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NORINCO Issues Statement on US Sanctions
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China North Industries Corporation issued a statement in Beijing Thursday on the US government's sanctions against the company. The full text of the statement is as follows:

On May 9, 2003, the US government imposed sanctions on China North Industries Corporation (NORINCO) and its subsidiaries, alleging that it had "materially contributed" to Iran's program to develop missiles capable of delivering weapons of mass destruction (WMD). We hereby express our strong dissatisfaction and firm opposition.

NORINCO is a state-owned enterprise lawfully incorporated in China and operates according to law. Apart from its legitimate business in conventional weapons and military equipment, the corporation is also actively engaged in the manufacturing and trade of civilian products, and has developed a global trade and information network, and a diversified international market. We are keenly aware that NORINCO's diversified international market potential depends upon a peaceful, stable and predictable international business environment. Based on this understanding, we firmly support the policy of the Chinese government on non-proliferation of WMD and their means of delivery, and strictly comply with the Regulations of the People's Republic of China on Export Control of Missiles and Missile-Related Items and Technologies as well as its Export Control List in our trade with other countries. We have never assisted any country in developing such missiles. In fact, we do not have such technological capabilities. The trade and economic cooperation we have had with Iran are all within the parameters as provided for under the above-mentioned policy and export control regime.

The sanctions imposed on NORINCO by the US administration are completely groundless and unjustified. They have not only incurred economic losses to our corporation and undermined our international image, but also produced an enormous adverse impact on the normal trade of civilian products between NORINCO and its US counterparts. We strongly demand that the US government immediately lift the sanctions against NORINCO and its subsidiaries. As regards the injury of our public image and our economic losses due to the sanctions, we reserve the right to resort to legal action.

(Xinhua News Agency June 5, 2003)

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