Published by: World Tibet Network News, Wednesday, August 21, 1996

BEIJING, Aug 20 (Reuter) - China, worried that Australia is considering selling uranium to Taiwan, on Tuesday called for prudence in the event of any such sale.

"Uranium is not an ordinary commodity. Exporting uranium to Taiwan is a highly sensitive issue," a Foreign Ministry spokesman said when asked about the reports.

"We express concern about the matter and request concerned countries to act with great care," he said without mentioning Australia by name.

Beijing and Taipei have been rivals since the Communists won the Chinese civil war in 1949 and sent the Nationalists fleeing to Taiwan.

Last week, Australia's Foreign Minister Alexander Downer said Canberra was studying whether uranium could be sold to Taiwan's state utility Taiwan Power Co with safeguards so that it would be used only for peaceful purposes.

Downer is scheduled to visit China this week.

Diplomats have said a sale could strain Sino-Australian ties already frayed over the axing of an aid scheme, plans by an Australian cabinet minister to visit Taiwan, a security pact between Canberra and Washington and a planned visit to Australia next month by Tibet's exiled spiritual leader the Dalai Lama.

REUTER