1. (S) We relayed inquiries regarding Ukrainian State
Enterprise Ecoantilid's potential sale of heavy water to the
Karachi Nuclear Power Plant in Pakistan (ref A) and Ukrainian
Yuzhnoye company's potential cooperation with Chinese 11
Institute on development of the RD-120 liquid rocket engine
(ref B).



2. (S) During the December 5 meeting with MFA Arms Control
and Military Technical Cooperation Department Counselors Igor
Kyzym and Oleh Belokoles, Kyzym acknowledged that Yuzhnoye
could be pursuing commercial arrangements with Chinese
enterprises under a Ukraine-China agreement on cooperation in
space development. He would follow up on our information
with the National Space Agency of Ukraine.



3. (S) Both Kyzym and Belokoles, however, expressed strong
skepticism about the accuracy of the information regarding
cooperation with Pakistan. First of all, they did not
recognize the name of the firm. Second, Kyzym had been in
Pakistan two weeks earlier and had a discussion with the
Ukrainian ambassador to Pakistan on the impact of arms and
export control regimes on commercial arrangements with
Pakistan. The Ukrainian ambassador, an Urdu speaker, was
extremely knowledgeable on all aspects of Ukraine-Pakistan
relations and had not mentioned any such pending deal.
Third, such a sale would need interagency clearance and Kyzym
and Belokoles had no recollection of any recent request
having to do with Pakistan. Nonetheless, Kyzym acknowledged
that a Ukrainian firm could be pursuing an arrangement
under-the-table and said he would follow up on our inquiry.



4. (U) Visit Embassy Kyiv's classified website:
www.state.sgov.gov/p/eur/kiev.
Gwaltney