The report, drawn up by current and former intelligence officials, blames Chinese secrecy for part of the failures, but also US intelligence agents for not gathering solid information on the Chinese military and for not planting agents in the communist government, officials familiar with the report told the daily.

The study, parts of which will be included in the Pentagon's annual report to Congress on the Chinese military to be released later this month, highlighted intelligence failures to notice the following aspects of China's military buildup:

- The development of a new long-range cruise missile, and of a new warship equipped with a stolen Chinese version of the US Aegis battle management technology.

- The deployment of a new attack submarine known as the Yuan class; of precision-guided munitions, including new air-to-ground missiles and new, more accurate warheads; of surface-to-surface missiles.

- The importation of advanced weaponry, including Russian submarines, warships and fighter-bombers.

The secret report, produced for the new director of national intellingence John Negroponte - the position was created by Congress in December, appears to unfairly target intelligence operators, its critics said, to exonerate intelligence analysts, who for the past 10 years dismissed or played down intelligence on China's military buildup.

US Defense Secretary Donald Rumsfeld, during an annual international security conference in Singapore on Saturday, said China appeared to be expanding its missile forces, "allowing them to reach targets in many areas of the world".

"China also is improving its ability to project power, and is developing advanced systems of military technology," he said.

"Since no nation threatens China, one wonders: why this growing investment? Why these continuing large weapons purchases?"

He said the soon-to-be-released Pentagon study concludes that China's defense budget is now the largest in Asia and third largest in the world.

A Chinese foreign ministry spokesman Tuesday rejected Rumsfeld's claims as "totally groundless," saying the small increases in Chinese defence spending in recent years was dedicated mostly "for the improvement of the living conditions of the officers and soldiers."

"China has not the intention nor the capability to drastically increase its military buildup," said Liu Jianchao.

All rights reserved. � 2004 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. Related Links
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