http://www.nytimes.com/2004/12/26/international/asia/26nuke.html?oref=login
<http://www.nytimes.com/2004/12/26/international/asia/26nuke.html?oref=login
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As Nuclear Secrets Emerge in Khan Inquiry, More Are Suspected


By WILLIAM J. BROAD and DAVID E. SANGER 

Published: December 26, 2004

When experts from the United States and the International Atomic Energy
Agency came upon blueprints for a 10-kiloton atomic bomb in the files of the
Libyan weapons program earlier this year, they found themselves caught
between gravity and pettiness. 

The discovery gave the experts a new appreciation of the audacity of the
rogue nuclear network led by A. Q. Khan, a chief architect of Pakistan's
bomb. Intelligence officials had watched Dr. Khan for years and suspected
that he was trafficking in machinery for enriching uranium to make fuel for
warheads. But the detailed design represented a new level of danger,
particularly since the Libyans said he had thrown it in as a deal-sweetener
when he sold them $100 million in nuclear gear.

"This was the first time we had ever seen a loose copy of a bomb design that
clearly worked," said one American expert, "and the question was: Who else
had it? The Iranians? The Syrians? Al Qaeda?"

But that threat was quickly overshadowed by smaller questions. 

The experts from the United States and the I.A.E.A., the United Nations
nuclear watchdog - in a reverberation of their differences over Iraq's
unconventional weapons - began quarreling over control of the blueprints.
The friction was palpable at Libya's Ministry of Scientific Research, said
one participant, when the Americans accused international inspectors of
having examined the design before they arrived. After hours of tense
negotiation, agreement was reached to keep it in a vault at the Energy
Department in Washington, but under I.A.E.A. seal. 

It was a sign of things to come.

Nearly a year after Dr. Khan's arrest, secrets of his nuclear black market
continue to uncoil, revealing a vast global enterprise. But the inquiry has
been hampered by discord between the Bush administration and the nuclear
watchdog, and by Washington's concern that if it pushes too hard for access
to Dr. Khan, a national hero in Pakistan, it could destabilize an ally. As a
result, much of the urgency has been sapped from the investigation, helping
keep hidden the full dimensions of the activities of Dr. Khan and his
associates. 

There is no shortage of tantalizing leads. American intelligence officials
and the I.A.E.A., working separately, are still untangling Dr. Khan's
travels in the years before his arrest. Investigators said he visited 18
countries, including Syria, Saudi Arabia and Egypt, on what they believed
were business trips, either to buy materials like uranium ore or sell atomic
goods. 

In Dubai, they have scoured one of the network's front companies, finding
traces of radioactive material as well as phone records showing contact with
Saudi Arabia. Having tracked the network operations to Malaysia, Europe and
the Middle East, investigators recently uncovered an outpost in South
Africa, where they seized 11 crates of equipment for enriching uranium.

The breadth of the operation was particularly surprising to some American
intelligence officials because they had had Dr. Khan under surveillance for
nearly three decades, since he began assembling components for Pakistan's
bomb, but apparently missed crucial transactions with countries like Iran
and North Korea.

In fact, officials were so confident they had accurately taken his measure,
that twice - once in the late 1970's and again in the 1980's - the Central
Intelligence Agency persuaded Dutch intelligence agents not to arrest Dr.
Khan because they wanted to follow his trail, according to a senior European
diplomat and a former Congressional official who had access to intelligence
information. The C.I.A. declined to comment. 

"We knew a lot," said a nuclear intelligence official, "but we didn't
realize the size of his universe."

President Bush boasts that the Khan network has been dismantled. But there
is evidence that parts of it live on, as do investigations in Washington and
Vienna, where the I.A.E.A. is based.

Cooperation between the United Nations atomic agency and the United States
has trickled to a near halt, particularly as the Bush administration tries
to unseat the I.A.E.A. director general, Mohamed ElBaradei, who did not
support the White House's prewar intelligence assessments on Iraq.



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