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AFP:Beijing okays building of two aircraft carriers



China set to buy advanced Russian aircraft

The deal, which will boost the People's Liberation Army's combat
readiness, comes amid heightened tension between Beijing and Taipei

BEIJING -- China and Russia were making preparations for the sale of
advanced Sukhoi fighter aircraft to Beijing, a Russian spokesman said
yesterday.  News of a potential sale came amid heightened tensions
between Beijing and Taiwan. 

Deputy Prime Minister Ilya Klebanov, responsible for Russia's defence
industry, arrived in Beijing on Tuesday for talks with Chinese
officials, who expressed
"great interest" in the Su-30, said a
Russian Embassy spokesman. 

He said the two sides were "making preparations" for the sale of the
aircraft, but he did not offer a time frame for a deal. 

The Russian business daily, Kommersant, has said state arms dealer
Rosvooruzheniye had a preliminary deal, worth about US$2 billion (S$3.4
billion), to sell 60 Su-30 planes to China after nearly four years of
negotiations. 

China already operates the older Su-27 fighters. 

Since the breakup of the Soviet Union, Russia's arms industry has been
hit by a collapse in domestic demand because the struggling armed
forces' procurement budget has plummeted. 

Russia also lost export markets in the former Soviet bloc. 

On Tuesday, Mr Klebanov met Premier Zhu Rongji, who said the strategic
partnership between the neighbours was based on mutual trust and would
be carried over into the next century, the semi-official China News
Service said. 

Mr Zhu was quoted as saying the partnership was "conducive to the
development of a multi-polar world and the maintenance of peace and
stability in the world and the region". 

Beijing and Moscow are opposed to a
"unipolar" post-Cold War world
dominated by Washington. 

Chinese President Jiang Zemin, together with Russian President Boris
Yeltsin and the leaders of three former Soviet Central Asian states held
a summit in Kyrgyzstan this week. 

They vowed to boost economic ties and regional stability. 

Talks on finalising the Su-30 deal came as Beijing and Taipei were
locked in a war of words and military posturing following Taiwan
President Lee Teng-hui's declaration last month that bilateral ties
should be on a "special state-to-state" basis. 

Western defence analysts doubt whether the 2.5 million-strong People's
Liberation Army has the capability to mount a successful invasion of
Taiwan, which is armed to the teeth.  -- Reuters
-----------
Beijing okays building of two aircraft carriers

HONGKONG -- China has approved the construction of two aircraft carriers
to counter the US' naval presence in the region, it was reported here
yesterday.  The Chinese Communist Party Central Committee and the State
Council or Cabinet have earmarked an initial fund of 250 million yuan
(S$52 million) for the design and work on the construction of a
250,000-tonne aircraft carrier and a smaller 30,000-tonne vessel, the
independent Sun newspaper said, quoting unidentified sources. 

Both carriers were to be completed by 2009, the paper said, adding that
Beijing approved the plans following the presence of the US 7th fleet in
the Taiwan Strait in 1996 following Chinese wargames. 

The design and construction of the aircraft carriers would be handled by
12 units, including China Military Science Academy, Shanghai Vessel
Research Academy and Xi'an Aircraft Manufacturing Company, the report
said. 

Meanwhile, the Beijing-funded China Business Times said any Chinese
military action against Taiwan would depend on the position of its next
President on the
"two-states" theory and Taiwan's
participation in the US-led Theatre Missile Defence (TMD) system. 

The South China Morning Post said it was the first time a Chinese
publication has stated explicitly that the Beijing leadership would wait
until the outcome of the presidential elections in March before deciding
whether to take military action against the island. 

The Chinese newspaper said it was "likely that China will take speedy
military action" if the winner of the election
"persists with the 'two-states' theory" or
supports Taiwan in joining the TMD project.  -- AFP



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