    [Public Papers of the Presidents of the United States: George H. W. Bush (1991, Book I)]
    [April 30, 1991]
    [Page 446]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Statement by Press Secretary Fitzwater on Restrictions on U.S. Satellite
    Component Exports to China
    April 30, 1991

        The President has decided not to approve a request to license the
    export of U.S. satellite components to China for a Chinese domestic
    communications satellite, the Dong Fang Hong 3 (DFH-3). The President
    made this decision because certain activities of Chinese companies raise
    serious proliferation concerns.
        The United States has undertaken a major worldwide effort to combat
    the proliferation of weapons of mass destruction, particularly to
    regions of instability. We take this issue very seriously, and the
    President's decision not to approve satellite licenses in these
    circumstances underscores the importance attached to nonproliferation.
        The United States is currently engaged in an intensive dialog with
    China on proliferation issues, aimed at encouraging China to observe
    internationally accepted guidelines on missile and missile-related
    technology exports. The Chinese Government has stated that it will be
    prudent and responsible in its sale of missile technology. We will be
    discussing our concerns about the activities of the Chinese companies
    involved in Dong Fang Hong with the Chinese Government.
        U.S. satellites, their components and associated technologies are
    included in the U.S. Munitions List and require licenses for export to
    controlled destinations, including China. Under sanctions contained in
    the Foreign Relations Authorization Act, FY 1990-91, licensing of these
    exports is prohibited unless the President determines it to be in the
    national interest. Given our proliferation concerns, it would not have
    been appropriate to waive the legislative prohibition for the Dong Fang
    Hong.
        At the same time, the President decided that it is in the national
    interest to waive legislative restrictions on exports for two other
    projects, AUSSAT and FREJA, that will launch satellites from China. The
    two U.S.-built AUSSAT satellites will provide needed communications
    services for our ally Australia. The President had previously waived
    legislative sanctions against launches from China for AUSSAT, but the
    project required additional export licenses. The President was concerned
    that we live up to our earlier commitment to allow Australia to proceed
    with this project. The Swedish FREJA satellite, a small scientific
    satellite, will be used by civilian atmospheric researchers in the U.S.,
    Sweden, Canada, Germany, and Finland.