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U.S. Concerned By Energy Deals With Iran, Sudan

26 July 2005 -- A senior U.S. State Department official has expressed concern over China and India's willingness to make energy deals with countries he says are "pursuing policies that are harmful to global stability."

In testimony prepared for delivery to the Senate Foreign Relations Committee, Undersecretary of State Anthony Wayne made specific reference to ongoing talks between New Delhi, Islamabad, and Tehran on building a pipeline that would bring Iranian natural gas to Pakistan and India.

Wayne also noted that China and India have significant upstream investments in Sudan's energy sector.

Wayne noted that such investment provides regimes economic support that can undermine efforts to encourage policy changes.

Wayne stressed that China has been particularly active in the purchase overseas energy-related assets in the past 10 years, including in Kazakhstan, Iraq, Iran, and Azerbaijan.