DRAGON SPACE
Russia, China Discuss Arms and Space Cooperation

Missiles and Space Stations are on the laundry list
Beijing (Interfax) Nov. 2, 2000
Russian Prime Minister Mikhail Kasyanov will discuss the possibility of broadening Russian-Chinese arms and related trade during his November 3- 4 visit to Beijing, Interfax has learned.

The two sides are expected to discuss a project for the joint operation of the Russian satellite navigation system GLONASS, an analogue of the United States' GPS (Global Positioning System) satellite navigation system, which can pinpoint the precise whereabouts of an object on any part of the globe, and its speed.

Such systems are used for both civilian and military purposes, including for the launching of high- precision strikes. Joint operation of the GLONASS system has been discussed by Russia and China many times this year, notably by Russian Deputy Prime Minister Ilya Klebanov and President Vladimir Putin in Beijing. Russia had hoped that appropriate documents would be prepared for signing by the time of Kasyanov's visit.

But these documents will probably not be signed this time around, and the two sides will only continue the discussion of individual aspects of the project.

Russia would like China to have a stake in the GLONASS project. The fully deployed GLONASS is to be comprised of 24 satellites, but that number has been reduced to 14 because of current financial difficulties.

Russia and China also plan to analyze the implementation of arms trade contracts concluded earlier and discuss the further development of such cooperation.

China is a major buyer of Russian weaponry, the sources said, noting that Russia exports SU-30MKK and SU- 27 combat aircraft, Project 956 Sovremenny-class destroyers, and Moskit anti-submarine missiles to China.

Moscow and Beijing are also currently discussing the possibility of concluding a purchase contract for modified Russian A-50 early- warning aircraft.

Moscow has long been trying to gain access to the Chinese civil aviation market and sell its Il-96-300 and Tu-334 passenger airliners to China. The upcoming talks are also likely to address the possibility of exporting Russian Be-200 amphibious aircraft, which can be used for both civilian and military purposes.

Russian-Chinese trade in January to September 2000 came to $5.772 billion, a 42.6% rise on the same period last year, the Economic Development and Trade Ministry told Interfax.

Russian exports to China came to $4.286 billion, a 35.4% rise on the same period 1999. Chinese imports to Russia for the period rose 68.7% to $1.486 billion.

According to the Ministry, in 1999 Russian-Chinese trade totalled $5,720.

China is Russia's fourth largest non-CIS trade partner after Germany, USA, and Italy, trade with China accounted for 5.5% of Russian trade in 1999. Russia accounted for 1.58% of Chinese trade (China's 12th biggest trade partner). As reported earlier, Mikhail Kasyanov begins a visit to China November 2.

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DRAGON SPACE
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