WASHINGTON, Feb 16: China's military build up could tilt the strategic balance with Taiwan and also threaten US forces in Asia, CIA director Porter Goss said on Wednesday.

"Beijing's military modernization and military build up could tilt the balance of power in the Taiwan Strait," Mr Goss told a hearing of the Senate Intelligence Committee.

"Improved Chinese capabilities threaten US forces in the region," he added in testimony to the committee assessing the main security threats to the United States. Mr Goss said that China is stepping efforts to "develop robust, survivable nuclear armed missiles as well as conventional capability for use in regional conflicts".

He added: "If Beijing decides that Taiwan is taking steps toward permanent separation that exceeds Beijing's tolerance, we assess China is prepared to respond with varying levels of force."

China has stepped up warnings to Taiwan in recent months about moves toward what it fears could be a declaration of independence. Nationalists split from China in 1949, after the end of the Chinese civil war, and set up their base in Taiwan.

The Beijing leadership has warned many times that it would use force to stop Taiwan making a formal breakaway. "China is increasingly confident and active on the international stage," said Mr Goss, "trying to ensure that it has a voice on international issues and secures access to natural resources and to counter what it sees as United States' efforts to contain or encircle it."

IRAN: The CIA chief said Tehran was stepping up efforts to build long-range missiles and remains a "state sponsor" of terrorism. "Iran continues its pursuit of long-range ballistic missiles," Mr Goss said.

Goss went on to reaffirm US accusations that Tehran had strong links to militant groups. He said that even after the September 11, 2001 attacks on the United States, "Iran continues to support terrorist groups in the region such as Hezbollah. It is a state sponsor."

He said Iran harbours "important members of Al Qaeda, causing further unclarity about Iran's commitment to bring them to justice one way or another." Goss added that "Iran reportedly is supporting some anti-coalition activities in Iraq in seeking to influence the future character of the Iraqi state."

AL QAEDA 'VULNERABLE': Mr Goss said the Al Qaeda network is now vulnerable, yet remains dangerous and a threat to US national security. "In the past year, aggressive measures by our intelligence, law enforcement, defence and homeland security community along with our key international partners have in fact dealt serious blows to Al Qaeda and other terrorist organizations and individuals," Mr Goss said.

"Despite these successes, however, the terrorist threat to the US in the homeland and abroad endures," he acknowledged. "We know from experience that Al Qaeda is a patient, persistent, imaginative, adapted, dangerous opponent - but it is vulnerable and displaced," Goss added. -AFP