U.S. Embassy Warns Beijing on Iran Gas Deal, page 1

Beijing’s interest in relations with Iran is due in part to China’s soaring energy consumption, and now the US government has warned China that their US$16 billion project to develop Iran's North Pars gas field and build liquefied natural gas plants may evoke economic sanctions/penalties.

www.nysun.com
WASHINGTON — The Bush administration and Congress are warning that a proposed $16 billion deal between a Chinese company and Iran could trigger economic penalties under an American law aimed at starving Iran of funding for terrorism and nuclear weapons.

Officials at the American embassy in China delivered a demarche Saturday in Beijing. They demanded an explanation of the deal from Chinese government officials and warned them that it could trigger a 1996 law, the Iran Libya Sanctions Act. The law prohibits foreign firms that invest more than $10 million in Iran's energy sector from raising capital in American financial markets.

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Related info:
- CNOOC to develop Iranian gas field China Daily
- China's Hu calls for powerful navy CNN
- The Iran and Libya Sanctions Act of 1996 FAS
- China set to dump dollar reserves ATSNN

CNOOC Ltd. Yahoo Finance

Showdown at the Sinopec Corral or fold?

The Sino/US war drums are getting louder. I suspect US is bluffing and can not follow through, since Beijing has the upperhand in regards to servicing US debt. Although many of our current US leaders strive to embrace war ethics and see a war economy as the only feasible solution in preventing the US sliding into a depression.

[edit on 28-12-2006 by Regenmacher]