CHINA PROTESTS SANCTIONS AGAINST DALIAN SUNNY

S E C R E T BEIJING 000207

SIPDIS

DEPT FOR EAP/CM AND ISN/MTR JOHN PAUL HERRMANN

E.O. 12958: DECL: 01/23/2034
TAGS: PARM MTCR PREL MNUC ETTC CH IR
SUBJECT: CHINA PROTESTS SANCTIONS AGAINST DALIAN SUNNY
INDUSTRIES/LIMMT AND BELLAMAX

REF: A. BEIJING 154

B. SECSTATE 4887

Classified By: Political Officer Mark R. Evans. Reasons 1.4 (b/d)


1. (S) MFA Arms Control and Disarmament Department Missile
Division Deputy Director Sun Lei called in PolOff on January
28 to complain about the "unacceptable" and "unilateral"
sanctions announced against Chinese companies Limmt and
Bellamax (refs A and B). Sun said China opposes the
imposition of sanctions based on U.S. domestic law and that
such actions are "not conducive" to maintaining "healthy" and
"mutually beneficial" cooperation on nonproliferation issues
"between our two sides." The United States, continued Sun,
should allow China to "investigate" and "deal with" any
Chinese company "in accordance with Chinese law."


2. (S) PolOff noted that the sanctions levied against Limmt
and Bellamax only applied to those companies' dealings with
U.S. companies and within the United States, and those
sanctions had only been levied after repeated communication
with China about those companies' proliferation activities.
In response to a suggestion by PolOff that renewal of regular
communication between the United States and China on
nonproliferation issues might help avoid these types of
sanctions in the future, Sun responded that "the U.S. knows
very well why there is a current lack of dialogue" and that
China expects the new administration to "correct these
errors" and "have a better and more transparent approach to
nonproliferation cooperation."
PICCUTA