WASHINGTON, AUG 8: The United States is deeply concerned by reports that China has transferred nuclear-capable M-11 missiles to Pakistan, the State Department has said.

``We have been studying those reports very, very carefully,'' spokesman James Rubin said on Thursday.

He, howevre, said it had not been determined that such sales had occurred yet. If the missile transfers are confirmed, economic sanctions against China and Pakistan could be imposed under a 1990 law.

During his first briefing after confirmation as assistant secretary and chief spokesman, Rubin said, ``We are deeply concerned and have been deeply disturbed by many reports about the possible transfer of M-11 missiles to Pakistan. We have been studying these reports very carefully as a matter of an inter-agency process, and we have not determined that such missiles have been transferred. When we do believe the standard of evidence has been met-and what we have set is very high in a matter like this-we will act according to our laws but we have not done so.''

Regarding the missile factory China has reportedly set up in Pakistan, Rubin said, ``Again, this falls into the category of trying to describe from this podium those issues that are best understood in intelligence channels. .''

Asked what the US felt about reports of continued flow of arms from Pakistan to terrorists in Indian territory, the State Department spokesman said, ``We want to see a peaceful resolution of the Indo-Pak dispute.''

Li Peng's successor

Vice-Premier and economic czar Zhu Rongji has emerged as the most likely choice of the Communist Party of China to succeed Premier Li Peng who retires next year.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.