IIR 2 241 0161 91/CHINESE SALE OF RAW MATERIALS WITH

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IIR 2 241 0161 91/CHINESE SALE OF RAW MATERIALS WITH CHEMICAL

Filename:22410161.91r
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SERIAL: (U) IIR 2 241 0161 91

BODY PASS: (U) DA FOR DAMI-FII-E

COUNTRY: (U) CHINA (CH); IRAQ (IZ); CAMBODIA (CB); THAILAND (TH);
VIETNAM (VM).

SUBJ: IIR 2 241 0161 91/CHINESE SALE OF RAW MATERIALS WITH 
CHEMICAL
MUNITION PRECURSOR POTENTIAL TO IRAQ; CONTINUED SUPPLY OF WEAPONRY
TO THE POL POT FACTION IN CAMBODIA (U)

WARNING: (U) THIS IS AN INFORMATION REPORT, NOT FINALLY EVALUATED
INTELLIGENCE. REPORT CLASSIFIED 


DEPARTMENT OF DEFENSE


DOI: (U) 910300.

REQS: (U) T-2B1-1100-05-90.

SOURCE:     [   (b)(1) sec 1.3(a)(4)   ][   (b)(7)(D)   ]

SUMMARY:            CHINA HAD AGREED TO PROVIDE IRAQ WITH LITHIUM
HYDROXIDE, A RAW MATERIAL USABLE IN THE MANUFACTURE OF NERVE GAS,
JUST PRIOR TO DESERT SHIELD. CHINA HAS CONTINUED TO PROVIDE
MILITARY HARDWARE AND SUPPLIES TO THE POL POT FACTION OF CAMBODIA.

TEXT: 1.            A SUBSIDIARY OF THE CHINA NORTH INDUSTRIES
GROUP HAD INITIALLY SOLD IRAQ A SMALL AMOUNT OF LITHIUM HYDROXIDE,
ONE OF THE RAW MATERIALS USABLE IN THE PRODUCTION OF NERVE GAS AND
HYDROGEN WEAPONS (SIC). JUST PRIOR TO THE START OF "DESERT
SHIELD/STORM", CHINA HAD AGREED TO SELL IRAQ 10 TONS OF LITHIUM
HYDROXIDE AS A "HIGH ENERGY" FUEL FOR THE "IRAQ SPACE PROGRAM."
THE LITHIUM HYDROXIDE IS A PRODUCT OF A CHEMICAL PLANT LOCATED IN
CHENGDE, HEBEI PROVINCE. SINCE THIS BUSINESS TRANSACTION WITH IRAQ
WAS CONDUCTED BY A SUBSIDIARY (NO FURTHER INFORMATION AVAILABLE AT
THIS TIME) OF THE CHINA NORTH INDUSTRIES GROUP, THE CHINESE
GOVERNMENT DOES NOT CONSIDER THIS TO BE A GOVERNMENT-LEVEL
TRANSACTION. THE CHINESE GOVERNMENT'S SOLE INTEREST IS TO OBTAIN
FOREIGN CURRENCY.
2. [   (b)(1) sec 1.3(a)(4)   ]










3. [   (b)(1) sec 1.3(a)(4)   






COMMENTS:            (FIELD COMMENT) - [   (b)(1) sec 1.3(a)(4)   
][   (b)(7)(D)   ]



//IPSP: (U) PG 1100//.
//COMSOBJ: (U) 162//.
ADMIN PROJ: (U) 250131.
INSTR: (U) US NO.
PREP: (U) 500TH MI BDE.
ACQ: (U) TOKYO, JAPAN (910403).
DISSEM: (U) FIELD: NONE.
WARNING: (U) REPORT CLASSIFIED