In the 1970s, Khan had been very vocal about establishing a network to acquire imported electronic materials from the Dutch firms and had very little trust of PAEC's domestic manufacturing of materials, despite the government accepting PAEC's arguments for the long term sustainability of the nuclear weapons program. At one point, Khan reached out to the
People's Republic of China to acquire
uranium hexafluoride (UF6) when he attended a conference there – the Pakistani Government sent it back to the People's Republic of China, asking KRL to use the UF6 supplied by PAEC. In 1996, the
US intelligence community maintained that China provided
magnetic rings for special suspension bearings mounted at the top of rotating centrifuge cylinders. In 2005, it was revealed that President Zia-ul-Haq's
military government had KRL run a HEU programme in the
Chinese nuclear weapons program. Khan said that "KRL has built a centrifuge facility for China in
Hanzhong city". In 1982, an unnamed Arab country reached out to Khan for the sale of centrifuge technology. Khan was very receptive to the financial offer, but one scientist alerted the Zia administration which investigated the matter, only for Khan to vehemently deny such an offer was made to him. The Zia administration tasked
Major-General Ali Nawab, an engineering officer, to keep surveillance on Khan, which he did until 1983 when he retired from his military service, and Khan's activities went undetected for several years after.
Court controversy and US objections In 1979, the
Dutch government eventually probed Khan on suspicion of
nuclear espionage but he was not prosecuted due to lack of evidence, though it did file a criminal complaint against him in a local court in
Amsterdam, which sentenced him
in absentia in 1985 to four years in prison. Upon learning of the sentence, Khan filed an appeal through his attorney,
S. M. Zafar, who teamed up with the administration of
Leuven University, and successfully argued that the technical information requested by Khan was commonly found and taught in undergraduate and doctoral physics at the university – the court exonerated Khan by overturning his sentence on a
legal technicality. At both instances, the Zia administration sharply denied Khan's statement and a furious President Zia met with Khan and used a "tough tone", promising Khan severe repercussions had he not retracted all of his statements, which Khan immediately did by contacting several news correspondents.
North Korea, Iran, and Libya in the 1970s. The innovation and improved designs of centrifuges were marked as classified for export restriction by the Pakistan government, though Khan was still in possession of earlier designs of centrifuges from when he worked for URENCO in the 1970s. On multiple occasions, Khan levelled accusations against Benazir Bhutto's administration of providing secret enrichment information, on a
compact disc (CD), to North Korea; these accusations were denied by Benazir Bhutto's staff and military personnel. Between 1987 and 1989, Khan secretly leaked knowledge of centrifuges to Iran without notifying the Pakistan Government, In May 1998,
Newsweek reported that Khan had sent Iraq centrifuge designs, which were apparently confiscated by the
UNMOVIC officials. Iraqi officials said "the documents were authentic but that they had not agreed to work with A. Q. Khan, fearing an
ISI sting operation, due to
strained relations between two countries. On 7 June 1998, 10 days after Pakistan's first underground nuclear test, there was yet another incident according to
Foreign Policy. Kim Sa Nae, wife of a midlevel North Korean "diplomat", who was invited by Khan as part of a 20-member delegation was shot to death a few yards from Khan's official residence after she was suspected to be a spy for the United States by the
ISI that subsequently informed the North Korean authorities. Privately, some Pakistani intelligence sources leaked this information to the
Los Angeles Times. 3 days after Kim's death, both P-1 and P-2 centrifuges, warheads, and technical data, along with Kim's body, were flown to North Korea in the same American made
C-130 cargo plane that was making rounds between Pakistan and North Korea from 1997-2002. In 2003,
merchant vessel BBC China was caught carrying nuclear centrifuges to Libya from Malaysia, the
Scomi Group and
Khan Research Laboratories were supplying nuclear parts to Libya through Khan's Dubai-based Sri Lankan associate Buhary Syed Abu Tahir. This was further revealed in the
Scomi Precision Engineering nuclear scandal surrounding Scomi CEO
Shah Hakim Zain and , son of former Malaysian Prime Minister
Abdullah Ahmad Badawi. In 2005, when Vladimir Putin raised concerns about Pakistan's proliferation network and nuclear transfers to Iran with George W. Bush, the latter said he had pressured
Pervez Musharraf on the issue, stating: "I told him we’re worried about transfers to Iran and North Korea. They put A.Q. Khan in jail; and some of his buddies under house arrest. We want to know what they said. I keep reminding Musharraf of that. Either he’s getting nothing or he’s not being forthcoming," reflecting doubts.
Libya negotiated with the United States to roll back its
nuclear program to have economic sanctions lifted, effected by the
Iran and Libya Sanctions Act, and shipped centrifuges to the United States that were identified as
P-1 models by the American inspectors. In 2008, German nuclear engineer was convicted and sentenced to five years and six months in prison for procuring centrifuges for Libya from Khan, Lerch also acted as Khan's middleman for Iran.
Alfred Hempel, a German businessman, arranged the shipment of gas centrifuge parts from Khan in Pakistan to Libya and Iran via Dubai. The "A.Q. Khan network" involved numerous
shell companies set-up by Khan in Dubai to obtain equipment necessary for nuclear enrichment. of Iran's
Defense Industries Organization was involved in
nuclear proliferation for Iran and North Korea through China. Parts needed for
nuclear enrichment in Pakistan were also imported by Khan from several Japanese companies.
Security hearings, pardon, and aftermath Starting in 2001, Khan served as an adviser on science and technology in the
Musharraf administration and had become a public figure who enjoyed much support from his country's political
conservative sphere. The Musharraf administration avoided arresting Khan but launched security hearings on Khan who confessed to the military investigators that former
Chief of Army Staff General
Mirza Aslam Beg had given authorisation for technology transfer to Iran. On 5 February 2004, President
Pervez Musharraf issued a pardon to Khan as he feared that the issue would be politicised by his political rivals. Despite the pardon, Khan, who had strong conservative support, had badly damaged the political credibility of the Musharraf administration and the image of the United States who was attempting to
win hearts and minds of local populations during the height of the
Insurgency in Khyber Pakhtunkhwa. While the local television news media aired sympathetic documentaries on Khan, the opposition parties in the country protested so strongly that the
US Embassy in Islamabad had pointed out to the Bush administration that the successor to Musharraf could be less friendly towards the United States. This restrained the Bush administration from applying further
direct pressure on Musharraf due to a strategic calculation that it might cause the loss of Musharraf as an ally. Blix's statement was also reciprocated by the United States government, with one anonymous American government intelligence official quoted by independent journalist and author
Seymour Hersh: "Suppose if
Edward Teller had suddenly decided to spread nuclear technology around the world. Could he really do that without the American government knowing?". In 2007, the US and
European Commission politicians as well as IAEA officials had made several strong calls to have Khan interrogated by IAEA investigators, given the lingering scepticism about the disclosures made by Pakistan, but Prime Minister
Shaukat Aziz, who remained supportive of Khan and spoke highly of him, strongly dismissed the calls by terming it as "case closed". ==Government work, academia, and political advocacy==