CONFIDENTIAL

HKB 020 126

SCEW D

17 OCT 1990

A

!

15.

CONFIDENTIAL

FM FCO

TO DESKBY 03050OZ AMMAN TELNO 446

OF 022255Z OCTOBER 90

AND TO ROUTINE WASHINGTON, UKMIS NEW YORK

FROM ESC, LONDON

56

077100

MDHOAN 8375

Janetins.

IRAQ/KUWAIT : ALLEGED CHINESE SANCTIONS VIOLATIONS: NORINCO

1.

THE

THE 'INDEPENDENT ON SUNDAY' PUBLISHED A MAJOR STORY ON 30 SEPTEMBER CLAIMING THAT THE CHINESE COMPANY NORINCO HAD SOLD 7 TONNES OF LITHIUM HYDRIDE TO IRAQ FOR 1.5 MILLION DOLLARS. MATERIAL WAS SAID STILL TO BE IN CHINA, BUT WAS TO BE FLOWN TO TEHRAN FOR ONWARD SHIPMENT TO BAGHDAD UNDER THE GUISE OF PHARMACEUTICAL PRODUCTS. LITHIUM HYDRIDE IS REPORTEDLY USED FOR NUCLEAR WEAPONS, MISSILE FUEL AND POISON GAS.

2. THE CHINESE HAVE ASSURED US THAT ALL CHINESE COMPANIES, INCLUDING NORINCO, HAVE BEEN INSTRUCTED NOT TO TRADE WITH IRAQ AND THAT THE STORY IN THE 'INDEPENDENT' IS GROUNDLESS. BUT WE SHOULD NEVERTHELESS BE INTERESTED IN ANY INFORMATION YOU MAY BE ABLE TO GLEAN ON RECENT ACTIVITY IN JORDAN BY NORINCO AND ANOTHER CHINESE FIRM, CHINA NORTHERN INDUSTRIES CORPORATION. IT WOULD BE HELPFUL TO HAVE AT LEAST A PRELIMINARY RESPONSE BY 04120OZ.

HURD

YYYY

DISTRIBUTION

271

MAIN

226

IRAQ/KUWAIT (EU)

LIMITED

MED

ADDITIONAL

45

IRAQ/KUWAIT

MAFF

(PASSED TO EMERGENCY UNIT)

तततत

PAGE

1

CONFIDENTIAL

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