Saturday September 15 9:57 AM ET

China Denies Reports of Links to Taliban

By Andrew Browne

BEIJING (Reuters) - China, seeking to distance itself from Afghanistan's ruling Taliban, on Saturday denied reports it had offered Kabul economic and technical assistance.

China's suspected dealings with the Taliban have come under scrutiny as the United States rallies a global coalition to respond to the worst-ever attack on U.S. soil.

Three aircraft commandeered by unknown hijackers slammed into the Pentagon in Washington and destroyed the twin towers of the World Trade Center in New York on Tuesday.

A Pakistani newspaper has reported China had signed a memorandum of understanding on economic and technical cooperation with the Taliban, which is sheltering Washington's chief suspect in the attacks, Osama bin Laden.

The Washington Post also reported Chinese telecommunications firm Huawei Technologies signed a contract to provide limited phone service to the area of Afghanistan near where the multi-millionaire militant is reportedly based.

``The reports seriously deviated from the facts,'' state radio quoted Foreign Ministry spokesman Zhu Bangzao as saying. ``The accusations are groundless,'' he said.

He denied reports that Chinese officials visited Kabul last year to try prevent Islamic separatists from the northwestern Chinese region of Xinjiang from being trained in Afghanistan.

``China already closed down its embassy in Kabul in 1993. Since that time no Chinese diplomats have been to Kabul,'' Zhu said.

AWKWARD POSITION

On Friday, prime ministers of Russia, China and four Central Asian states vowed in a joint statement to fight the ``terrorism'' that devastated the United States this week, but China's leading newspaper gave only muted coverage on Saturday to the resolution.

The tone of the People's Daily coverage appeared to reflect China's ambivalence about the implications of a global anti-terrorism effort spearheaded by the United States that could result in military intervention.

The People's Daily, voice of the Chinese Communist Party, reported the meeting on its front page but dropped reference to the resolution on terrorism to the very end of the article on an inside page.

By contrast, the English-language China Daily, aimed at a foreign audience, played up the terror angle.

``Countries join forces to hit terrorism,'' said a front-page China Daily headline. The Chinese-language China Youth Daily also gave the terrorism angle prominence.

Still, the People's Daily is an accurate reflection of official thinking. Analysts say this is now deeply conflicted as the United States gears up for war against bin Laden.

INTERNATIONAL REPUTATION

Any U.S. strike in Afghanistan, where bin Laden is sheltering, would put Beijing in a particularly awkward position given its staunch opposition to any kind of intervention in third countries.

China fears foreign intervention in its own troubled regions of Tibet and Xinjiang.

However, analysts said China is also anxious to be seen supporting the anti-terrorism fight. Top Chinese leaders, including President Jiang Zemin, were quick to pledge their backing publicly after the attacks on New York and Washington.

At stake is China's international reputation. But it also must consider long-standing friendships with countries such as Iraq and Libya, which sit on Washington's list of rogue states.

In another sign of Chinese caution, a senior Chinese leader appealed on Friday for peace.

Speaking to visiting Singapore President S.R. Nathan, Li Ruihuan, one of seven members of the Communist Party's politburo standing committee, said the Chinese people ``strongly yearn for peace.'' Li did not mention Tuesday's terror attacks.

But Xinhua quoted him as using the word ``peace'' eight times in his meeting with Nathan. Chinese leaders often use meetings with foreign counterparts to send veiled signals to other countries.

``Any peace-breaking action will seriously harm the fundamental interests of the people all over the world including the Chinese people,'' Xinhua quoted Li as saying.

Li also quoted the Chinese sayings ``Peace is the best option'' and ``Don't do what you would not like others to do to you,'' and said China would never pursue ``hegemonism'' -- a common term of reference to U.S. foreign policy.

Beijing has already said it wants to be consulted on any retaliation.

-- Anonymous, September 16, 2001