China to Limit Arms Sales, Carlucci Says

Defense Secretary Frank C. Carlucci, summing up two days of talks with Chinese leaders, said Wednesday that he believes Beijing will exercise restraint in future weapons sales abroad and that the United States will boost its technical assistance to China’s military modernization.

Speaking at a news conference, Carlucci declared he is satisfied by Chinese explanations of future policy on what has been the divisive issue of missile sales. In the past year, Chinese sales of anti-ship Silkworm missiles to Iran and intermediate-range ballistic missiles to Saudi Arabia have strained relations between Washington and Beijing.

‘Totally Satisfied’

“I am totally satisfied with these discussions, and I am hopeful that as a result . . . we can put this issue behind us,” Carlucci said after his talks with China’s top leader, Deng Xiaoping, Premier Li Peng and Defense Minister Qin Jiwei.

He provided little detail, however, about changes in the Chinese position, and he implied that some sales might still take place.

“The Chinese have said that their future sales . . . will be very prudent and very serious. . . ,” Carlucci said. “We are certain that the Chinese will behave in a responsible way in the future.”

The United States retaliated last October for the Silkworm sales by halting the process of easing restrictions on high-technology exports to China. The liberalization process resumed in March after Beijing gave assurances that it had acted to stop the flow of Silkworms to Iran.

But the more recent sale of ballistic missiles to Saudi Arabia prompted Congress to adopt resolutions calling for a ban on military technology cooperation with China if such sales to Middle East countries continued.

Carlucci also told a banquet gathering Wednesday: “An economically strong, militarily modern and technologically sophisticated China has an important contribution to make, along with the United States, to world peace, stability and prosperity. I have no doubt that the positive interaction between our two military establishments will increase in both depth and strength in the decades ahead.”

Technology Transfers Go On

He said the United States has been “steadily expanding” its program of technology transfer to China’s armed forces and that this trend will continue. And, he added, cooperation is already under way in the fields of ammunition, radar and aircraft electronics.

Carlucci also said the Defense Department does not object to the issuance of export licenses for U.S.-made satellites to be launched by Chinese rockets.

Beijing hopes to acquire foreign exchange by launching satellites at bargain rates for foreign countries and corporations, but the Commerce Department has expressed concern that allowing China to launch American satellites could undercut efforts to create a commercial space-launch industry in the United States.

“It is clear that the Chinese attach great importance to this project,” Carlucci said. “I indicated that from my perspective I did not see this as a national security issue. . . . It is a trade issue.”

Deng Endorses Bush

Deng, in brief opening remarks to Carlucci on Wednesday morning, endorsed Vice President George Bush in November’s presidential election. He recalled that in the mid-1970s, Bush headed the U.S. liaison office here, the forerunner of the U.S. Embassy, and added: “We had a lot of contact with him at the time. I hope he’ll win the election.”

Carlucci and others present laughed in response to Deng’s comment, and Carlucci, when asked about it at the news conference, said, “I gave him about a billion absentee ballots.”

Carlucci is scheduled to visit Xian and Shanghai before concluding his six-day China visit Saturday.