Press Statement

Philip T. Reeker, Deputy Spokesman

Washington, DC

April 1, 2003

North Korea-Pakistan: Missile-Related Sanctions and Executive Order 12938

Penalties

There has been some confusion regarding the penalties that were imposed March

24 on the Pakistani entity Khan Research Laboratories (KRL) under Executive

Order 12938, as amended, and the penalties that were imposed March 24 on the

North Korean entity, Changgwang Sinyong Corporation under the missile sanctions

law. These sanctions were for a specific missile-related transfer.

Changgwang Sinyong Corporation is a North Korean missile marketing entity and

has been sanctioned repeatedly in the past for its missile-related exporting

behavior. Changgwang Sinyong Corporation transferred missile-related technology

to KRL. The United States made a determination to impose penalties on both

Changgwang Sinyong Corporation and KRL as a result of this specific

missile-related transfer. These sanctions do not pertain to any other activity,

including nuclear-related ones. We informed the Congress on March 12 that the

Administration had carefully reviewed the facts relating to the possible

transfer of nuclear technology from Pakistan to North Korea, and decided that

the facts do not warrant the imposition of sanctions under applicable U.S.

laws.

[End]

Released on April 1, 2003

***********************************************************

See http://www.state.gov/r/pa/prs/ps/ for all press statements

************************************************************

To change your subscription, go to http://www.state.gov/www/listservs_cms.html