WASHINGTON May 23: In a sign of new resolve, the Clinton administration is punishing two Chinese companies and a third in Hong Kong suspected of providing Iran with chemical weapons technology.

While determined to stay on good terms with China and its rapidly growing economy, the administration also is bent on blocking Iran and Iraq from acquiring the elements of nuclear and chemical weapons programmes.

``We have to do everything we can, but it is hard,'' Secretary of State Madeleine Albright told a Senate Appropriations subcommittee referring to the difficulty in keeping track of trade in modern technology with rogue regimes.

China, which was not directly accused, subscribes both to the international treaty banning production and proliferation of chemical weapons and a missile technology control accord.

After China secretly transferred missile components and technology to Pakistan, President Clinton in 1993 banned export to Beijing of several high-technology systems for two years.

The ban was lifted in 1994 when China pledged not to sell or transfer surface-to-surface missiles covered by the international accord.

Even so, Sen. Robert Bennett said yesterday, the navy has intelligence showing China was arming Iran with land-based C-802 missiles that could attack American vessels in the Persian Gulf region.

Albright disclosed the imposition of sanctions against two Chinese companies, a Hong Kong company and five Chinese citizens on suspicion of providing Iran with precursors for producing chemical weapons.

The Chinese companies were identified as Nanjing Chemical Industries Group and Jiangsu Yongli Chemical Engineering and Technology Import/Export Corp., and the Hong Kong firm as Cheong Yee Limited.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.