AMERICAN officials meeting behind closed-doors have failed to reach a decision on the sale of sensitive jet engine technology to China amid fears that Beijing will divert the know-how to boost its missile capabilities.
And CIA Director Mr Robert Gates has said in a report there is evidence China has obtained some of the technology for the US-made Patriot anti-missile system.
Sources in Washington said higher-level White House meetings may be held in coming days in a final effort to reach a decision on the engine sale before outgoing president Mr George Bush leaves office on January 20.
Officials are bitterly divided on whether to allow the sale and sources said a final ruling may have to be left to the incoming Clinton administration.
The closed-door meeting was chaired by the National Security Council and attended by senior officials from State, Commerce and Defence departments.
Both the State and Commerce departments favour the sale of the jet engines which China wants to buy for its trainer warplanes.
But Defence officials are vehemently opposed to the technology transfer, arguing the Chinese could use the engines to power cruise missiles.