Belgrade, Yugoslavia
The U.S. has accused Yugoslav defense companies of building a cruise missile for Iraq in violation of U.N. sanctions, The Washington Post reported this week. American diplomats sent a letter chastising Yugoslav officials for allegedly allowing the state defense company, Yugoimport, to arrange the contracts. Iraq is known to have ballistic missiles, which are unwieldy and often inaccurate, but it has none of the high-tech, easy-to-steer cruise missiles. Yugoslavia denies all wrongdoing.
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