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The document discusses China's involvement in selling weapons, specifically Silkworm missiles, to Iran. The Reagan administration has expressed concerns over China's role as Iran's main arms supplier, while China denies these allegations. The document provides evidence that new Chinese arms shipments, including sophisticated anti-ship missiles, have arrived in Tehran. It also mentions that Iran has sent military personnel to China for missile training. The motive behind China's involvement is primarily financial, but it also aims to counter Moscow's efforts to establish relations with Iran. The Reagan administration has protested China's actions and has postponed trade measures that would have allowed China to purchase American technology.

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Body:  Approved For Release 2000/08/08 : CIA-RDP96-00789R000200210004-3
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 W,   a y   worm    spay
 What's the Chinese Word for Chutzpah
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 hen Iran began launch-    Armacost w
 W    Silkworm missiles    the arms trade with China's    abroad Last ear alone
 ins
 the   leaders. Washington is par-        Fthases
 against gulf shipping,                                              a tnissi es
 political debris fell half .a ticularly troubled that the      other Chinese: weapons,
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 lab much to Washington's  frorna24 eco~a  %Q p           with one high-ranking for
 din at the Irani...eign visitor, Deng described
 outrage. After a series of cg9                                     d with re
 futile protests 'to the Chi-      .rt'l3 ndar            as. 'I         Teheran as "grippe
 word           ligious fanaticism" and
 nese government, the Rea               on  now t e  inese                           said
 gin administration has ex- for chutzpah, but there must  it was important to "retain
 acted a penalty, postponing be one, because they sure    the capacity to influence
 trade measures that would have it," says one frustrated  Iran." In particular, China
 have allowed China to buy State Department official.     is trying to parry Moscow's
 faster American mainframe China's main motive is the     latest efforts to court the
 computers and more accu-  old-fashioned one: money,      Teheran mullahs. Beijing
 rate semiconductor equip- Under Deng Xiaoping's eco-     seems to covet a power-bro-
 Chinese     ker role in the gulf. China's
 th
 e
 ment. During a visit to Bei-            nomic reforms,
 g this week, U.S. Under   government has encouraged      military sells weapons
 in
 of State Michael  the military to help pay its   Iraq too.
 CPYR
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 and are petitioning the Gov-
 ernment for a larger quota of
 visas.
 THE GULF
 Sun Market
 i    g ms
 For months the Reagan Ad-
 ministration has protested
 China's role as one of Iran's
 main arms suppliers, while
 Beijing has denied the allega-
 tion. Last week Administra-
 don officials said they have ev-
 idenco that new Chinese arms
 sh pme~     eluding sophist;
 cated   801 ntiship missiles,
 have arrived in Tehran since
 early October. More than 100
 p.ow $ilkworrn, missiles, the
 type that were used in recent
 attacks on Kuwaiti shipping,
 are also said to be destined for
 Iran as part of two arms deals,
 one for $1.3 billion in 1983 and
 another for $600 million early
 last year.
 A spokesman for the Peo-
 ple's Mujahedin, an Iranian re-
 sistance group, said last week
 that China not only continues
 to sell Silkworms to the Aya-
 tollah Khomeini, but that last
 year more than 100 Revolu-
 tionary Guards and Iranian
 military men traveled to China
 for missile training. The
 spokesman said some of these
 trainees serve in the 26th Sal-
 man Missile Brigade, the unit
 responsible for the Silkworm
 attacks on Kuwait launched
 from the Iranian-occupied Fao
 peninsula in Iraq.
 Approved For Release 2000/08/08 : CIA-RDP96-00789R000200210004-3
 CPYRGHT