The Center for International Trade & Security

Export Control Newsletter No 41

17 January – 6 February 2004

 

CITS/ UGA News

1. CITS Holds a Briefing for Members of Azeri Parliamentarians in Baku

2. Scholars from Uzbekistan at CITS

3. CITS Releases a New Report “Strengthening Multilateral Export Controls

4. CITS Releases a New Report “Export Controls in Brazil

5. Ambassador Mariusz Handzlik, Recent MTCR Chairman, spends sabbatical at CITS.

“Former MTCR Official: Libya’s WMD Admission Could Impact Other Middle Eastern Countries,” InsideDefense.com, February 4, 2004
“China Seeks to Join Missile Nonproliferation Regime,” By Mike Nartker,
Global Security Newswire, February 5, 2004

 

U.S. Export Controls

1. “Bush Proposes Steps to Halt WMD Proliferation, Says Such Weapons Are 'The Greatest Threat to Humanity Today',” CNN, February 12, 2004

2. “Bush Administration Modifies Export Control Lists,” Global Security Newswire, January 21, 2004

3. “U.S. Charges Man with Smuggling Nuclear Equipment to Pakistan,” Global Security Newswire, January 13, 2004

4. “Illinois Company Settles Charges of Illegal Exports to South Korea,” Bureau of Industry and Security, Commerce, Department of Commerce, February 6, 2004

5. “Emcore Corporation Settles Charges of Export Control Violations,” Bureau of Industry and Security, Commerce, Department of Commerce, January 26, 2004

6. “Commerce Department Role in Implementing the U.S. Additional Protocol”, Testimony of The Honorable Peter Lichtenbaum, Assistant Secretary of Commerce for Export Administration Before the Committee on Foreign Relations, United States Senate, January 29, 2004

7. “Hearing to Examine Export Rules for Cruise Missiles, UAVs,” By Marc Selinger,
Aerospace Daily, January 30, 2004

8. “The Department of Homeland Security Needs to Fully Adopt a Knowledge-Based Approach to Its Counter-MANPADS Development Program,” GAO-04-341R, January 30, 2003.

 

International Export Control Developments

 

Pakistan

1. “Bleak future for Pakistan's 'bomb hero',” By David Blair, The Daily Telegraph, February 07, 2004

2. “U.N. Nuclear Chief Warns of Global Black Market,” By Peter Slevin, Washington Post, February 6, 2004

3. “Inspectors Find Clandestine Centrifuge Drawings in Iran,” Associated Press, February 12, 2004

4. “Musharraf Rejects Outside Investigation of Pakistani Nuclear Smuggling,” Global Security Newswire, February 6, 2004

5. “Pakistani Takes Blame for Nuclear Transfers; Top Arms Scientist Tells Nation He Erred but Acted on his Own,” By David Rohde, The International Herald Tribune, February 5, 2004

 

Malaysia

6. “Malaysian Authorities Investigate Domestic Firm for Nuclear Smuggling,” Global Security Newswire, February 5, 2004

7. “Salesman on Nuclear Circuit Casts Blurry Corporate Shadow,” By Raymond Bonner, New York Times, February 18, 2004

8. “Malaysia Pledges Cooperation on Nuclear Investigation,” Associated Press, February 13, 2004

 

EU

9. “EU Invitees Must Improve Export Controls,” by Scott Jones, CITS Senior Research Associate, Defense News, 26 January, 2004

10. “EU and Russia Start Talks on Nuclear Exports, RosBusinessConsulting Database, February 3, 2004

 

Germany

11. “Germany Drops Charges Against Man Suspected of Aiding Nuclear Smuggling to North Korea,” Global Security Newswire, January 8, 2004

 

Netherlands

12. “Netherlands Probing Suspected Centrifuge-Related Diversions,” By Mark Hibbs , Nucleonics Week, January 22, 2004

 

Lithuania

13. “US to Keep Focus on Lithuania's Control of Radioactive Materials,” Baltic News Service, February 5, 2004

 

Libya

14. “Libyan Nuclear Procurement Network Was Greater Than Expected, Experts Find,” Global Security Newswire, January 22, 2004

15. “Probe of Libya Finds Nuclear Black Market,” By Joby Warrick and Peter Slevin, Washington Post, January 24, 2004

 

China

16. “China, France Agree to Form Nonproliferation Task Force,” Global Security Newswire, January 28, 2004

17. “China Applies to Join Nuclear Suppliers Group,” BBC Monitoring International Reports, January 26, 2004

 

Russia

18. “Putin Makes Changes in List of Exported Nuclear Materials,” ITAR-TASS News Agency, February 8, 2004

19. “America Invites Russia to Participate in Global Intercept Initiative,” Vremya Novostei, By Andrei Zlobin, Yelena Suponina, February 3, 2004

 

Bulgaria

20. “Bulgarian Government Updates Arms Exports Blacklist,” BBC Monitoring International Reports, January 22, 2004

 

Ukraine

21. “Response of the Ukrainian Military, Scientists, and Politicians to Al-Hajat's Publication on Kiev's Sales of Tactical Nuclear Weapons to Al Qaeda,” Russky Kurier, By Ivan Vorotynsky, February 11, 2004

 

Japan

22. “Nuclear Parts from Japanese Firm said Brokered to Libya,” By Masao Shimazaki, Yomiuri Shimbun, February 8, 2004

23. “Japan Offers to Aid Cambodia in Strengthening Export Controls,” Global Security Newswire, January 15, 2004

24. Japan, ASEAN to Meet on WMD Proliferation Export Controls,” 6 February 2004, Kyodo News Service.

 

CITS/ UGA News

1. CITS Holds a Briefing for Members of Azeri Parliamentarians in Baku

On February 22-25, 2004 CITS researchers will accompany a group of U.S. Congressional staff to Baku to participate in a briefing for the deputies of the Azeri parliament, Milli Mejlis, on developing an export control system. The briefing is part of the ongoing project funded by the U.S. Department of State to facilitate inter-parliamentary contacts between the United States and some former Soviet republics in the area of nonproliferation, international and regional security.

 

2. Visitors from Uzbekistan at CITS

On February 18, 2004, Mr. Bakhrom Djuraev, Senior Research Fellow at the Institute of Strategic and Regional Studies under the President of the Republic of Uzbekistan, and Mr. Mirzohid Rahimov, Senior Researcher at the Institute of History of the Academy of Sciences of the Republic of Uzbekistan, will arrive UGA in mid-February 2004 for 5 weeks and three months internship, as a part of educational exchange between University of Georgia and  the Republic of Uzbekistan (Freedom Partnership Project). As a part of this project, the University of Georgia (UGA) has partnered with two institutes and one university in Tashkent, Uzbekistan – the Institute for Strategic and Regional Studies under the President of the Republic of Uzbekistan and the Institute of History with the Uzbekistan Academy of Sciences.  UGA has also developed a separate relationship with the University of World Economy and Diplomacy (UWED) under the Ministry of Foreign Affairs in Tashkent. The project was launched Fall Semester 2003 with two delegations. The first was a visit to Uzbekistan by representatives of the Center for International Trade and Security.  In addition, Dr. Douglas Northrop, UGA Professor of History, visited Tashkent for six weeks from early October to mid-November.  Most recently, project directors Marc Lusk and Gary Bertsch made an administrative visit to Tashkent in early January 2004. 

 

3. CITS Released a New Report “Strengthening Multilateral Export Controls

On 10-11 November 2003, at a workshop in Copenhagen, Denmark, the Center

for International Trade and Security (CITS) at the University of Georgia brought

together 17 governmental and nongovernmental experts to discuss options for

reforming the multilateral export control regimes. Held at Denmark’s National

Agency for Enterprise and Housing, the workshop was part of a larger, ongoing

dialogue on this matter of crucial importance to national and international

security.  The objective of the workshop was to devise models or options for restructuring

multilateral export controls. In September 2002, CITS issued a report,

Strengthening Multilateral Export Controls (http://www.uga.edu/cits/documents/pdf/regime_report.pdf), recommending that the current

nonproliferation export control regimes be merged into one overarching regime.

Over the succeeding year, officials from several countries urged CITS to take the

lead in realizing this vision. The experts’ workshop in Copenhagen examined parameters for a unified multilateral export control regime that would more effectively and efficiently address the threat of proliferation in the prevailing climate of rapid geopolitical, technological, and economic change. We encourage your comments. Inquiries should be addressed to Dr. Mike Beck at mikebeck@uga.edu.

 

4. CITS Released a New Report “Export Controls in Brazil

CITS released a new report on “Export Controls in Brazil” by CITS Senior Research Associate Victor Zaborsky.

 

“In any country, an export control system is an integral part of a larger political and economic infrastructure. The economic, political, and security priorities set by government form the basis for export control policies and practices. All in all, Brazil?s export control system appears to be adequate to the country?s volume of exports of arms and dual-use goods and technologies. It is based on a law that has all the requisite elements, such as licensing procedures, control lists, and an enforcement mechanism. Although Brazil has fairly well-developed nuclear, chemical, and space industries, it exports only minimal quantities of controlled dual-use goods and technologies. No cases involving illegal transfers of sensitive goods and technologies of proliferation concern have come to light; nor have any unauthorized sales of conventional arms been reported…”

For more information see CITS/ UGA webpage at http://www.uga.edu/cits/home/index.htm

 

5. Ambassador Mariusz Handzlik, Recent MTCR Chairman, Visited CITS

On January 14 - February 4, 2004, Ambassador Mariusz Handzlik, recent MTCR Chairman visited CITS as a part of CITS continuing project to assist improving efficiency of multilateral export control regimes. On February 4, 2004, he delivered a briefing on the Missile Technology Control Regime (MTCR) and multilateral export control reform to the Washington, DC community.

 

Ambassador Mariusz Handzlik is a recent Chair of the Missile Technology Control

Regime (MTCR), the multilateral export control institution established to prevent the

proliferation of missiles and missile technology to countries seeking weapons of mass

destruction. Prior to his service to the MTCR, Mr. Handzlik was a foreign policy advisor

to the Prime Minister of the Republic of Poland and a Counsellor for Political Affairs at

the Polish Embassy in Washington, DC. He has also held the position of Director of the

Export Policy Department and Deputy Director of the Security Policy Department at the

Ministry of Foreign Affairs. Ambassador Handzlik worked in the Polish Mission to

NATO in Brussels, and in August, 2002, was appointed Ambassador at Large in the

Polish Ministry of Foreign Affairs.

 

Below is selected media coverage of his presentation.

“Former MTCR Official: Libya's WMD Admission Could Impact Other Middle Eastern Countries,” InsideDefense.com, February 4, 2004 (for personal use only)
Libya's December agreement to do away with its weapons of mass destruction programs could serve as a catalyst for other Middle Eastern countries to do the same, according to the former chairman of the Missile Technology Control Regime. "If this cooperation is handled properly, it can have a very clear impact on countries . . . like Saudi Arabia, Yemen and Syria -- especially Syria," said Mariusz Handzlik. Handzlik, an ambassador-at-large with the Polish Foreign Ministry, served as MTCR chairman from September 2002 to September 2003. He spoke at a briefing today in Washington, DC, sponsored by the University of Georgia's Center for International Trade and Security.

According to Handzlik, Libya first signaled its willingness to begin cooperating on nonproliferation issues by signing the International Code of Conduct Against Ballistic Missile Proliferation, also known as the Hague Code of Conduct (HCOC), at a conference in the Netherlands on Nov. 25, 2002. While not legally binding, the HCOC is intended "to supplement, not supplant," the MTCR, and is administered collectively by all the signatory countries, according to a State Department fact sheet. The HCOC calls for greater restraint in developing, testing, using, and spreading ballistic missiles, according to a Netherlands Foreign Ministry fact sheet. "It does not prohibit states from owning ballistic missiles nor from benefiting from the peaceful use of outer space. But to increase transparency and reduce mistrust among subscribing states, it introduces confidence-building measures such as the obligation to announce missile launches in advance," the fact sheet reads.

Handzlik said Libya, while not a signatory to the MTCR, had also signaled a willingness to abide by that regime's guidelines. During his tenure as chairman, Handzlik said he had received "a very clear message to be passed to MTCR countries that Libya is going to cooperate with [the] MTCR." The MTCR restricts the export of missile systems with ranges of more than 300 kilometers and the ability to carry payloads of more than 500 kilograms. According to data compiled by the Center for Nonproliferation Studies in
Monterey, CA, the Soviet Union during the 1970s provided Libya with Scud-B
missiles with a range of up to 300 km. Libya allegedly also has Scud-C variants
with a range of up to 550 km. "Libya encountered various difficulties in developing an effective indigenous missile production capability and has allegedly relied on foreign suppliers, mainly European nations, China, and North Korea," a December 2003 CNS report reads. Libya has also tried to develop the al-Fatah, a ballistic missile with
a "reported range" of 950 km, according to CNS, but has not completed it nor
tested it. Libya has also acknowledged cooperation with North Korea on a longer-range Scud missile design, the CNS report states, adding that Libyan officials have reportedly shown U.S. and British intelligence officials North Korean-supplied Scud-C missiles "with a range of up to 800 km."

“China Seeks to Join Missile Nonproliferation Regime,” By Mike Nartker,
Global Security Newswire, February 5, 2004
Talks are set to begin later this month that could lead to Chinese membership in the primary international effort to restrict missile proliferation. China is seeking to join the Missile Technology Control Regime, a 33-nation group that agrees to implement similar export controls on missile technology, said Polish diplomat Mariusz Handzlik, who chaired the MTCR in 2002 - 2003.

The first of at least three planned rounds of talks on China joining the regime is scheduled to be held Feb. 15 in Paris, Handzlik said in a speech at the Washington office of the University of Georgia’s Center for International Trade and Security. During the first round of talks, MTCR officials will compare the regime’s control list with the one developed by China for its own national export control system, Handzlik said, adding that Beijing has said its control list is more restrictive than the MTCR’s.

A second round of talks will discuss export control regulatory systems, Handzlik said, and future talks will focus on political issues, such as Chinese nonproliferation policy and the possibility of Beijing joining the Hague Code of Conduct Against Ballistic Missile Proliferation. The code, launched last year and now with more than 100 members, calls
on subscribers to exercise “maximum possible restraint” in developing and deploying ballistic missiles and to avoid aiding the missile programs of any countries that might be
developing weapons of mass destruction. Despite the planned talks, Handzlik warned yesterday that China’s MTCR membership would not be immediate. “It takes time,” he said. He said the decision to consider China’s membership came after two visits to Beijing last year. There were public indications late last month of China’s interest in formally joining the regime when Chinese President Hu Jintao traveled to Paris to meet with French President Jacques Chirac. In a joint statement released after the meeting, France announced that it supported China joining the regime “at the earliest
possible date”.

A U.S. State Department official today, however, characterized this month’s talks as “technical” discussions between Chinese and MTCR officials. The official told Global
Security Newswire that the meeting does not have a “membership focus.” Over the last few months, China has undertaken several measures to strengthen its ability to prevent the unauthorized spread of weapons of mass destruction and related goods and technologies. The state-run Xinhua News Agency reported last month that China has filed a formal application to join another multilateral export control regime — the Nuclear Suppliers Group, a 40-member organization that establishes export control regulations for nuclear trade. In late December, China also issued new export control regulations that included a “catch-all” provision, which requires exporting firms to apply for a license if items to be transferred could pose a proliferation risk, even if the items are not listed on national export control lists. Handzlik said that all MTCR members need
to implement such provisions in their national export control systems. Also in December, China issued a detailed eight-page white paper outlining its national nonproliferation policies, including the progress made in developing a national export control system. The paper said that China had developed an export licensing system, end-se certification requirements and national export control lists that were “generally the same” as those of multilateral regimes such as the MTCR. In addition, China also noted in its white paper its commitment to enforcing its export control laws and to punishing violators.

“Traditional Suppliers”
During his speech yesterday, Handzlik described his efforts over the last year as MTCR chairman to reach out to other countries and to increase the regime’s membership. For example, Handzlik said he visited Israel and India, which he characterized as “traditional suppliers,” along with China. According to Handzlik, Israel enjoys a “special relationship” with the MTCR because it adheres to the regime’s guidelines and control list even though it is not formally a member. Such adherence on both the government and
industry levels has made Israel’s formal membership in the MTCR less important, he said. “We are very happy we have a country in the Middle East” that adheres to the regime, Handzlik said.  As for India, Handzlik said there was a “willingness” on New
Delhi
’s part to work closely with the missile regime. He also said India has expressed an interest in cooperating with some MTCR members in space activities, and that he hoped increased cooperation between India and the MTCR could lead to greater stability in South Asia and between India and China.

Countries of Concern
Handzlik also said that he has opened diplomatic channels with several countries of proliferation concern, including Libya, North Korea and Pakistan. During a visit to Pyongyang in 2002, Handzlik said, North Korean officials made it “very clear” that they would continue to abide by a self-imposed moratorium on ballistic missile tests, but would continue to export missile technologies. North Korea’s willingness to remain a missile exporter was made clear last week when Nigeria announced that Pyongyang
had offered ballistic missile technology. According to reports, though, Nigeria has decided to rebuff North Korea’s offer, citing the threat of U.S. sanctions. Handzlik also praised the recent decision by Libya to disclose and dismantle its WMD programs and to destroy all of its missiles that violate MTCR parameters, which are those capable of traveling more than 300 kilometers while carrying payloads greater than 500 kilograms. He said the first sign that Libya intended to change its WMD and missile policies came when it agreed to be in the first round of subscribers to the Hague Code of Conduct.

Libya plans to cooperate with the MTCR and would like to ultimately join the regime, Handzlik said. He added that if the dismantlement effort is handled well, it could have a
positive effect on other Middle Eastern countries, especially Syria. In his remarks, Handzlik noted his failed efforts to reach out to Damascus, saying Syria refused his visit. “Syria was like a black hole,” he said. Handzlik also said that Pakistan welcomed his visit, but continued to express concern that the MTCR is an exclusive regime. He said that Pakistan believes India’s first-strike capabilities have benefited from “leaks” by regime members, and that Islamabad wants to see the regime treat both it and
New Delhi equally.

Other Countries
In his speech yesterday, Handzlik said that several other countries not traditionally seen as suppliers or as proliferation concerns are also seeking increased ties with the MTCR, specifying Belarus, Kazakhstan and Malaysia. Belarus has agreed to increased cooperation with the regime, such as participating in seminars and workshops, he said. Kazakhstan has expressed a “very strong” interest in joining the MTCR, in part because of perceived benefits for its space activities, Handzlik said. One concern, though, is that
Kazakhstan does not yet belong to all international nonproliferation agreements, namely the Biological Weapons Convention, as the MTCR requires, Handzlik said. He also said that Malaysia sees a benefit to its space activities by joining the MTCR. In addition, Handzlik said he expected a number of Central and East European countries that joined the European Union and NATO to become MTCR members by the middle of the year. The issue of expanding the MTCR’s membership was “actively considered” during a regime plenary meeting held in September 2003 in Buenos Aires. A U.S. State Department official told Global Security Newswire at the time that the United States
supports the “deliberate, prudent expansion” of the MTCR.

 

U.S. Export Controls

1. “Bush Proposes Steps to Halt WMD Proliferation, Says Such Weapons Are 'The Greatest Threat to Humanity Today',” CNN, February 12, 2004 (for personal use only).

President Bush offered several proposals to halt the proliferation of unconventional weapons, saying the world must confront the dangers of the post-September 11 world "with open eyes and unbending purpose." The greatest threat before humanity today is the possibility of secret and sudden attack with chemical or biological or radiological or nuclear weapons," he said a speech at the National Defense University at Fort McNair in Washington.  In making his case for tighter controls on weapons programs, Bush cited the nuclear black market uncovered by U.S. and British intelligence agents that was run by Abdul Qadeer Khan -- father of Pakistan's nuclear program. Bush said the network established by Khan sold centrifuge technology used in enriching ranium to Iran, Libya and North Korea. Pakistani President Pervez Musharraf pardoned Khan after he admitted his actions and apologized publicly for them. Bush said Musharraf had promised to share everything his officials learn about the network and "has assured us that his country will never again be a source of proliferation." Bush said the breakup of the network was made possible by the cooperation of many nations -- the kind of cooperation needed to halt of proliferation of unconventional weapons. "Our message to proliferators must be consistent and must be clear: We will find you, and we're not going to rest until you're stopped," Bush said. The president called for an expanded mission for the Proliferation Security Initiative, or PSI, which he announced May 31, 2003, during a speech in Krakow, Poland, just before the G-8 summit in Evian, France.  He also called for tougher focus on the issue by the U.N. Security Council and the International Atomic Energy Agency, the nuclear watchdog of the United Nations. Bush repeated his earlier proposal that the Security Council require members states "to criminalize proliferation, enact strict export controls and secure all sensitive materials within their borders." He said the United States would help other countries draft such laws. He further proposed the expansion of programs designed to keep Cold War weapons out of the wrong hands, as is being done in states of the former Soviet Union. Such efforts should include helping countries end the use of weapons-grade uranium in research reactors and keeping nuclear scientists in places such as Iraq and Libya from leaving, he said.

 Bush urged the Nuclear Suppliers Group -- the roughly 40 nations that provide most of the world's nuclear technology -- to refuse to sell designs and equipment to any country not already capable of making nuclear fuel if they refuse to renounce efforts to enrich or reprocess the fuel. "This step will prevent new states from developing the means to produce fissile material for nuclear bombs," Bush said. The president proposed that nations restrict the sale of nuclear technology to countries that do not agree to vigorous inspections by the IAEA to ensure their nuclear programs are for peaceful purposes. His called for the creation of a special IAEA committee to focus on safeguards and verifications. He said that only countries in good standing and not under investigation for nuclear violations should be allowed to serve on the IAEA board of governors. Bush noted that Iran, which the United States suspects of having an extensive program to develop nuclear weapons, recently completed a two-year term on the board. "Allowing potential violators to serve on the board creates an unacceptable barrier to effective action," he said.

2. “Bush Administration Modifies Export Control Lists,” Global Security Newswire, January 21, 2004 (for personal use only).

As part of a four-year interagency review of the U.S. munitions list, the Bush administration is set to notify Congress of changes to four list categories. Items on the U.S. munitions list are subject to export control regulations. A senior U.S. Defense Department official said the Bush administration plans to notify Congress about updates in four list categories — military vehicles, training equipment, protective equipment and auxiliary equipment. The updates are not subject to congressional approval.  So far, the review process has completed reviews of seven munitions list categories, including toxicological agents and nuclear weapons design. The full list review is expected to be completed by the end of the year.

 

3. “U.S. Charges Man with Smuggling Nuclear Equipment to Pakistan,” Global Security Newswire, January 13, 2004 (for personal use only).

U.S. authorities last week arrested Israeli citizen Asher Karni in Denver on charges that he illegally transferred equipment to Pakistan capable of being used in nuclear weapons. According to court documents, the South African-based Karni used a New Jersey company to order 200 switches known as triggered spark gaps from Perkin Elmer Optoelectronics in Massachusetts. The switches, which can be used in medical devices, require U.S. approval for export to certain countries, including Pakistan, because of their potential use in nuclear weapons. Alarmed by the large quantity of the order — even large hospitals use very few of the switches, according to Perkin Elmer — the firm alerted U.S. authorities and later proceeded to deliver an initial shipment of 66 switches to the New Jersey export company, after having first disabled the devices, according to the News. The New Jersey company is then believed to have misled authorities about both the nature of devices and their intended destination, saying they were to be shipped to a South African hospital, to avoid having to obtain an export license. Once the switches arrived in South Africa, Karni allegedly transferred them to a Pakistani company. The U.S. affidavit for Karni’s arrest says that he admitted the illegal transfer when South African police searched his business in Cape Town, the News reported. A U.S. federal judge yesterday ruled that Karni can be released on $75,000 cash bond, according to the Associated Press. Karni will remain in custody until at least Thursday, however, while the government appeals the judge’s ruling, said a spokesman for the U.S. Attorney’s Office in Denver.

 

4. “Illinois Company Settles Charges of Illegal Exports to South Korea,” Bureau of Industry and Security, Commerce, Department of Commerce, February 6, 2004 (for personal use only).

 The U.S. Department of Commerce today announced that Global Dynamics Corporation (Global), of Mount Prospect, Illinois, will pay a civil penalty of $38,000 to settle charges that it exported and attempted to export military truck parts to the Republic of Korea in violation of the Export Administration Regulations (EAR). The Department of Commerce’s Bureau of Industry and Security (BIS) charged that on seven occasions, between May 2001 and January 2002, Global exported and attempted to export military truck parts to South Korea without the required export license. Most of these exports were unauthorized because they were in excess of the dollar limit on an export license previously issued to Global. Exports of military truck parts to South Korea are controlled for national security reasons. Under the terms of the settlement, a portion of the civil penalty, $8,000, is suspended for one year, and thereafter will be waived if Global does not violate the EAR during the suspension period. Assistant Secretary for Export Enforcement Julie L. Myers commended Special Agent Richard Greene of BIS’s Chicago Field Office for his efforts in this investigation.

 

5. “Emcore Corporation Settles Charges of Export Control Violations,” Bureau of Industry and Security, Commerce, Department of Commerce, January 26, 2004 (for personal use only).

The U.S. Department of Commerce today announced that Emcore Corporation (Emcore) of Somerset, New Jersey, agreed to pay a $400,000 civil penalty to settle charges that it violated the Export Administration Regulations (EAR) in connection with exports of Metal Organic Vapor Disposition (MOCVD) tools. The Commerce Department’s Bureau of Industry and Security (BIS) charged that between 1998 and 2003, Emcore committed 71 violations of the EAR related to the export of MOCVD tools to China and Taiwan. BIS charged that Emcore knowingly exported the MOCVD tools to consignees located in Taiwan without the required export licenses, illegally serviced the tools, failed to file Shipper’s Export Declarations (SEDs), and failed to retain certain export control documents. The Commerce Department also charged that between 2000 and 2003, Emcore made false statements to the U.S. government and violated conditions on export licenses that it had received for exports of MOCVD tools to consignees in China. Exports of MOCVD tools to China and Taiwan are controlled for national security and anti-terrorism reasons. Emcore voluntarily self-disclosed the violations and cooperated fully with the investigation. Assistant Secretary of Commerce for Export Enforcement Julie L. Myers commended Special Agent Scott Dunberg of BIS’s New York Field Office, who conducted the investigation of this case.

 

6. “Commerce Department Role in Implementing the U.S. Additional Protocol”, Testimony of The Honorable Peter Lichtenbaum, Assistant Secretary of Commerce for Export Administration Before the Committee on Foreign Relations, United States Senate, January 29, 2004 (for personal use only).

The Additional Protocol, by expanding the application of the U.S. Safeguards Agreement to civil nuclear activities, subjects additional U.S. commercial locations to declaration and complementary access requirements. The Nuclear Regulatory Commission (NRC) will have the lead role for commercial activities that it licenses (e.g., uranium mills, infrastructure supporting facilities, and equipment exports). BIS will be responsible for implementation as it applies to any commercial activity not licensed by NRC, including uranium mining, research and development not involving nuclear materials, and manufacturing and importing of specially designed nuclear equipment. To assist U.S. companies in determining to which regulations they are subject, BIS and NRC will ensure that our rules are complementary, and will jointly develop declaration forms and conduct outreach.

 

BIS Approach

BIS has a successful history of assisting industry to comply with the only other international arms control treaty that directly affects U.S. commercial activities: the Chemical Weapons Convention (CWC). Our approach to ensuring U.S. compliance has been both novel and successful. We have developed a partnership with commercial facilities built upon three guiding principles:

(1) Demonstrating industry compliance;
(2) Emphasizing the protection of confidential information; and
(3) Minimizing burdens and costs to industry.

This approach has been successful from a compliance standpoint and has been commended by the largest domestic chemical industry trade group. We intend to implement the industry compliance provisions of the Additional Protocol following these same principles. 

Industry Outreach

As was done in preparation for CWC implementation, BIS will conduct seminars, training and other outreach to industry in order to assist companies in understanding and implementing their declaration and complementary access obligations. We will also offer site assistance visits to companies that seek help in preparing for inspections. A primary focus of such outreach is to assist companies in identifying and protecting proprietary and other sensitive information and technology.

 

7. “Hearing to Examine Export Rules for Cruise Missiles, UAVs,” By Marc Selinger, Aerospace Daily, January 30, 2004 (for personal use only)

A House panel has scheduled a March 9 hearing to scrutinize the effectiveness of U.S. and international export controls on cruise missile and unmanned aerial vehicle technology, according to a congressional source. The hearing by the House Government Reform Committee's national security subcommittee is expected to examine the findings of the General Accounting Office, which has been studying the cruise missile/UAV issue at the request of the subcommittee's chairman, Rep. Christopher Shays (R-Conn.). Shays has expressed concern that significant international demand for cruise missiles and UAVs is challenging attempts to limit their proliferation .  The GAO warned in a July 2000 report that the threat to Navy ships from cruise missiles was increasing because such missiles were becoming more sophisticated and more prevalent. More recently, a report released by the National Air & Space Intelligence Center (NAIC) in August 2003 said that foreign countries have been showing growing interest in land attack cruise missiles, some of which are expected to become available for export. An industry source told The DAILY that the upcoming GAO report and congressional hearing should not be used as an excuse by policymakers to increase U.S. restrictions on exports to countries of concern. The source said those countries tend to find ways around such trade barriers, and that a more effective approach would be to work cooperatively with other nations. "You have to be careful about how many countries you place on the pariah list," the source said. "Clearly, the unilateral approach has not worked well."

 

8. “The Department of Homeland Security Needs to Fully Adopt a Knowledge-Based Approach to Its Counter-MANPADS Development Program,” GAO-04-341R, January 30, 2003.

Department of Homeland Security (DHS) faces significant challenges in adapting a military counter-MANPADS system to commercial aircraft. These challenges include establishing system requirements, maturing technology and design, and setting reliable cost estimates. For instance, DHS has to account for a wide variety of aircraft types in designing and integrating the system. Our past work on the best practices of product developers in government and industry has found that the use of a knowledge-based approach is a key factor in successfully addressing such challenges. This approach includes the use of exit criteria or controls to ensure that sufficient knowledge has been attained at critical phases of the product development process. Based on input we provided during the course of our review, DHS updated its initial solicitation to incorporate these knowledge-based exit criteria. We think this a positive first step, and we are recommending that the Secretary of Homeland Security ensure that the knowledge-based approach is fully implemented throughout the course of its counter-MANPADS development program. DHS fully concurred.

 

DHS Faces Challenges in Adapting Military Counter-MANPADS System to

Commercial Aircraft

In proceeding through Phases I and II of the counter-MANPADS development program, DHS intends to establish system requirements, mature technology and design, and set reliable cost estimates. Such issues are interrelated and their resolution will have a direct impact on DHS’s ability to effectively implement its program. A brief discussion of these program issues follows:

 

·             Requirements involving new technologies, system maintenance, system integration, and system security for the counter-MANPADS system are to be developed and this may involve trade-offs between competing objectives. For example, DHS intends to study the trade-off of system performance objectives with total cost to derive the most effective solution at a realistic life-cycle cost.

·             Technology and design problems include a high false alarm rate affecting the current generation of Missile Warning Systems (MWS) used by the military; changes needed to adapt military countermeasures to commercial aircraft; and the use of classified jam codes by civilian aircrews. MWS’s current high false alarm rate may increase system failures. Whenever the MWS detects a missile launch, the system cycles. If a false alarm has been received and the system is cycling  unnecessarily, it will reach its mean-time-between-failure (MTBF) rate threshold much faster. A new MWS that would resolve this issue is being developed but is not yet mature. The solicitation also requires a “call back notification system” that would alert air traffic controllers once it detects a missile launch, but it has not been developed. A MWS with a high false alarm rate connected to a call back system could cause unnecessary airport closures. The DHS solicitation also requires a system reliability MTBF rate of greater than 3,000 hours—10 times the current rate for DIRCM systems on military aircraft of 300 hours. A low reliability rate drives the operations and support costs and the ability of the airlines to maintain the system. DHS also intends to require a common system attached to the wide variety of commercial aircraft, even though the design, placement, and integration of this system are all unknowns that will affect each aircraft type differently. For example, a system container that causes a 1-percent excess drag on a Boeing 747 aircraft will cause greater drag on a smaller 737-model aircraft, which will affect the airlines’ fuel consumption and increase costs. Design issues surround the classified jam codes used in DIRCM. Military pilots are cleared to handle the classified material and military aircraft are safeguarded, but DHS has not yet developed a plan to handle the classified material and safeguard the hardware on a commercial aircraft. According to DHS officials, any system developed will need to have a tamper-proof design.

 

·             Operational test requirements are not clearly specified by the solicitation.

DHS compressed its development cycle to comply with congressional direction. According to program officials, DHS has acted to reduce the time and cost required to conduct testing by having the contractor conduct required testing. However, DHS intends to approve both test concepts and the test plans. They stated that DHS will closely monitor all contractor conducted testing to ensure tests are correctly executed and accurately reported. Finally, operational testing will be conducted on DOD ranges using its test facilities. DOD uses independent live fire and operational test and evaluation that are not under the control of the developers to demonstrate that the developed system is suitable and effective before authorizing full-scale production.

 

·   Reliable cost estimates regarding the procurement, integration, operation,

and support of DIRCM system on commercial aircraft do not currently exist.

DHS intends to conduct its own cost estimates and also require independent

analysis, which will be difficult because (1) DHS does not know how many

units will be required and, therefore, cannot determine a price based on

economies of scale; (2) costs for integrating the system on different types of

aircraft are not yet determined; and (3) the reliability rate is unknown and

therefore operations and support costs are difficult to estimate. In addition, the production of a large number of countermeasure systems quickly would probably require a significant capital investment to increase production capacity. An industry official placed their current production capability at roughly four DIRCM systems per month. According to a program official, DHS does not currently know how many or what combination of the estimated 6,800 aircraft in the U.S. fleet might be equipped. One option would

be to initially equip the planes of the Civil Reserve Air Fleet (CRAF), but doing

even that could take years.

 

International Export Control Developments

Pakistan

1. “Bleak future for Pakistan's 'bomb hero',” By David Blair, The Daily Telegraph, February 07, 2004 (for personal use only)
The call to prayer echoed over Islamabad from a mighty mosque yesterday but the sound of Islamic devotion brought no apparent response from the home of Pakistan's most decorated citizen - and one of the world's most dangerous men.

Abdul Qadeer Khan, the self-styled "father" of Pakistan's nuclear bomb and the man now revealed to have sat at the centre of a conspiracy to arm the world's most radical anti-western states with nuclear weapons, lives behind elaborate wrought iron gates. It is clearly the home of a wealthy man but he is not free to leave.

 Mr Khan was born in Bhopal, British India, 11 years before the creation of Pakistan. He stayed in Bhopal throughout the communal massacres that accompanied Partition and, according to his official biographer, witnessed trains pulling into the local station carrying nothing but the bodies of Muslims killed by Hindu gangs. When he emigrated to Pakistan in 1952, he brought a deep hatred of India. "Hindus are crooks," Mr Khan told his biographer. "They are dreaming of destroying Pakistan." He might have been an ardent Pakistani nationalist but Mr Khan did not stay long in his new homeland. After a few years at Karachi University, he moved to Holland where he took a masters in electrical engineering at Delft university in 1963. Next came a doctorate in metallurgy from Leuven University in Belgium. When he achieved fame in Pakistan, Mr Khan would often pose as a "nuclear scientist". In fact, he has no academic background in nuclear physics. He revels in his hatred of the West. "I want to question the bloody holier-than-thou attitudes of the Americans and the British," he has written. "Are these bastards God-appointed guardians of the world?" In one interview, he said: "All western countries, including Israel, are not only the enemies of Pakistan but, in fact, of Islam." Yet the West had its uses for Mr Khan. In 1975, he spent three months on secondment with Urenco, an Anglo-Dutch consortium based in Holland that dealt in uranium reprocessing.

By chance, Urenco had acquired a new centrifuge which could enrich uranium to weapons-grade level. It was classic "dual use" technology. Mr Khan promptly acquired detailed drawings and blueprints. He asked for the help of a Dutch friend, Fritz Veerman, who innocently photographed the centrifuge design. In December 1975, Mr Khan returned to Pakistan laden with his haul of nuclear know-how. These blueprints would form the basis not only of Pakistan's nuclear program but also those of Iran, Libya and North Korea. A Dutch court later convicted Mr Khan of espionage and theft and sentenced him to four years in jail in absentia. The sentence was quashed on a technicality. Straight after Mr Khan's return, Zulfikar Ali Bhutto, then prime minister, placed him in charge of Pakistan's nuclear programme. Bhutto had famously said that "if India builds the bomb", Pakistanis would "eat grass or leaves, even go hungry, but we will get one of our own". India had tested a bomb in 1974, so Pakistan's nuclear programme became a national obsession. Mr Khan was given a secret nuclear facility - Kahuta research laboratory, 20 miles south-east of Islamabad - and told to build a bomb.

 The army treated the nuclear program as its domain and Ms Bhutto was barred from visiting the Kahuta plant, re-named the Khan Research Laboratory. Gen Musharraf has insisted that no one in the military hierarchy knew what was happening but a senior military source said that the army chiefs of the day must have known about the help given first to Iran and Libya and later to North Korea. Many Pakistanis resent western criticism of their nuclear capability and suspect a conspiracy. "America, Israel and India want to destroy our bomb," said Hussam ul-Haq, whose brother, Islam ul-Haq, worked as Mr Khan's principal secretary and is now in detention. "That is what this is all about. They are the axis of evil in our minds." As Mr Khan paces his garden, filled with exotic birds, he probably won't reflect that the ultimate weapon, intended to earn Pakistan respect, has instead brought the label of rogue state.

 

2. “U.N. Nuclear Chief Warns of Global Black Market,” By Peter Slevin, Washington Post, February 6, 2004 (for personal use only)
Pakistan's top nuclear scientist, Abdul Qadeer Khan, represented "the tip of an iceberg" in an illicit nuclear supply network that has connections in many countries, the chief of the U.N. International Atomic Energy Agency said. The Khan case "raises more questions than it answers," said Mohamed ElBaradei, the agency's director. He said existing safeguards had failed to stop the spread of nuclear technology, and he called for urgent international cooperation to police a global black market whose reach is unknown. "We need to know who supplied what, when, to whom. Dr. Khan was not working alone," ElBaradei told reporters at his headquarters in Vienna one day after Khan publicly admitted to providing nuclear weapons expertise and supplies to North Korea, Libya and Iran. Investigators are pursuing leads in Japan, Malaysia, Germany and two still-unidentified European countries, IAEA officials said. ElBaradei said IAEA investigators were also reviewing an allegation that a representative of Khan's offered to provide Iraq with designs for a nuclear bomb and uranium enrichment equipment for $5 million on the eve of the 1991 Persian Gulf War. Iraqi authorities rejected the proposal as a scam. "Maybe in hindsight it was not a scam," ElBaradei said. "But thank God they did not act on it."

 Pressed by the Bush administration, Gen. Pervez Musharraf, Pakistan's president, ordered the detention and interrogation of senior weapons scientists who worked with Khan, often called the father of his nation's nuclear weapons program. ElBaradei, noting that the supply network had representatives in at least five countries, said evidence that a Malaysian company had produced sophisticated parts for enriching uranium raised concerns about factories elsewhere peddling such goods outside the public eye. Malaysian police have said Scomi Precision Engineering, known as SCOPE, had manufactured components for Libya's fledgling nuclear program. SCOPE is a subsidiary of Scomi Group Berhad, a publicly traded conglomerate whose principal shareholder is a son of Malaysian Prime Minister Abdullah Ahmad Badawi. The parent company said the parts were ordered by Gulf Technical Industries, a company in Dubai, United Arab Emirates. Scomi Precision Engineering said in a statement that it made "14 semi-finished components." The parts were shipped to Dubai in four batches between December 2002 and August 2003 in a deal worth $3.4 million.

ElBaradei said the revelations showed that informal rules designed to prevent suppliers from aiding nuclear weapons aspirants were "kaput." He said only 38 countries take part in the
Nuclear Suppliers Group, a voluntary alliance. "You need a complete overhaul of the export control system. It is not working right now," said ElBaradei, who called news about the clandestine supply network "the most dangerous thing we have seen in proliferation in many years."

3. “Inspectors Find Clandestine Centrifuge Drawings in Iran,” Associated Press, February 12, 2004 (for personal use only)

In another apparent link to the nuclear black market emanating from Pakistan, United Nations inspectors in Iran have discovered undeclared designs of an advanced centrifuge used to enrich uranium. The diplomats said preliminary investigations suggested that the design matched drawings of enrichment equipment found in Libya that was supplied through a network headed by Pakistani nuclear scientist Abdul Qadeer Khan. The revelations came a day after U.S. President Bush, in a keynote speech, acknowledged loopholes in the international enforcement system and urged the U.N. and member states to draw up laws that spell out criminal penalties for nuclear trafficking. Khan, a national hero in Pakistan for creating a nuclear deterrent against India, confessed on Pakistani television last week to masterminding a network that supplied Libya, Iran and North Korea with nuclear technology. President Pervez Musharraf then pardoned him.

Beyond adding a link to the chain of equipment, middlemen and companies comprising the clandestine nuclear network supplying weapons-related technology to rogue governments, the find cast doubt Tehran's willingness to open its nuclear activities to international inspection. Accused of having nuclear weapons ambitions, Iran -- which denies the charge -- agreed late last year to throw open its programs to pervasive inspections by the Vienna-based International Atomic Energy Agency and said it would freely provide information to clear up international suspicions. But the diplomats, who spoke on condition of anonymity, said Iran did not volunteer the designs. Instead, they said, IAEA inspectors had to dig for them. "Coming up with them is an example of real good inspector work," one of the diplomats told The Associated Press. "They took information and put it together and put something in front of them that they can't deny." At less enriched levels, uranium is normally used to generate power. Highly enriched, it can be used for nuclear warheads. Iran -- which says it sought to make low enriched uranium -- has bowed to international pressure and suspended all enrichment. But it continues to make and assemble centrifuges, a development that critics say also throws into question its commitment to dispel suspicions about its nuclear aims.

The United States and its allies interpret enrichment suspension as encompassing the whole process -- including a halt in assemblage of related equipment. U.S. State Department spokesman Richard Boucher warned last month that failure by Iran to indefinitely suspend "all enrichment-related and reprocessing activities would be deeply troubling."

The IAEA continues to negotiate with Iran on what constitutes suspension, but Mohamed ElBaradei, the agency's director general, also is known to be seeking a commitment from Iran to stop and assembling centrifuges. The diplomats said Iran had not yet formally explained why the advanced centrifuge designs were not voluntarily handed over to the agency as part of its pledge to disclose all past and present activities that could be linked to weapons. "They'll probably say it's an oversight," said one of them.

4. “Musharraf Rejects Outside Investigation of Pakistani Nuclear Smuggling,” Global Security Newswire, February 6, 2004

Pakistani President Pervez Musharraf said yesterday that he would not provide international nuclear inspectors with documents related to Pakistan’s internal probe of proliferation activities by its nuclear scientists. Musharraf yesterday pardoned the “father” of Pakistan’s nuclear weapons program, Abdul Qadeer Khan, for transferring nuclear technology to Iran, Libya and North Korea. Musharraf said he based his decision to pardon Khan, who he called “my hero,” on the scientist’s role in developing Pakistan’s nuclear bomb. “No one can negate it, no one can cancel it, no one can disprove it,” Musharraf said of Pakistan’s nuclear arsenal. “This hero has given us grace and respect,” he added. Musharraf yesterday, though, also said that Pakistan would not share documents from its investigation with international inspectors, nor would he order an independent investigation into the possible role of the Pakistani military in any nuclear transfers. He added that he would never allow the United Nations to supervise Pakistan’s nuclear program. “Negative to all three,” Musharraf said. “It is an independent nation.  Nobody comes inside and checks our things. We check them ourselves,” he said.

The United States yesterday praised Musharraf for disbanding one of the world’s largest nuclear proliferation networks. “The actions of Pakistan have broken up this network,” White House press secretary Scott McClellan said. McClellan also said the White House believes Musharraf’s assertions that the military was not involved in any transfers. “President Musharraf provided us assurances that the government of Pakistan was not involved in any kind of proliferation activities,” he said. “We value those assurances and his actions since he made those assurances demonstrate his commitment to the issue of proliferation,” McClellan added. Outside experts, though, had mixed reactions to the news of Musharraf’s pardon of Khan. “I can think of no one who deserves less to be pardoned,” former chief U.S. weapons inspector in Iraq David Kay said. Some have said that Khan’s pardon may be a type of plea bargain designed to gain additional information on nuclear smuggling. “We could beat our chests and be outraged,” said former U.S. Ambassador to Pakistan Robert Oakley, but “the most important thing is to get as much information [as] possible as to where the links (to accomplices) were. … We have to make sure it doesn’t happen again,” he said. Pakistani opposition lawmakers have expressed outrage at the treatment of Khan, who is seen by many in Pakistan as a national hero. “The people of Pakistan clearly feel that the apology and confession obtained from Dr. Qadeer Khan were obtained under pressure, while the world feels the whole process has basically been a cover-up,” said opposition lawmaker Chaudhry Nisar Ali Khan. Khan said a parliamentary inquiry was needed to investigate whether Musharraf capitulated to foreign pressure in his treatment of Khan.

5. “Pakistani Takes Blame for Nuclear Transfers; Top Arms Scientist Tells Nation He Erred but Acted on his Own,” By David Rohde, The International Herald Tribune, February 5, 2004 (for personal use only)

In an extraordinary announcement, Abdul Qadeer Khan, the revered founder of Pakistan's nuclear weapons program, appeared on national television, admitted that he had shared Pakistani nuclear technology with other countries, and asked the nation for forgiveness. "I take full responsibility for my actions and seek your pardon," the scientist, once one of the most powerful men in Pakistan, said in a soft voice.  He said that he had acted entirely on his own and that he had not had permission from his superiors to share the technology.  "There was never, ever any kind of authority for these activities from the government," he said. His statement, which his supporters said was coerced and humiliating, marked an ignoble end for a scientist lauded in Pakistan but derided in the West. Pakistani government officials said the country's National Command Authority, a group of senior military and civilian officials who oversee Pakistan's nuclear arsenal, met Wednesday evening to decide whether to prosecute Khan and six of his aides accused of carrying out the proliferation. A senior official said the president of Pakistan, General Pervez Musharraf, would announce the government's decision Thursday, although Pakistani analysts said it was unlikely that Khan would be prosecuted.

On Sunday, a senior Pakistani official said a government investigation had found that the scientist had shared Pakistan's nuclear technology with Iran, Libya and North Korea for more than a decade. In what appears to be one of the most successful efforts to evade antiproliferation controls in history, Khan sent nuclear-weapons related parts, plans and designs to the three countries with the aid of middlemen from Sri Lanka, Germany and the Netherlands.

Analysts have said that it would have been nearly impossible for Khan to have passed on such information without the tacit approval of the country's powerful military, and a series of carefully scripted events Wednesday appeared to be designed to quickly put the issue to rest.  Khan was convicted of stealing plans for a high-speed centrifuge, which can be used to produce enriched uranium, a key component in a nuclear bomb, from a European company in the 1970's. The conviction was overturned on appeal. In Pakistan, he was hailed for achieving a miracle by overcoming a huge American effort to prevent Pakistan from acquiring the technology to enrich uranium. He is the only Pakistani to have been twice awarded the nation's highest civilian award. Khan is rumored to own dozens of houses across Pakistan. American investigators suspect that he has profited handsomely from the nuclear black market. Senior Pakistani officials told them that Khan said he had shared technology with three to four other Muslim countries in the hope that the creation of more nuclear-armed Muslim nations would ease Western attention on Pakistan's program. A senior official said Khan had no good answer for why he shared technology with North Korea. "None of his explanations were satisfactory," the official said.

 

Malaysia

6. “Malaysian Authorities Investigate Domestic Firm for Nuclear Smuggling,” Global Security Newswire, February 5, 2004

Malaysian authorities are investigating whether a company there supplied uranium enrichment centrifuge components to Libya, the Associated Press reported today. The company, Scomi Precision Engineering Sdn. Bhd., also known as SCOPE, produced centrifuge components that were intercepted en route to Libya in October, national police chief Mohamed Bakri Omar said today. In a statement, Bakri said U.S. and British intelligence had informed Malaysia in November about a transaction involving SCOPE and a businessman based in United Arab Emirates who brokered a deal “supplying certain centrifuge components from Malaysia for Libya’s uranium enrichment program.”

Wooden boxes marked with SCOPE’s name and containing centrifuge components were found on a ship seized in Italy in October heading for Libya, Bakri said. A company spokeswoman said today, though, that there had been no obligation to inform the government of export beyond routine customs procedures. An official in the prime minister’s office, though, denied any government involvement. “Malaysia was an unwitting participant in all this,” the official said.

7. “Salesman on Nuclear Circuit Casts Blurry Corporate Shadow,” By Raymond Bonner, New York Times, February 18, 2004 (for personal use only)
It has lately begun to seem as if B. S. A. Tahir, a prominent businessman here, had two faces. Acquaintances describe Mr. Tahir, who is in his middle 40's, was a soft-spoken husband and father who lives in an upper-middle-class suburb of Kuala Lumpur and has a passion for fast cars and flashy clothes. He has a financial interest in a fine-chocolates franchise in a shopping mall in fashionable Bangsur that was opened a couple of years ago by the wife of a top politician. Nearby is a gourmet date shop that he also partly owns. In addition, Mr. Tahir has been director of an investment holding company called Kaspadu, until recently owned by his wife in partnership with the son of the country's current prime minister and another prominent businessman. But investigators are trying to determine whether Mr. Tahir's legitimate businesses here have been a cover for nuclear black-market activities, a senior Malaysian official said. President Bush, in a speech last week at the National Defense University, called him the "chief financial officer and money launderer" of an illicit operation headed by the Pakistani nuclear scientist Abdul Qadeer Khan. That operation has been accused of providing Iran, North Korea
and Libya with technology for making atom bombs.

Investigators say Mr. Tahir put together a deal two years ago for a Malaysian company, Scomi Precision Engineering, to make nuclear-centrifuge parts for Libya, apparently without telling the company where the parts were going, according to company officials and corporate documents. The deal was exposed last October when a ship destined for Libya, the BBC China, was seized in the Mediterranean. Scomi Precision's parent, the Scomi Group, is principally owned by Kaspadu, the holding company linked to Mr. Tahir, according to corporate documents on file with a government regulatory agency here.

Investigators say Mr. Tahir, a Sri Lankan who came to Malaysia in the mid-90's by way of Dubai, may have been sent by Mr. Khan to secretly procure nuclear parts. They also suspect this was not the first time or country in which Mr. Tahir carried out an operation to acquire nuclear matériel, one senior investigator said, adding that in Malaysia, Mr. Tahir had "replicated" earlier operations — though the details of those are still unknown.

Investigators have discovered that Mr. Tahir apparently traveled widely to carry out his nuclear-technology business. On one occasion, they say, he went to Casablanca, Morocco, to negotiate with Libyans for the purchase of the centrifuge parts, which are important in making fuel for bombs. On a trip to Switzerland, they say, he met with an
engineer who came to Kuala Lumpur to supervise production of the parts.  Mr. Tahir also made trips to Germany and Turkey to meet with suppliers, the investigators said. A Malaysian official said Mr. Tahir's network included two father-and-son teams, one British and one Swiss. In recent weeks, it appears Mr. Tahir has taken steps to cover up his past. His wife sold her shares in Kaspadu, some of them to the Malaysian prime minister's son, Kamaluddin Abdullah. In addition, a Dubai computer company that Western investigators say Mr. Tahir was using as a front has removed evidence of his involvement from its Web site. He has not been arrested, but is under constant and close
surveillance by Malaysian authorities, who say he declines to comment publicly. Nor did Mr. Kamaluddin respond to requests for interviews made at his home and his business. Bukhary Seyed Abu Tahir was born in Tamil Nadu, India, on April 17, 1959, according to the Sri Lankan Embassy and corporate papers. When he was about 5, his family moved to Sri Lanka.

He later returned to New Delhi to study, and it was during this time that an uncle met Dr. Khan, according to investigators. The uncle had a business that supplied parts to Dr. Khan's operation. In his early 20's, Mr. Tahir moved to Dubai and opened a shop, SMB Computers, using his father's initials. He was successful, and together with his brother, Seyed Ibrahim Bukhary, he helped the company grow into SMB Group, which
has computer sales and services operations throughout the Middle East. In a brief telephone conversation last week, Mr. Bukhary refused to answer any questions, saying only that his brother had no current financial interest in SMB Group and was not involved in the management.

Two weeks ago, the SMB Group's Web site implied a different story. For instance, a press release from 2002, which announced that SMB Computers had signed a "megadeal" with the United Arab Emirates Air Force, listed Mr. Tahir as the managing director. That press release no longer appears on the site. In the mid-90's, Mr. Tahir showed up in Kuala Lumpur, according to Malaysian officials. Most notable among his new friends was Mr. Kamaluddin, son of the country's foreign minister, Abdullah Badawi, who is now prime minister. There was also Shah Hakim Zain, who was on the verge of joining the "movers and shakers," to quote a recent article in a Malaysian business magazine. Mr. Kamaluddin and Mr. Hakim had an investment company named Kaspadu, according to records at the Companies Commission of Malaysia, a regulatory agency. In 1998, Mr. Tahir married a cousin of Mr. Hakim's, Nazimah Binti Syed Jajid. She was put on the Kaspadu board, but stepped down in December 2000 and was replaced by Mr. Tahir,
who served until early 2003. He then stepped down and she rejoined the board, according to corporate documents. Two weeks ago, after Mr. Tahir's reported involvement with
the Libya-bound shipment became public, Ms. Nazimah sold her shares in Kaspadu to Mr. Kamaluddin and Mr. Hakim, according to documents and Malaysian officials. Kaspadu is the principal shareholder of the Scomi Group.

 

8. “Malaysia Pledges Cooperation on Nuclear Investigation,” Associated Press, February 13, 2004 (for personal use only)

Malaysia pledged on Thursday to share with Washington information from its investigation of a man that US President George W Bush has described as a major player in a vast network trafficking nuclear technology.

Prime Minister Abdullah Ahmad Badawi, alluding to police comments that investigators had so far found no evidence of wrongdoing by the company that made the parts, declared: "There is no such thing as Malaysia's involvement. We are not involved in any way. I don't know where Bush is getting his evidence from. "A senior official, speaking on condition of anonymity, did not deny a Malaysian connection, but said Bush had "overblown Malaysia's role in this. Making Malaysia the central conduit to this is misleading.

EU

9. “EU Invitees Must Improve Export Controls,” by Scott Jones, CITS Senior Research Associate, Defense News, 26 January, 2004 (for personal use only)

This year, 10 more countries will join the European Union, expanding its free trade zone to the borders of Russia and the Middle East. The free movement of capital, goods, services and people bodes well for member countries’ economies, but complicates efforts to stop the proliferation of weapons of mass destruction. The threat that WMD might be acquired by terrorists or developed by states such as North Korea is the defining national security imperative of our time. Keeping nuclear, chemical and biological materials safe from thieves is key, but contemporary proliferation is driven less by theft than by the purchase of WMD-relevant goods and technology.

Governments and private groups exploit weaknesses in the export control system, such as inadequately enforced transshipment points, meager intelligence resources and disparate compliance practices among supplier states.

The United States and many European countries, especially Germany, strengthened their export controls after the West’s complicity in arming Iraq was revealed. Even more important, the European Union (EU) created a dual-use export control regime that binds its members and invited countries alike. And the union has a new WMD policy, the “Action Plan for the Implementation of the Basic Principles for an EU Strategy Against the Proliferation of Weapons of Mass Destruction,” which was hammered out after coalition forces overthrew the Ba’ath regime in Iraq. It prescribes tighter controls over strategic goods and technologies, especially fissile materials. The long-sought policy consensus was helped along by the coming enlargement, which pushes the union’s territory to the borders of Ukraine, Belarus and more of Russia. But the control systems among the incoming EU nations are less developed than those of the 15 current members. And only the Czech Republic, Hungary and Poland subscribe to all the multilateral export control agreements. (The other invitees are Cyprus, Estonia, Latvia, Lithuania, Malta, the Slovak Republic and Slovenia.) Their admission on May 1 may create weak points in the free trade zone’s borders. Bulgaria and Romania hope to join by 2007, while Turkey is still negotiating its membership schedule. Most of these members-to-be were former targets of the Coordinating Committee for Multilateral Export Controls, and began export control development efforts only within the last decade. Many of their systems do not meet regime or EU standards. For example, a 2002 EU Commission report noted that Malta “is not a member of any of the non-proliferation regimes and does not apply controls on the full range of products covered by the EU export control regime on dual-use goods. In this area, as others, Malta will have to assume the obligations of the acquis communitaire, the body of EU laws.

And the matter will soon grow more urgent. The new dual-use regulations liberalize intra-community trade and limit members’ ability to impose restrictions. Further liberalization is likely, given the combination of qualified majority voting and the commission’s exclusive right of initiative. Some fear these will allow commercial considerations to prevail over security concerns. Efforts to improve invitees’ export-control systems have received more rhetorical than substantive support from Brussels and the member countries. This must change. One possible concrete step is adding the new EU members automatically to the multilateral export control arrangements, although this would not necessarily force them to make the required procedural adjustments. A better step would be to follow the leads of Sweden and the United Kingdom in providing more export control assistance to the members-to-be. Traditionally, Brussels has merely coordinated such assistance efforts, leaving strategic trade and security issues to the purview of the member states. Now the European Union must do more, lest the expanding group contribute, however inadvertently, to proliferation.

 

10. “EU and Russia Start Talks on Nuclear Exports, RosBusinessConsulting Database, February 3, 2004 (for personal use only)

The European Union and Russia are beginning intensive talks on the possibility of exporting Russian nuclear products, such as uranium and enriched uranium, from Russia to the EU. Russian Deputy Prime Minister Viktor Khristenko declared.

Khristenko underlined that Russia hoped these talks would be finished before May 1, 2004. During the talks, Russia plans to insist on maintaining long-term contracts for supplies of fuel for nuclear power plants located in countries that are expected to join the EU soon. "

Germany

11. “Germany Drops Charges Against Man Suspected of Aiding Nuclear Smuggling to North Korea,” Global Security Newswire, January 8, 2004

 A German court dropped accusations against a 33-year-old businessman that he assisted a failed smuggling operation to help North Korea build gas centrifuges for enriching uranium, Agence France-Presse reported today. In exchange for the dropped charges, Marc Wiese was ordered to pay a $12,680 fine for his “low degree of guilt” in the operation, according to Stuttgart state court spokesman Reiner Skujat. Prosecutors accused Wiese and two other men of attempting to ship 214 aluminum tubes through China to North Korea. The primary suspect in the smuggling operation, Hans-Werner Truppel, could be sentenced to 15 years in prison for violating German export regulations and “furthering the production of a nuclear weapon.”

 

Netherlands

12. “Netherlands Probing Suspected Centrifuge-Related Diversions,” By Mark Hibbs , Nucleonics Week, January 22, 2004 (for personal use only)

The Netherlands government Jan. 19 confirmed that its domestic intelligence agency Algemene Inlichtingen- en Veiligheidsdienst (AIVD) is investigating suspected diversion of know-how and possibly materials related to centrifuge enrichment to Iran, North Korea, and Libya, in part via third parties in and from Pakistan. A similar investigation is also underway in Germany, Western officials said.

Data which has come to light suggest that uranium enrichment programs in Iran, North Korea, and Libya are all based on original and virtually identical Urenco centrifuge design information featuring G-1 rotor tube segments 1,000 millimeters in length which may be connected by a bellows to replicate the G-2 centrifuge. In the case of Iran and Libya, the rotor tubes are made of aluminum. Western officials said last year U.S. intelligence suspected that North Korea's program was based on using G-1 maraging steel rotor tube segments to build the G-2 centrifuge.

While evidence indicates that the rotor tubes show basic identity, Western officials said the centrifuges also share key fingerprints which point to certain engineering breakthroughs made by Urenco over previous generic Zippe-type centrifuges. ''The true signatures for these (G-type) machines,'' one European centrifuge expert said, ''are in components such as lower bearing assemblies and bellows, and in gas-withdrawal systems.''  A Dutch businessman and engineer who was exonerated in a 1980 investigation related to the export of a large consignment of maraging steel to Pakistan, and who in 1985 was convicted for illegal export of dual-use equipment to Pakistan, more recently has been prevented from exporting other commodities to that country from Amsterdam and Vienna by lack of export authorizations. Last year, the same individual was involved in setting up the Eighth International Symposium on Advanced Materials (ISAM-2003), sponsored by the KRL in Islamabad. The organizing committee for ISAM-2003 included another scientist at the University of Leuven who had worked with A.Q. Khan in Europe during the 1970s.

According to Frank Slijper, a Groningen researcher into the Dutch arms trade, the Leuven scientist during the 1990s was appointed as a director of the Ghulam Ishaq Khan Institute of Engineering, Science & Technology, where he joined A.Q. Khan. In 1972, the two scientists had co-authored a textbook on physical metallurgy.

The list of sponsors for ISAM-2003 also included the firm Gemco Pakistan (Pvt.). Its listed business activities are similar to those of a Dutch firm named Gemco, but the Eindhoven-based company has denied there is any formal connection with the Pakistan organization. Historical personnel links between the two firms may be probed by investigators, sources said this week.  

 

Lithuania

13. “US to Keep Focus on Lithuania's Control of Radioactive Materials,” Baltic News Service, February 5, 2004 (for personal use only)

The United States will continue to keep its focus on the strengthening of radiation control on Lithuanian borders and on Russian transit trains going via Lithuania, says Paul M. Longsworth of the U.S. Department of Energy's National Nuclear Security Administration. The organization granted Lithuania some modern radiation measuring equipment, which will help detect attempts to transport weapons of mass destruction or other dangerous substances. The equipment was officially handed to the border guards at the Vilnius Airport. The technical assistance project is estimated at about 4 million U.S. dollars, with approximately half of the amount paid for the special equipment. In Longsworth's words, the United States have already granted 22 million U.S. dollars on various radiation security improvement and control programs in Lithuania. A part of the amount was spent to improve safety at the Soviet-built Ignalina Nuclear Power Plant.

Longsworth described as "very successful" and "productive" the cooperation of the National Nuclear Security Administration with the Lithuanian State Border Guard Service, the Customs Department and other institutions of the Baltic state. The administration's officials visited 41 locations in Lithuania that use radioactive substances, including scientific research and medical institutions.

Libya

14. “Libyan Nuclear Procurement Network Was Greater Than Expected, Experts Find,” Global Security Newswire, January 22, 2004

While Libya’s nuclear weapons program was only in its initial stages when its leader Col. Muammar Qadhafi decided to disclose and dismantle it, Tripoli had established an extensive procurement network to obtain the needed technologies and expertise for its efforts. At the time Qadhafi disclosed his program last month, Libya had acquired most of the components needed to produce thousands of uranium enrichment centrifuges based on an advanced German design. Most of the materials for Libya’s nuclear efforts came from Asian and European countries and were shipped via the United Arab Emirates, with some shipments moving through additional countries. According to David Albright, president of Institute for Science and International Security, Libya also had “real time” access to nuclear expertise. “This is a major intelligence failure and a major failure of export controls,” Albright said. He also said that the response of the intelligence community to the scope of Libya’s nuclear procurement effort is likely to rival that created by the discovery of Iraq’s nuclear efforts in the 1990s. A senior U.S. official said yesterday that the United States had been aware of Libya’s efforts, which increased after U.N. sanctions were suspended in 1999. “The procurement program was across the board, not only on the nuclear side. They were buying for quite some time and a lot of stuff was still in shipping crates because they were just getting it in,” the senior U.S. official said. “It was what we thought they were up to,” the official added. The senior U.S. official also said that “there are still shipments that have to be dealt with”.

 

Meanwhile, a senior U.S. official said yesterday that Libya has been cooperating fully with a team of U.S. and British experts there examining how best to dismantle Libyan WMD programs, according to Reuters. “As of now, the Libyans have been very cooperative ... it’s a day-by-day thing,” the senior U.S. official said. “Nobody has any complaints at this point,” the official added. The U.S. and British experts are working to decide how best to dismantle and remove Libya’s nuclear program and how to dispose of mustard gas stockpiles, which will be destroyed in Libya, the official said. Libya has also denied possessing a biological weapons program, but “that is a subject for further discussion,” the official added. According to the Associated Press, a second U.S. congressional delegation is expected to travel to Libya this weekend at Qadhafi’s invitation to evaluate his cooperation in dismantling Libya’s nuclear program.

15. “Probe of Libya Finds Nuclear Black Market,” By Joby Warrick and Peter Slevin, Washington Post, January 24, 2004 (for personal use only)

Libya's quest for atomic weapons was aided by a sophisticated nuclear black market that offered weapons designs, real-time technical advice and thousands of sensitive parts -- some of them apparently manufactured in secret factories, according to diplomats and experts familiar with the probe of Libya's weapons program. The scale of the black-market operation -- described by one expert as an "international supermarket" for nuclear parts -- exceeds anything seen before, and it was undetected by Western intelligence agencies until recent months, the officials said. The same operation also is believed to have aided Iran, they said. The smuggling enterprise supplied Libya with thousands of parts for gas centrifuges -- machines that enrich uranium for nuclear weapons -- as well as machine tools for making additional centrifuges, the sources said. It also provided Libya with designs for making a nuclear bomb, officials with the International Atomic Energy Agency revealed yesterday.

Investigators believe some of the centrifuge parts came from factories built expressly to manufacture nuclear components for the black market -- a development that would represent a new and problematic milestone in nuclear proliferation. U.S. and IAEA officials are investigating one possible manufacturing site in Malaysia, with the help of that country's government, well-placed officials said. The site has been visited by U.S. officials in the past two weeks, the sources said. The identities of the people behind the smuggling operation have not been revealed, but investigators say the centrifuges provided to Libya are of the same design as machines used in Pakistan's nuclear weapons program. In recent weeks, Pakistan's government has begun investigating whether its nuclear scientists sold sensitive information to Iran and possibly others. Most of the technical assistance was aimed at helping Libya produce enriched uranium, which can be used in weapons or in nuclear power plants. But the discovery of actual bomb designs strongly indicates an intention to build weapons, the officials said. The IAEA, the U.N. nuclear watchdog, disclosed that the designs had been turned over by Libyan scientists and would soon be removed from the country. "The bomb designs have been placed under seal in Libya," said IAEA spokesman Mark Gwozdecky. Details about suppliers to Libya's clandestine nuclear program have emerged from a month-long investigation by U.S., British and U.N. inspectors who have been given access to formerly secret nuclear facilities in and around Tripoli. The visits were granted in December after Libyan leader Moammar Gaddafi's dramatic announcement that he would renounce weapons of mass destruction.
 Beginning in the late 1990s, Libya began purchasing components for a relatively simple gas centrifuge made mostly of aluminum. But after acquiring parts for about 100 machines, Libya's scientists decided to switch to a more sophisticated centrifuge design made of a high-strength metal called maraging steel, knowledgeable officials said. Both types of centrifuges were developed by Pakistani scientists in the 1970s and 1980s.

Officials familiar with the investigation said Libya had arranged to purchase 10,000 of the more advanced centrifuges, enough to produce fuel for several bombs a year.

Some of the crates examined by inspectors this month in Tripoli contained what officials described as ready-to-assemble "kits" for centrifuges. "Everything you needed was there," said one source. "Someone had gathered the parts from all over and put them together. The boxes even had company nameplates and quality-control stamps."

Other boxes contained machines and precision tools Libya would need to build its own centrifuges, including flow-forming machines and lathes for metalworking, the officials said.

 

China

16. “China, France Agree to Form Nonproliferation Task Force,” Global Security Newswire, January 28, 2004

China and France agreed yesterday to establish a joint task force on arms control and nonproliferation. In a joint statement signed yesterday in Paris by visiting Chinese President Hu Jintao and French President Jacques Chirac, the two sides reaffirmed their commitment to the importance of preventing the spread of weapons of mass destruction and ballistic missiles. To that end, China and France agreed to form an arms control and nonproliferation task force “within the framework of [a] bilateral strategic dialogue,” as well as to increase cooperation in arms control, export controls and nonproliferation, the joint statement says. According to the statement, France also “welcomes” Chinese efforts to develop a national export control system, and supports China’s membership in the Missile Technology Control Regime “at the earliest possible date.” 

In their statement, both China and France called on other countries to observe international nonproliferation regimes, including the Nuclear Nonproliferation Treaty, the Biological Weapons Convention and the Chemical Weapons Convention. Both countries also agreed to work for the entry into force of the Comprehensive Test Ban Treaty.

17. “China Applies to Join Nuclear Suppliers Group,” BBC Monitoring International Reports, January 26, 2004 (for personal use only)

China filed a formal application here Monday (26 January) to join the Nuclear Suppliers Group (NSG). China' permanent representative to the United Nations and other international organizations in Vienna, Zhang Yan, submitted the application to NSG rotating president Cho Chang-beom. Zhang also delivered a note to Director-General of International Atomic Energy Agency (IAEA) Muhammad al-Baradi'i, informing him of China's intention for NSG membership. In an interview with Xinhua, Zhang said China firmly opposes the proliferation of weapons of mass destruction and their carriers.

As a signatory to the Nuclear Non-proliferation Treaty, China strictly abides by its international obligations and has never supported, encouraged nor helped any nation in developing nuclear weapons, the Chinese ambassador said. In recent years, Zhang said, China has promulgated and implemented a series of laws and regulations concerning the control of nuclear materials and instituted strict administration and control of nuclear exports.

He said China has held talks and consultations with the NSG in recent years and adopted policies and mechanisms in nuclear export control similar to those of the group. Joining the NSG is a key step for China to play a more active role in nuclear non-proliferation, a step conducive to its efforts in seeking closer international cooperation in this regard, Zhang added.

Russia

18. “Putin Makes Changes in List of Exported Nuclear Materials,” ITAR-TASS News Agency, February 8, 2004 (for personal use only)

Russian President Vladimir Putin signed a decree on making changes in the list of nuclear materials, equipment, special non-nuclear materials and appropriate technologies, subject to export control. The document provides for the replacement of words "isotopes of uranium" in items 2.5, 2.5.1 and 2.5.2 of the section 2 "Equipment and non-nuclear materials" of the List with words "isotopes of natural uranium, depleted uranium or a special fissionable material". The subdivision "Common criteria for transferring technologies on processing, enrichment of uranium and production of heavy water" is recognized as invalid. The document also contains an instruction to the Russian Foreign Ministry to forward a note to the director-general of the International Atomic Energy Agency, confirming agreement of the Russian side with changes, made in the initial list of the Zander Committee in compliance with a decision, taken in Vienna on September 24, 2002.

 

19. “America Invites Russia to Participate in Global Intercept Initiative,” Vremya Novostei, By Andrei Zlobin, Yelena Suponina, February 3, 2004 (for personal use only)

The United States is actively promoting President George W. Bush's latest nonproliferation initiative. The aim is to allow ships and planes to be intercepted in international waters or airspace if there are valid grounds to assume that weapons of mass destruction or their components are being smuggled. Here is an interview with US Undersecretary of State John Bolton about the prospects of Russia's participation.

Question: Does Washington insist that Russia should join the initiative even before the G-8 summit in the United States this summer?
John Bolton: We aren't setting a deadline or anything. But the threat of WMD proliferation is not going to abate. The sooner we establish cooperation, the better. Seven G-8 countries will be taking part in the Bush initiative by the start of the summit off the coast of Georgia. It would be great to have Russia participating as well. It would mean that the whole G-8 is involved. The Russian government still has some questions it wants answered: how interception will be used, how to divide responsibility, that sort of thing. I hope Moscow will familiarize itself with our answers now and make the decision.

 Question: Will blacklists be compiled of the countries whose activities should be monitored within the framework of the initiative?
John Bolton: Iran and North Korea are two major sources of WMD proliferation. Still, the initiative is global. It will apply to countries that are potential proliferators of WMD, and to terrorist organizations.

Question: There were assumptions that some Chinese companies were involved in WMD proliferation. Does the United States still suspect China?
John Bolton: Not at all. We are still involved in debates with Beijing over participation of some Chinese companies in WMD proliferation. We imposed sanctions against some companies. It is a serious concern for us, and remains an important aspect of relations between the United States and China.

Question: What about Russian companies?
John Bolton: As far as WMD proliferation is concerned, we are concerned about all countries. We have an extensive system of export control in the United States, but even so some American companies are involved in unlawful activities every now and then. We prosecute them for these activities. We've worked with Russia on improving export controls for a long time now, and much still remains to be done. We are determined to continue this work. Cooperation within the framework of the initiative will enable all of us to handle global problems and help Russia establish these controls.

Question: Do you think the archives seized in Iraq may include evidence of unlawful cooperation between Russian companies and the previous Iraqi regime?
John Bolton: We are studying the documents currently, and will release them eventually. The Iraqi documents interest us first and foremost from the point of view of a black market for WMD, which Iraq had used for years. For all we know, these documents may even mention American companies. We will investigate and prosecute, if necessary.

 

Bulgaria

20. “Bulgarian Government Updates Arms Exports Blacklist,” BBC Monitoring International Reports, January 22, 2004 (for personal use only)

The Council of Ministers updated the list of countries and organizations regarding which Bulgaria implements a ban or restrictions on the sale and supply of arms and related materiel. The Council of Ministers decree of 2001 was updated in the following manner: Item 7, on Iraq, was supplemented to incorporate a ban pursuant to a common position of the EU of 7 July 2003; Item 10, on the Democratic Republic of the Congo (formerly called Zaire), was supplemented to incorporate bans pursuant to UN Security Council Resolution 1493; Item 11, on Liberia, was supplemented to incorporate bans pursuant to UN Security Council Resolutions 1497 and 1509 (of 2003).

The list is compiled in accordance with UN Security Council resolutions and with decisions adopted by the EU and the Organization for Security and Cooperation in Europe. As a UN member, Bulgaria complies with Security Council resolutions that are mandatory for all member countries, the government's Information Directorate said. As an EU associated country, Bulgaria applies the EU Code of Conduct on Arms Exports, which requires strict application of sanctions decreed by the UN Security Council and by the Council of the European Union, as well as restrictions imposed in pursuance of other export control regulations.


Ukraine

21. “Response of the Ukrainian Military, Scientists, and Politicians to Al-Hajat's Publication on Kiev's Sales of Tactical Nuclear Weapons to Al Qaeda,” Russky Kurier, By Ivan Vorotynsky, February 11, 2004 (for personal use only)
Referring to Al-Hajat, European newspapers published articles claiming that Usama bin-Laden's Al Qaeda bought tactical nuclear weapons from Ukraine in 1998. According to Al Qaeda, nuclear devices fit into small attache case and Ukrainian scientists handed them over to terrorists in Kandahar, Afghanistan. Reuters' reports indicate that the weapons are ready now, hidden at the explosion sites or nearby.

These correspondents initiated their own investigation to try and find out if there had been tactical nuclear weapons in Ukraine. The first official to mention tactical nuclear weapons in Ukraine was the late Alexander Lebed. He said in 1991 that almost 100 portable nuclear devices had disappeared after disintegration of the Soviet Union. The Defense Ministry of Russia demanded hard facts from Lebed and he failed to present any. Ukrainian expert in the sphere of technological terrorism claims that "small nuclear devices were built in Russia and the United States for acts of sabotage. They were not attache cases or anything, they resembled school packs. A device like that, an equivalent of 1,000 tons TNT experts say that the bomb terrorists exploded in Moscow metro on February 6 was an equivalent of 600 gr TNT , was a standard equipment of Soviet special forces. These devices were to be used against deep command posts, nuclear power plants, strategic communications, or for major seismic disasters and environmental calamities." At the same time, the expert denounced the possibility of theft of nuclear devices in the Soviet Union. All of that (secrets, storage, and protection) was a prerogative of the 12th Directorate of the Soviet Defense Ministry.

 Ukrainian senior officers also deny the idea that Ukraine possessed small nuclear devices. Former defense minister Alexander Kuzmuk said that the report in Al-Hajat was a lie because all tactical nuclear devices had been withdrawn to Russia in the early 1990's. Vladimir Gorbulin, ex-secretary of the Ukrainian Security and Defense Council, said that Ukraine in the era of sovereignty did not have anything to do with nuclear ordnance or weapons. He added that after 1990 all nuclear weapons "were the province of the Russian Center of nuclear ordnance administrative management".

 

Japan

22. “Nuclear Parts from Japanese Firm said Brokered to Libya,” By Masao Shimazaki, Yomiuri Shimbun, February 8, 2004 (for personal use only)
An unidentified broker is suspected of exporting to Libya parts for a centrifuge to enrich uranium he had purchased from a Japanese firm, sources close to the International Atomic Energy Agency said. The latest revelation came after the IAEA investigated transfers of nuclear technology to Libya, Iran and other countries through the black market by Abdul Qadeer Kahn, Pakistan's top nuclear scientist. The case has highlighted the problem of black market brokers seeking advanced technology from Japanese, U.S. and European companies, observers said. Calls for tighter controls on exports and imports of nuclear technology-related machinery and materials are expected to increase, the observers said. According to the IAEA sources, brokers from at least five countries have been involved in the export of nuclear technologies to Libya and Iran, with several brokers helping Kahn sell such technology to the countries in question. Others purchased nuclear-related parts on the black market for Iran and Libya, the sources said. One of the brokers exported centrifuge parts he had purchased from a Japanese firm to Libya, the sources said. The name of the Japanese company and when the export took place were not released.

 

23. “Japan Offers to Aid Cambodia in Strengthening Export Controls,” Global Security Newswire, January 15, 2004 (for personal use only).

Japan yesterday offered to help Cambodia improve its export control system to prevent shipments of nuclear weapons-related goods from reaching North Korea, according to the Jiji Press Ticker Service. During a meeting with Cambodian Prime Minister Hun Sen in Phnom Penh, Japanese trade minister Shoichi Nakagawa proposed sending two export control specialists to Cambodia next month.

 

24. “Japan, ASEAN to Meet on WMD Proliferation Export Controls,” 6 February 2004, Kyodo News Service (for personal use only).

Japan and members of the Association of Southeast Asian Nations (ASEAN) will hold working-level talks on export controls to stem the proliferation of weapons of mass destruction (WMD), Economy, Trade and Industry Minister Shoichi Nakagawa said Friday.The move is apparently aimed at countering North Korea's nuclear weapons development program.

Japan and the 10 ASEAN countries plan to discuss ways to prevent WMD proliferation in Asia at a series of meetings of experts, with the first set for Manila on Monday, Nakagawa told a news conference. Senior officials from his ministry, the Foreign Ministry and the Defense Agency are expected to take part in the talks, which will be held in all participating countries by the end of this month, Nakagawa said.