWAN dressing the U.N. General Assembly, called Albanian Defense Minister Sabit Brokaj, for the creation of a nuclear-weapon-free- Nuclear police found the weapons, which were dis- zone (NWFZ) in South Asia. A Taiwanese newspaper reported that in mantled, in a Lazarat basement. Brokaj said Government of Pakistan, 9/24/97; in FBIS-NES-97- 1967 the government planned to develop its 267, 9/24/97. the missiles were to be shipped to Greece, own nuclear weapons force, but abandoned but the suspects changed plans due to tight- the plan on the advice of Taiwanese physi- ened border security. The suspects were also China may be supplying Pakistan with “far cist Wu Da Yu. At that time, the government in possession of HY-1 missile transporters, more ‘heavy water’ than it needs to run a had allocated $140 million to the Ministry instruction manuals, and firing and guidance civilian nuclear reactor,” according to a let- of National Defense for research and devel- systems. Military officials suspect the thefts ter sent to U.S. President Bill Clinton by the opment of nuclear weapons. are part of an organized-crime operation. Washington-based Nuclear Control Institute. Sing Tao News (Hong Kong), 9/22/97, p. A10; in Military sources placed the value of each FBIS-CHI-97-265, 9/22/97. The heavy water could be used in Pakistan’s missile at “several million dollars.” Other unsafeguarded Khusab nuclear reactor and sources reported their price at $50,000- for producing nuclear weapons. Missile 100,000 each. Arms Trade News, 8/97-9/97, p. 2. On 7/14/97, Taiwan’s Chungshan Institute of RFE/RL Newsline, 8/8/97. AFP (Paris), 8/7/97; in Science and Technology confirmed that pro- FBIS-EEU-97-219, 8/7/97. RFE/RL Newsline, 7/23/ 97. Ismail Xhaferri and Alexander Bregu, Koha Jone Missile duction of the Sky Sword-I surface-to-air (Tirana), 7/23/97, p. 2; in FBIS-EEU-97-204, 7/23/ India accused China on 8/7/97 of supplying missile (SAM) will begin in 1998. The insti- 97. ballistic missiles to Pakistan and helping it tute also announced that the Sky Bow-II build a missile factory, according to Junior SAM will enter production before the end Foreign Minister Kamala Sinha. He stated of 1997. BELARUS that the government is “aware of (the) sup- Flor Wang, Taiwan Central News Agency, [Online] Nuclear ply of M-11 ballistic missiles by China to http://www.can.com.tw, 7/15/97; in FBIS-CHI-97- 196, 7/15/97. In Brest, Belarusian state security forces ar- Pakistan, as well as Chinese assistance to rested members of a criminal group involved build a factory to manufacture ballistic mis- in smuggling radioactive materials and con- siles at Fatehjung, near Rawalpindi,” said fiscated a hand-made lead container holding

The Nonproliferation Review/Winter1998 137 Nuclear and Missile Trade and Developments about 2 kg of a radioactive substance. The three battalions located in Helsinki, accord- POLAND group had stored the container in a border ing to Kalinin representatives. The Finnish Nuclear village and intended to sell it for $100,000. markka 1 billion transaction is largely a re- An investigation is under way and police are payment of Russian debt to Finland. The first The newspaper Rzeczpospolita reported that trying to establish the origin of the material Buk-M1 battery will be operational in 1998. the secret services “picked up the trail of il- and how it was smuggled into Belarus. Interfax (Moscow), 9/12/97; in FBIS-UMA-97-255, legal uranium traffickers” trading in Poland. Andrey Fomin, Rabochaya tribuna, 7/2/97, p. 4. 9/12/97. Suomen Yleisradio Network (Helsinki), 9/ One report suggested that secret service 19/97; in FBIS-WEU-97-262, 9/19/97. agents had wanted to pose as uranium buy- ers but were denied the opportunity by offi- BULGARIA cials because such transactions would cost GERMANY Missile “millions of dollars.” A secret service Nuclear The United States asked Bulgaria and Slo- spokesman refused to comment on the re- vakia to destroy their OTR-23 (NATO des- Police in Springe, in Germany’s Lower port, saying that his department had dealt ignation SS-23 Spider) ballistic missiles, Saxony region, are investigating the discov- with only “four cases of illegal uranium traf- which are capable of carrying nuclear war- ery by waste disposal workers of 1 kg of ra- ficking over the past seven years.” heads. Their destruction is called for under dioactive plutonium. The plutonium was RFE/RL Newsline, 7/2/97. the 1988 U.S.-Soviet Intermediate-Range concealed in 100 film containers and jelly Nuclear Forces Treaty. With a range of 400 jars. Bild (Hamburg), 9/5/97, p. 3; in FBIS-WEU-97-248, RUSSIA km, the missiles could reach the capitals of 9/5/97. Nuclear NATO member countries such as Greece and Turkey. Classified as “Category One” under The Russian government agreed to construct the MTCR, the OTR-23 can deliver a 500 GREECE a mixed oxide fuel (MOX) plant in Russia, together with the French and German com- kg payload to a range of 300 km. Bulgaria Missile said it is re-evaluating its national security panies, Cogema and Siemens. Construction In late 8/97, a delegation of senior Greek is scheduled to begin in 1999, with opera- strategy because it wants to join NATO and military officials visited Russia and discussed the European security system. Slovakia has tion in 2001 or 2002. The reactor will use purchasing S-300 (NATO designation SA- weapons-grade plutonium and produce 1.3 backed Bulgaria’s position. 10 Grumble) SAMs. However, according to Post-Soviet Nuclear & Defense Monitor, 8/25/97, tons of fuel annually. Construction costs are p. 10. Jane’s Defense Weekly, 8/27/97, p. 6. Anatoliy Colonel-General Afanasios Tzoganis, chief estimated at $300 million. Kurganov, Rossiiskaya gazeta, 9/2/97, p. 7. of the Greek Joint Chiefs of Staff, although Nuclear Engineering International, 7/97, p. 6. Greece is interested in the S-300 or “any other equivalent system,” under Greek regu- CZECH REPUBLIC lations the government should hold an inter- Russian police found 21 metal containers of Sodium-22, Strontium-90, Cobalt-60, and Nuclear national tender prior to signing any weapons contract. “plutonium-268” [likely Plutonium-238] on Two Czech citizens and a Pole were arrested the property of a local construction company in the Czech Republic for possession of un- Gayaz Alimov and Gennadiy Charodeev, Izvestiya, [Online] http://win.www.online.ru/rproducts/ in Serov, Yekaterinburg region. The volume disclosed amounts of “red mercury” oxide izvestia-izvestia, 8/29/97. of each container was 1 cubic decimeter. and osmium. The arrests were made in the Police suspect that the radioactive sources, city of Liberec after Czech law-enforcement which were previously used in instruments MOLDOVA officials discovered the materials in the sus- and designed for educational physics experi- pects’ car. Nuclear ments, were stolen from a school and then Fedor Ryurikov, Obshchaya gazeta, 10/9/97-10/15/ 97, p. 8. Moldova agreed to allow the transport of later abandoned. The containers, whose ser- nuclear fuel across its territory to Bulgaria’s vice lives expired in 1994, will be delivered Kozloduy nuclear power plant, according to to the Russian company Radon for storage. FINLAND Moldovan Ambassador to Bulgaria Mihai Oblastnaya gazeta (Yekaterinburg), 7/31/97, p. 1. Koshkodan. Bulgaria’s cabinet drafted an Missile agreement on nuclear fuel transportation, According to Major-General Aleksandr Russia sold three Buk-M1 (NATO designa- which will be coordinated with Moldova, tion SA-10 Grumble) SAM systems, manu- Rodionov, Russian Federal Security Service Russia, and Ukraine. The Moldovan and (FSB) regional department chief of the factured by Kalinin Engineering Plant in Ukrainian governments previously required Yekaterinburg, to Finland. Kalinin is Russia’s Leningrad military district in St. Petersburg, that official permission be obtained for each FSB agents confiscated 5 g of osmium and primary designer and producer of the Buk- shipment, which hindered Bulgarian fuel M1. Finland tested the weapon at training 450 g of uranium. The unnamed suspects in transport. the case planned to smuggle the material sites in Kungur, Russia, and in Emba, Ka- Bulgarian Press Digest, 8/27/97, p. 1. zakstan. The missiles will be delivered to

138 The Nonproliferation Review/Winter 1998 Nuclear and Missile Trade and Developments abroad. Russian Minister of Atomic Energy Viktor 97-276, 10/3/97. Yuriy Klenov, Krasnaya zvezda, 8/1/97, p. 2. Mikhailov said that beginning in 1998, Rus- sia will increase its natural uranium exports. Russian law enforcement officials in the Russia lacks control over the movement of By 12/98, Russia will increase exports by North Caucasus confiscated 3.8 kg of ura- radioactive materials across its borders due 25 percent, and by 100 percent by 2000, a nium. An investigation led to the arrest of to outdated equipment and poorly trained $3.5 billion increase. Countries expected to several residents of Ivanov, Stavropol, and personnel at customs points, according to increase their imports of Russian natural ura- Vladikavkaz. The lead-lined container of Nikolai Cherepanov, head of the Urals Cus- nium include China, Finland, Germany, Ja- uranium, which was allegedly stolen from toms Administration of Russia’s State Cus- pan, and Korea. “We have set our sights on Sarov (Arzamas-16) in 1994, was seized toms Committee (SCC). The SCC replaced supplying the market in Southeast Asia that from a 36-year-old resident of Ivanov. The the Federal Border Service (FBS) in 1995. will become the main consumer of uranium uranium had been offered for sale in Mos- The SCC has proposed that the “Yangar” de- ore in the twenty-first century,” Mikhailov cow and the Baltic states. tection system be used. However, this tech- said. Kabardino-balkarskaya pravda (Nalchik), 9/20/97, nology is unable to detect radioactive Delovoy mir, 9/4/97, p. 5. Kommersant daily, p. 1. Thomas Nilsen, Bellona: Nuclear Chronicle [Online] http://win.www.online.ru/rproducts/ From Russia, 9/21/97, p. 5. materials if a person walks through the sys- commersant-daily-month/, 9/4/97. tem slowly. Cherepanov said that the best method to use in smuggling fissile material U.S. administration officials said that one of would be to transport it in potash fertilizer. In an interview with a U.S. television net- five U.S.-made supercomputers sold to Rus- Potassium-40, found naturally in the fertil- work, former Russian Security Council Sec- sian nuclear facilities at Chelyabinsk-70 and izer, emits radiation, so higher levels of ra- retary General Aleksandr Lebed said that a Arzamas-16 was missing. William A. diation would not arouse suspicion. number of atomic demolition munitions Reinsch, U.S. Commerce Department Nikolai Cherepanov, Yadernyy kontrol, Spring-Sum- (ADMs) manufactured by the Soviet Union undersecretary for export administration, mer 1997, pp. 13, 14. might be missing. ADMs are designed to said Russia was denying U.S. investigators destroy buildings, base camps, command access to the nuclear weapons facilities. In centers, and bridges behind enemy lines. On 8/18/97, the U.S. CIA issued a “high-pri- 7/97, Yuri Buykin, an official at the Russian Lebed said he feared they had been sold, sto- ority, classified alert” from the Nuclear Test Ministry of Foreign Economic Relations, len, or acquired by terrorists, and called for Intelligence Committee (NTIC), an inter- informed Reinsch that one of five a thorough investigation of their where- agency scientific group, saying that on 8/16/ supercomputers inadvertently sold to Rus- abouts. Both Russian and U.S. news media 97 Russia probably conducted a nuclear test sian research labs was not at either facility. reported officials saying that Lebed raised on Novaya Zemlya, an Arctic island in the Reinsch said Buykin might have told him that the issue to keep his presidential hopes alive Kara Sea. The Novaya Zemlya site came the missing computer is “in storage,” but and stay in the public spotlight. Russian under suspicion when CIA satellite photo- Reinsch could not remember the specifics of Prime Minister Viktor Chernomyrdin dis- graphs taken between 8/14/97 and 8/16/97 the conversation. IBM and Silicon Graph- missed Lebed’s claims as “absolute stupid- showed workers lowering “test equipment” ics, two U.S. computer manufacturers, sold ity.” On 10/1/97, Lieutenant General Igor into the ground with “diagnostic cables.” the supercomputers to Russia in late 1996 Valynkin, chief of the Russian Defense However, U.S. intelligence officials said the and early 1997 without appropriate export Ministry’s 12th Directorate, which controls CIA subsequently examined its overt and licenses. nuclear weapons, said at a news conference secret intelligence sources near the test site Bill Gertz, Washington Times, 10/10/97, pp. A1, A11. that Russia does not have such weapons at and found nothing to verify its original find- its disposal, and therefore could not have ing. Moreover, the CIA found no evidence “lost” them. In a subsequent interview, Lebed A container of Radium-226, which is used of unusual radioactivity, underwater blast, said: “As for their number, I can’t say. When for spectral analysis of rock samples, was underwater drilling, or any “extraordinary ac- I was asked about the number (of ADMs) I reported missing near the city of Kushva in tivity of any kind” before or after the event. said 'I don’t know, maybe 100, maybe 500.'” the Sverdlovsk region. The material was last Russia stated that it conducted non-fission Steve Kroft, CBS “60 Minutes,” 9/7/97. Warren P. used on 7/30/97 and then placed in storage. experiments connected with its nuclear weap- Strobel, Washington Times, 10/2/97, p. A3. Interfax Local law enforcement officials are work- ons program on 8/9/97 and 8/23/97 on (Moscow), 9/8/97; in FBIS-TAC-97-251, 9/8/97. ing with the FSB and the State Nuclear and Novaya Zemlya. Data suggest that the epi- Yevgeniy Krutikov, Segodnya, 10/1/97, p. 3. Gareth Radiation Safety Supervision Committee Jones, Reuter, 9/25/97. Vladimir Zaynetdinov, center of the seismic event, probably an Izvestiya, 9/25/97, p. 2; in FBIS-TAC-97-268, 9/26/ (Gosatomnadzor) to locate the material. earthquake, was located about 80 miles 97. Floriana Fossato, RFE/RL Newsline, 9/30/97. Segodnya, [Online] http://home.eastview.com/news/ southeast of Novaya Zemlya. MSNBC Interview With Aleksandr Lebed, [Online] sg/, 10/29/97. Bill Gertz, Washington Times, 8/28/97, p. 1. R. Jef- http://wwww.msnbc.com, 10/2/97. Interfax (Mos- frey Smith, Washington Post, 10/20/97, p. 1. Yuri cow), 9/13/97; in FBIS-TAC-97-256, 9/13/97. Yuri Shchekochikhin, Novaya gazeta ponedelnik, 9/22/ Shcherbak, Washington Times, 9/10/97, p. A18. 97, pp. 1, 2; in FBIS-TAC-97-272, 9/29/97. Yevgeniy Bay, Izvestiya, 10/4/97, p. 2; in FBIS-TAC-

The Nonproliferation Review/Winter1998 139 Nuclear and Missile Trade and Developments

Missile Washington Times, 8/24/97, p. 6. Baltic Times, 8/ UKRAINE Russia completed the fourth and final suc- 29/97-9/9/97. Kommersant-daily, [Online] http:// win.www.online.ru/rproducts/commersant-daily- Nuclear cessful test launch of the RS-12M1/2 (NATO month, 8/19/97. Yuri Shipilov, Krasnaya zvezda, 8/ Negotiations between Kazakstan, Russia, designation SS-X-27) ballistic missile at the 13/97, p. 5. and Ukraine to create a trilateral joint-stock Plesetsk cosmodrome. Russia will declare company to produce nuclear fuel for Ukrai- the missile, an upgraded version of the SS- An investigative report conducted by the nian nuclear power plants have stalled. A 25 Sickle, operational by the end of 1997, Center for Policy Studies in Russia told how spokesman for the Ukrainian Nuclear Regu- and then begin serial production of the 30 gyroscopes, used to guide ballistic mis- latory Administration (Derzhkomatom) said “single-warhead, three-staged, solid-fueled siles, ended up in Iraq. The report says the that Russian and Ukrainian delegations re- missiles.” The missile will become the only gyroscopes were transferred through middle- fused to continue discussing the issue. It is ICBM in Russia’s Strategic Rocket Forces men and ultimately retrieved from a Tigris unclear where and at what level the next (SRF) by 2000. The lighter, solid-fuel mis- River canal near Baghdad by U.N. inspec- round of negotiations will take place. Ukrai- siles are replacing heavier liquid-fuel ones. tors on 12/9/95. The report suggests that nian experts believe that failure to reach an The RS-12M has a range of 10,500 km. Ac- Russian export controls were ineffective in agreement may also undermine a preliminary cording to Commander-in-Chief of Russia’s preventing the shipment, and that the Rus- agreement on the joint venture’s creation, SRF Colonel General Vladimir Yakovlev the sian defense-industrial complex may be an reached earlier this year. Each country would RS-12M will be the “nucleus of Russia’s fu- “easy target” for smugglers. A spokesman hold equal shares in the venture. Russian fuel ture nuclear deterrent.” The missile is five for the center said that his research shows manufacturer TVEL would supply the know- to six years ahead of foreign solid-fueled with “100 percent certainty” that the gyro- how and raw materials to begin production. ICBMs. Half the missiles will be deployed scopes came from the Scientific Testing In- Five Ukrainian VVER-1000 reactors would on SS-25 mobile launchers, while the remain- stitute of Chemical Machine Building in receive fuel from the project. The produc- der will be housed in silos vacated by RS-20 Sergiyev Posad. The facility is a high-secu- tion plant would be located in Zhovti Vody, (NATO designation SS-18 Satan) ICBMs, rity military plant that dismantles ballistic Dnipropetrovsk Oblast. which are no longer used. missiles from Russian submarines under the Kommersant-daily, [Online] http:// Nikolai Novichkov, Jane’s Defense Weekly, 7/16/97, win.www.online.ru/rproducts/commersant-daily, 8/ p. 3. Flight International, 7/16/97-7/22/97, p. 21. START I arms control treaty. 14/97. Intelnews (Kiev), 8/8/97; in FBIS-SOV-97- Russian Public Television First Channel Network David Hoffman, Washington Post, 9/12/97, p. 4. 220, 8/8/97. (Moscow), 9/21/97; in FBIS-TAC-97-264, 9/21/97. Monitor, 7/10/97. Russian arms producer Mashinostroyenia announced that it is preparing to export its In 8/97, Russia unveiled a new air-defense new Yakhont supersonic anti-ship missile MIDDLE EAST AND missile system, the S-300PMU2 Favorit (ASM) to the Middle East and Asia. The (NATO designation SA-10 Grumble), at the missile can travel at twice the speed of sound AFRICA international aerospace show MAKS-97 at at very low altitudes, which makes it diffi- the Zhukovskiy airfield outside of Moscow. cult to detect by radar, and has a range of The Almaz Central Design Bureau and the 120-300 km. The Yakhont can be launched Fakel Design Bureau, which joined forces from ships, submarines, or land-based facili- CYPRUS on the project and formed the industrial fi- ties. It is equipped with artificial-intelligence Missile nance group Oboronitelniye Sistemy, devel- technology that allows it to rank targets by The contract for Russia to provide S-300 oped the Favorit. Vladimir Svetlov, head of importance and then formulate a plan of at- [NATO designation SA-10 Grumble] sur- the Fakel design bureau, said the Favorit is tack in coordination with other missiles, face-to-air missiles (SAMs) to Cyprus stipu- superior to the U.S. Patriot system because thereby preventing multiple strikes on a lates that if destroyed before delivery, they it can destroy the warhead of an approach- single target. The Yakhont is expected to be must be replaced by Russia at no cost to ing missile in mid-air. The Favorit has a more introduced into the market in 2000-01. powerful warhead than its predecessors and Nikolai Novichkov, Jane’s Defence Weekly (Mos- Cyprus. The Cyprus National Guard also has a range of 200 km. It is designed to de- cow), 8/6/97, p. 10. Pravda, 8/13/97, p. 2. Dmitriy plans to acquire SAMs of shorter range than fend against attacks by cruise missiles, mod- Litovkin, Krasnaya zvezda, 9/13/97, p. 5. the S-300, to protect their delivery from ern aircraft, and tactical ballistic missiles. Turkish attack. According to Svetlov, this would prevent Loukis Loukaidhis, O Agon (Nicosia), 9/12/97, p. 1; in FBIS-WEU-97-255, 9/12/97. “large casualties from a warhead hitting a city.” According to Russian specialists, the Favorit will become the backbone of Rus- sian air-defense forces in the twenty-first century.

140 The Nonproliferation Review/Winter 1998 Nuclear and Missile Trade and Developments

EGYPT ing in Iran. Udovenko said he will study a Russia’s ambassador to Iran, Konstantin draft contract under which Turboatom, a Sholov, stated that Russia will continue to Missile Kharkiv-based factory, would supply a 1,000 assist in constructing the Bushehr nuclear U.S. intelligence officials said that Egypt has MW turbine for the reactor in Bushehr. power plant and will guarantee its safety. received substantial assistance in Scud-C RFE/RL Newsline Vol. 1, No. 98, Part II, 8/19/97. Sholov denied that Russia was involved in missile development from North Korea, in weapons transfers to Iran and emphasized violation of U.S. nonproliferation laws. According to a 8/25/97 report in the English- that the Bushehr plant is for peaceful uses. Egypt reportedly requested North Korean Iranshahr, [Online] http://www.iranshahr.com, 9/16/ spare parts for guidance and control equip- language daily Iran News, China’s Deputy 97. ment for its Scud missiles in 5/97. At least Prime Minister Li Lanping informed Israeli seven shipments of material for Scud-C mis- Prime Minister Benjamin Netanyahu that Iranian Foreign Minister Kamal Kharrazi sile production, including special sheet metal China would not supply Iran with equipment said accusations that his country was devel- and support equipment, were shipped to for nuclear reactors. IRNA (Tehran), 8/25/97; in FBIS-TAC-97-237, 8/ oping nuclear weapons were “baseless.” In Egypt from North Korea in 3-4/97. In late 25/97. a speech to the U.N. General Assembly, 1996, North Korea repaired missile-produc- Kharrazi said “The Islamic Republic of Iran, tion equipment that it had previously sup- on the basis of Islamic principles, considers plied to Egypt. This included gyroscope On 8/26/97, Chinese Foreign Ministry weapons of mass destruction inhumane and measuring and pulse-code modulation equip- spokesman Tang Guoqiang avoided com- menting directly about reports that China illegitimate.” ment. Egypt and North Korea have report- Reuter, 9/22/97. edly had a licensing agreement to produce would not help Iran build a nuclear reactor. Scud-C missiles since the 1980s. Asked during a news briefing about Chinese Bill Gertz, Washington Times, 9/17/97, p. 1 & 10. reactor sales to Iran, Tang said only that U.S. Vice President Al Gore said on 9/23/97 China did not encourage nuclear prolifera- in Moscow that a joint U.S.-Russian investi- tion. The Washington Post reported that U.S. gation has shown that Iran is aggressively IRAN officials have made cancellation of the Ira- seeking technology to develop nuclear weap- Nuclear nian reactor deal an informal condition for ons and ballistic missiles. The investigation IAEA Director General Hans Blix arrived the approval of U.S. civilian nuclear tech- was conducted by former U.S. Ambassador in Iran on 7/19/97 to inspect two nuclear re- nology to China. to India and Egypt Frank G. Wisner, and search centers. An IAEA source said the Reuter, 8/26/97. Director of the Russian Space Agency Yuri agency “will not get involved” in complet- Koptev. ing Bushehr, saying that “statements by Iran Washington Post, [Online] http:// Iran may acquire a nuclear research reactor www.washingtonpost.com, 9/24/97. that Busheir (Bushehr) is being finished un- from India on condition that India guaran- der IAEA auspices simply aren’t true.” tees that it will “uphold its commitments,” The Iran Brief, 8/1/97, p. 2. according to Iranian National Energy Agency A spokesman for the Iranian Foreign Minis- head Husayn Mashayqi. The Indian Atomic try said on 9/24/97 that Iran will not permit IAEA officials said on 7/4/97 that the agency Energy Ministry, said Mashayqi, reneged on U.S. monitoring of a nuclear power plant found no sign of any undeclared or clandes- a proposal to build a research reactor in Iran being constructed with Russian assistance tine activity at two sites in northern Iran fol- during the 1980s. near Bushehr. Mahmoud Mohammadi said lowing a 7/97 visit to the sites by IAEA Ha’aretz (Internet version), 9/11/97; in FBIS-NES- the plant would be supervised only by the 97-258, 9/15/97. Director General Hans Blix. During meet- IAEA and that “Iran absolutely believes no ings with Atomic Energy Organization of other authority has the competence to moni- Iran (AEOI) and regulatory officials in The official Iranian news agency IRNA re- tor the site and will not allow it.” Russia Today, [Online] http://www.russiatoday.com, Tehran, Blix discussed the planned installa- ported on 9/15/97 that China’s ambassador 9/24/97. tion of a VVER pressurized water reactor in Tehran expressed his country’s desire to (PWR) at Bushehr. About 30 Iranian techni- help build a nuclear power plant in central cians are in Russia for training under a Rus- Iran. Ambassador Shi Ji Wang told Iranian Missile sian-Iranian agreement to complete two Energy Minister Habibollah Bitaraf that According to U.S. government sources, on reactors at Bushehr. China “was fully determined” to cooperate 6/18/97 Iran test-launched one of its new Mark Hibbs, Nucleonics Week, 8/7/97, p. 9. with Iran in constructing the plant near Arak. Chinese-built C-802 Silkworm anti-ship Construction of the 1,300 MW power sta- cruise missiles. In a non-binding resolution, the U.S. Senate called for sanctions against Ukrainian Foreign Minister Hennady tion began in 12/96, with China providing China in response to these sales and to ear- Udovenko said on 8/18/97 that Ukraine is machinery for the plant. Reuter, 9/15/97. lier exports in 3/96. considering a proposal by Turboatom to sup- Arms Control Today, 7/97, p. 28. ply a turbine for a reactor that Russia is build-

The Nonproliferation Review/Winter1998 141 Nuclear and Missile Trade and Developments

German intelligence coordinator Berndt age, a 2,000 km (1,240 mile) range, and a Among those entities are: the Russian arms- Schmidbauer warned in 7/97 that a “quan- 1,000 kg (2,200 lb) payload. These capabili- exporting agency Rosvoorouzhenie; the tum leap” in Iran’s ballistic missile program ties would enable the Shahab-4 to strike tar- Bauman Institute, a research center; NPO has led Germany’s Federal Intelligence Ser- gets as far away as Germany and western Trud, a rocket engine manufacturer; Polyus, vice, the BND, to conclude that Iran will have China. The missiles will be made in Iran. a laser manufacturer; and the Russian Cen- “missiles for nuclear, biological, and chemi- Bill Gertz, Washington Times, 9/10/97, p. 1. tral Aerohydrodynamic Institute, which cal weapons with a range of about 2,000 km helped build a wind tunnel; and a scientific in the foreseeable future.” In an interview An anonymous Russian special service offi- and production center called Inor. with the German news weekly Der Spiegel, cial said that China and North Korea are cur- Bill Gertz, Washington Times, 9/13/97, p. A5. published on 7/7/97, Schmidbauer said that rently the primary suppliers to the Iranian Iran’s new missile technology “is currently missile program. Israeli military equipment The United States has evidence that Russia being developed and tested. It can be ready was reportedly sold to Iran until 1993, with passed working material and information for use within five years.” the approval of the Israeli Ministry of De- about the R-12 (NATO designation SS-4 The Iran Brief, 8/1/97. fense. Sandel) surface-to-surface missile to Iran. Ben Kaspit, Ma’ariv (Tel Aviv), 9/12/97, p. 2: in Referring to Israeli information confirmed The Clinton administration has been pres- FBIS-TAC-97-255, 9/12/97. Interfax (Moscow), 9/ by U.S. intelligence, an unnamed source in 11/97; in FBIS-TAC-97-254, 9/11/97. suring Russia to stop its scientists and mili- the Clinton administration said that Russia tary institutes from helping Iran develop a has transmitted to Iran the technology for new ballistic missile that could reach Israel, Results of an investigation by Germany’s manufacturing the 2,000 km-range missile. senior U.S. officials said. Assistance to Iran BND found that there are three Iranian agen- An Israeli source said the R-12 will be the is being provided by institutes and compa- cies involved in procuring material for mili- basis for developing the Shahab-4 (Falling nies that were part of the state-owned military programs: the Defense Industries Star-4) missile. tary complex of the Soviet Union. Organization (DIO), the end user for dual- Eksport obychnykh vooruzheniy (Moscow), No. 1-2 Steven Erlanger, New York Times, 8/22/97, p. 1. use technology and material; Bonyad (9-10), 1997, pp. I1-I5; in FBIS-SOV-97-190, 10/1/ 97. Steve Rodan, The Jerusalem Post, 10/1/97, pp. Mostafazan ve Janbazah, a state holding 1, 19; in FBIS-TAC-97-274, 10/1/97. In 7/97, Israeli newspaper Ma’ariv reported company; and the State Purchasing Organi- that Iran was in the final stage of developing zation, which is “almost exclusively respon- a missile with a range of 1,100 km (700 sible for buying military hardware, such as IRAQ miles), and had started research to develop a tanks and ammunition.” BND investigators Nuclear are trying to determine if subsidiaries of the missile with a range of 2,000 km (1,250 Iraq announced on 8/14/97 it had cooper- Krupp corporation or Siemens are involved miles). ated with the United Nations in disarming in any illegal transactions. Judicial proceed- Washington Times, 8/25/97, p. 3. itself under the terms of the 1990-91 Gulf ings are already under way regarding such War cease-fire, and called on other Middle companies as Hoffman Mess und East states to declare openly their weapons U.S. Department of Defense (DOD) officials Regeltechnik (measuring and control engi- of mass destruction (WMD). Iraqi spokes- said they had received an Israeli intelligence neering) of Swabia for allegedly supplying man Barzan Ibrahim Al-Tikriti said Iraq was report that Iran is developing long-range test devices used for tuning gyro-compasses “transparent” about implementing U.N. Se- ballistic missiles that could be deployed and missile guidance components. A BND curity Council resolutions on WMD, present- within three years. The report said that Iran report describes the use of “fake companies” ing periodic statements on activities relating is building two systems based on the North to procure equipment for weapons programs. to such weapons. Korean Nodong missile, which has a maxi- Iran frequently places these fronts in third mum range of 1,900 km (1,200 miles). DOD Stephanie Nebehay, Reuter, 8/14/97. Infobeat, countries between supplier and recipient so [Online] http://www.infobeat.com, 8/14/87. officials said that Iran’s missile program re- that German firms do not know they are ac- ceives testing technology from the Chinese tually delivering goods to Iran. Dubai and According to a U.S. Office of Naval company Great Wall Industries and exten- Pakistan are among the countries used for Intelligence’s (ONI) report on worldwide sive technological assistance from Russian these roundabout deals. industry. The DOD officials believe the two Stern (Hamburg), 9/11/97, pp. 182-184; in FBIS- maritime challenges, China has been ship- Iranian missiles under development are des- TAC-97-254, 9/11/97. ping critical military technology and materi- ignated Shahab-3 and Shahab-4. The offi- als to Iran and Iraq to be used in their nuclear, cials said the Shahab-3 would have a range Information from U.S. intelligence agencies chemical, and biological weapons programs. between 1,300 km and 1,500 km (800-930 links several Russian entities to the Shahid Bill Gertz, Washington Times, [Online] http:// www.washtimes.com, 9/2/97. miles) and be capable of carrying a 750 kg Hemmat Industrial Group (SHIG), Iran’s (1,650 lb) payload, while the Shahab-4 defense industrial agency in charge of bal- would feature an improved guidance pack- listic missile development and production.

142 The Nonproliferation Review/Winter 1998 Nuclear and Missile Trade and Developments

ISRAEL Dror Merom, Globes Arena, [Online] http:// LIBYA www.globes.co.il, 8/21/97. Ha’aretz (Tel Aviv), 9/ Missile 18/97; in FBIS-TAC-97-261, 9/18/97. Jeff Erlich & Nuclear Senior Israeli officials reject U.S. charges Steve Rodan, Defense News, 8/21/97-8/31/97, p. 3. Russia announced that it will begin negoti- Re’uven Pedatzur, Ha’aretz (Tel Aviv), 8/21/97, p. that Israel transferred radar, fighter aircraft, B1; in FBIS-NEW- 97-233, 8/21/97. Oded Lifschitz, ating with Libya to rebuild the Tajura Nuclear and cruise missile technologies to China. Globes Arena, [Online] http://www.globes.co.il, 9/ Research Center, and it would no longer They said Israel provided information to U.S. 3/97. Re’uven Pedatzur, Ha’aretz (Tel Aviv), 8/25/ abide by U.N. sanctions imposed against officials to demonstrate that all weapons and 97; in FBIS-TAC-97-237, 8/25/97. Libya for the 1992 bombing of a U.S. com- technologies sold to China during the past mercial airliner. Russian officials called the two decades were Israeli products, and hence Israeli Prime Minister Benjamin Netanyahu sanctions “unjust” and said that they restrict did not require U.S. third-country export li- ordered a halt to all joint Israeli-Russian eco- Russian-Libyan cooperation. The Russian censes. They stated, moreover, that an inter- nomic projects following reports of Russian Ministry of Foreign Economic Relations es- nal Israeli Ministry of Defense review of government involvement in Iranian ballistic timates that Russian compliance with the defense contracts since 1979 could not iden- missile development. However, the order sanctions has cost the country $7 billion to tify a single case in which missile guidance, does not apply to growing Israeli defense date. Russian Foreign Ministry spokesman navigation, or seeker technologies were exports to Russia, including the program to Gennady Tarasov said the Libyans have ap- transferred to China. U.S. officials remain convert an Il-76 cargo jet into an airborne propriate safeguards agreements with the concerned that prototypes of Israel’s aborted early warning (AEW) platform for export to IAEA to put the reactor at Tajura under in- Lavi fighter program may have been trans- China. The Israeli-Russian AEW contract is ternational control. ferred to China. Senior Israeli officials asked estimated to be worth $1 billion. Gennadiy Charodeyev, Izvestia, [Online] http:// their U.S. counterparts to remove the con- Ben Kaspit, Ma’ariv (Tel Aviv), 9/12/97, p. 2; in win.www.online.ru/rproducts/izvestia-izvestia- year/, 10/24/97. Russia Today, [Online] http:// tentious issue from the bilateral agenda. FBIS-TAC-97-255, 9/12/97. Defense News, 9/22/97- 9/28/97, pp. 3, 60. Defense News, 10/6/97-10/12/ www.russiatoday.com/rtoday, 10/24/97. Barbara Opall, Defense News, 7/21/97-7/27/97, p. 97, p. 19. 2. Missile Deployment of Israel’s Arrow-2 anti-missile Czech news media reported that a conven- Italian police confiscated a large and sophis- system in late 1998 or early 1999 will not be tionally armed OTR-21 (NATO designation ticated machine lathe en route to Libya which delayed, despite a test launch failure on 8/ SS-21 Scarab) warhead from a Czech army would have enabled Libya to increase the 21/97. Program Director Uzi Rubin said the was clandestinely exported to Israel “some- range of its ballistic missiles. The lathe is failure was beneficial because it helped “find time in the middle of last year (1996).” One used to shape large metal cylinders such as malfunctions and ascertain that shortcomings source reported that the warhead was moved oil drills, but can also be used to form mis- have been overcome.” Officials refused to in the first “half of this year (1997).” Ac- siles and is therefore subject to export con- identify the cause of the failure, stating that cording to an anonymous source, the war- trols. The Genoa State Police General it would remain classified to avoid reveal- head was loaned to Israel and then returned Investigations and Special Operations Divi- ing the program’s weaknesses. Twenty-five “a few weeks later” without proper notifica- sion (DIGOS) kept the lathe under surveil- Israeli firms are participating in the $1.6 bil- tion of military authorities. Israel imported lance for months before seizing it in 5/97. lion Arrow program, in which $490 million the warhead secretly, dismantled it, and then Police have charged seven Italian citizens for has already been invested. The Arrow has re-assembled it, the source said. Israeli mili- attempting the illegal export. tary organizations and three heads of Czech Stefano Scondino, Il Gionale (Milan), 8/10/97, p. come under increasing criticism in the Israeli 10; in FBIS-TAC-97-223, 8/11/97. press. Commentators said that the system will military secret services reportedly agreed to destabilize the “balance of terror” in the re- the transfer. A different unnamed source from gion; will be less effective than alternative the Czech defense department did not dis- Swiss and Australian authorities banned en- approaches; that official cost estimates, de- count such a possibility and said that Israel try of German space technology scientist ployment schedule, and program effective- is a frequent target of OTR-21 attacks. Czech Lutz Kayser into their countries on suspicion ness are part of a “disinformation campaign”; state attorney from Prague’s sixth district, that he is seeking to acquire material and and that the Israeli academic community, Jindra Janacova, said she will investigate the machines for use in the Libyan missile pro- press, and Knesset Foreign Relations and anonymous allegations. If the warhead was gram. Defense Committees have failed to debate transported without an intergovernmental Munich Focus, 9/2/97, pp. 106-7; in FBIS-TAC-97- 245, 9/2/97. the relative merits of Arrow and alternative agreement, district authorities could charge ballistic missile defense systems and have those involved with espionage and abuse of authority. allowed the program to continue unsuper- OUTH FRICA Pravo (Prague), 9/13/97, pp. 1, 2; in FBIS-EEU-97- S A vised. 258, 9/15/97. CTK (Prague), 9/17/97; in FBIS-TAC- Nuclear Steve Rodan, Jerusalem Post, [Online] http:// 97-260, 9/17/97. Prague Radiozurnal Radio Net- www.jpost.co.il, 8/28/97. Dror Merom, Globes work, 9/14/97; in FBIS-EEU-97-258, 9/15/97. South Africa’s draft Nuclear Energy Act may Arena, [Online] http://www.globes.co.il, 8/28/97. reduce the staff of the Atomic Energy Cor-

The Nonproliferation Review/Winter1998 143 Nuclear and Missile Trade and Developments poration (AEC), whose personnel have been ment, asserting that it confirmed its evalua- 100 and 200 high-tech aerospace jobs and cut dramatically over the last seven years, tion that the event was a nuclear test. LANL earn South Africa over R500 million annu- falling from 8,000 to 2,000. AEC executive seeks to place a new generation of sensors ally, according to Houwteq divisional man- G.M. Mojalefa Murphy said “We have al- on U.S. satellites to detect electromagnetic ager Ian Farr. Denel Aerospace Strategy ready lost hundreds of experienced scientists pulses emanating from nuclear explosions. Director Kobus Eksteen said that senior and engineers to overseas research institu- David Albright & Corey Gay, Bulletin of the Atomic South African scientists had been asked by tions, and the draft act would be the final Scientists, [Online] http://bullatomsic.org, 10/97-11/ an unnamed Asian country to assist in de- 97. Institute for Science and International Security, nail in our coffin.” Due to termination of [Online] http://www.fas.org/spp/starwars, 8/4/97. veloping its aerospace capacity. AEC’s fuel fabrication activities in 1996, William B. Scott, Aviation Week & Space Technol- Willem Steenkamp, Independent Online, [Online] Murphy said that less than 30 internation- ogy, 7/21/97, p. 33. http://www.inc.co.za, 8/20/97. ally competent scientists and engineers remain in the country. Job losses by nuclear Two people were arrested and 10 kg of ura- TURKEY scientists, technicians, and engineers have nium oxide, valued at R300,000, was seized Missile taken place in the context of a more general- in a raid by a police organized crime unit in Four ships suspected of carrying S-300 ized “brain drain” from South Africa. A net Cape Town, South Africa, on 9/9/97. [NATO designation SA-10 Grumble] sur- exodus of skilled professionals has been un- Sapa, 9/12/97. der way since 1994. face-to-air missile parts were stopped and Mariana Bidoli, Financial Mail, [Online] http:// searched by Turkish Coast Guard officials www.fm.co, 8/15/97. Clive Sawyer, Independent Missile as they entered the Bosporus. Turkish au- Online, [Online] http://www2.inc.co/za, 4/16/97. In- British Aerospace and the South African thorities warned that “ships carrying missiles dependent Online, [Online] http://www2.inc.co.za, company Kentron (a subsidiary of the state 6/13/97. to hostile countries will be regarded as a firm Denel) are negotiating to develop and cause of war” and that Turkey is determined produce military missiles and rockets for to “attack” such vessels. Russian Ambassa- Police confiscated three bottles containing export. British Aerospace seeks joint ven- dor to Cyprus Georgiy Muratov said on 10/ 250 g of uranium oxide from Terrence Cooke tures to furnish products manufactured in 9/97 that an attack by Turkey on a ship car- in 7/97, who attempted to sell them in south- South Africa to the United Kingdom and rying the S-300 missiles from Russia to ern Johannesburg for R2 million. Charges other countries, as well as to invest directly Cyprus would be grounds for war. Greek were dropped in 11/97, because the state was in the South African military industry. Deputy National Defense Minister not prepared to present its case after hear- Jonathan Rosenthal, Independent Online, [Online] Dhimitrios Apostolakis said that if ships ings were postponed several times for fur- http://www2.inc.co.za, 7/31/96. transporting Russian S-300 missiles to Cy- ther investigation. prus were being attacked by Turkey, Greece Independent Online, [Online] http://www.inc.co.za/ South African Defense Minister Joe Modise would certainly react. online, 11/7/97. Independent Online, [Online] http:/ Yeni Yuzyil (Ankara), 9/4/97, p. 6; in FBIS-WEU- /www.inc.co.za/online, 7/97. and U.S. Secretary of Defense William Cohen signed an accord in 8/97 to establish 97-247, 9/4/97. Cyprus Broadcasting Corporation Radio Network (Nicosia), 10/10/97; in FBIS-WEU- a high-level defense committee. However, U.S. nuclear experts called for the re-exami- 97-283, 10/10/97. Olga Tremi, Elevtheros Tipos the ban on U.S. arms sales to South Africa (Athens), 10/20/97, pp. 6-7; in FBIS-WEU-97-295, nation and declassification of U.S. evidence will not be lifted until the U.S. State Depart- 10/22/97. regarding a 9/79 event off the coast of south- ment is satisfied that South Africa has de- ern Africa which may have been a nuclear veloped adequate arms-control compliance weapon test. South African Deputy Foreign Turkey reportedly initiated a program to ac- manuals for two firms: Kentron and Fuchs quire Chinese equipment and know-how in Minister Aziz Pahad’s press secretary told Electronics. South Africa agreed to develop Albuquerque Journal reporters on 7/11/97 order to build short- and medium-range sur- the manuals to ensure that U.S. technology face-to-surface missiles. Senior Turkish of- that a 4/97 report that he had said the event is not transferred to unauthorized third coun- was “definitely a nuclear test” had been taken ficials declined to comment on the report. tries. Lawyers from both countries said it may Umit Enginsoy & Brooks Tigner, Defense News, 9/ out of context. Pahad’s representative said take up to a year to finalize the compliance 15/97-9/21/97, pp. 1, 48. there was only a “strong rumor” that the program document. event, detected by a U.S. Vela satellite, was Jeff Erlich, Defense News, 8/4/97-8/10/97. Indepen- The U.S. Department of Defense (DOD) a nuclear test. The U.S. Institute for Science dent Online, [Online] http://www.inc.co.za, 8/97. announced on 10/9/97 the sale of 138 AIM- and International Security (ISIS) noted that 120 Advanced Medium Range Air-to-Air the IAEA concluded that South Africa did Houwteq, the aerospace division of South Missiles (AMRAAM), and 120 ALU-129A/ not possess a sufficient supply of highly en- Africa’s Denel group, will sign a joint ven- A launchers to Turkey for $62 million. Prin- riched uranium to build a nuclear explosive ture with an unspecified international satel- ciple contractors are Hughes Aircraft and in 1979. Los Alamos National Laboratory lite group to test and launch satellites from Raytheon. The DOD said the sale would not (LANL) issued a press release on 7/11/97 its Overberg facility in the Western Cape. adversely affect the military balance in the citing the original report of Pahad’s state- The partnership is expected to create between

144 The Nonproliferation Review/Winter 1998 Nuclear and Missile Trade and Developments region or U.S. efforts to resolve the Cyprus ARGENTINA technology. Facing domestic defense cuts, dispute between Turkey and Greece. French firms are reportedly willing to ease Nuclear DefenseLINK News, [Online] http:// access to advanced technologies to counter www.defenselink.mil, 10/9/97, No. 180-M. Argentine and Brazilian nuclear industry rep- increasing competition from the United resentatives met in Brasilia in 7/97 to dis- States. On 9/1/97 the Clinton Administration cuss joint ventures in reactor production, Turkey will buy 70 Popeye air-to-air mis- lifted the U.S. ban on sales of advanced con- radio-isotopes and radio-pharmaceuticals, siles from Israel. The 100 km-range missiles ventional weapons to Latin America, end- food irradiation, and power plant construc- will be mounted on Turkey’s F-4 fighter air- ing a policy instituted two decades earlier. tion. Argentine representatives proposed that craft, which are being modernized by Israel. Officials said the United States would con- Lale Sariibrahimoglu, Istanbul Cumhuriyet (Ankara), the Brazilian energy firm Furnas bid on the sider sales on a “case by case” basis, and 10/14/97; p. 9, in FBIS-WEU-97-289, 10/16/97. three Argentine reactors to be privatized in would not approve sales to countries with 1998, and that Argentine firms receive con- ongoing conflicts. tracts to finish construction of the Brazilian Turkey and Israel agreed to co-produce long- Reali Junior, Estado de Sao Paulo, [Online] http:// nuclear power plant Angra-2 and to construct www.estado.com.br, 8/7/97. New York Times, 8/2/ range Delilah unmanned aerial vehicles Angra-3. These efforts would be followed 97, p. 1. (UAVS), during a meeting of Israel Defense by joint development of a small reactor, Forces Chief of General Staff Lt. Gen. dubbed the “Mercosur,” for export to other Amnon Lipkin Shahak with senior Turkish CHILE Latin American countries. officials in Ankara on 10/13/97. A formal Monica Yanakiev, Gazeta Mercantil (Sao Paulo), 7/ Missile accord on production of the 500 km-range 10/97, p. A6; in FBIS-LAT-97-195, 7/14/97. The Rayo rocket artillery system debuted in Delilah — which can be re-engineered as a a military parade on 9/19/97 in Chile. The cruise missile — is expected by the end of Argentina and Greece signed a bilateral ac- Rayo is developed jointly by Chilean Army 1997. Ordnance and the British firm Royal Ord- Metehan Demir, Turkish Daily News, [Online] http:/ cord to promote cooperation in basic and /www.TurkishDailyNews.com/, 10/14/97. applied research on nuclear energy develop- nance and will be marketed by the latter firm ment. in 1998. The system consists of 24 Rayo Athens News Agency, 7/18/97; in FBIS-WEU-97- launchers fitted with 160 mm-caliber rock- 199, 7/18/97. ets; maximum range is 45 km. The system is LATIN AMERICA mounted on a German-made MAN SX2000 6 x 6 truck. Vehicle trials are expected in 10/ BRAZIL 97, firing tests in 11/97, and system qualifi- Missile cation trials in early 1998. The first Rayo Brazil and France are negotiating joint de- rockets will be equipped with a warhead velopment of a space launch vehicle larger ORGANIZATION OF AMERICAN based on the Royal Ordnance 155 mm L15 than the Brazilian VLS and smaller than the HE projectile and use an electronic fuse pro- STATES European Ariane. The proposed rocket vided by the South African firm Fuchs. Royal Missile would lift payloads between 500 kg and Ordnance will provide key subsystems, in- The General Assembly of the Organization 1,000 kg into a 2,000 km orbit. The negotia- cluding the strip laminate rocket motor case, of American States (OAS) is developing a tions reflect informal agreement that direct but the Rayo will be produced at FAMAE legal framework to require advance notice commercial competition between the two facilities near Santiago. of acquisitions of missiles, combat aircraft, systems is not in the interest of either coun- Juan Araya, El Mercurio (Santiago), 9/14/97, pp. D1, and five other categories of major weapons try. Brazil’s Alcantara launch site in D8, D9; in FBIS-LAT-97-266, 9/23/97. Jane’s De- fence Weekly, 8/20/97, p. 8. El Mercurio (Santiago), systems covered by the U.N. Register of Maranhao, and France’s Guyana Space Cen- 9/3/97, p. C-5; in FBIS-LAT-97-258, 9/15/97. Conventional Arms. The framework will be ter located in French Guyana, are similarly considered at the next Summit of the Ameri- situated near the equator and could compete ECUADOR cas, to be held in Santiago, Chile, in 4/98. against each other in the satellite launch Missile The proposal aims to foster transparency in market. ongoing Latin American defense moderniza- Peter B. de Selding, Space News, 7/7-13/97, p. 3, Israel will sell 100 Python-3 air-to-air mis- tion, and thereby limit unnecessary weapons 20. siles worth $10 million to Ecuador. They will acquisitions. be deployed on Kfir attack aircraft which U.S. Arms Control and Disarmament Agency Fact French aeronautics firms are negotiating the Israel sold to Ecuador in 1996. However, Sheet, 7/8/97. sale of Exocet missiles and Mirage 2000 and Israel reportedly will not sell Ecuador the Rafale fighter aircraft to Brazil. Brazilian state-of-the-art Python-4 missile. Amnon Barzilay, Ha’aretz (Tel Aviv), 8/10/97, p. A4; Navy officials have reportedly made several in FBIS-TAC-976-222, 8/10/97. trips to discuss French nuclear submarine

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