WHITE HOUSE The Briefing Room April 23, 1997


Q: Can you say anything else about the reports that China's diverting
civilian technology for military purposes?

MCCURRY: Not a lot I can say about that because it's been reported
that that is a matter that's under investigation. I will say that
we've got some assurance that the machines in question are now under
the supervision of the original customer. They're back a McDonnell
Douglas facility, and that's important. That happened after we became
aware that some of the machines have been moved to an inappropriate
location. We began working with the company and with the Chinese
government to secure the return of the machines to an appropriate
facility, and that's now been accomplished. But other than that, it's
a matter under criminal investigation, and there's a limit to what I
can say.

Q: If I just may follow up, you're saying that the machines in
question were at an inappropriate location --

MCCURRY:  Correct.

Q:  -- the U.S. made some representation on that basis and --

MCCURRY:  I'm sorry, an unapproved location.

Q:  Okay.

MCCURRY: Because under the terms of the original transfer of license,
there were strict safeguards on where the machine could actually be.

Q: And after representation by American diplomats, I presume the
machine was moved?

MCCURRY:  That's correct.

Q: -- that they copied -- that they used the machinery in an
unapproved way, or that they can copy the machine?

MCCURRY:  I've told you all I can tell you.

Q:  Roughly when was it referring to?

MCCURRY: The license was issued by the Commerce Department in
September of 1994. I don't know when the equipment transferred. I
haven't seen that in any of the paperwork on this.

Q:  And transferred back -- you don't know when it transferred back?

MCCURRY:  Right.  Don't know -- I don't have a specific timetable.

Q:  Do you know how long it was in the unapproved position?

JOHNSON:  I think that's part of the investigation.

MCCURRY: Right. There may be some more we can do. If you're following
this, we might be some more we can tell you off camera. But they're
also, just so you know, doing a lot on this at State at this hour.

Q: The Pentagon originally objected to this deal, didn't they? I mean,
in retrospect, the White House --

MCCURRY: This license was granted as a result of an interagency
process in which there was consensus by all the agencies involved.

Q:  Didn't the Pentagon originally object?

MCCURRY: I'm not going to characterize the views of individual