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US to impose sanctions against 1 Indian and 9 Chinese firms

Ten foreign companies, including one from India are facing US sanctions for allegedly engaging in transfers of sensitive equipment mainly to Iran, senior US State department officials said.

"On July 9, we made a decision to impose sanctions on ten entities pursuant to these laws (which prohibit transfer of sensitive material to Iran and Iraq). We will be reporting to Congress shortly," State Department spokesman Richard Boucher said, without disclosing the identities and nationalities of these companies.

However, an unnamed State Department official was quoted as saying that one Indian and nine Chinese companies would be slapped with the sanctions.

The action will be taken under Iran-Iraq Arms Non-Proliferation Act of 1992 and the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991, Boucher said.

Eight entities are being sanctioned under both the Acts, while two will face the measure under the Iran-Iraq Non-Proliferation Act, for transfers to Iran or Iraq of goods or technology that contribute to their eforts to acquire weapons.

Boucher left unclear whether any of the companies are being sanctioned for transfers to Iraq. Media reports said the sales in September 2000 and October 2001 involve three transfers of advanced conventional arms and chemical and weapons, violating the Iran-Iraq Non-Proliferation Act of 1992.

The Act mandates sanctions against companies or governments that make sales that "could materially contribute to either country's acquiring chemical, biological, nuclear or destabilising numbers and types of advanced conventional weapons."

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