The officials also cite Iran's efforts to develop a longer-range missile, the Shahab-4.
Iran is also working on even longer-range missiles, but they are in a much earlier stage of development, officials said.
China is expected to have 60 of the longer-range missiles by 2010, the report concludes.
Israel and Egypt both have active programs under way to develop longer-range missiles.
In remarks on state-run television, however, he rejected reports that Iran was seeking to produce a longer-range missile.
However, no longer-range ballistic missiles were fired during that conflict.
Monitoring is required to determine that it does not test any longer-range missiles.
Iraq also says it has two other types of longer-range surface-to-surface missiles, one with a range of 1,200 miles.
But the new report said Iraq had used its work on permitted systems as a cover for the development of longer-range missiles.
Meanwhile, however, the North can make the world a lot more dangerous by developing and selling longer-range missiles.