Nuclear and Missile Trade and Developments NUCLEAR- AND MISSILE-RELATED TRADE AND DEVELOPMENTS FOR SELECTED COUNTRIES, JULY-OCTOBER 1998 by Michael Barletta, Clay Bowen, Gaurav Kampani, and Tamara Robinson 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. would be to facilitate nuclear commerce be- the Chinese had no way of knowing which tween China and Europe. It is believed that chips held the encryption codes. According ASIA the EC will also seek to convince China “to to industry officials, only Loral employees enlarge China’s offer to the [International in California would have been able to tell Atomic Energy Agency (IAEA)] under its the chips apart by comparing company voluntary safeguards agreement and put records with code numbers on the half- specific Chinese facilities under IAEA safe- melted hardware. A Clinton administration CHINA guards, as well as to submit an expanded official was quoted as saying that the Na- Nuclear declaration of its nuclear activities to the tional Security Agency did not think the IAEA,” as a part of its Model Additional missing chips were a major concern. He also Japanese police searched more than 20 loca- Protocol. The negotiations will not cover raised the point that if the Chinese wanted tions related to Hitachi Electronics Ltd. for nuclear accident liability because China is the encryption chips, they would have taken possible connections to the suspected illegal not a member of the Vienna International all the chips, since all the chips looked alike. export of high-tech equipment to China. It Liability Convention. According to US officials present when the is believed that the equipment could be used Mark Hibbs, Nucleonics Week, 24 September 1998, satellite crashed, the “Chinese had not taken by China to improve its nuclear weapons. p. 3. anything because they were too busy deal- The searches were conducted to determine Missile ing with the emergency, and had made no whether Hitachi cooperated with Tokyo- It remains unclear whether China acquired apparent effort to pick up any of the circuit based Ryokosha Co. employees in export- classified information from a commercial boards.” ing unauthorized instruments to China. Loral Space & Communications satellite John Mintz, Washington Post, 8 July 1998, p. 24. Police reported that 18 instruments worth that crashed in February 1996 after being Eric Schmitt, New York Times, 9 July 1998, p. 1. ¥231 million were exported to Harbin, a city launched in China. It is possible that China in northeastern China, via South Korea in retrieved two encryption devices from the According to a US Air Force classified in- December 1996. wreckage “compromising US communica- telligence report, it is possible that US tech- Daily Yomiuri, [Online] http://www.yomiuri.co.jp, 8 August 1998. tion codes.” The other possibility is that the nology could aid China in developing a codes and devices were destroyed in the multiple warhead deployment capability. In The European Commission (EC) has sought crash. The encryption chips were two 1996, the Chinese developed an upper-stage a formal mandate from the European Coun- among more than 1,000 chips built into 100 booster called a “smart dispenser,” for the cil to negotiate a nuclear cooperation agree- circuit boards used in the satellite. The chips Long March 2C/SD rocket. China built this ment with China. The aim of the agreement were indistinguishable from the others so as part of a Motorola contract to be able to The Nonproliferation Review/Winter 1999 151 Nuclear and Missile Trade and Developments conduct double satellite launches “needed in the region and spark a new arms race in pected to take seven years to install the first for a new global telephone network.” The the region.” nuclear reactor. US Air Force intelligence center con- Indian Express, [Online] http//www.indian- Vladimir Radyuhin, The Hindu, [Online] http:// ducted a study to determine whether “the express.com, 23 September 1998. www.webpage.com/hindu, 21 July 1998. satellite dispenser could be adapted by the Chinese for a first-generation, three-war- INDIA Official Indian sources said in late July 1998 head ‘post-boost vehicle’ for the CSS-4 Nuclear that in the wake of India’s recent nuclear tests, India is concentrating on completing and other intercontinental ballistic mis- Senior Indian officials reported that India its nuclear-powered submarine (SSN) pro- siles (ICBMs).” The intelligence center does not have a command and control doc- gram known as the Advanced Technology did not find any evidence that China was trine for its nuclear weapons. Indian Defence Vessel (ATV). The ATV project has been taking steps to use the dispenser for war- Minister George Fernandes reported that under way since the 1970s and a boat is ex- heads. If it did, however, the system India’s National Security Council (NSC) pected to be commissioned in 2007 or 2008. would be less accurate than comparable would determine India’s nuclear doctrine. The submarine will be used to launch Russian and US systems. A computer However, the NSC has not yet been estab- nuclear-armed missiles. The ATV will also simulation suggested that a Chinese stra- lished. tegic missile fitted with the satellite dis- Dinesh Kumar, Times of India, [Online] http:// play a role in surveillance and deterrence penser could fire three separate warheads www.timesofindia.com, 2 July 1998. operations off the coast of China. The ATV at intervals over several seconds after the project is based on the Russian Charlie-I booster rocket burned out. Motorola says The UK Foreign Office reported that it class cruise missile submarine. Indian Navy it had no role in the development of the would tighten sanctions on the export of officials close to the project say that the prob- smart dispenser. However, it did provide nuclear-related materials to India and Paki- lem until now has been miniaturizing the technical data to make it compatible with stan in response to the nuclear tests both nuclear reactor. Motorola satellites. Motorola also said Rahul Bedi, Jane’s Defence Weekly, 22 July 1998, countries conducted in May 1998. The For- p. 26. that the US Department of Defense eign Office said that “export licenses would cleared all information given to the Chi- be denied for items that could assist the two On 4 August 1998, Indian Prime Minister nese. countries’ nuclear programs and close scru- Atal Behari Vajpayee announced the three Bill Gertz, Washington Times, 14 July 1998, p. 1. tiny would be given to other military items.” elements of India’s new “evolving nuclear The Foreign Office also said that Indian and doctrine.” First, India will maintain a “mini- China has lobbied the UN Conference on Pakistani citizens would be denied access to mum but credible nuclear deterrent.” Disarmament (CD) in Geneva to establish British nuclear plants. a negotiating committee to prevent a “Star BBC News, [Online] http://www.news.bbc.co.uk, 10 Vajpayee said that India requires no further Wars” arms race in outer space. China’s July 1998. nuclear testing to maintain the credibility of ambassador to the CD, Li Changhe, has its nuclear deterrent. Second, India will never said that by turning outer space into a base On 9 July 1998, the US Senate approved the use nuclear weapons against non-nuclear for weapons, regional and global strate- Farm Export Relief Bill. The bill exempted states, nor will it be the first to use nuclear gic stability would be undermined, a new food exports from sanctions the United weapons against nuclear states. Lastly, In- arms race would begin, and international States imposed on India and Pakistan fol- dia is committed to all non-discriminatory peace and security would be threatened. lowing their nuclear tests. Senator Trent Lott arms control and disarmament agreements. Times of India, [Online] http:// According to US Ambassador Robert said that if the bill was not implemented, US www.timesofindia.com, 4 August 1998. Indian Grey, the United States does not believe wheat farmers would lose approximately $37 Express, [Online] http://www.indian-express.com, there is an arms race in outer space and million in revenue in 1998. Senator Richard 5 August 1998. therefore sees no reason to form a com- Lugar said that “food should not be a weapon mittee on it. The United States was the of foreign policy.” Unidentified sources reported that the US only country at the Geneva talks opposed Eric Schmitt, New York Times, [Online] http:// Department of Commerce is investigating www.nytimes.com, 10 July 1998. to forming a negotiating committee. allegations that Themis, a California-based Washington Post, 14 August 1998, p. 18A. computer company, illegally sold micropro- India’s director of the Nuclear Power Cor- cessor chips to India. The sources said that China’s Foreign Ministry spokesperson, Mr. poration, Dr. Y.S.R. Prasad, and Russia’s Themis sold the chips to India’s Advanced Zhu Bangzao, warned Japan and the United general director of Atomstroiexport, Viktor Numerical Research Analysis Group, which States against developing a missile defense Kozlov, signed a project report contract for is affiliated with India’s Defence Research system “to counter future threats from North Kudankulam on 20 July 1998. Under the and Development Organization (DRDO). Korea.” He said that, “[Japan and the United contract, India’s Kudankulam nuclear power The chips were legally shipped without US States] should exercise restraint and refrain station will receive two 1,000 MW light Department of Commerce approval.