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Strategies & Market Trends : China Warehouse- More Than Crockery

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To: RealMuLan who wrote (4314)2/2/2005 5:12:40 PM
From: RealMuLan  Read Replies (1) of 6370
 
EU finalises plan to lift arms embargo on China
By Daniel Dombey in Brussels
Published: February 2 2005 18:15 | Last updated: February 2 2005 18:15

The European Union is putting the final touches to controversial plans to replace its arms embargo on China with a more transparent export system. However, the US insists that the steps will not be enough.

The issue is set to feature on the agenda of Condoleezza Rice, US secretary of state, when she travels to Europe next week.

Washington alleges that an end to the EU embargo could destabilise the Taiwan Strait and put the US Seventh Fleet at risk. The EU replies that lifting the embargo, which has limited practical effect, is a symbolic move in keeping with the growing partnership between Europe and China.

European politicians such as Jack Straw, UK foreign secretary, add that a beefed up EU code of conduct on worldwide arms sales could address US concerns.

Ms Rice sounded a conciliatory note on the embargo, in a pre-trip interview with news agencies. "We need to continue to discuss it . . . and to understand European motivations for wanting to go down this road," she said.

But the revised code of conduct, which includes new rules on arms brokering and the transfer of software, was virtually agreed last year.

The only reason why it was not formally approved was that the UK wanted to wait until a transitional post-embargo export regime for China was agreed. This, too, is almost ready, although the EU will avoid any formal announcement until after President George W. Bush visits Brussels on February 21-22.

The embargo itself is likely to be lifted in May or June, although the EU is also waiting for a gesture on human rights by Beijing.
news.ft.com
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