Already the largest military power in the region and with a robust economy that can sustain an ambitious military modernisation programme, China's future was among the issues discussed at the forum organised by the Hawaii-based East-West Centre and the Manila-based Asian Institute of Management.

"China is the greatest source of proliferation of weapons of mass destruction and missile technology," the former vice-chief of the Indian navy, K.K. Nayyar, told the conference, attended by regional officials and analysts.

He singled out China's reported transfer of technology to Pakistan, which allegedly enabled India's nuclear rival to upgrade its weapons systems.

"I would not like to make an emphasised statement but it is China-Pakistan proliferation," Nayyar said.

"But there is talk that, maybe, they (transferred know-how) to Iran and, maybe Iraq, but one would not know," said Nayyar, a retired vice-admiral who helped chart the growth of India's modern navy.

Charles Morrison, president of the East-West Centre, said the United States was equally concerned.

But "increasingly Americans feel they have been able to have a deeper dialogue with China on this issue."

"There have been instances where again technologies, I think, had been a concern at least to the United States in that they were going to countries in the Middle East that might misuse them," he said.

"It is a matter of concern."

Washington late last year accused a leading Chinese state enterprise of exporting missile technology to Pakistan despite a pledge by Beijing to crack down on weapons proliferation.

The United States then imposed sanctions against China Metallurgical Equipment Co., which had denied the charge as groundless.

China had made a verbal pledge previously not to export nuclear-capable missiles and components restricted by an international non-proliferation agreement.

In return Washington agreed to waive sanctions on firms suspected of being involved in the trade.

US President George W. Bush was keen to seal an agreement on Chinese weapons export controls during his visit to Beijing last month, but nothing was agreed, taking some of the gloss off the visit.

Morrison said there was "better understanding now within the Chinese government about the systemic impacts of what before was just really export promotion."

"There is concern within China to make sure its standards are international standards and that there is some control," he said.

But Morrison cautioned that there was "still a question of enforcement and how you ensure that technologies don't get into the wrong hands."

President Bush in January labelled Iran, Iraq and North Korea as an "axis of evil" for allegedly seeking weapons of mass destruction and possibly providing these arms to terrorists.

Bush warned that they could soon become targets of the US-led war on terrorism.

Jusuf Wanandi, a senior fellow at the Jakarta-based Centre for Security and International Studies, said it was increasingly clear that new policies were needed to halt the spread of weapons of mass destruction.

Existing global rules were not "foolproof" to cope with the changed situation after the September 11 attacks on the United States, he said.

All rights reserved. � 2002 Agence France-Presse. Sections of the information displayed on this page (dispatches, photographs, logos) are protected by intellectual property rights owned by Agence France-Presse. As a consequence, you may not copy, reproduce, modify, transmit, publish, display or in any way commercially exploit any of the content of this section without the prior written consent of Agence France-Presse.

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