DO WE DARE CALL IT TREASON?

[Dr. Jai Maharaj]

DO WE DARE CALL IT TREASON?

By various Free Republic posters
Thursday, October 22, 1998

CHINA MISSILES

* Five years ago China could not target missiles to the US. Now, June
98, 13 of their 18 are targeted at the US. Guidance technology from Loral &
Hughes made that possible. The Department of Justice was in the process of
investigating when the President approved the transfer of such technology
(after the fact.) Hot Seat technology has been moved from Department of State
to the Department of Commerce. Bernard Schwartz, CEO of Loral was the largest
individual donor to the Democrats in 96. China is one subject of ongoing
investigation into illegal campaign contributions to DNC and Clinton/Gore.
* The Pentagon’s top expert monitoring proliferation during the Bush
administration, Henry Sokolski, testified to the House June 17, 1998.
Question to Sokolski "In allowing U.S. satellite technology transfers to
China, isn't the Clinton Administration simply doing what the Bush
Administration did before it? " Answer: "No, there are differences. Although
Clinton and Bush both waived Tiananmen Square sanctions to allow U.S.
satellite technology transfers to China, the Clinton administration went much
further in loosening controls over them by moving virtually all commercial
satellite technology from State to Commerce Department controls. This shift
has eliminated systematic government monitoring of prelaunch conversations
between U.S. contractors and Chinese space firms and, according to the General
Accounting Office, marginalized the previously important licensing input of
the Defense Department. Question to Sokolski "But isn't the most important
point that Reagan and Bush started this commerce? " Answer: "It's hard to see
how. Either the transfer of critically important military technology is an
inevitable part of launching U.S.-made satellites or it's not. If it is, then
persisting in the business (with 14 launches) is just as blameworthy as
starting it (with 4). Indeed, it could even be worse if you began such
commerce in the vain hope that you could control its diversion but persisted
in transferring satellites knowing that it couldn't. On the other hand, if you
believe U.S. controls can prevent the Chinese military from benefiting from
such trade, then, not who started such commerce, but who has allowed what to
be transferred are the critical issues" His chart showed that between 1990
and 1996, one in four Chinese rockets carrying commercial satellites blew up.
But since 1996, the Chinese have had a perfect record: 10 consecutive
successful launches. It was in mid-1996 that two U.S. satellite makers --
Loral Space & Communications and Hughes Electronics -- helped Chinese
engineers figure out why a satellite launching failed in February 1996.
* On June 17, 1998 Liu Ji vice president of the Chinese Academy of
Social Scientists, said "China, out of ideological and moral obligations, can
easily become an anti American force …If you really want to make China your
enemy, you will find that China not only is an unbeatable enemy, it is also a
most unreasonable enemy"
* In a New York Times exclusive, it was noted that "Twenty-two seconds
after liftoff on Feb. 15, 1996, the Long March rocket exploded, showering
fiery debris, burning fuel and chaos on a nearby Chinese village, where by
American accounts as many as 200 civilians were killed. For five hours,
Chinese authorities barred them from rushing to the crash site, purportedly
for their own safety. When the Americans finally reached the area and opened
the satellite's battered but intact control box, a supersecret encoded circuit
board was missing. Now congressional investigators are asking whether there
could be any explanation for the missing technology other than that the
Chinese took it."
* Rep. Curt Weldon, R-Pa., said the missing circuit board would be a
main focus of a special select committee the House created last week to
investigate the wide-ranging China accusations. The control box containing the
circuit board was recovered at the crash site, he said, "but the card is gone.
We better call the Chinese on this issue. That is a very serious concern."
Rep Curt Weldon quoted a statement he said was given to him by the National
Security Agency that warned: "If the encryption board were
reversed-engineered, the knowledge gained could be used to strengthen
adversaries' knowledge" of the devices the United States uses to safeguard its
communications systems.
* Rep Tillie Fowler R-Fla. wondered why officials from the Defense
Intelligence Agency, who are supposed to be consulted on such technology
transfers, were apparently not consulted in the 1996 sale of encrypted ground
station terminals to a Chinese military company, China Electronics Systems
Engineering Corp.
* Three issues in the Customs investigation into Shen and Hughes: What
was Shen doing in the two years between his being hired by Hughes in 1994 and
when Hughes got the State Department license that permitted him to work as a
language interpreter in non-sensitive areas of the satellite program? Why did
Hughes not tell the State department of the relationship between Shen and his
father, a general in the Chinese People’s Liberation Army? Why didn’t Hughes
tell the government that Shen was not just an interpreter but was actually a
project manager?
* Anther question would be why Dr. Wah Lim of Loral (who gave the
subject information to China) was granted a top secret clearance in 1994
several months before a background investigation was completed? And why did
he use the last name "Thomas" on some official documents?
* 7/2/98 NY Times Peter Rodman "…Some Chinese military writings openly
identify the United States as ‘the opponent.’ China is buying advanced Russian
weapons that were designed to counter American military power. These include
quiet submarines, supersonic anti-ship missiles built to attack the
Aegis-class destroyers and cruisers that are the brain of American naval
power, and torpedoes that home in on the wake of ships, specifically American
aircraft carriers." …"
* 7/6/98 FoxNews Brit Hume’s report says that the Clinton
Administration permitted the sell of Garrett turbofan jet engines to China
despite protests and that China used the engines to improve their Silkworm
(cruise) missiles. Freeper "Eyes Wide Open" suggests it may be the same
turbofan jet engine used in the AGM-86B ALCM or the classified AGM-86C.
* 7/1/98 The Winds on the Clinton/China trip "…Schwartz lobbied
Clinton to relax export controls so Loral could sell rocket technology to Red
China -- ostensibly for the purpose of improving their satellite delivery
capabilities. It just so happens that this technology enables Red China to
deliver nuclear weapons to U.S. cities as well. Clinton, contrary to protests
of some in his administration, ordered the changes to export controls that
would allow China to obtain rocket technology…:
* 7/14/98 Washington Times Bill Gertz "China's new rocket stage
developed for a U.S. satellite contact created a "technology bridge" that
could help the Chinese deploy multiple warheads on strategic missiles,
according to a classified Air Force intelligence report. The new Chinese
upper-stage booster, called a "smart dispenser," was built in 1996 for the
Long March 2C/SD rocket as part of a contract with Motorola to handle double
satellite launches needed for a new global telephone network, according to a
report by the Air Force National Air Intelligence Center. A copy of the
report, labeled "secret," was obtained by The Washington Times from Pentagon
sources. The intelligence center, where the government's top missile
specialists work, conducted a detailed study of whether the satellite
dispenser could be adapted by the Chinese for a first-generation,
three-warhead "post-boost vehicle" for the CSS-4 and other intercontinental
ballistic missiles (ICBMs). "The overall conclusion of this initial
feasibility study shows that a minimally modified smart dispenser could be
used to deploy multiple re-entry vehicles" -- nuclear warheads, the December
1996 report states. "The technology built into the [smart dispenser] has many
potential uses beyond the Iridium mission," it said, referring to the name of
the Motorola network project…"
* 7/14/98 Tom Raum AP "A Senate investigation into satellite exports
to China has concluded that China received military benefits and sensitive
technology from the transfers, Senate Majority Leader Trent Lott said today.
Announcing the preliminary results of a Senate inquiry, Lott said new
information had come to light that ``should remove all resistance to naming an
independent counsel'' to look into China's efforts to influence the American
political process…."
* 7/15/98 AP "China accused the Senate's top Republican on Wednesday
of trying to sabotage progress in U.S.-Chinese relations with allegations that
China used U.S. satellite exports to enhance its military capability…."
* 7/15/98 AP Laura Myers "A ballistic missile attack against targets
in the United States could be mounted with "little or no warning,'' a
bipartisan commission concluded in a report that challenges previous
intelligence estimates. House Speaker Newt Gingrich, a strong proponent of a
national missile defense system, called the assessment released Wednesday "the
most important warning about our national security system since the end of the
Cold War.''…"The major implication of our conclusions is that warning time is
reduced,'' said Donald Rumsfeld, former defense secretary and the commission
chairman. "Indeed, we see an environment of little or no warning of ballistic
missile threats to the U.S. from several emerging powers.'' In 1995, a widely
criticized assessment by the Central Intelligence Agency concluded that no
country other than the five established nuclear powers would be able to
threaten U.S. cities with ballistic missiles for another 15 years….The
commission said the threat comes from emerging nuclear states like North
Korea, Iran and Iraq, which can easily gain technology and hide weapons
development. China and Russia, also missile threats, were cited as the largest
proliferators…In a letter to members of Congress, CIA Director George Tenet
called the threat from ballistic missiles "complex, serious and growing'' and
agreed with the commission on the "need to focus relentlessly'' on it…."
* AP 7/15/98 John Diamond "The Justice Department's probe of satellite
exports to China includes a 1995 Commerce Department decision to allow Hughes
Electronics Corp.to give China a report on a rocket launch failure without
Pentagon or State Department review….The Commerce decision, made in a
three-page attachment to Hughes' analysis of the launch failure, was
highlighted Wednesday by Sen. Richard Shelby, R-Ala., chairman of the Senate
Intelligence Committee. "This would appear to me and to others to be a pretty
serious breakdown in the safeguards,'' Shelby said at a committee hearing.
David Tarbell, the Pentagon's chief official in charge of reviewing exports
for national security concerns …,"I think that the report should have been
provided to the Defense Department,''…"
* 7/16/98 Insight Timothy W. Maier "Codes for electronic
countermeasures to protect U.S. aircraft, including Air Force One, have
disappeared from a company under suspicion of helping China improve its
missile capability. A former Loral Space & Communications Ltd. security
executive has dropped a bomb -- not the nuclear device but one just as
explosive. The jamming codes -- or the tests for the super-secret codes -- for
U.S. missile countermeasure systems that protect our high-flying military jets
(including Air Force One) disappeared under unexplained circumstances in 1990.
And even though those codes since have been upgraded or replaced, the missing
computer codes still could pose serious threats if in the hands of a foreign
power or terrorist organization…."
* 7/16/98 Reuters "China on Thursday dismissed as "lies'' accusations
from the U.S. Senate that it gained military technology by launching American
satellites on Chinese rockets. "Past cooperation between the United States
and China in the field of satellite launching were totally normal commercial
exchanges,'' Foreign Ministry spokesman Tang Guoqiang told reporters. "It is
impossible for China to, and China would not, obtain secret American
technology in the process of launching satellites,'' Tang said…"
* 7/16/98 Washington Post Bradley Graham "Challenging official U.S.
intelligence estimates, a congressionally mandated panel reported yesterday
that Iran and North Korea could develop weapons capable of striking U.S.
territory sooner than government analysts have predicted and with little or no
warning. Members of the bipartisan Commission to Assess the Ballistic Threat
to the United States declined to link their findings to the contentious
political debate over whether to deploy a national missile defense system…"
* 7/`9/98 Paul Richter LA Times "…Government rules call for close and
continued oversight when companies ship high-tech products that might give a
foreign power new military capabilities. But the recent history of satellite
exports to China shows regular slip-ups in a system that the administration
has defended as fully adequate to protect national security. Specifically, the
government failed to require Pentagon export-security monitors at seven of the
12 launches that occurred during President Clinton's watch--including one as
recently as May--although officials said they believe that a monitor should be
present for each event. And in five of the launches, the monitors now required
by government regulations were not on hand for prelaunch planning meetings
between U.S. and Chinese teams, though some experts consider these meetings
even more critical to protecting secrets than the launches themselves…."
* America's Future 7/20/98 F.R. Duplantier "…"China's nuclear and
missile aid to Pakistan has ratcheted up tensions across the subcontinent,
sparked a dangerous arms race, and increased the prospects of a nuclear war."
"Since the 1970s, China has been instrumental in Pakistan's nuclear and
missile programs," observe Richard Fisher and John Dori of the Heritage
Foundation…"A dangerously destabilizing arms race is developing among India,
Pakistan, and China," they warn. "China's deep involvement with Pakistan's
nuclear program contributed to the new Indian government's decision to test
nuclear weapons."…The President who made that dire development possible, of
course, is the same President who prevents implementation of a U.S. missile
defense system. What possible motivation could Bill Clinton have for
transferring to our most dangerous potential enemy the technology necessary to
improve the accuracy of missiles targeted against us? What possible motivation
could he have for deliberately leaving our nation defenseless against missile
attack? Can sheer ineptitude excuse either of these suicidal missteps,
considered separately? Taken together -- the upgrading of China's missile
capability, the commitment to U.S. vulnerability -- do they not suggest
something far more sinister than imbecility? Clinton in his reckless
cleverness may think that he's in the clear, so long as treason cannot be
proven. But the only other explanation for his actions is an incompetence so
colossal that it might as well be treason. Either way, he cannot continue as
President."
* Washington Times 7/22/98 Bill Gertz "China test-fired a rocket motor
for its newest long-range missile during President Clinton's recent visit to
China, Pentagon officials said yesterday. The July 1 motor test for the DF-31
missile was part of China's ongoing strategic weapons modernization effort,
which included producing six new long-range missiles in the first four months
of the year. In commenting on a report in The Washington Times about the
surge in ICBM production, the State Department said yesterday that China's
strategic nuclear modernization will not affect efforts to develop a
cooperative security relationship with Beijing… This official does not believe
China has "de-targeted" its long-range missiles away from U.S. cities despite
its recent pledge. The CIA reported earlier this year that 13 of 18 CSS-4
missiles are targeted on U.S. cities…According to reports by the Air Force's
National Air Intelligence Center (NAIC), the DF-31 is a single-warhead missile
with a range of more than 4,500 miles in the "late stages" of development. Its
solid-fuel propulsion is a major improvement over liquid-fuel CSS-4s, the
current mainstay of the Chinese ICBM force. "The DF-31 ICBM will give China a
major strike capability that will be difficult to counterattack at any stage
of its operation," said a December 1996 NAIC report labeled "secret." "It will
be a significant threat not only to U.S. forces deployed in the Pacific
theater, but to portions of the continental United States and to many of our
allies." A map accompanying the report showed that the DF-31 could hit targets
throughout the western United States along a line running southwest from
Wisconsin through California…."
* Congressional Record; Page H6086 7/22/98 - The Honorable James
Traficant (OH17) "…Are we stupid? This is not even a debate about trade
anymore. Today's debate is about national security and, by God, the Congress,
if they do not approve this resolution, will be financing the greatest
military threat in the history of the United States. Quite frankly, I do not
understand the White House. I am going to tell it right the way it is. The
White House will not wise up until there is a Chinese rocket stuffed right up
their assets. They are so dumb on this issue they could collectively throw
themselves at the ground and miss…"
* Mark Hosenball Newsweek 8/3/98 "Michael Armstrong had a $240 million
problem. In 1993, the chairman of Hughes Corp.--the giant aerospace
company--was putting together lucrative deals with Beijing to launch two of
his company's U.S.-made communications satellites atop Chinese rockets. But
when American intelligence agencies caught China sneaking missile technology
to Pakistan that year, a violation of international antinuclear agreements,
the administration clamped down. The State Department announced all satellite
exports to China would be banned for two years. Just six months later,
however, the Hughes deals with China were back on track--with the
administration's blessing…
* AP Worldstream 7/27/98 Tom Raum "China assured the United States on
Monday it will follow through on its pledge to stop targeting the 13 nuclear
missiles it has aimed at U.S. cities, although it did not say when or whether
it had already done so. ''The Chinese people are a people who always honor our
commitments,'' Chinese Foreign Minister Tang Jiaxuan said during a meeting
with U.S. Secretary of State Madeleine Albright. "
* 7/31/98 The Washington Times Ralph Hallow "A new poll shows that
more than three-quarters of Americans wrongly believe the U.S. military can
destroy an incoming missile. "The American people are being lulled into a
false sense of security by the Clinton administration," Rep. Floyd D. Spence,
the House National Security Committee chairman, said Thursday at a Capitol
Hill press conference. The South Carolina Republican said President Clinton
has repeatedly and wrongly claimed that there are no missiles pointed at the
United States.."
* 7/31/98 The Washington Times Ralph Hallow "The Rumsfeld Commission
report found that North Korea, Iran and other countries are hiding their
ballistic missile development programs from U.S. satellites. It said these
countries are using huge underground laboratories and factories to make and
test missiles. Mr. Nicholson, who has been touting a missile shield on radio
and in signed opinion columns in newspapers, said Democrats are filibustering
a bill that would begin development of such a shield.
* 7/31/98 USA Journal Online Jon Dougherty "There is an expression
that goes, ‘Every once in a while, even a blind squirrel can find a nut.’ It
is based on this premise that I hold any stock whatsoever in the ABC News
Online series which describes just how specifically Americans are wittingly
and unwittingly helping to fund our next great war – with China. I’ve done
enough of my own research to know that most of what the series contains is
valid, and it should not just be enough to outrage people, it should be enough
to scare the pants off of people. .. And like a chess player, I see other
moves the Chinese are making which could produce a ‘checkmate’ in the game
before our side even realizes it has begun. Consider: The Chinese have done
everything they can to acquire – and then proliferate – weapons of mass
destruction. This wholesale irresponsibility has included, but is not limited
to, nuclear weapons technology, ballistic missile technology, bio- and
chemical warfare capability, and some lesser technologies as well. …Consider:
The Chinese military has quite probably found an ingenious way to acquire a
new Russian aircraft carrier called the Varyag. That vessel, only
three-quarters complete and anchored and rusting in the harbors of the
Ukraine, was purchased, sources say, by a conglomerate posing as a gaming
investment firm, but has roots in the PLA leadership that oversees the part of
China where their largest shipyards are located. …Consider: China and the US
both go out of their way to maintain an appearance of friendship to the rest
of the world [particularly gullible have been the American people]. But why
would a ‘friend’ of this country engage in massive military modernization
programs while at the same time telling anyone who will listen that our
country is their mortal enemy? What kind of sense does that make to any
reasonable person?… "
* 7/28/98 FR Duplantier ""U.S. military intelligence discovered in
1993 that China had sold missile technology to Pakistan," reports Phyllis
Schlafly of Eagle Forum. "Because of bipartisan Congressional demands,
President Clinton barred the U.S. space industry from using Chinese rockets to
launch their satellites." That ban appears to have been the basis for a
fiendish fundraising effort…Schlafly identifies the prescribed penalty for a
President's reckless disregard of national security. "The fact that Clinton
personally issued the waivers to allow shipments of U.S. technology that
greatly improved the accuracy and reliability of Communist China's missiles is
grounds for impeachment," she asserts, "regardless of whether or not there was
any quid pro quo for those decisions. U.S. space technology was just what
China needs to make intercontinental ballistic missiles and point them more
accurately at U.S. cities," Schlafly emphasizes. "And he did it despite the
objections of the U.S. State Department, Defense Department, Justice
Department, and intelligence agencies." …"
* 8/9/98 SOFTWAR "SOFTWAR is pleased to announce an early Christmas
package from those friendly folks who brought you George Tenet, Tony Lake and
Roger Tamraz in the White House. The National Security Council (home of former
Col. Oliver North) has surrendered to a SOFTWAR Freedom of Information request
and sent us enough classified material to give my mail-person a hernia. As
always this material will be reviewed and posted to our web site for you, the
public, to read. Normally, the NSC does not service FOIA requests. In fact,
they have just won a Court case claiming that they are part of the White House
and therefore, not subject to FOIA law. However, the NSC also has come under
fire of late for allowing special interests to take control (e.g... the Roger
Tamraz coffee taste test). The NSC sent a pile of SECRET, TOP SECRET, and
TOP-SECRET-WITH-CODE-WORD documents from inside the Clinton White House that
would put the Chicago phone book to shame. In addition, there are more black
marks (censored) on this material than my kindergarten attendance record.
However, one thing has already jumped out of the pile and bit me on the nose.
George Tenet's personal email. Seems that Mr. Tenet (now CIA Director Tenet)
had a problem understanding encryption. Of course, Mr. Tenet had by this time
taken or sent at least 7 memos, two in extreme detail from the FBI, on the
subject. In short, Tenet was making policy over a technology he did not
understand, a common problem in the Clinton administration. Where there are
questions one must seek answers. The well of wisdom Mr. Tenet sought for
answers was Richard C. Barth, then Clinton's NSC Director of Nonproliferation
and Export Controls. Yet, Tenet would have to ask quickly. Barth was at the
same time preparing to leave the "most ethical" Clinton administration for
greener pastures in business…One funny thing about Mr. Barth, though. Seems he
had an extreme interest in export of encryption to China. On June 17, 1993
Barth wrote a secret memo covering export controls on encryption. Inside this
memo he expressed his concerns that big bucks were at stake selling crypto
behind the bamboo curtain. "With the rapid decentralized growth of
manufacturing in advanced telecommunications systems, other markets such as
the PRC may be lost to US exporters due to export control restrictions," wrote
Barth. "Recent evidence from AT&T seems to indicate that indigenous PRC
production and availability of advanced switches from Israel are costing US
exporters millions in lost sales." Would it surprise you to find out that
Richard Barth left the Clinton administration to work on encryption export
issues for a major FORTUNE 500 Company with hundreds of millions of dollars at
stake inside the PRC? Would it surprise you that Barth and Tenet also
continued their "special" relationship? I thought not... "
* Craig Brown Heads Up 8/9/98 "We've all heard ad nauseum the chorus
by James Carville, Lanny Davis and the other White House hand puppets that
goes, "everybody's tired of hearing about this two-bit sex scandal, so why
can't we just get this behind us and move on?" Indeed, they've repeated this
so many times that I'm beginning to agree with them. Why don't we move on to
more important things? The talk shows and the press have been so obsessed with
Monica -- her missing dress and the "pesidue" on it -- that they have lost
sight of what has been going on, almost in secret, in the White House. While
our eyes are trained on the comings and goings of Monica, Linda and Ken, we
seem to forget that more than thirteen China based nuclear missiles are
trained on our cities. For God’s sake, yes, let's move on! Let's quit
worrying about who put stains on an airhead’s dress and pay attention to those
missiles aimed at us, how they got there and who's responsible…Insight's Tim
Maier has told the story of a group of courageous Loral employees, lead by a
lady named Marj Walker, who have exposed the theft of top-secret technology
developed by Loral and passed on to Chinese agents of the People's Liberation
Army. You can label this what you want, but whatever it is, it sure tops
Monica gazing…Call it what you will, Mr. Clinton. But to us, this is what is
collectively known in the United States Constitution as "high crimes and
misdemeanors."
* Congressional Record 8/7/98 Rep Rohrabacher "…I disclosed
information that indicated that American aerospace firms, with the
acquiescence of officials in the Clinton administration, and perhaps the
President himself, had facilitated the transfer of sophisticated rocket
technology to the Communist Chinese…First and foremost, since my first
address, nothing has emerged that suggests that my original statements were
inaccurate. The more information that becomes available, the more certain it
becomes that aerospace firms like Loral Space and Communications, Hughes and
Motorola, callously disregarded the security of our country…Hughes
notwithstanding, there is ample evidence that American technology was
transferred to this hostile potential enemy of the United States and that the
vast experience of some of our best aerospace engineers provided the Communist
Chinese the guidance needed to upgrade and perfect highly sophisticated
weapons systems, increasing the reliability and capability of Communist
Chinese rockets.….I expected, after my first speech on this issue, that the
companies in question would protest that I was wrong, that my fears were
unfounded, that my sources had exaggerated the damage being done to our
security. That has not been the case. The dangers to our country may, in fact,
have been understated… This is what Bernard Schwartz wanted to sell to the
Communist Chinese. We do not know exactly how much of this lethal
weapons-related technology Loral was able to transfer. He was stopped in many
cases, and he was not given permission in many cases. But what is clear, that
when it comes to the upgrading of China's rocket system, which could land a
nuclear weapon here, Loral was anxious to help, and in fact there is evidence
to indicate that the weapons systems, that these missiles were improved with
Loral's help…The Chinese Government, once Loral and Hughes jumped into
analyzing what had gone wrong with this launch, the Chinese Government
requested a Chinese-born Loral executive named Dr. Wah Lim, to be put in
charge of this report. Loral complied with this request, and replaced an
experienced American U.S. Air Force colonel who was at that time responsible
for the launch security, and they replaced this man, this American military
officer at Loral, they replaced him with Dr. Lim, who had been requested by
the Communist Chinese. ….To put that in terms that my colleagues might
understand, now millions of Americans live under the threat of being
incinerated by a nuclear weapon launched at the United States from China, and
made more accurate and made more reliable by our own aerospace industry….. We
are not just talking about American satellites. Again, when we hear the issue
discovered, those people who talk about satellites, are trying to confuse the
issue. What we are really talking about is the upgrading of a nuclear weapons
delivery system in the hands of the Communist Chinese, a weapons system that
is designed to hit American cities and vaporize millions of our own
people….The frightening fact screams out at us. China did not have MIRVing
capability for this system before the iridium satellite contract was signed
with Motorola. However, on September 1, and here is a quote from the Chinese
themselves, on September 1, 1997, the official Communist Chinese news agency
reported, and I quote: A Chinese long march rocket carrier containing two
simulations, two simulations of iridium satellites owned by the American
electronic giant Motorola was successfully launched. And here is the hook to
it. The carrier, based on the long march 2-C, was the first of its type ever
launched….In addition, Motorola officials confirmed to me that they have
provided the Chinese with technology such as exploding bolts. Exploding bolts.
That is the technology that facilitates the stage separation of rockets….
Well, at first the company was turned down, Motorola, when they wanted to give
some of these technologies, these exploding bolts that facilitate MIRVing and
stage separation technology, they were turned down. They were turned down in
their attempt. Just as perhaps Bernie Schwartz was turned down on some of
these requests early on to sell weapons technology to the Chinese, they were
turned down to sell these exploding bolts to the Chinese. But through a
Clinton administration sleight of hand, by readjusting the paperwork, the
licensing process moved forward, and this technology, which helps the rockets,
was moved from the rocket category, which is illegal for these companies to
transfer to the Communist Chinese, it was moved to the satellite list simply
by reworking the paperwork. Now, it is permissible for them to give this
technology, before it was illegal. … there is a white paper on China's
national defenses. The document is from a leadership document of the Communist
Chinese themselves. It was released last week. This white paper details
China's own goals. It calls the United States and its alliance with democratic
countries in Asia as `the main threat to world peace and stability.' It calls
our own defense pact, America's defense pact with Japan, `an infringement on
China's internal affairs.' What, pray tell, might China's national military
objective be? Beijing's white paper emphasized China's intention to use force,
if necessary, to conquer the free people of Taiwan. These are people that the
United States, by treaty, have sworn to protect and defend. China is also
staking out its claim to all the territories in the South China Sea, including
islands just off the coast of the Philippines, almost within view of the
Philippines and Malaysia as well…. In this, China, while cozying up to this
dictatorship, actually supporting the dictatorship in Burma, is building a
chain of military naval installations in Burma along the Indian Ocean that, in
part, have lead India, have lead India to become more aggressive in developing
its own conventional and nuclear weapons policies. While China was assuring
the world that it was against this nuclear arms race, and we have seen that in
Pakistan and in India and what a threat it is, but while China says it is
against that arms race, what has it done? It continues to ship and to smuggle
components to Pakistan for their nuclear weapons program and their missile
delivery systems. This is really, perhaps, the thing that China is doing that
perhaps causes a short-term threat, even greater than the long-term threat of
their own missiles. If Pakistan and India began exchanging rockets and atomic
bombs, millions of people will die, and it will be a tragedy beyond all
description. China is helping people put these weapon systems together. Even
worse, during, and this is during and after, President Clinton's stay in
China, our new strategic partner, because that is what the President is trying
to say China is, our partner, this villainous, evil regime is this strategic
partner, even while he was there trying to make friends with them so they
would be good guys, the Communist Chinese continued to transfer weapons of
mass destruction technology and know-how to Iran and Libya while the President
was there….However, the most egregious demonstration of contempt, contempt for
the people of the United States and contempt for President Clinton, was
demonstrated when Beijing successfully tested an engine for a whole new
generation of long-range ICBMs. This weapon that can hit the United States
from mobile missiles launched in China, this engine for this new rocket was
tested while President Clinton was right there in Beijing saying, let us be
friends. Let us be friends. This is worse than Neville Chamberlain and his
efforts to try to befriend Adolf Hitler in order to prevent aggression just
prior to World War II…."
* Lateline News 8/9/98 "Police raided the Tokyo offices of electronics
producer Hitachi yesterday, looking for evidence the company may have played a
role in exporting equipment to China that could be used to build nuclear
weapons. Investigators entered the headquarters of Hitachi Electronics on
suspicion the company violated Japan's export control laws by making sensitive
devices, a Hitachi spokesman said….The wholesaler, Tokyo-based Ryokosha,
allegedly exported precision measuring devices to China in December 1996
without the required approval from the Trade Ministry…."
* The Australian Financial Review 8/8/98 "…But the PLA's delight in
running roughshod over the country since the military plunged into business
more than a decade ago no longer impresses China's leaders. In late July,
President Jiang Zemin ordered the PLA to get out of business. So far, Beijing
hasn't spelled out a precise strategy for forcing the military to divest
itself of a mind-numbingly complex web of thousands of commercial interests
that span pharmaceuticals, cars and telecommunications. But many analysts
believe the campaign is for real. "This is the most serious effort ever to
rein in the PLA's activities," says Tai Ming Cheung, a senior director at
Kroll Associates (Asia) Ltd and a long-time PLA watcher. …The decision to
dismantle PLA Inc is the product of a consensus among military and civilian
leaders, who are concerned that the army is concentrating more on getting rich
than on defending the motherland. …It is China's rapidly deteriorating
economy, however, that forced Jiang to act now. The army's insatiable lust for
wealth is disrupting the economy. Massive smuggling by PLA-linked black
marketeers is destabilising industries from oil drilling to steel – and may
even be putting pressure on China's currency. Military units are undermining
central plans to manage the development of China's telecommunications and car
industries. The PLA's vast property holdings, which range from simple guest
hostels to Beijing's swanky Palace Hotel, have added to China's real estate
bubble. Then there are the open displays of defiance against securities
regulators and law enforcement agencies…"
* Roll Call 8/13/98 Ethan Wallison "While the August recess means
vacation time or district work for most Members, those on the House select
committee investigating transfers of satellite technology to China will
reconvene in Washington next week for a series of hearings. Facing a January
deadline, the panel's chairman, Rep. Christopher Cox (R-Calif), has set a
rigorous August agenda that is likely to include almost daily sessions --
lasting as long as six hours each -- that will continue through the chamber's
return in September…."
* 8/13/98 Reuters "China called Thursday for urgent moves to prevent a
"Star Wars'' arms race in space, in a thinly-veiled criticism of the United
States. Chinese Ambassador Li Change urged the United Nations' arms control
body to launch global negotiations to stop outer space from being turned into
a battlefield. Li condemned space weapons research programs which he said were
designed to seek "absolute strategic superiority and absolute security for one
or a few countries.''… "
* WorldNetDaily 9/3/98 Joseph Farah concerning why The Chinese
Overseas Shipping Co. (COSCO) wholly owned by the Chinese People’s Liberation
Army is determined to secure the US Naval Base in Long Beach California when
alternatives are available "is pushing harder than ever to secure a port
facility at the former U.S. Naval Base in Long Beach, Calif. "…Strategically,
it is within earshot and sightseeing distance of all important commercial
ports in California. It is relatively close to America's computer belt in the
Silicon Valley. But more importantly, it is near the Pacific Missile Test
Center, the U.S. Naval Weapons Station, Camp Pendleton and the Naval
Amphibious Base in Coronado, the Fleet Anti-Sub Warfare School, Sub Flotilla
5, the Naval Command Station and the Miramar Marine Corps Air Station. And, of
course, as I've mentioned many times before, there's the Sea Launch facility a
veritable stone's throw away in the same city. That's the project, now under
investigation by the Justice Department, for possible security breaches. Sea
Launch, which plans to blast satellites into space from equatorial ocean
platforms, is a partnership of the Boeing Corp. and three foreign entities
including one dominated by Russian intelligence. Moscow and Beijing have a
formal agreement to share intelligence information, especially when it
pertains to their "common adversary," the United States of America. Do you get
the picture? Could it be any more obvious? Why, then, is the U.S. government
still considering COSCO as a suitable tenant for such a sensitive port
facility? It would seem like a no-brainer. Ah, but then we have a man in the
White House who doesn't believe the Chinese pose a strategic threat to the
United States. He is a man who approved commercial projects with Beijing that
permitted the Chinese to improve their nuclear missile targeting on U.S.
cities. He is a man whose largest campaign contributors in 1992 and 1996 have
strong economic and/or espionage relationships with China…."
* Tom Raum AP 9/18/98 "House and Senate negotiators announced today
they want to return final jurisdiction over satellite exports to the State
Department, undoing President Clinton's 1996 decision to move it to the
Commerce Department. The decision, part of a compromise defense bill, came a
day after administration officials told a Senate hearing the new system is
working better than the old system. Clinton moved final licensing
responsibility out of the State Department in 1996, despite initial opposition
from then-Secretary of State Warren Christopher. But the Republican-led
Congress is moving to return that job to State, largely in response to the
controversy surrounding technology transfers to China…."
* Tom Raum AP 9/17/98 "China is unlikely to have enhanced its
intercontinental ballistic missile program, even marginally, from U.S.
technology transfers, a top Pentagon official said Thursday in Senate
testimony that appeared to contradict an earlier Pentagon assessment. ``I do
not believe that there has been any improvement to Chinese ICBM capability,''
Franklin Miller, principal deputy assistant secretary of defense, told the
Senate Commerce Committee without elaboration. Committee Chairman John McCain,
R-Ariz., challenged Miller's assertion, citing testimony by other experts and
an Air Force intelligence analysis. A variety of congressional inquiries are
under way into whether Beijing benefited militarily from export to China of
U.S. communications satellites and related technology and whether campaign
contributions from aerospace executives or Chinese interests played a
role….McCain retorted: ``Air Force intelligence disagrees with you, Mr.
Miller, and so do almost any expert in the area. That's very startling
information that you're giving us.'' …"
* World Net Daily 9/22/98 Charles Smith "It is said, "dead men tell no
tales." If that were true, then America would have never known of the real
story behind the Clinton administration. Two dead men are calling from their
graves for the last few years of their lives to be told. The ghosts of Vince
Foster and Ron Brown hover over Bill Clinton. Vince Foster and Ron Brown were
both involved in the Clinton/China encryption scandal. One known event took
place in May 1993 when Vince Foster, Webster Hubbell and Bernard Nussbaum paid
the National Security Administration (NSA) a visit. These three fine
gentlemen, with close connections to Hillary Clinton and the Arkansas Rose
Office Law Firm, were tasked by President Clinton to help develop policy for
U.S. communications technology…"
* The Indian Press 9/22/98 "China warned the United States and Japan
today against pushing a missile defence system to counter future threats from
North Korea. "The parties concerned should exercise restraint and refrain from
doing anything that may cause tensions in the region and spark a new arms race
in the region," foreign ministry spokesman Zhu Bangzao said, reports AFP.
"The Chinese side is opposed to the practice of any side to exaggerating this
matter, seeking military superiority or undermining regional security," he
added. Pyongyang launched a three-stage missile which overflew Japan on August
31. Part of it travelled about 6,000 kilometres near Alaska in the Pacific.
The missile launch prompted Tokyo and Washington to begin studying a missile
defence system at a recent meeting in the United States. "We discussed the
urgent need to work together to develop a ballistic missile defence system to
counter future threats," said defence secretary William Cohen on Sunday. "This
is the best way to protect both the United States and Japan," he added…."
* The Hill Jock Friedly 9/23/98 "….The special committee impaneled to
determine whether China benefited from an improper transfer of satellite
technology from U.S. firms is now passing the midway point. Yet the work of
the China panel -- known formally as the Select Committee on U.S. National
Security and Military/Commercial Concerns with the People’s Republiic of China
-- is developing in sharp contrast to the investigation leading up to a
potential inquiry of whether to impeach the president. So far, none of the 16
hearings involving 23 witnesses has been held in public. No evidence has been
made public. A declassified synopsis of the investigation has been prepared
but has still not been released. In contrast to the televised pronouncements
by members of the House Judiciary Committee about the investigation of the
presidential sex scandal, members of the China panel have been remarkably
tight-lipped. None of the several members of the panel phoned agreed to an
interview. Even its chairman, Rep. Chris Cox (R-Calif.), and its ranking
member, Rep. Norman Dicks (D-Wash.), have shunned interviews, deferring
instead to the committee spokesman…."
AFP 10/1/98 Taipie "China's People's Liberation Army plans to test fire its
updated cruise missile at an exercise held in the East China Sea Thursday, a
news report here said….The Independence Morning Post said the missile is
capable of turning direction three times at angles greater than 35 degrees at
preset points, before eventually hitting targets. "This indicates that it has
partially outperformed the Tomahawk cruise missile now serving the United
States army." The missile has a projection range of up to 1,200 kilometers
(744 miles). China put its first cruise missile unit into force in May 1996,
making it the third country in the world to operate the strategic weaponry.
The report came one day after Taiwan's chief of general staff, General Tang
Fei, told parliament that the island could do virtually nothing in repelling
the military threat from China…."
* Accuracy in Media 10/7/98 Reed Irvine Cliff Kinkaid "The McLaughlin
Group program has raised the issue that we mentioned last week: that a foreign
government was tapping President Clinton's telephone lines during the time he
was having a sexual relationship with Monica Lewinsky. This information came
from the Ken Starr report. Clinton told Lewinsky that he suspected that a
foreign embassy (he didn't identify which one) was tapping his telephone
lines. Host John McLaughlin went further, suggesting there was circumstantial
evidence that both the FBI and the Chinese knew about this relationship. He
wondered if Clinton had been blackmailed. McLaughlin noted that three weeks
before Clinton warned Lewinsky that his phones were tapped, the Washington
Post had broken a story about the National Security Agency, the NSA, having
intercepted communications from the Chinese embassy. These had been provided
to the FBI. McLaughlin wondered if those intercepts had also revealed evidence
that the Chinese knew about Clinton's affair with Lewinsky. Pat Buchanan, a
panelist on the program, said Starr should have asked the FBI or the NSA about
this…."
* WorldNetDaily 10/13/98 Charles Smith "In 1989 China faced a military
crisis. China was about to become an ex-superpower. In 1989, Major General
Yang Huan, Chinese deputy commander of the second artillery (Strategic Rocket
Forces), wrote a paper in the National Defense Review. Yang admitted that
China had to improve rapidly the red nuclear missile force or face third-rank
global status…In 1994, General Ding Henggao served as chairman of the
Commission on Science, Technology and National Defense Industry (COSTIND).
General Ding solved China's nuclear strategic problems. In 1994, General Ding
wrote a small article titled "Reforming Defense Science, Technology and
Industry" that appeared in China Military Science. Ding wrote "in a future
anti-aggression war, our country will uphold the concept of active defense. It
means that active defense is not just defensive, it is offensive as well. Our
air-defense weapons system and even the whole weapons system should have two
capabilities. It could greatly help overall quality and effectiveness if we
possess one or two effective weapons that can assume the offensive." In 1994
COSTIND took the offensive -- target USA. COSTIND Vice Minister, Lt. General
Shen met and consummated a series of satellite deals with Bernard Schwartz,
the CEO of Loral. The technology obtained from the COSTIND/Loral deals saved
China billions in missile R&D and turned the Second Corps into a deadly force
of thermonuclear war. The Loral operation led by General Shen revealed the
many flaws in Chinese missile guidance and control systems. Improvements in
rocket electronics design and guidance system assembly obtained directly from
Loral were quickly applied to the Second Artillery's force of CSS strategic
missiles. Loral engineers eagerly improved Chinese nuclear missile accuracy
and reliability to near state-of-the-art….General Shen also led the successful
penetration of Hughes in the purchase of ASIASAT satellites. Again, through a
series of meetings with Brown and U.S. Commerce officials, Shen or his
operatives in front companies secured whole satellites from Hughes. The Hughes
satellites provide the Chinese army with secure communications that are
invulnerable to earth combat and highly accurate all weather navigation for
strike bombers and missiles…..The COSTIND penetration of Hughes was so
successful that General Shen managed to get his son, Shen Jun, a job at Hughes
as the lead software engineer for all Chinese satellites. According to Hughes,
Shen Jun had access to "proprietary" satellite source code. Shen's access made
sure that no secret back doors or special computer virus traps were included
inside the Hughes spacecraft by American intelligence services such as the
NSA…..In September 1998, the CIA testified before the Senate National Security
Committee that the Motorola technology is being modified by China to double
the number of nuclear warheads on the CSS strategic missile. The Motorola
transfer also allowed China to upgrade their DF-15 (DONG FENG - Maoist slogan
"East Wind") missile with maneuvering warheads that can avoid American
anti-missile defenses such as Patriot and Standard. Motorola transfers
significantly upgraded the nuclear firepower and accuracy of Chinese weapons.
Motorola technology transfers mean that Chinese warheads can now "penetrate
enemy defenses." President Clinton wrote the waivers for Hughes, Loral and
Motorola. President Clinton took money directly from COSTIND operations in the
form of donations from the same American companies, and in some cases,
donations directly from COSTIND related front companies. President Clinton
paraded many of the projects as part of his golden era of economic expansion.
President Clinton personally arranged for Loral CEO Bernard Schwartz to meet
COSTIND Vice Minister General Shen. …
* WorldNetDaily 10/19/98 Charles Smith and Joseph Farah "…Israeli
defense officials have quietly confirmed that China has exported to Syria M-9
("Dong Feng" DF-15) ballistic missiles reported to have a range of over 370
miles and capable of carrying a 1,100-pound payload, including a tactical
nuclear warhead of about 10 kilotons in yield. The M-9 missile transfer is a
violation of the Missile Technology Control Regime (MTCR) and should require
the Clinton administration automatically invoke U.S. economic sanctions
against China. The administration has taken no such action. The Clinton
administration knew of the Chinese M-11 ballistic missile sales to the Middle
East while publicly denying the transfers to avoid imposing
sanctions….Documentation obtained from the U.S. Commerce Department, using the
Freedom of Information Act, reveals that Loral Chief Executive Officer Bernard
Schwartz was informed by President Clinton of the Chinese M-11 missile
transfers to Pakistan in August 1994. Schwartz was given briefing materials by
Commerce Secretary Ron Brown, detailing the Chinese missile sales and how to
avoid U.S. sanctions by applying for satellite exports through the Commerce
Department….DF-15 (M-9) warheads shot at Taiwan during the February 1996 PLA
exercises displayed MARV or Maneuverable Re-entry Vehicle tactics, changing
course and speed in an effort to avoid defensive missiles. MARV warheads on
the M-9 pose a significant threat to Israel since they will be able to avoid
interception by the Arrow anti-missile currently under joint development with
the U.S. Arrow is expected to cost about $1.7 billion and 40 percent of Arrow
funding is supplied by the U.S…. Last July, Senate Majority Leader Trent Lott,
a Republican, accused the Clinton administration of allowing China to profit
militarily by granting U.S. firms permission to transfer sensitive satellite
technology to Beijing. Clinton's decision to allow Loral to proceed with a
satellite deal with China was opposed by his own Justice Department, Defense
Department and State Department.…."
* Drudge previous 10/18/98 of Jeff Gerth New York Times 10/19/98 story
"…"An examination of the Clinton administration's export policies on China,
based on interviews as well as government and industry documents, shows that
the looser regulations enabled Chinese companies to obtain a wide range of
sophisticated technology, some of which has already been diverted to military
uses." …."Gerth is unloading," one newspaper staffer warned early Sunday.
Senior officials have told Gerth that President Clinton decided to change U.S.
export rules and policy -- involving sales of computers and other cutting-edge
technologies -- without a rigorous review by intelligence officials or other
national security experts. Commerce Department internal documents reviewed by
the TIMES show that China has been a major beneficiary of the new Clinton
policy: "According to a 1995 estimate, more than $1.9 billion in annual trade
with China had been removed from federal scrutiny." In 1996, Chinese
companies bought 77 high-speed computers from U.S. companies, "which can be
used to predict weather patterns but can also scramble secret communications
or design powerful nuclear weapons," reports Gerth. "CIA and other federal
agencies have concluded that at least some of those computers are now being
used by China's military." Gerth's nightmare runs 3,000-words and was bumped
from the paper's lead spot on Monday because of developments in the Mideast
peace talks, it has been learned. The Senate Intelligence Committee and a
special House panel have held a series of closed-door hearings in the past few
months. Gerth outlines the red zones of the probes. The Clinton
administration's new policy on tech sales to China relied on industry
executives to raise questions about their own sales, according to the report.
"They were required to seek a Commerce Department license only if they
believed the equipment would end up in military hands. Aerospace officials say
they are ill equipped to make such evaluations." AT&T and other U.S.
companies sold hundreds of millions of dollars in sophisticated tech equipment
in to Chinese companies building "civil telecommunication networks" in 1994.
The TIMES reports that an examination of the deal by the General Accounting
Office, the audit arm of Congress, has found that "the equipment was sold to a
Chinese-U.S. joint venture, Hua Mei, without Commerce review, even though the
company was partially controlled by several high-level members of the Chinese
military." …"

FOREIGN CONTRIBUTIONS

* Solicited and accepted by Johnny Chung, China’s People’s Liberation
Army contributed to the Clinton campaign. In June 1996 Chung met Liu
Chao-Ying, daughter of an influential military and communist party elitist.
She worked for a company owned by the Chinese military. She was specially
educated. Chung arranged a visa on July 11, 1996, she arrived 10 days later.
In between, Chung made a DNC contribution for access to two fund-raisers, she
had her picture taken with Clinton. Father and daughter wanted a relaxation of
American regulations to permit shooting rockets with U.S. satellites and to
buy advanced technology to make it possible to deliver nuclear warheads. The
Clinton administration gave that permission. Hot seat technology was moved
from Department of State to the Department of Commerce. Juan Huang worked at
Commerce at the time the permission was granted. Huang was granted top secret
clearance (without usual background checks) 5 months before Commerce and kept
it for a year after leaving.
* As part of a plea bargain with the Justice Department, Democratic
contributor Johnny Chung told investigators that Richard Sullivan, a top
Democratic National Committee official, knowingly solicited and accepted a
$125,000 donation in April 1995, despite Sullivan’s previously voiced
suspicions that Chung was acting as a conduit for illegal contributions.
Even so, Justice has not targeted Sullivan in the probe.
* According to Chung but denied by Sullivan, Sullivan contacted him
and solicited $125,000 from him for an April 8, 1995, fund-raiser at the home
of director Steven Spielberg. Chung has also told investigators that DNC
and Clinton-Gore officials were aware that he was bringing foreign guests to a
September 1995 Los Angeles fund-raising dinner when he arrived with 20 people.
At the event, Chung's $20,000 check was rejected due to a legal limit of
$1,000 per person. The following day Chung had 20 friends and employees write
individual $1,000 checks, which were accepted by the campaign and later
reimbursed by Chung.
* American Spectator 9/22/98 Byron York "Investigators for the House
Government Reform and Oversight Committee are analyzing a Democratic National
Committee internal memo that raises new questions about contributions to the
party by Indonesia's Lippo empire. The memo, dated June 11, 1994, is from
then-DNC Finance Director Richard Sullivan to David Mercer, an official who
headed the party's African-American outreach efforts. The note concerns a
fundraising event to be held in Washington June 22 for the DNC Business
Leadership Forum. The Forum is made up of party supporters who pay $10,000
each to join; corporations pay $15,000 to become members. "The current BLF
members are either renewing their memberships or are current and raising money
for the 6/22 event," Sullivan wrote. "The new members are raising a minimum of
25k and are writing [checks for] 10-15k." The memo listed fourteen new or
current members who were to receive invitations to the event. After recounting
the basic name/company/address/phone information about each donor, the memo
listed a few personal facts about the contributors. The last name on the list
was James Riady, head of Lippo Bank and son of Mochtar Riady, chief of the
Indonesia-based Lippo conglomerate. The younger Riady, according to the note,
was: FOB; Former president, Wortham [sic] Bank in Little Rock; Clinton/DNC
donor thru John Huang; Huang requested his invitation and that we send it to
Huang's address. What intrigues investigators is that, according to Federal
Election Commission records, Riady, who gave extensively to the party in 1992,
did not give any money in 1994-or 1996, for that matter. During those years,
he lived in Indonesia, and congressional investigators believe he was not
qualified to make political contributions to American candidates or parties.
Yet the memo indicated that he was contributing money "thru John Huang." …"
* Softwar Charles Smith WorldNetDaily "In September 1998, the Commerce
Department was forced by legal action to release documents from the late
Secretary Ron Brown. The Clinton White House was illegally withholding the
documents from public release. The newly released materials include the
detailed biographies of the entire Chinese communist leadership. The detailed
dossiers were given to DNC donors Loral CEO Bernard Schwartz and investment
millionaire Sanford Robertson by the Clinton White House just prior to their
August 1994 trade trip to China with Brown. Curiously, the briefing package
also included the detailed bio of a civilian who is not even a Chinese citizen
-- Hong Kong billionaire Li Ka-Shing. According to Forbes, Li Ka-Shing is the
sixth richest man in the world. Li is not a red Chinese government official
nor is Li a member of any military service. Yet, a detailed dossier on Li
Ka-Shing was included along with Chinese President Jiang Zemin, foreign
minister Li Peng and other top communist officials…. According to the White
House, Li was also a "member of the boards of directors of the China
International Trust and Investment Corporation (CITIC)." CITIC is the bank of
the People's Liberation Army, providing financing for Chinese Army weapons
sales and western technology purchases. CITIC serves as the chief investment
arm of China's central government and holds ministry status on the Chinese
State Council. Ron Brown helped CITIC more than once. Brown had the CITIC
American representative, Bai Xingji, serve as a panelist/speaker at the 1995
Big Emerging Markets Conference (BEM). Brown arranged for the Chairman of
CITIC, Wang Jun, to meet President Clinton. Wang Jun was not only chairman of
CITIC but also President of Poly Technologies, a firm known to be an outlet
for Chinese weapon exports. Wang Jun is an international arms dealer known in
every major capital of the world. Wang Jun met with Ron Brown and DNC
fundraiser Charlie "Ya-Lin" Trie prior to meeting Bill Clinton and making a
large contribution at a White House coffee/fundraiser. CITIC also owns a
controlling interest in the Hong Kong based Asia Satellite Telecom Co. Ltd.,
or AsiaSat. AsiaSat, a company founded in 1988, operates several
communications satellites in the far east bought from U.S. manufacturers such
as Hughes. Asiasat also signed an exclusive deal with billionaire Li Ka-Shing
to carry his STAR television service -- 54 channels of premium cable/satellite
television including MTV, re-runs of American sitcoms dubbed in various
languages, and pay-per-view X rated movies….Nevertheless, the Chinese Navy
deal to acquire these ships actually started in 1993 when Bill Clinton and the
Democrats were starved for donation cash. The Maritime shipyard-funding
program, managed by the Department of Transportation (DOT), was created to
finance American built ships sold to U.S. flag companies. In 1993, the
Democratic controlled Congress joined President Clinton and altered the
program to allow U.S. financing on ships built for export. Li Ka-Shing, COSCO,
Ron Brown and Bill Clinton worked to provide the four container ships,
including the low cost, 100% U.S. government backed loans, to Hutchison
Whampoa and COSCO…."
* American Spectator 10/98 Byron York "…(1992)Amid all the
glad-handing and schmoozing with local leaders that is standard for such
events, Clinton set aside some time to meet with one particularly notable
guest at Sam Woo. "James Riady, owner of Lippo Bank, will greet BC at
elevator," reads a note on the candidate's daily itinerary, referring to the
Indonesian billionaire now at the center of the campaign finance
investigation. After the event, according to a memo written by campaign aide
Melinda Yee, Riady was scheduled to accompany Clinton during a five-minute car
ride to his next stop, a meeting of small business owners. The brief drive,
the memo made clear, was a very big deal for Riady: He has flown all the way
from Indonesia, where he is now based, to attend the fundraiser. He will be
giving $100,000 to this event and has the potential to give much more. He will
talk to you about banking issues and international business. This is primarily
a courtesy call. The memo, now in the hands of investigators at the House
Government Reform and Oversight Committee and the Justice Department, has
opened up a new vein in the two-year-old campaign finance probe. Investigators
have discovered that a wave of Lippo-related money flowed into the Clinton
campaign in the weeks following the car ride with Riady. They also suspect
that at least some of those contributions fit the pattern of illegal conduit
contributions--straw donors--that later characterized the 1996 Clinton
fundraising operation…."
* John Wheeler Jr. from Freeper quidam "The "Lippogate" fund-raising
scandal, arising from revelations of high-level influence peddling and illegal
foreign money being funneled into the American political process, has shaken
the very foundations of the Clinton White House…. The very first loan Lippo
Finance made was a small business loan to a young Taiwanese entrepreneur named
Yah Lin "Charlie" Trie, who wanted to open a Chinese restaurant across from
the state capitol in Little Rock. In 1984, Riady bought an interest in the
Worthen holding company. The deal was brokered by C. Joseph Giroir II, the
former chairman of the Rose Law Firm and the man who had hired Hillary
Clinton. (Giroir now runs the Arkansas International Development Corporation
and remains active in his dealings with Riady.)…Riady sent his son James to
Little Rock to manage the Worthen Bank, and he soon became fast friends with
the slick, up-and-coming politician in the governor's mansion. One of their
mutual friends was Charlie Trie, who operated the Fu Lin Chinese
Restaurant….Clinton was extremely ambitious and he obviously had his sights
set on the White House. Riady, Trie and Stephens all helped him to advance
those goals over the years by raising, donating, loaning and laundering the
money he needed to do it…John Huang, born in mainland China in the early
1940s, was a long-time employee of the Lippo Group. From March 1985 to
September 1986, he served as vice president of the Hong Kong Chinese Bank,
owned at that time by the partnership of Mochtar Riady and Stephens Inc.,
mentioned previously. Later Huang was transferred to Los Angeles, where he
became Lippo's president of U.S. operations… In January 1993, Huang and James
Riady contributed an additional $100,000 to Clinton's inaugural fund. One
month later, Huang arranged a private meeting in the Oval Office between
Mochtar Riady and Clinton. Riady wanted the renewal of China's Most Favored
Nation trade status and a relaxation of the economic sanctions imposed by the
Bush administration after the Tiananmen Square massacre in 1989. Not long
afterward, Huang was named a trustee of the Democratic National Committee. He
also wrote to President Clinton to express an interest in going to work for
the U.S. government…..Huang was a frequent visitor to the White House -
dropping in about 70 times during this period. At a private meeting with the
President and Mochtar and James Riady in September 1995, Huang suggested that
it might be a good idea for him to resign his position at Commerce and focus
on fund-raising for the 1996 campaign. Clinton agreed….Go back four years to
1992, when Bill Clinton was considered an underdog to win the presidency. His
election stunned most of the world. But just days after Clinton was elected,
an interesting business transaction occurred in Hong Kong. A company called
China Resources [Holding] Company Ltd. began buying stock in the Hong Kong
Chinese Bank from the Riady family. That stock sold cheap - about 15 percent
below its market value. But just eight months later - after China's Most
Favored Nation status had been renewed by the U.S. and Riady had demonstrated
that he had direct access to the White House - China Resources became a 50/50
partner in the Hong Kong Chinese Bank, paying a premium price of 50 percent
more than the stock's market value. The Riadys made a cool $163 million on the
deal. But the real story is Riady's former employee John Huang. At the
personal request of Ron Brown, Huang was given an interim Top Secret security
clearance in January of 1994 - five months before he became a government
employee. Huang was never subjected to an FBI background check or to the
mandatory overseas security investigation that was required for government
employees with foreign backgrounds. On October 18, 1994, Huang's Top Secret
security status was made permanent. During the 18 months he spent at Commerce,
Huang saw "15 classified field reports" and "12 finished intelligence
reports," according to Commerce Department records. Those records also show
that Huang was scheduled to receive 37 Top Secret CIA briefings from John
Dickerson of the Commerce Department's Office of Intelligence Liaison. During
that time, phone logs show that Huang made 70 calls from his office at
Commerce to his former employers at the Lippo Group in Los Angeles - on at
least three occasions, those calls came immediately following the Top Secret
briefing sessions. And why does all this matter? Because U.S.
counter-intelligence sources say that Lippo's new banking partner, China
Resources, is really owned by the Chinese Ministry of Foreign Trade and
Economic Cooperation, and is a known front for the First Bureau of the Chinese
military intelligence department. By a strange coincidence, the chairman of
China Resources turns out to be none other than Shen Jueren, the "very good
Chinese businessman" to whom John Huang introduced Ron Brown in the summer of
1993….
* John Wheeler Jr. from Freeper quidam "…On February 13, 1997, the
Washington Post reported that U.S. counter-intelligence agencies have known
since 1995 that the Communist Chinese government was going to try to influence
the 1996 election by pumping foreign money into the Democrats' campaign
coffers, and that they passed the information along to the Justice Department.
FBI wiretaps and electronic eavesdropping at the Chinese Embassy and the
Chinese ambassador's residence in Washington recorded numerous conversations
between John Huang and various Chinese diplomats, including the ambassador
himself, discussing how they could launder Chinese government money through
the Lippo Group and funnel it to the DNC to ensure a Clinton victory. The
National Security Agency is now analyzing messages previously intercepted
between Peking and Washington to see if Huang compromised national security by
passing along Top Secret information from his 37 briefings. It is focusing
especially on the day in May of 1995 that Huang requested several Top Secret
files on China just prior to a meeting with the Chinese ambassador….Freeh has
responded by putting a special task force of 25 FBI agents on the case, now
dubbed "Chinagate." Seven congressional committees are curently investigating
the suspicious connections between Riady, Huang, Hong Kong, Beijing, the DNC
and the White House…."
* Insight Timothy Maier "…Red Chinese spies are among us. Their
infiltration is so deep, say U.S. intelligence experts, that the prime targets
appear to be America's supersecret encryption and satellite technologies. Once
obtained, their possession by Beijing could provide access to the most
sensitive U.S. military secrets and wreck American intelligence-gathering
worldwide. Interviews with Russian and U.S. intelligence specialists indicate
that China also has plotted covertly to acquire top U.S. computer technology
to disrupt U.S. intelligence operations and prevent American spies from
monitoring Red Chinese activities... . . . A 1995 General Accounting Office,
or GAO, report ordered by the Pentagon and State Department and critical of
exports to China portrays the United States as being a blind trading partner
of China. The unclassified report shows that the United States approved 67
export licenses to China for military-industrial products between 1990 and
1993, including $530 million of missile-related technology. "The Department of
Justice is concerned the Department of Commerce might not be identifying or
seeking interagency concurrence on all potential missile technology
export-license applications," the report declares. . . . . According to
William Triplett II, former chief Republican counsel to the Senate Foreign
Relations Committee, the British and French were furious when Clinton
dismantled the Coordinating Committee for Multilateral Export Controls, or
COCOM - an international arrangement to prevent export of military high-tech.
That decision, he says, secured the export to Russia and China this year of
supercomputers capable of building sophisticated nuclear-guidance systems.
California-based Silicon Graphics, now under federal investigation for illegal
exporting, sold the supercomputers to the China Academy of Sciences and to a
Russian nuclear-weapons lab, claiming the sales were based on an understanding
that the technology would be used for environmental purposes. The company says
it now feels terrible about these sales.. . . . Insight also has learned that
Chinese agents have formed a secret partnership with Russian military
intelligence, according to intelligence specialists working closely with the
FBI. Intercepting signals from satellites and breaking into private and
government computer systems are part of the purpose of this joint agreement
secretly signed in 1992, says a former high-ranking Russian military
intelligence agent who was stationed in Beijing and has spoken exclusively to
Insight. "They share sensitive information with the goal of destroying the
United States," the agent says, noting that the U.S. Navy port facilities at
Long Beach, Calif., recently signed over to the China Ocean Shipping Co.
pending civil litigation, are to be used as a joint Chinese-Russian
intelligence operation.. . . . Quon claims 20 members of the Communist Party
undertook a "strategic-information warfare campaign in the U.S." Part of that
plan, he says, was taking control of Lippo - a company that worked to form a
strong relationship with China for economic and military opportunities. Four
days after Clinton's 1992 victory the Lippo Group sold 15 percent, and then
later 50 percent, of its interest in the Hong Kong Chinese Bank to China
Resources [Holdings] Co., a Chinese military front company for spy operations,
according to U.S. defense-intelligence agents. . . . . There were a number of
objectives to these moves, but espionage headed the list. The key was
encryption. A former NSC expert on intelligence encryption says China needs
encryption technology badly and targeted the United States to get it. "The
Chinese are into information warfare the ability to use computers to collect
intelligence and conceivably to damage the U.S.," says the NSC staffer who
served under Reagan. "It would cause real trouble for the U.S. if they
obtained U.S. encryption technology. It will be a hit against the quality of
American intelligence operations."…."
* American Spectator 10/1998 Byron York "…To reporters covering the
presidential campaign of Arkansas Governor Bill Clinton, August 14, 1992,
looked like just another day on the road. The candidate was in San Gabriel,
California, a middle-class suburb north of Los Angeles. He started the morning
with a conference call to top strategist George Stephanopoulos in Little Rock,
followed by an hour taping a campaign commercial. Then he headed off to a
fundraising lunch at the Sam Woo Seafood Restaurant on West Valley Boulevard.
Sam Woo, which can seat 900, is the largest Chinese restaurant in an area rich
with Asian eateries. Amid all the glad-handing and schmoozing with local
leaders that is standard for such events, Clinton set aside some time to meet
with one particularly notable guest at Sam Woo. "James Riady, owner of Lippo
Bank, will greet BC at elevator," reads a note on the candidate's daily
itinerary, referring to the Indonesian billionaire now at the center of the
campaign finance investigation. After the event, according to a memo written
by campaign aide Melinda Yee, Riady was scheduled to accompany Clinton during
a five-minute car ride to his next stop, a meeting of small business owners.
The brief drive, the memo made clear, was a very big deal for Riady: He has
flown all the way from Indonesia, where he is now based, to attend the
fundraiser. He will be giving $100,000 to this event and has the potential to
give much more. He will talk to you about banking issues and international
business. This is primarily a courtesy call…."
* The American Spectator 11/98 Kenneth R. Timmerman Year of the Rat
book review "… If Bill Clinton and Al Gore are hoping that Topic A will
indefinitely deflect public opinion from their appalling national security
record until after the November 1998 elections, they should think again. In
The Year of the Rat, two top congressional aides wrap up this administration's
fundraising scandals with refreshing clarity, linking them to a concerted plan
by the Chinese Communist Party to infiltrate the United States government,
steal high-technology, and acquire strategic intelligence, all with the goal
of allowing China to dominate Asia in the twenty-first century. Nineteen
ninety-six was the Chinese Year of the Rat, and according to William C.
Triplett II and Edward Timperlake, the rats were so plentiful at the Clinton
White House that only a thorough house-cleaning will rid the place of the
Chinese intelligence agents and mobsters to whom the Clintons are beholden.
Their main thesis will not surprise readers of TAS: Bill Clinton made a series
of Faustian bargains with the Communist Chinese and their agents in the United
States, trading national security for hefty campaign contributions that
ultimately financed Dick Morris's now infamous media blitz in late 1995 and
1996. Clinton's betrayal ranged from leaking classified intelligence documents
to wittingly assisting the modernization of the People's Liberation Army
(PLA). The authors give new substance to Senator Fred Thompson's cryptic
suggestions of a methodical game plan organized by the PLA, China's
intelligence services, and the Chinese mob to infiltrate and ultimately
control the American political establishment….The authors of The Year of the
Rat offer astonishing new evidence of Huang's ties to Chinese intelligence,
noting the value of the Top Secret documents he spirited away from the
Commerce Department to a private office maintained for him in the nearby
Willard Hotel by Stephens Inc., Arkansas cronies of President Clinton and
business partners of the Riadys…."
* Insight 11/9/98 Jennifer Hickey "…The campaign-finance saga began in
much the same way as the Monica Lewinsky case -- with one stumble leading into
a minefield. This stumble began with the initial reports by the Los Angeles
Times of an illegal $250,000 contribution made by a South Korean company,
Cheong Am, whose president is Kyung Hoon Lee. After the campaign came to an
end and Clinton emerged victorious, allegations and reports in the media
abounded concerning illegal donations made to the Democrats by a host of Asian
nationals, most prominently former DNC vice chairman John Huang, a onetime
high-level Commerce Department employee. . . . . Swamped in stories of
improper fund-raising practices, the DNC hired the firm of Debevoise &
Plimpton to conduct a review of its contributions during the 1996 election
cycle -- and subsequently returned nearly $3.2 million in illegal campaign
funds, of which $1,298,800 was raised by Huang. At the same time, in total,
the Republicans returned $150,000 in contributions they believed might be
tainted. The scandal blossomed shortly thereafter with a Washington Post
report detailing the Justice Department's discovery of a plan by the Red
Chinese government "to direct contributions from foreign sources to the
Democratic National Committee before the 1996 presidential campaign." . . . .
Taking its lead from the Senate Governmental Affairs Committee, which
published its report in late 1997, the House committee has focused on the
infusion of foreign money into the U.S. political system by Huang; Clinton
friend Charlie Yah Lin Trie; Clinton buddy Johnny Chung, an ex-Little Rock
restaurateur with Red Chinese contacts; and the family and businesses of Ted
Sieong, also closely linked to Beijing. Furthermore, they have uncovered
additional potentially illegal donations from South America. Bank record by
bank record, deposition by deposition, the majority staff has amassed a
compendium of possible campaign-finance violations. . . . . Naturally enough,
the Democrats are denying all. "This is a travesty of a mockery of a sham,"
says DNC spokesman Rick Hess of the committee filing, continuing, "For
Chairman [Dan] Burton [of Indiana] to say we are holding money is absolutely
ludicrous." …"

EXPORTS STATE TO COMMERCE

* In 1995 Hughes Electronics CEO (C. Michael Armstrong) - head of
Clinton’s export council - urged Secretary of State Warren Christopher that
satellites no longer be treated as military goods. On 2/6/96 Clinton approved
4 applications for launches. On the same day, Wang Jun ("Chinese arms dealer")
met with Ron Brown and had coffee with Clinton. On 2/15/96 a State Department
memo said "the administration wanted to wrap this up." On 3/14/96 Commerce
email recommended a low key spin on the news to "not draw attention to the
decision." State Department issued regulations shifting most satellite
licensing to Commerce on 11/5/96, the day Clinton was re-elected.
* Gary Milhollin testimony, Wisconsin Project on Nuclear Arms Control:
"What … I will talk about today, are decisions by our government that have
given Chinese companies a green light to sell missile technology to countries
like Iran and Pakistan. The Administration has made three crucial decisions in
this regard. First, it has decided to transfer control over satellite exports
from the State Department to the Commerce Department, an action that
effectively pulls the teeth from any future U.S. sanctions against Chinese
companies guilty of missile proliferation … Second, it has decided to suspend,
without any legal basis, the implementation of U.S. statutes that require
sanctions to be imposed against Chinese companies for past sales of missile
technology to Iran and Pakistan … Third, it has decided to invite China to
join the Missile Technology Control Regime, an invitation that, if accepted,
would immunize Chinese firms from any future application of U.S. sanctions
laws for missile proliferation … When we look at the cumulative effect of
these decisions, we see something both surprising and alarming. Our government
has enabled Chinese companies to proliferate missile technology with little
fear of punishment. More specifically, Chinese companies have been able to
sell Iran and Pakistan components for nuclear capable missiles without
worrying about losing U.S. satellite launch contracts. "
* DNC documents turned up by Congressional investigators show how
Hughes Electronics Corp. successfully persuaded the Clinton administration
through two key Democrats (Mankiewicz and Hoog) to ease 1993 Chinese
sanctions (for suspected missile parts shipments to Pakistan) so the company’s
satellites could get to China. The company got congressmen of both parties to
send letters to the State Department and ended up with a favorable legal
interpretation from Commerce. Said Frank Mankiewicz of the President ``If you
employ 30,000 people in California, you've got his eye.''
* In a November letter to Clinton, Hughes’ executive Armstrong wrote,
noting that jobs were at stake: ``You asked me to support your economic
package. I did. ... You asked me to support your changes to export policy and
controls. I did. You asked me to support NAFTA more strongly in California. I
did … I am respectfully requesting your involvement to resolve the China
sanctions … Due to circumstances, this will be public and political shortly.''
On December 4, 1993, Armstrong, was invited to attend an event with Clinton
in Los Angeles and got to make a personal pitch. At that event, Clinton told
Armstrong he was looking into what to do even though he secretly had approved
the new interpretation weeks earlier. By early January, Clinton's decision was
disclosed and Hughes won a license for one of it satellites shortly after. Two
years later, Armstrong was appointed by Clinton to be chairman of his export
council.
* Twelve year veteran adviser, Peter Leitner in testimony to the
Senate Governmental Affairs Committee on 6/25/98 about the Defense Technology
Security Administration, said that under the Clinton administration, the
Pentagon office in charge of guarding US technology exports to China grew lax
and instructed staffers to soften or reverse their recommendations that
certain technology not be exported. He said that when he returned from
vacation in 1996, his recommendation against supercomputer exports to Russia
had been rewritten to neutral. He also said that the strict attitude of the
office changed as the Commerce Department was given primary responsibility for
reviewing commercial satellite exports. He said the result was to "deceive
both the Congress and the American people ... while shortsighted business
interests line their pockets."
* American Spectator Kenneth Timmerman 9/98 "On July 13, a
Norwegian-built cargo ship, the Sea Launch Commander, steamed into the former
U.S. Naval Station at Long Beach, California, carrying Russian and
Ukrainian-built missiles. Sound like some cockeyed real-life version of a
James Bond movie? Not if you talk to Boeing Space Systems, the U.S. partner in
an international joint venture to launch satellites from a floating platform
in the South Pacific, using Cold War rocket technology from the former Soviet
Union….After several rounds of closed-door meetings at the White House, Gore's
staff convinced the State Department's Office of Defense Trade Control to
issue the temporary license allowing the ship to dock on July 10--just three
days before it actually arrived from Saint Petersburg, where it had been
fitted out with more than 600 tons of mission control equipment and a huge
covered assembly bay where the rockets would be put together. Government
officials said the license has not allayed their fears that Boeing could
inadvertently transfer strategic technology to its Russian and Ukrainian
partners through the project. One area of concern: NASA's Tracking Data and
Relay Satellite System, a network of six military satellites launched by the
Space Shuttle in the late 1980's better known by its acronym, TDRSS.
Government investigators say that a search carried out on December 12 at the
home of Marat Fidarov, a Russian-born translator working for Boeing in
Seattle, turned up computer disks with codes needed to access the highly
classified TDRSS system. Fidarov came to the United States in 1992--well after
the failed coup against Yeltsin--and claimed political asylum on grounds that
he feared for his life if he returned to Russia. The Immigration and
Naturalization Service granted him temporary asylum in 1996. But Fidarov's
fears vanished miraculously once he was hired by Boeing as a translator for
the Sea Launch project. Since then, he has returned to Russia several times
with Boeing officials on contract negotiations and for technical talks. Boeing
fired him in October 1997 after they were informed by U.S. officials that as a
foreign national he posed a security risk and that allowing him access to
munitions-list items was illegal…. Like the Russians, the Chinese have
contracted with the Sanam Industries Group, the lead organization for the
development of the Shahab-3 missile, the officials said. China Great Wall
Industry Corporation, which makes China's space launch rockets as well as the
DF-31 ICBM, was the supplier of the telemetry gear. Under existing U.S.
legislation, the president is required to cut off U.S. cooperation with
foreign entities found to be supplying missile technologies to countries such
as Iran. If the president applied the law, that would put an end to U.S.
satellite launches in China--and probably in Russia, as well….U.S. and Israeli
intelligence sources say Iran is seeking to build a series of solid fuel ICBMs
with Chinese and Russian help, that would be capable of reaching targets in
the continental United States. So far, the U.S. believes these programs are
not very far along; but then, just last year CIA Director George Tenet was
saying the U.S. believed the Shahab-3 missile was not likely to be deployed
for "at least five to ten years." Now the CIA believes it will be deployed
later this year. With the Russians, as with the Chinese, the Clinton
administration has sought to buy good behavior with generous commercial deals
and astonishing transfers of advanced U.S. technology. Again and again, both
countries have shown they are more than willing to take the prizes--and
extremely reluctant to offer anything in exchange, until Congress threatens to
upset the applecart by passing new sanctions legislation. The missile and
nuclear sales to Iran and to other rogue states continue unabated--and
increasingly, U.S. intelligence sources say, the Russians and the Chinese are
incorporating U.S. technologies in the products they are offering for sale
overseas. Clearly the Clinton export control scandals, which initially focused
on satellite technology transferred by the Loral and Hughes Electronics
corporations to China (see "Loral Exams," TAS, July 1998), are much broader
and deeper than initially thought. And far from buying good behavior, the
Clinton administration policy of setting a price for every misdeed is
interpreted by more and more companies as simply the price of doing business.
* New York Times 9/18/98 Eric Schmitt "In a major rebuke of President
Clinton's export policy, House and Senate negotiators agreed Thursday to shift
the control over exporting U.S. satellites back to the State Department from
the Commerce Department. Some space experts and a senior government auditor
have said that controls on exports of satellites to China have been loosened
since the administration transferred licensing authority to the less
restrictive Commerce Department in 1996, compromising national security. The
Commerce Department denies this. Nonetheless, more than 10 House and Senate
committees are investigating whether this approach has contributed to the
release of sensitive satellite technology and engineering know-how to China
that may have helped Beijing improve the reliability of its long-range
missiles…"
* San Jose Mercury News NY Times 9/17/98 "When the Clinton
administration relaxed export controls on high-performance computers in 1996,
it relied on a flawed report that did not study the national security
implications and concluded with scant data that the computers were already
easily available around the world, government auditors said Wednesday…. The
auditors said ``a key element'' in the decision to relax the export controls
was a Stanford University study, commissioned by the Commerce and Defense
departments without any competition, that said some U.S. computer technology
was uncontrollable worldwide and efforts to control it would harm the
industry….Within a year after the export rules were loosened, military
installations in Russia and China obtained a few powerful new American
computers, prompting criminal investigations. Congress tightened the
supercomputer export controls again late last year. …"
* New York Times Jeff Gerth 10/19/98 "…According to a 1995 Commerce
Department document, the President "made clear," in private conversations he
had with Brown, that "he does not believe we have done enough to streamline
and liberalize." The document mapped out how Brown should lobby high-level
Administration officials to ease controls on computer exports and shift items
like communications satellites, engine technology and commercial
data-scrambling devices. Such items were on a list of equipment that required
a State Department license, and companies believed they could close more deals
if authority over the exports were moved to Brown's Commerce
Department….Secretary of State Warren Christopher insisted that his department
retain jurisdiction. He was overruled in early 1996 by Clinton, opening the
way to billions of dollars of satellite sales to Chinese companies. At about
the same time, the Administration was weighing whether to lift restrictions on
the export of some advanced computers. Officials asked outside consultants to
study the issue, and they came back with a report that asserted the controls
were pointless. The powerful computers manufactured by American companies
would soon be widely available from foreign competitors, the report said. The
Administration asked the consultants to assess whether computer sales could
pose a threat to the American military. Their report did not take a position,
saying the Government did not have enough information to draw a conclusion.
This left the issue to Clinton, who decided to fulfill his pledge to the
Silicon Valley executives and relax the restrictions….The new rules took
effect early in 1996. Soon after, Chinese companies bought 77 of the
high-speed computers, which can be used to predict weather patterns but can
also scramble secret communications or design powerful nuclear weapons.
Disclosure of those sales prompted Congress to reinstate license requirements
for some advanced computers. This year, the Central Intelligence Agency and
other Federal agencies concluded that at least some of those computers are
being used by China's military. The details of their use remain unclear,
officials said….Just this month, Congress reversed Clinton's 1996 decision and
returned satellite exports to the State Department. At the same time,
lawmakers created a senior Pentagon position for technology security after
concluding military officials' role in controlling exports to countries like
China had been "significantly and improperly reduced over the years." …"

FOREIGN CONTRIBUTIONS & OBSTRUCTION

* Trie channeled more than $1.2 million to the DNC and to President
Clinton's legal defense fund, all of which was returned on the suspicion it
was foreign-tainted. At least $1 million was wired to Trie from Asian banks.
Keshi Zhan, who earns $22,408 annually as a municipal employee was called
Trie’s social secretary. Her mother, Ying Qun Ma, is a retired senior Chinese
government official and her father, Fan Zhan, has been a professor of Russian
linguistics at prestigious Beijing University. Keshi Zhan held a joint bank
account with Trie and Shao Zhengkang, a senior executive of a corporation
owned by the Chinese State Council, the government's highest administrative
body. She also had signatory authority over funds held by Ng Lap Seng, a
Macao-based business partner of Trie's, that were used to make political
contributions to the Democratic National Committee. A deposit of $12,500 from
a Trie-Ng account was made to the joint Trie-Zhan-Shao account in February
1996, on the same day, Zhan made a $12,500 contribution to the DNC with funds
from the Trie-Zhan-Shao account. Shao is a high-ranking officer of China
Everbright in Hong Kong and Beijing, which is wholly owned by the Chinese
State Council. Zhan shared another joint account on behalf of Trie with Shao
and Su Yonghi, a former Chinese Embassy attache in Washington. Democrats on
the investigating committee refused to grant immunity to Keshi Zhan for her
testimony.
* Far Eastern Economic Review quotes House Government Reform and
Oversight Committee sources as saying Chinese money came in the form of a
$3,000 check written by the Chinese consulate in Los Angeles, as a partial
reimbursement for a $5,000 contribution from Sioeng to Wong’s campaign,
payable to Ted Sioeng, an Indonesian businessman who gave $400,000 to the
Democratic National Committee during the 1996 election cycle. Committee
investigators said the FBI intercepted telephone calls from the Chinese
consulate in Los Angeles, mentioning Sioeng and plans to influence American
elections Visa applications for investigators to meet with Sioeng in Hong
Kong have been denied by the Chinese government.
* Government Reform and Oversight Committee investigators may present
evidence that Sioeng helped to get the daughter of a former Chinese
consul-general in Los Angeles, Zhou Wenzhang, into the little-known Iowa
Wesleyan College on a full scholarship. Sioeng has been on the board of
trustees of the college since 1994. Since then, many of his contacts in Asia
have obtained honorary degrees from the college. Tsang Hin-chi, chairman of
Hong Kong-listed clothing-maker and retail-giant Goldlion Holdings may be
investigated because of extensive links between himself and Sioeng in the U.S.
and Asia. Tsang has been a member of the standing committee of China's
parliament, the National People's Congress, since 1994 and is one of Hong
Kong's most prominent pro-China figures. His company derives 80% of its
revenue from mainland China. Tsang and Sioeng have known each other at least
since 1994. In April of that year, Sioeng arranged for Tsang to be granted an
honorary doctorate from Iowa Wesleyan. Sioeng's Belize-based SS Group owns
24% of a $7 million cigarette manufacturing and marketing venture that
Goldlion set up with the government of Hainan province in 1995. In 1996,
Sioeng and his daughter became part-owners and directors of Goldlion's U.S.
subsidiary, Goldlion International. The company opened a store inside Sioeng's
Hollywood Metropolitan Hotel in early 1996 and the store was managed by
Tsang's eldest son, Jimmy. It folded after a few months and Sioeng's stake in
Goldlion International was bought out by Goldlion. Jimmy Tsang and his wife,
Jean Lim, attended a major DNC fund-raiser in Washington with Sioeng in
February 1996.
* Strangely, Senator Glenn offered to negotiate an immunity agreement
on behalf of John Huang. And in Senate Campaign Finance Hearing, Senator
Robert Toricelli who received donations from John Huang said "I find the fact
that Mr. Huang would maintain an arrangement where he would make phone calls
outside the Department of Commerce not in and of itself suspicious." John
Huang had top secret clearance at Commerce and would go across the street to
an office run by Riady partner, Stephens’ of Little Rock - for documents,
phone, fax, etc. Senate Campaign Finance Hearing committee member, Senator
Carl Levin received donations from John Huang. Senate Minority Leader, Tom
Daschle who accepted donations from Maria Hsia and who personally recommended
John Huang to be placed in Commerce, was instrumental in imposing a fixed
deadline on the Senate Campaign Finance Hearings. After Senator Thompson
announced in November 1997 that he was suspending the public hearings, the
FBI obtained evidence that the Ministry of State Security in Beijing - boasted
that it had been successful in "thwarting" the inquiry.
* 7/14/98 AP Tom Raum "…Lott told the Senate that investigators had
unearthed "serious and credible charges of direct Chinese financing'' of 1996
Democratic campaigns. While declining to elaborate on the "new information,''
Lott said it "should remove all resistance to naming an independent counsel.''
…"
* Summarized from WorldNetdaily 7/14/98 Charles Smithe re: Ron Brown’s
"Indonesia Advocacy Projects" document obtained via the Freedom of Information
Act: Involved in the privately held Indonesian Paiton Power Plant (two 600
million watt, coal fired, plants) in the US led consortium was Mission Energy
(a partner of Lippo Group part owned by Mochtar Riady,) Mitsui & Co., Ltd. of
Japan, General Electric Capital Corporation of the U.S., and P.T. Batu Hitam
Perkasa,. U.S. Ambassador Barry worked directly with Executive Director of
the Asian Development Bank, Linda Yang, to obtain financial support despite
the questions of kick-backs to Suharto. In fact, the document states that Ms.
Yang was "doing all she can" to help Indonesia obtain the financing for
Paiton. In the end, the Suharto corruption quietly killed the ADB financing
and the Asian Development Bank refused to back the deal. However, Lippo
partner Mission Energy and the Suharto family successfully got the U.S.
Government to officially back the project. Thus in 1995, the Brown led
Commerce Department found financing for Paiton through the U.S. taxpayer. In
April, 1995, $1.82 billion in limited recourse project debt was provided to
Paiton by The Export-Import Bank of Japan, the Export-Import Bank of the
United States, the Overseas Private Investment Corporation ("OPIC") of the
United States, and eight commercial banks. The Paiton power plant was
designed to burn "low-sulfur Indonesian coal". In 1996 President Clinton
created the 1.7 million-acre Grand Staircase-Escalante National Monument in
Utah, placing off-limits the world's largest deposit of low-sulfur coal. The
Lippo group is the primary owner of the only other supply of low-sulfur coal
in the world, located in Indonesia. Clinton's move left the only remaining
low-sulfur coal supply in Lippo hands, creating a Riady monopoly. The move
vastly increased the dollar value of Riady's low-sulfur coal reserves in a
single stroke of Clinton's pen. The Indonesian coal reserves, co-incidentally,
just happen to be located close to the U.S. taxpayer backed Paiton power
plant.
* Summarized from WorldNetdaily 7/14/98 Charles Smithe re: Ron Brown’s
"Indonesia Advocacy Projects" document obtained via the Freedom of Information
Act: In 1997 the Commerce Department was forced in court by Judicial Watch to
reveal that the Lippo Group successfully gained official U.S. support for a
power project in Fujian, China. The controlling partners in the project
included Mission Energy, Bechtel Enterprises and Lippo. Handwritten notes and
a Commerce e-mail revealed that Mission Energy representatives met with
Commerce officials to discuss the project and that the Lippo Group
specifically was mentioned. The Lippo-Mission-Bechtel project also makes use
of low-sulfur coal.
* Summarized from WorldNetdaily 7/14/98 Charles Smithe re: Ron Brown’s
"Indonesia Advocacy Projects" document obtained via the Freedom of Information
Act: In August, 1994, the Ron Brown trade trip to China included support for
a third Lippo backed power project in China with the Arkansas-based Entergy
Corp., yet another large Clinton contributor. Former DNC fund-raisers Ira
Sockowitz and John Huang worked for Brown in 1994 at the Commerce Department
and were charged by Brown to "vet" or check out the Entergy project in China.
* Summarized from WorldNetdaily 7/14/98 Charles Smithe re: Ron Brown’s
"Indonesia Advocacy Projects" document obtained via the Freedom of Information
Act: The connections between Riady and Clinton have a much more sinister
theme than coal monopolies and taxpayer backed power plants in the middle of
Asia. Testimony before Senator Thompson's committee last year revealed Moctar
Riady's involvement in Chinese espionage. Testimony revealed the Lippo Group
is in fact a joint venture of China Resources, a trading and holding company
"wholly owned" by the Chinese communist government and used as a front for
Chinese espionage operations. China Resources investments in Lippo expanded
rapidly during the Clinton administration, coinciding with illegal six-figure
Lippo contributions to his 1996 re-election. Many of those illegal donations
originated with former Lippo employee John Huang. Huang also had direct access
to President Clinton and a secret clearance.
* Roll Call 7/20/98 Amy Keller "The Democratic National Committee is
planning to return more than $105,000 in tainted contributions this week in
the wake of the recent indictment of Democratic contributor Duangnet
Kronenberg, and House Government Reform and Oversight Chairman Dan Burton
(R-Ind) is digging to find even more questionable money still sitting in the
DNC's coffers. The DNC has already returned more than $3 million in suspected
foreign contributions since the last election. With the party still mired in
$3.24 million worth of net debt, GOP sources are crowing that the DNC can ill
afford to start refunding more money…GOP investigators are also wondering why
the DNC has kept at least $100,000 in contributions from Jessica Elnitiarta,
the daughter of Indonesian businessman Ted Sioeng, who is believed to have
funneled at least $400,000 in donations from Hong Kong-based companies.…Last
week, committee lawyers were slated to conduct depositions of the two
witnesses, but the witnesses hired a new lawyer on the night before the
scheduled depositions -- thereby causing another delay. The pair is now being
represented by Brian Sun, who represented the Buddhist nuns that testified
before Sen. Fred Thompson's (R-Tenn) campaign finance panel last year. A
witness related to Sioeng could not be deposed because of problems in
obtaining a translator. "Everything is like pulling teeth," the GOP source
lamented."
* Washington Times 8/10/98 Editorial "At the rate the Democratic
National Committee (DNC) is refunding illegal donations that arrived from
Indonesia during the 1996 presidential campaign, the International Monetary
Fund will soon have to include the DNC among the organizations involved in the
international economic bailout of Indonesia. Last year the Democratic Party
was forced to refund $450,000 to Arief and Soraya Wiriadinata, whose father
was a major investor in the Lippo Group, an Indonesia-based conglomerate
controlled by the Riady family. Lippo's initial U.S. base of operations was
established in Little Rock, Arkansas, where the Riady clan and their employees
befriended Arkansas Gov. Bill Clinton and later became major contributors to
his campaigns. The DNC seems to have more refunds to make. Last week,
investigators for the House Government Reform and Oversight Committee revealed
that another $200,000, which originated in Indonesia in the form of travelers
checks issued by a bank formerly controlled by the Riady family, made its way
stateside in 1996, where much of the money was laundered into illegal
contributions to the DNC or used as payments and "gifts" to party contributors
and fund-raisers. Former Little Rock restaurateur Charles Yah Lin Trie,
President Clinton's longtime friend who was indicted earlier this year and
charged with illegal fund-raising activities, controlled much of the money.
Also involved was Mr. Trie's business associate, Antonio Pan, a former Lippo
executive, who was also indicted earlier…It should be noted that the matter
involving the $25,000 laundered through Mr. Ho came to light only because a
committee investigator, not the Justice Department's task force, initiated
contact with Mr. Ho last month, though the Justice Department knew of the
travelers checks for several months. After interviewing Mr. Ho in New York on
July 15, the committee investigator, Tim Griffin, told a Democratic committee
staffer on July 21 that the Republicans wanted to publicize the checks.
Alerted by the committee's minority staff, the Justice Department dispatched
an FBI agent and a lawyer the next day to interview Mr. Ho in New York.
Subsequently threatened with a subpoena by Mr. Griffin, Mr. Ho became more
forthcoming and implicated Mr. Pan. This is a significant development because
for the first time it links Mr. Trie with Indonesian money. Given that Mr.
Pan, the former Lippo executive, seems to have been intimately involved, it
raises more questions about the extent to which Lippo itself may have sought
to subvert the election here.."
* Jewish World Review Linda Chavez 9/8/98 "What few people believed
even weeks ago -- that a president could face impeachment because of a sex
scandal -- now seems probable. And, ironically, it's the Democrats who will
try to keep the focus narrowly on the Lewinsky matter. Even those Democrats
willing to dump Clinton overboard aren't anxious to have an impeachment
investigation look too closely at whether Chinese communists helped finance
the president's re-election or whether administration and Democrat Party
officials were trading national security secrets and policy favors for
campaign cash…."
* Washington Weekly 9/6/98 Wesley Phelan Marvin Lee "Two weeks ago
Roger Clinton went on live television to issue warning from his brother, the
president, to "politicians who live in glass houses..." Rep. Dan Burton,
Chairman of the House Government Reform and Oversight Committee did not heed
the warning…. The reaction was swift. A whispering campaign in Washington
alleged that Vanity Fair had investigated the sex life of Dan Burton and was
set to publish the story. Press reports indicated that Vanity Fair writer Russ
Baker had spent six weeks digging through Burton's trash and sexual
history….The timing of the Vanity Fair leak makes it unlikely that it was made
independent of the White House, whose modus operandi it is to gather dirt on
critics by illegally obtaining their FBI file or by having private
investigators like Terry Lenzner or Jack Palladino investigate them. In order
to launder such illegally obtained information, however, the White House needs
the cooperation of a friendly journalist willing to act as a fence and put his
name on dirt provided by the White House…Past attacks on Clinton critics have
been funded, in part, by the People's Republic of China. Johnny Chung has
admitted that he donated $25,000 to the "Back to Business" committee that
distributed the White House "Communication Stream of Conspiracy Commerce"
report that laid out the "vast right-wing conspiracy" of Clinton critics. The
"Back to Business" committee was incorporated by the Perkins Coie law firm
which represents the interests of the People's Republic of China in the United
States. Perkins Coie also incorporated James Carville's "Education and
Information Project" that has sponsored attacks on Dan Burton in the past.
U.S. intelligence has intercepted claims from the Chinese equivalent of the
CIA that it had been successful in "thwarting" the Thompson Committee's
investigation of Chinagate last year. If these claims are more than mere
bravado and exaggeration, Chinese intelligence could only have done so through
allied Senators or journalists. Kim Kessler of Vanity Fair denied that Russ
Baker had received any funding from Chinese sources or that the investigation
of Dan Burton was an attempt to derail the Burton Committee's investigation
into the Chinagate matter. Russ Baker was not available for comment."
* Charles Smith WorldNetDaily 9/15/98 "According to Chinese General
Sun Tzu "All war is based on deception." Tzu wrote those words over 2,000
years ago and his first rule of war still applies today. For example, a hidden
November 1994 letter written by Democratic National Committee donor Sanford
Robertson to President Clinton that clearly details the sale of Commerce trade
trips for campaign donations. Robertson was so bold as to include a telling
"P.S." where he notes for Clinton that "Bob Rubin" turned out the "Silicon
Valley" at a Robertson sponsored fund-raiser that took in "$100,000" for
California Sen. Dianne Feinstein. Of course, neither Robertson nor current
Treasury Secretary Rubin expected that letter to be revealed. In November
1995, Vice President Al Gore called Sanford Robertson from the White House and
asked for a $100,000 donation. In January 1996 Robertson obliged and kicked in
$80,000 soft and $20,000 in so-called "hard" donations to the Clinton/Gore
campaign. The fact that Gore made the call from inside the White House is the
least of his legal problems. In 1993 Clinton named Gore to head U.S. export
policy for encryption technology in a TOP SECRET order written by National
Security advisor Anthony Lake. A 1996 secret memo on a secret meeting of DCIA
Deutch, FBI Director Freeh and Attorney General Janet Reno states: "The Vice
President chairs the senior group that set the Administration's encryption
policy; since February 1994 it has been supported by a working group
co-chaired by NSC, and OMB, composed of NSA, CIA, FBI, State, Commerce (BXA,
NIST), and Justice." …"
* An analysis by Freeper Stillman 9/14/98 "On March 12, 1997, The New
York Post published an article entitled "Bill's Big Switch on China $yndrome,"
by Deborah Orin, Washington Bureau Chief. That article contains the following
lead: The White House yesterday conceded two National Security Council
staffers could have briefed President Clinton on charges China was meddling in
U.S. elections -- but didn't. That acknowledgment came a day after Clinton
complained "the president should know" and suggested the FBI briefed two NSC
staffers but told them not to tell anyone else. The FBI believes China was
trying to funnel illegal campaign funds into the United States. In Monica
Lewinsky's testimony before the Starr Grand Jury, she stated the President
Bill Clinton ended their sexual relationship on March 29, 1997, because he had
found out that a "foreign embassy" had monitored their phone sex calls. All of
those calls took place over unsecure telephone lines….It is possible those
briefings concerned the fact that President Clinton's phone sex was being
monitored by a foreign embassy. This would have led to Clinton's breaking off
his relationship with Lewinsky at their next tryst. The NY Post article goes
on to say: The FBI also briefed several lawmakers, mostly Democrats, about
Chinagate.... Also briefed were Sens. Daniel P. Moynihan (D-N.Y.), Dianne
Feinstein (D-Calif.), Barbara Boxer (D-Calif.) and Rep. Nancy Pelosi
(D-Calif.). So, members of the President's own National Security Council were
briefed, as were an odd assortment of liberal Democrats in Congress. But this
information was not passed on to the President of the United States. Moreover,
the FBI took specific steps to ensure that the President would not be
notified…."
* Washington Post 9/21/98 George Lardner Jr "Democratic fund-raiser
Johnny Chung set up fake businesses in California with at least a half-dozen
Chinese executives to make it easier for them to get U.S. visas, according to
testimony and records compiled by House Republican investigators. Chung
brought most of the executives, who included the offspring of two retired
Chinese generals, to fund-raisers for the Clinton-Gore 1996 reelection effort.
Irene Wu, Chung's top assistant from 1995 to 1997, said in a deposition to
the House Government Reform and Oversight Committee that "all of these
companies" were set up to facilitate travel to the United States by the
Chinese business officials and eventually help them establish permanent
residency here. The companies engaged in no real business activity, Wu said
in her July 28 deposition. Immigration and Naturalization Service spokesman
Russ Bergeron said setting up dummy companies to acquire visas is a "growing
fraud," particularly in faraway countries such as China. He said it involves
"all kinds of scams," including bogus business cards, letterheads for
nonexistent companies, phony tax returns and fake photos of business
locations…."

PANAMA

* In a May 4 1998 Panamanian Presidential candidate William Bright
Marine wrote about the "…fact that the Clinton administration has allowed
Communist China to obtain control of U.S. ports, U.S. bases, and functions of
the Panama Canal…" Law #5 grants Hutchinson-Whampoa Ltd: responsibility for
hiring new pilots, control over critical Atlantic/Pacific anchorages,
authority to control the order of ships and to deny ships access if they are
interfering with Hutchinson’s business, right to unilaterally transfer its
rights to a third party, right make certain public roads private. In law #5,
if there is a conflict between the law and the provisions of the Canal treaty,
the treaty prevails. In the deal, Hutchinson gets U.S. Naval Station Rodman;
a portion of U.S. Air Station Albrook; Diablo; Balboa (Pacific); Cristobal
(Atlantic); the Island of Telfers, a future home of the Chinese planned export
zone. Hutchinson is controlled by Chinese communists - Hutchinson’s subsidiary
HIT, or Panama Ports Company has business ventures with COSCO (Chinese army
owned) and is 10% owned by China Resources Enterprise. Lippo is also
connected to CRE. At the time Hutchinson obtained the Panama Canal ports, it
moved to gain Subic Bay in the Philippines in the wake of U.S. departure.
* 5/25/98 Edward Oliver WorldNetDaily "A Panamanian presidential
candidate has asked the U.S. Justice Department to investigate China's
activities around the canal and the possibility of a quid pro quo between the
Clinton administration and the Asian Communist power. Concerned about possible
executive branch complicity in China's gatekeeper status at the Panama Canal,
Panamanian presidential candidate William Bright Marine wrote to the Justice
Department May 4: "I have yet to speak to one single American who is not
outraged at the fact that the Clinton administration has allowed Communist
China to obtain control of U.S. ports, U.S. bases, and functions of the Panama
Canal. They today, effectively control access to the Panama Canal ... this
agreement could not have happened, without the consent of the Clinton
administration ... the executive branch has been copied by my correspondence
regarding communist China dating back to late 1996. They cannot claim
ignorance." The Justice Department has not yet responded…."
* WoldNetdaily William Bright Marine 8/24/98 "Just when you thought
Panamanian politics could not get more bizarre the media in Panama is
reporting, and the government has confirmed that President Balladares has
hired James Carville. Carville is being funded by Mayor Alfredo Aleman. a
major player in drug laundering and the money man for President Balladares
campaign. President Balladares is trying to change Panama's Constitution so he
can run for office again. The required plebiscite is to be held on August 30
this year. The latest polls show that President Balladares is trailing 51% to
31% with 18% undecided…."
* Baltimore Sun 9/23/98 Robert Little "The handover of the Panama
Canal to the Panamanian government next year could mean higher shipping costs
and decreased access to Asian markets for East Coast ports, including
Baltimore, a member of the federal commission appointed to study the canal
said yesterday. C. Thomas Burke, appointed by President Bush to the Panama
Canal Study Commission in 1990, said American inaction in Panama has helped
foreign interests in China and Korea build alliances with the Panamanians. As
a result, he predicted, when the canal changes hands on Dec. 31, 1999, it will
be managed by a government beholden to nations with icy relationships in the
West. "If we're not careful, we could be turning over the canal to a country
that could possibly be an enemy of the United States," Burke said in a speech
before the Baltimore Propeller Club, a group of local maritime industry
executives. "I didn't want to bring you an encouraging speech here, I wanted
to alarm you -- I want you to be frightened by this."…"
* WorldNetDaily 10/19/98 Edward G. Oliver "…Admiral Thomas H. Moorer,
USN (Ret.), a former chairman of the Joint Chiefs of Staff, warned the Senate
Foreign Relations Committee in closed session last summer that the U.S. is
heading toward a confrontation with China over the Panama Canal, according to
testimony obtained by WorldNetDaily. "I'm an old sailor now, but I know
trouble when I see it, and Mr. Chairman and distinguished members of this
committee, I see big trouble in Panama -- trouble that could evolve quickly
into a conflict in our own hemisphere with world-wide implications," said
Moorer. "Mr. Chairman, I speak of the transfer of the Panama Canal to the
Panamanian government under the circumstances which now exist. There's far
more going on there than meets the eye."…."Mr. Chairman, I have been honored
to serve as this nation's commander in chief of the Pacific Fleet; commander
in chief, Atlantic and Atlantic Fleet; chief of naval operations, and
chairman, Joint Chiefs of Staff," said Moorer. "I truly can't remember a time
when I have been more concerned about the security of our country. ..." Moorer
pointed out that Panama Ports Company (PPC) controls four of Panama's major
ports. He identified PPC's principal owners as: Billionaire Li Ka-Shing
(reportedly an ally "as close as lips and teeth" to Beijing, which offered
Ka-Shing the governorship of Hong Kong ); Li Ka-Shing owns PPC's parent
company, Hutchinson-Whampoa Ltd., China Resources Enterprise, an arm of the
Chinese government identified as an "agent of espionage" by Sen. Fred
Thompson. The entity is also a solid partner with the Lippo Group, owned by
the Riady family of Indonesia, also identified as possible espionage agents
for the People's Liberation Army. He also pointed out that the deal granting
sweeping concessions to Hutchinson-Whampoa states that the company has the
right to pilot all ships through the canal, raising the specter of the Chinese
piloting U.S. Navy ships -- or refusing to -- after the U.S. hands over
complete control next year. Moorer attacked as illegal Panama's "Law #5,"
which permits other military forces, defense sites and installations in the
canal zone and raised concerns about infiltration of Panama again by drug
lords. In contrast to the indifference displayed by the State Department about
Hutchinson's grip on the canal ports, the admiral expressed grave concern
before the committee. "Hutchinson-Whampoa controls countless ports around the
world," he said. "My specific concern is that this company is controlled by
the Communist Chinese. They have virtually accomplished, without a single shot
being fired, a stronghold on the Panama Canal, something which took our
country so many years to accomplish -- the building and control of the Panama
Canal, along with military and commercial access in our own
hemisphere…..Moorer expressed frustration with the Clinton administration's
approach to national security as the date Dec.31, 1999, nears -- the date the
U.S. relinquishes the last vestiges of control over the canal….He continued:
"We are not talking here about an ill-funded Nicaraguan effort against the
Communists in the late '80s; we are talking about the control of a strategic
part of the world in our hemisphere, shortly to be controlled by the largest
country on earth, Communist China, financially flush and people-strong with a
growing imbalance of men over women. ... I can tell you honestly and
truthfully, with strong conviction, that somebody needs to take a long, hard
look at our vulnerability in the Panama Canal Zone."…"

CHUNG/SASSER

* On December 9, 1995 Chairwoman and co-founder of the Back to
Business Committee solicited a donation from Johnny Chien Chuen Chung and
afterwards not only arranged a private meeting for him with Ambassador James
R. Sasser in China but also arranged a meeting for Chung with a Commerce
Department official in Washington. Chung said that Cutler indicated Maggie
Williams, the First Lady’s chief of staff, suggested she contact him. Chung
made a $25,000 donation to Back to Business Committee, a private committee
that publicly defended the President and Hillary Clinton against Whitewater
attacks. Less than a year earlier, Maggie Williams had accepted a $50,000
donation from Chung in the White House, which he said she solicited. Back to
Business arranged for a network of volunteer speakers to counter Clinton
critics and disseminate pro-Clinton information through the media between 1994
and the summer of 1996. Ann Lewis was Cutler’s Back to Business partner,
both are now White House aids. Cutler was vice chairwoman of the DNC from
1981 to 1992. Lewis served as deputy manager of the 1996 Clinton/Gore
campaign.
* Investigators are looking into Ambassador to China Jim Sasser, a
lease agreement between a federal agency, the Federal Communications
Commission, and a longtime friend of Vice President Al Gore, Chattanooga
developer Franklin Haney. Sasser, former Democratic senator from Tennessee,
was Haney's lawyer in 1995 and 1996 after he lost his Senate seat and before
he was appointed ambassador to China. Haney is a longtime Gore ally and
loyal Democratic supporter, Peter Knight, Haney’s attorney, is a former Gore
aide who ran the Clinton/Gore campaign in 1996. Haney is part owner of the
Portals, a cluster of buildings in southwest Washington. He joined the
partnership in 1996. The FCC has resisted moving to the Portals for more than
a decade. The empty building has cost the federal government almost $ 14
million. A $1 million payment was made in 1996 from Haney to Knight on the
same day the lease was signed. It is not known whether Sasser received a
similar payment from Haney. Sasser and Knight met separately with top
officials of the FCC and the General Services Administration about the lease.
Haney, Sasser and Knight are all refusing to cooperate with the Congressional
investigation.
* DNC Richard Sullivan's attorney, Robert Bauer, is from the Perkins
Coie law firm which also represents the interests of the People's Republic of
China in the U.S. Robert Bauer, Judith Corley and Holly Shadler, also of
Perkins Coie, helped set up the "Back to Business" committee Robert Bauer,
Judith Corley and Holly Shadler helped set up James Carville's Education and
Information project devoted to investigating and attacking enemies of the
White House.

MCDONNELL DOUGLAS/CHINA

Company executives in Long Beach California informed David Rupert to arrange
for Chinese aviation officials’ inspection of the McDonnell Douglas plant in
Columbus. Before the tour, Rupert covered some Air Force aviation parts with
tarps to avoid a security breach. The Chinese were not interested in
investing in the Ohio plant but only in purchasing machines that had been used
to fabricate specialized parts for some of the U.S. military's most sensitive
projects, Rupert said. "They kept coming back and saying, `No, we're only
interested in these assets,' and I kept coming back and saying, `Well, then
you're wasting my time, because I've got a purchaser to buy all of them,"'
Rupert said. "The Chinese didn't like that." Afterwards, a McDonnell
executive told Rupert that he was "not dealing with these people properly …
This stuff needs to be negotiated with them, and it's not going to stay in
Columbus." A few weeks later Rupert was replaced in this assignment. Under
a special Commerce Department license, in September 1994 - McDonnell delivered
the equipment to China. McDonnell Douglas learned that the equipment it sold
to the Chinese was not where it should be and alerted the government.

RUSSIA/CHINA

* After Viktor Mikhaylov was dismissed as the nuclear energy minister
a struggle broke out between tycoons Vladimir Potanin and Boris Berezovskiy
for fissile materials. Deputy Chairman of the State Duma's Committee on
Conversion of the Defense Industry and High Technology Aleksandr Pomorov is
calling to cancel the Russian-US agreement on the use of highly enriched
uranium extracted from nuclear weapons. Announced January 1994, the Clinton
policy had a US firm which was later privatized for the program and is at the
heart of the problem. Vladimir Potanin is the head of Uneximbank and is in a
50-50 deal with Boris Jordan, an American, known as Renaissance Capital.
Renaissance and Energiya, a subsidiary of Uneximbank, have a project known as
Sea Launch, which is to be the next-door-neighbor of COSCO's new piece of real
estate - the naval installation in Long Beach.
* Sea launch is premised on the idea, that the closer you launch a
rocket to the equator, the more fuel efficient it is because you can take
advantage of the earth's rotation, an idea like building a mammoth drilling
rig, put a rocket on it, and tow it down to the equator, and then launch it.
Boeing is involved in Sea Launch along with Kvaerner, a huge Norwergian
shipyard specializing in rigs. Sea Launch is tied to COSCO in the fact that
Boris Nemtsov of the Chubais-Potanin-Jordan faction (Sea Launch) has become
Boris Yeltsin's principal emissary to China.
* StratFor Intelligence Briefing 7/10/98 "With its economy in a state
of collapse, coup rumors flying, and the recent murder of an opposition
political leader, Russia's situation is more grave than at any time since the
collapse of the Soviet Union. Caught in a cash crisis stemming from its
inability to collect taxes and from declining petroleum prices, Moscow is
facing increasingly hostile state workers and miners to whom the government
owes billions of dollars in unpaid wages…"
* Freeper Anochka post 7/10/98 "The last six year’s of Russian
"economic reform" is a story of empire. No, not the Soviet empire or even the
Russian empire, but the evolving American empire of finance capitalism, whose
front-line soldiers’ are equipped not with helmets and rifles, but with Brooks
Brothers suits and US fiat dollars… Ambitious American policymakers, who were
so busy "reforming" Russia in the most appallingly cavalier and self-serving
fashion, failed to grasp the lesson Russia has to teach, i.e. liberty and
empire do not cohabit. The Russian philosopher Aleksandr Berdiaev remarked
long ago, "The Russian people were crushed by a vast expenditure of strength,
such as the scale of the Russian state required."…The current situation in
Russia is unsustainable; the economy will loose $12 billion this year alone
due to depressed commodities prices, taxes can not be collected in an economy
that functions mostly underground on barter, and in which a whopping 45% [up
from 6% in 1995] of the national budget is consumed by debt payments for
foreign loans. When Russia undergoes the inevitable devaluation, another
massive bailout is guaranteed on account of Russia’s 20,000 nuclear weapons.
This will precipitate devaluations in Eastern Europe and may possibly threaten
Latin American currencies. By the time the euro comes on line as the EU’s unit
of account in January 1999, we’d all better have our safety belts buckled; the
ride is going to get pretty choppy…I've been on the phone with Moscow most of
the day. Events there are moving very rapidly and I continue to monitor them.
Once I'm satisfied I've sorted out the red herrings and am reasonably
confident I can give you solid information, I will post again"
* Freeper Anochka Johnson Russia List 7/11/98 Dmitri Glinski "Despite
the brevity of his thorny political career, Lt. Gen. Lev Rokhlin was one of
that handful of the Russian military officers whose names are easily
recognized by ordinary Russians. It is striking that his murder, on the night
of July 3 at his dacha in Naro-Fominsk, has been barely noticed by the Western
press. In Russia, even if no direct evidence of the political character of his
assasination is ever found, this tragedy is still likely to have far-reaching
repercussions. … Unfortunately, all opposition to Yeltsin - which covers a
wide range of views and thinking not easily synopsized here - are branded as
"red browns" or "ultranationalists" in our media just as freepers are known as
"extremists". But whatever their political persuasion, the overwhelming
majority are patriots who are trying to save their country. It is our lending
and our meddling that are bringing on the conditions for a national socialist
to exploit in a time of chaos, but not a one of those guys could get elected.
The globalists are not merely evil - they are INCOMPETENT! Especially when
aided and abetted by WH influence peddlers and crony capitalists...Clinton, no
matter his fate, will leave behind a harvest of sorrow for citizens to reap on
the foreign policy front…."
* 7/13/98 Bloomberg Website "Russia will receive a total of $22.6
billion in financing led by the International Monetary Fund in 1998 and 1999
to bolster reserves and support the ruble, IMF, World Bank and Russian
government officials said. Russia will receive $14.8 billion this year, and
$7.8 billion next year…"
* 7/24/98 Stratfor Intelligence Briefing "According to its leader,
State Duma Security Committee Chairman Viktor Ilyukhin, the All-Russia
Movement in Support of the Army, the Defense Industry, and Military Science
(MSA) has begun preparations for a nationwide protest. Ilyukhin told a news
conference in Moscow that preparations were to begin on July 23 and last ten
days. He asked that all regional branches of the Movement report their
readiness for the nationwide action by July 30. Ilyukhin also told reporters
that, since the most active members of the Movement had received "threats of
physical liquidation," the MSA had "decided to set up its own security force."
…"
* StratFor Intelligence Briefing 7/28/98 "Until now, we have withheld
comment on the long-running border dispute between Saudi Arabia and Yemen,
primarily because it is such a chronic, low-grade problem….However, recent
developments in the region suggest there may be more to this story than just
an old grudge and the contested ownership of a piece of desert covering a
potential oil field. According to a July 22 report in the Russian newspaper
"Russkii Telegraf," Russia is preparing to resume arms sales to Yemen. The
newspaper reported that a high-ranking Yemeni Defense Ministry delegation
visited the Gagarin Aviation Production Association in Komsomolsk-na-Amure on
July 21, to discuss the purchase of Su-27 fighter aircraft. The delegation was
then scheduled to visit a test range at Kapustin Yar to observe combat
applications of the S-300PMU surface-to-air missile system. The delegation
were reported to then be traveling to Moscow at the end of last week to sign
contracts for the purchase of the weapon systems.
* Sunday Times of London 8/23/98 Mark Fanchetti & Robert Service
"GLOOM hung over Moscow's White House last week as Russia's most powerful
tycoons departed in a solemn fleet of armoured black limousines. Their meeting
at the government building, convened by Sergei Kiriyenko, the embattled prime
minister, to seek ways out of Russia's financial crisis, had ended without
agreement. The oligarchs, who claim to control 50% of the economy, were agreed
on only one thing: that the rule of Boris Yeltsin, the president they helped
to elect, must end. . …The Kremlin owes $10 billion in back wages to millions
of workers who are becoming increasingly militant. Strikes, especially in the
depressed coal-mining sector, have become commonplace and Russia's trade
unions have announced a series of protests across the country this autumn.
* 8/28/98 More on Russian from Freeper Anochka "…Western assistance,
IMF lending and the targeted division of national assets are what provided
Boris Yeltsin the initial wherewithal to purchase his constituency of
ex-Komsomol [Communist Youth League] leaders, who were given the freedom and
the mechanisms to plunder their own nation in tandem with a resurgent and more
economically competent criminal class. This new elite learned everything about
the confiscation of wealth, but nothing about its creation. Functioning as
Boris Yeltsin’s political base, the Russian president’s government has been
doomed to sustain them ever since it took power. And it is that reality which
explains the return of Viktor Chernomyrdin to the Prime Ministership…The
Harvard teams’ second mistake lay in a profound misunderstanding of Russian
culture and, in accordance with the many ironies of the Clinton regime, in
their astonishing disregard for the very basis for their own country’s
success; property rights. …Russian property rights are tricky; property has
never been distributed, but only confiscated and awarded on a cyclical basis.
Today property exists, as it always has, only where there is power. For the
common man, the property right hasn’t advanced much beyond what Blackstone
identified as "usage rights" in that custom prevents the taking of any man’s
shelter, clothes or tools so long as continuous usage is demonstrable. An
additional, purely Slavic feature of the Russians’ concept of property is the
shared belief that each has a claim upon some part of the whole…. The
years-long sugarcoating of what the Clinton administration’s policies have
wrought in Russia is just one more lie bequeathed Americans. Unless Mr.
Clinton can resist his lifelong predilection for influence peddling and not
hand Al Gore’s special pal, the re-installed Viktor Chernomyrdin, yet another
bag of other peoples’ money, the degradation of Russia will continue. …For the
Clinton administration, the US Treasury and the IMF, all of whom sought to
command the global economy, and the American electorate, which unwittingly
funded their effort, now is the time to recall that the fundamentals of a
successful country - private property, sound money, the rule of law, minimal
government and public accountability - still apply, no matter how much time or
how many taxpayers’ billions go by."
* 8/23/98 Wall Street Journal "Russia's President Boris Yeltsin fired
Prime Minister Sergei Kiriyenko and the rest of his government on Sunday and
said he was reappointing former Prime Minister Viktor Chernomyrdin just five
months after he dismissed him. The surprise announcement came as Mr.
Kiriyenko and the government were struggling to overcome one of Russia's worst
economic crises since the Soviet collapse…."
* New York Times 8/29/98 "The scramble was on again Friday among
President Clinton's already seriously scrambled aides. Three days before
they are scheduled to depart for a summit meeting in Moscow, senior
administration officials wondered which Russians they would face across the
conference tables. Clinton's aides began rewriting his planned remarks on the
future of U.S.-Russian relations. "You've got an economy collapsing and a
president on the verge of resignation, and we're about to go there for a
summit," one administration official said Friday afternoon, referring to
Russia and President Boris Yeltsin. "…"
* Stratfor Systems Inc. 9/1/98 "Citing a "highly positioned source at
the Defense Ministry," the Russian newspaper "Komsomolskaya Pravda" reported
Monday that commanders of the Tamanskaya and Kantemirovskaya Divisions and the
Tyoplyi Stan Brigade, all stationed near Moscow, as well as the Tula, Ryazan,
and Tver Divisions, have been ordered to "prepare themselves for extraordinary
situations." Officers have reportedly had their leaves canceled, and the units
have been ordered to increase their guard on ammunition, food, and fuel
stockpiles. Komsomolskaya Pravda also reported that acting Defense Minister
Igor Sergeyev had assured Russian President Boris Yeltsin of the troops'
loyalty during a recent meeting. Additionally, the newspaper reported that the
Interior Ministry had been ordered to prepare to "act under extraordinary
circumstances" in Moscow, should civil unrest arise. Finally, the newspaper
reported that Russia's Federal Security Service, the successor to the KGB, is
monitoring the situation in Moscow and the Far East for any signs of
destabilization…."
* 8/31/98 Barry Renfrew AP "Lawmakers voted overwhelmingly today to
reject the appointment of Viktor Chernomyrdin as prime minister despite
warnings that Russia was on the verge of political and economic collapse. The
Duma, the lower chamber of Parliament, voted 251-94 not to confirm
Chernomyrdin after more than three hours of bitter debate in the chamber.
Hard-line delegates called for President Boris Yeltisn's
resignation….Yeltsin's parliamentary envoy, Alexander Kotenkov, warned the
opposition that both sides could be swept aside if there is no swift action to
end the crisis. ``If this chaos lasts for several more weeks, it may happen
that there will be neither Communists nor us,'' he said. ``I mean a popular
uprising, merciless and senseless.'' …
* Electronic Telegraph 9/3/98 Marcus Warren "ALEXANDER Lebed, the
outspoken Siberian governor, warned President Clinton yesterday that Russia's
current position is even more desperate than in 1917, the year the Bolsheviks
seized power. "I told him today the situation in Russia is catastrophic," Gen
Lebed said after a reception in Mr Clinton's honour. "The situation is worse
than in 1917. Now we have stockpiles of poorly-guarded nuclear weapons." The
rhetoric was the most alarmist that Mr Clinton had heard on his two-day summit
with President Yeltsin. But it reflected increasing nervousness in Moscow that
the country's financial and political crisis could take a tragic turn for the
worse…"
* Global Intelligence Update 9/8/98 "…It is time to start discussing
what will be on the front page of newspapers in the year 2000 and beyond.
Because we regard the collapse of the Russian government as both a given and a
definitive event in contemporary history, we would like to devote the next few
Weekly Alerts to the more important and less immediate question of what the
world will look like in the first part of the twenty-first century….The agent
of change here is, of course, Russia. Regardless of personalities, the
liberalism of the last six years has played itself out. The Communists and
nationalists control the Duma. Yeltsin cannot govern without their support.
Their position is that Russia cannot expect meaningful financial help from the
West. Indeed, they argue that it was the liberal Westernizers who led Russia
to the brink of disaster. In exchange for nothing, Russia has paid with its
empire. It has become both impoverished and insecure. This is unacceptable.
Therefore, there will be a great rectification. That rectification will take
place in stages. The first stage will be the reclamation of the administrative
organs of the Russian government and the return of state control to the
economy. The second stage will be the reclamation of the former Soviet Union….
The problem is that neither Madeleine Albright nor Strobe Talbot seem to
understand that NATO may one day be called on to fight a war. The decisions
they have made makes fighting that war impossible…. We expect Russia to return
to the borders of the Soviet Union. Therefore, we expect Russian pressure to
be exerted on Central Europe. Whatever Russia's intentions might be, the mere
presence of Russian power on the Polish plain and in the Carpathians will
condition the politics of the adjoining region. This shift will actualize the
traditional geopolitics of Europe, driven, once again, by the German question.
The first manifestation of this will be the German response to Russian
default. Germany has invested far more money in Russia than anyone else.
Germany stands far more exposed than anyone else. It will try to organize
stabilization programs that the rest of Europe and the U.S. will not be
particularly interested in, especially since German banks will be the major
beneficiaries. Germany will then face the choice of abandoning its banks to
the consequences of Russian default, or of organizing a Russian policy on its
own. This will be a defining moment in German and European history. The
bailout will fail. The experience of acting alone will redefine German foreign
policy and will represent the real end of World War II."
* American Spectator 8/98 James Oberg "The scandal of the Star City
mansions and NASA's non-response to it perfectly characterize the U.S.-Russian
space partnership. From the beginning, the program has stumbled over the issue
of money--how much the Russians will get, where (and to whom) it will go, and
how much will actually be spent on the promised services. By 1998, the
five-year-old partnership had seen the transfer of more than $2 billion of
American money (some from NASA but most from commercial enterprises) into the
Russian aerospace industry, where most of it vanished utterly without a
trace…."
* Toronto Sun 9/7/98 Eric Margolis "…While Clinton and Yeltsin were
making fools of themselves, outside the Kremlin's walls, Weimar Russia was
collapsing. In fact, Clinton arrived in Moscow to find Russia without a
government, Yeltsin's nominee for prime minister, the stolid Viktor
Chernomyrdin, having just been rejected by the Communist-dominated Duma, or
parliament. The ruble hit a new low, banks went insolvent and panicky Russians
saw their savings disappear. Though Russia's economy is smaller than
Holland's - or Ontario's, for that matter - Moscow's repudiation of its debts
has rocked world markets. The West has loaned Russia over US$200 billion since
1991. Half is owed to the U.S. government, IMF, and other institutions, the
rest to European and American banks. German banks, the biggest holders of
Russian debt, are facing a financial Stalingrad: $52 billion of losses. We
have just witnessed the biggest theft in modern history. At least half of the
$200 billion poured into Russia to bankroll Yeltsin's regime has been stolen
outright, as this column has been reporting for years, and secreted in
Switzerland, Monaco, Cyprus and the Bahamas. The thieves were Russia's seven
super tycoons, bankers, politicians, and, of course, the Russian mafia, which
controls 60% of all business. The West - led by President Clinton - simply
closed its eyes to Moscow's Ali Babas and continued the charade that Yeltsin's
Russia was a worthy, emerging democracy with a budding middle class and a
market system…."
* CNN Interactive Reuters 9/4/98 "A group of sailors from Dagestan
released 24 school children and teachers they had taken hostage on Saturday at
a nuclear base in Russia's Arctic North, Interfax news agency reported. It
gave conflicting reports on how the hostage-taking ended…."
* AP 9/9/98 Mitchell Landsberg "In one Russian region, the local
government has created a barter bank where people can swap timber or cardboard
for food. In another, local officials manufacture macaroni to feed the hungry.
With only a temporary government in Moscow, power in Russia quickly is
devolving to the country's regions, where governors are adopting widely
divergent policies to deal with the worst economic crisis since the 1991
collapse of the Soviet Union. Where it will all lead, nobody knows. But more
than one observer has warned that Russia could be heading down a road toward
division, separatism and collapse…."
* Greg Myre AP 9/16/98 "Boris Yeltsin today appointed four deputy
premiers — three moderate reformers and one Communist technocrat — but the
government's plan for tackling Russia's economic crisis remained fuzzy and the
ruble showed new signs of weakness…."
* Reuters 9/21/98 "The leader of the Russian Communist Party warned on
Monday that the military might take power if the new government headed by
Prime Minister Yevgeny Primakov failed. ``It is important for us to support
Primakov's government, but if it fails we cannot exclude the possibility that
the next government will very probably be made up of soldiers,'' Gennady
Zyuganov told reporters while on a visit to the Council of Europe…"
* St. Petersburg Times 10/2/98 Bradley Cook "It’s been six weeks since
former prime minister Sergei Kiriyenko took a deep breath, sighed, and
unapologetically announced to the world that Russia had decided not to honor
its debts. And although the dust from Kiriyenko's bombshell has yet to settle,
some analysts are saying that Western investors alone could end up losing as
much as $100 billion thanks to the Kremlin's unilateral and financially
dubious decision. Oddly enough, that figure - $100 billion - is the same
figure some analysts say investors will lose as a result of last week's
failure of one of the world's largest private investment funds. Long-Term
Capital Management of Greenwich, Connecticut - a hedge fund run by two former
Nobel Laureates and a former governor of the Federal Reserve Board in
Washington - had, at the end of August, $1.25 trillion (with a "t") invested
in international markets, including everything from Japanese yen and Danish
mortgages to U.S. treasury bills and Russian and Brazilian bonds …. The fact
that the Strategic Rocket Forces has found the money to modernize its fleet of
ICBMs while the Russian Space Agency is saying it doesn't have the funds to
finish its share of the work suggests that NASA cash is being used to build
Russia's new ICBMs. "NASA policy to date has been to allow the Russian Space
Agency to write itself checks from a U.S.-funded bank account in New York,
with no auditing on how the money was spent, and the U.S,. has no mechanism to
make sure NASA money is not used to maintain Russia's nuclear weapons
infrastructure," according to Russian Reform Monitor, a publication from
Washington's American Foreign Policy Council think tank. …"

INTELLIGENCE

* Intelligence officers have been forced to retire (or resign) by the
Clinton Administration for operations which took place during the Reagan
presidency. In no instance were these operations "outside the bounds"; all
complied with US laws and statutes (and still do). This Administration,
through budget changes, has reduced to a trickle the amount of "hard
intelligence" being produced (good intelligence costs, whether the
intelligence is garnered through human assets or "technology"). The
ever-shrinking budget has forced the closing down of offices throughout the
world, many of which provided extremely useful "pieces" to a much larger
puzzle. The mainstream media has sided with Clinton in deriding the IC for
their "failure" to warn the Administration regarding India's nuclear weapons
testing. To the contrary, Clinton was warned well in advance - it is true
that the specific office which was watching for the tests didn't catch the
first one until it had already happened. This office used to work 24 hours a
day 365 days a year; but due to the Administration’s budget cuts (and
subsequent reduction in personnel) this office hasn't been working this
schedule for the last four years. Mainstream media has neglected to mention
that particular fact. All of the IC the FR source has served with have been
men (and some women) of honor and integrity; all take the Constitution and the
security of the US very, very seriously.
* In a closed door session with the Senate Intelligence committee, CIA
director George Tenet was "enraged" by the White House's contention that the
agency failed to pick up signs India was readying nuclear tests. Tenet
defended the CIA and blamed the White House, saying "We were simply ignored."
According to a former U.S. military and intelligence official, Indian Prime
Minister Atal Bihari Vajpayee in the weeks leading up to the first test sent a
letter to the White House outlining plans to conduct nuclear tests in the near
future. In spring 1997, CIA operatives detected preparations for a nuclear
test in India and presented the White House NSC staff with evidence. The NSC
staff in turn confronted the Indian government with the raw intelligence data.
"The Indians saw what the U.S. had, were able to figure out how we got the
material, and then were able to map out procedures so that future test
preparations were better concealed … The White House basically handed them a
blueprint of how to pull off a successful test." The White House has also
provided Russia and China with intelligence material they were able to use to
their advantage in blunting further U.S. intelligence gathering.
* Peter Leitner, 12 year veteran of to Defense Technology Security
Administration DTSA, said the largest blow to DTSA will come in October, when
the agency is scheduled to be transferred from the Pentagon's prestigious
policy division to a new office controlled by DTSA's detractors, military
acquisition officials who favor foreign sales as a way to help American
contractors and control costs. The Clinton administration has "neutered"
DTSA's 140 employees through a variety of means, Leitner said: by naming
Pentagon leaders who disagree with DTSA's central mission, by giving DTSA
analysts only minutes or hours to decipher the complexities of the 21,000
proposed high-tech transfers it reviews each year, by reducing DTSA's dealings
with intelligence agencies knowledgeable about foreign adversaries and by
establishing interagency procedures skewed toward sale of U.S. technology.
* Summarized from a report by Charles Smith (Softwar): Webb Hubbell,
Ron Brown and Vince Foster were all assigned to encryption tasks involving
chip technology. Janet Reno was personally tasked to encryption export policy.
Ira Sockowitz, a former DNC fundraiser walked out of the Commerce Dept. with
over 2,000 pages of secret material on encryption and satellites. According to
the GAO, Clinton personally authorized the transfer of military strength
encryption technology to China with a Presidential Waiver. There was a GAO
report on the 1994 "Hua Mei" transfer of an advanced telecommunications,
secure, fiber-optic system sold to a Chinese Army front company included
advanced encryption software. One document returned under a FOIA request
from the Commerce Dept. for the "Hua Mei" request, outlines the details of how
China and the Clinton administration used an obscure license technique, called
GLX, to avoid verifying the end user was the Chinese military. In the case
of Hua Mei, the Chinese Army bought technology by using front companies. The
Commerce Department under Ron Brown did very little, if anything, to stop
them. In fact, according to the Commerce Dept., of the 734 licenses applied
for advanced telecommunications export to China in 1994 under the "GLX"
category only five were denied! Additional documents obtained by SOFTWAR using
FOIA from the White House National Security Council (NSC) show that Motorola
sought and obtained President Clinton's permission to sell encrypted radios to
China. Motorola did so with the help of a former Clinton and Bush NSC
official, Dr. Richard Barth. Barth was brought back into the Clinton White
House as a contractor in 1993 and helped make U.S. encryption export policy.
Clinton opposes the sale of the same type of equipment to all U.S. citizens.
* 7/14/98 Worldnetdaily Joseph Farah concerning COSCO and Long Beach
"It's a staging ground for the New World Order. When Bill Clinton says he and
China share a vision for one big happy planet, this is what he is talking
about…. The wacky idea was formulated right in the Oval Office following one
of those visits by Chinese arms dealers who dumped money into President
Clinton's 1996 election campaign. Long Beach city officials, oblivious to the
national security concerns of the plan, saw it as a bonanza for local commerce
and jobs. China's interest in Long Beach is as understandable as Beijing's
desire to take control of the Panama Canal. But there's even more to the story
than meets the eye -- more than most of the opposition to the plan have ever
imagined. China also wants COSCO, which serves as an intelligence-gathering
operation for the PLA, located near the multinational Sea Launch project,
which will use its Long Beach base to launch dozens of satellites into space
from equatorial ocean locations. The Russian company RSC-Energia is a partner
in Sea Launch along with Boeing. RSC-Energia is as closely tied to Russian
military intelligence as COSCO is to Chinese military intelligence…."
* BBC 9/5/98 "The United States has conceded that the rocket launched
by North Korea on Monday could have put a satellite in orbit - and may not
have been a test of a new ballistic missile. An American intelligence official
was quoted as saying that Washington was still analysing data, but the
possibility that it was a genuine satellite launch could not be ruled out. In
Moscow, Itar-Tass news agency said Russian space monitors confirmed that the
North Koreans had successfully put up a satellite. It was said to be circling
the earth every two hours and 45 minutes in a high, elliptical orbit…."
* AP John Diamond 9/16/98 "The CIA is pumping money and people into
recruiting efforts to battle a trend that the agency's departing inspector
general says has sapped the clandestine service of its most experienced hands.
Agency officials outlined Tuesday initiatives that CIA Director George Tenet
announced internally last month to increase pay, provide hiring bonuses and
shorten the waiting time for job offers….The program is intended to combat a
problem outlined in an op-ed article by outgoing CIA Inspector General Fred
Hitz who said the CIA's Directorate of Operations, the clandestine spy
service, is losing its best people amid organizational drift and declining
morale…."
* 9/24/98 AP John Diamond "North Korea surprised the United States by
launching a three-stage rocket and, with lighter payloads, could be on the way
to developing an intercontinental-range weapon, U.S. intelligence officials
are telling lawmakers. In a classified briefing Wednesday on Capitol Hill,
the nation's top military and civilian intelligence officials told members of
the Senate Armed Services Committee that they were closely examining the
system launched by Pyongyang and studying whether lighter payloads might
extend its range enough to reach the United States. ``The fact that they had
a third-stage capability was not predicted by the intelligence community, and
they are doing a reassessment,'' Sen. Chuck Robb, D-Va., said after a
classified briefing by CIA Director George Tenet and Army Lt. Gen. Patrick
Hughes, head of the Defense Intelligence Agency…."
* AP 10/7/98 John Diamond "White House procedures for protecting
highly secret information are often lax, congressional auditors said
Wednesday. Security clearances are granted before completion of background
checks, they said, and failing in some cases to order adequate CIA
investigations. The White House vigorously disputed the findings published in
a General Accounting Office report requested by two Republican House members….
The GAO said that from 1993 to 1996 no White House-wide procedures existed for
controlling access to highly classified information, including ``sensitive
compartmented information'' so sensitive its handling is governed by rules set
by the director of central intelligence. Lack of universal White House
procedures for protecting such information extended to several agencies, among
them the vice president's office; the National Security Council; the
president's Foreign Intelligence Advisory Board; and the offices of Science
and Technology Policy, National Drug Control Policy and the U.S. Trade
Representative, the GAO said. At least the vice president's office and the
NSC, however, had their own strict procedures, it said. The White House issued
draft security procedures for access to sensitive compartmented information in
June 1996 but not made final until last March. These guidelines, the GAO
found, lacked rules for working with the CIA on controlling access to the most
sensitive information…."
* AP 10/14/98 John Diamond "…The Energy Department and Pentagon
discovered sensitive nuclear weapons information in boxes of Cold War-era
materials that were about to be publicly released at President Clinton's
orders. The discoveries sparked a hasty scramble by Congress to block the
release of information that energy officials warned would advance the
capabilities of emerging nuclear states such as Pakistan and India…. White
House officials were alerted to the problem this summer in a letter from
Kenneth Baker, a senior official in the Energy Department's Office of
Nonproliferation and National Security. The letter concerned the discovery of
pages marked ``Restricted Data'' or ``Formerly Restricted Data,'' in boxes of
25-year-old classified documents slated for release without review…. Clinton's
executive order, which requires automatic declassification by the year 2000 of
documents more than 25 years old, includes an exception for restricted data.
But the order contains no provision to search every document in every box -- a
task involving billions of pages and as many as 67 different agencies --
looking for the sensitive material. ``This problem poses a great national
security risk'' because it involves the potential release of ``the nation's
most sensitive secrets,'' Baker wrote…"
* Freeper Report "…You ask what coverup historians discovered; how
about one which we _didn't_ know about, but which came back to embarrass the
U.S. In 1994, Clinton and the State Department asked William C. Doherty, jr.,
to become the Ambassador to Guyana. At the time, Doherty was executive
director of the American Institute for Free Labor Development. The United
States then asked Guyana to accept, with its compliments, Mr. Doherty as the
U.S. Ambassador. Cheddi Jagan, the President of Guyana, did a highly unusual
thing (in the diplomatic world) and rejected Doherty. The reason: Doherty had
once tried to overthrow Jagan as part of a CIA-orchestrated coup. Scrambling,
the Clinton Administration and the CIA tried to figure out what the hell had
happened. It turned out Jagan had been prime minister 1961, had been
considered socialist, and had been targeted for overthrow by the U.S. The
plot failed, and became public knowledge in Guyana. Having discovered all of
this interesting diplomatic history, the CIA and the State Department promptly
classified its report...despite the fact that everyone in South America knew
who Doherty was and that the CIA had tried this stunt in the 60s. Such a
classification, of an event everybody knew about, which occurred over 30 years
ago, had no basis for being kept secret. U.S. law at the time required all
documentation over 30 years old to be released to the archives, as long as it
did not threaten national security. The point here is that most of us don't
give a damn about what the CIA did 35 years ago, and disclosing its documents
will hurt nobody. Yet they refused to turn them over to the National
Archives…."
* Freeper Report "…Several months ago there was a curious article in
the WSJ. A naturalized Vietnamese owns an environmental cleanup firm. He met
with John Huang in DC and the two of them met in turn with another
Asian-American who is an Undersecretary of Defense in the Clinton
administration. The article delt with illegal or questionable contributions to
the DNC. It did not mention the location of the cleanup firm. It is a small
town (my old hometown, actually) that is a primary research, development, and
production facility for thermonuclear weapon component production…."

RUSSIAN PROLIFERATION

Abbreviations:
Iran-Iraq Arms Nonproliferation Act (IIANA)
Arms Export Control Act (AECA)
Export Administration Act (EAR)
Biological Weapons Convention (BWC)
Foreign Assistance Act (FAA)
Nuclear Proliferation Prevention Act (NPPA)
Director of Central Intelligence (DCI)
* Early in the 1990s, Russians sold drawings of a sarin plant
manufacturing procedures and toxic agents to a Japanese terrorist group
(violated AECA, EAR - no publicly known sanctions.)
* In 1991, Russian entities transferred to China 3 RD-120 rocket
engines and electronic equipment to improve the accuracy of ballistic missiles
(violated MTCR, AECA, EAR - no sanctions.)
* From 1991 and 1995, Russian entities transferred cryogenic liquid
oxygen hydrorocket engines and technology to India (violated MTCR, AECA, EAR -
sanctions were imposed against Russia and India.)
* From 1992 to 1995, Russian transfered to Brazil carbon fiber
technology for rocket motor cases for a space launch program (violated MTCR,
AECA, EAR - secret sanctions imposed then waived.)
* From 1992 to 1996, Russian armed forces delivered 24 Scud-B missiles
and 8 launchers to Armenia (violated MTCR, AECA, EAR - no sanction.)
* June of 1993, Russian entities involved in missile technology
transfers to India (violated MTCR, AECA, EAR - sanction imposed then waived.)
* 1995 to the present, construction of a 1,000 megawatt nuclear
reactor at Bushehr in Iran (violated IIANA, Foreign Operations Appropriations
Act, NPPA, FAA - administration refused to renew some civilian nuclear
cooperation agreements, waived sanctions on aid.)
* August of 1995, Russian assistance to Iran to develop biological
weapons (violated BWC, AECA, EAR, the IIANA, FAA - no known sanctions. )
* November 1995, Russian citizens transferred to unnamed country
technology for making chemical weapons, (violated AECA, EAR - sanctions
imposed on a Russian citizen.)
* December of 1995, Russian gyroscopes from submarine launched
ballistic missiles smuggled to Iraq through middlemen - caught red-handed,
(violated United Nations sanctions, MTCR, AECA, EAR, IIANA, FAA - no
sanctions.)
* 120 sets of guidance systems went to Iraq from Russia three
different times
* July-December 1996. DCI reports key supplies for technology for
large nuclear projects in Iran. (violated NPT, IIANA, NPPA, Export-Import Bank
Act, EAR - no sanctions.
* July and December of 1996, same.
* DCI reports considerable chemical weapons-related transfers for
production equipment and technology to Iran (violated IIANA, AECA, EAR - no
sanctions.)
* January of 1997, dual use biological items to Iran (violated BWC,
IIANA, AECA, EAR - no sanctions).
* 1997, chemical precursors, production equipment, and production
technology for Iran's chemical weapons program including a plant for making
glass-lined equipment (violated IIANA, AECA, EAR - no sanctions.
* In September of 96, in a letter to Hazel O’Leary, Russia’s Nuclear
Energy Minister Viktor Mikhaylov explained that he wanted the high performance
computer to "guarantee the reliability of....Russia's nuclear stockpile."
* Late 1996 - MINATOM officials said that Silicon Graphics Inc. sold
four computers to Chelyabinsk-70 a Russian weapons facility for $650,000 each.
* Silicon Graphics was under investigation in 1997 for selling to
Russia a high-powered unit that ended up in the Chelyabinsk-70 nuclear weapons
laboratory.
* May 1997 - US engineers convince Energomash (Russia) about cause for
heavy booster failure following a launch of a military spy satellite from
Baikonur Cosmodrome.
* June 1998 - The new Russian SS-X-27 missile is being deployed with
an advanced 550 kiloton nuclear warhead made by the Arzamas-16 nuclear design
bureau, using an advanced IBM super-computer purchased in 1996 from Europe for
$7 million. The Moscow Institute of Thermal Technology is providing the
SS-27 design to China who intends to produce the TOPOL-M missile under the
designation "Dong Feng" (East Wind) DF-41.
* June 23, 1998 - President Clinton vetoed a bill to impose sanctions
on Russia for selling missile technology to Iran, even though the Pentagon
said the missile trade is continuing.
* Reuters 7/31/98 "An International Business Machines Corp. subsidiary
pleaded guilty Friday to unlawfully exporting 17 sophisticated computers to a
top-secret Russian nuclear weapons laboratory, U.S. government officials said.
They said the Russian subsidiary, IBM East Europe/Asia Ltd., was sentenced to
pay $8.5 million, the maximum fine authorized for violations of U.S. export
control laws. The officials said the guilty plea was entered at a court
hearing before Chief U.S. District Judge Norma Holloway Johnson. One official
said the transactions constituted "serious violations of export control laws
designed to protect the national security of the United States.''They said the
guilty plea stemmed from a 17-count criminal information charging the
subsidiary with violating the law in connection with the computer sales in
late 1996 and early 1997 to the Russian laboratory, called Arzamas-16. .. In
September 1996, IBM sold 16 computers, two fiber channel switches and related
hardware and software to the Russian affiliate, knowing the computers were
destined for the laboratory, they said. The computers were shipped from an IBM
facility in Europe to a freight forwarder in The Netherlands and then
transported by truck to the laboratory in October 1996, the officials said. No
licenses were sought from the Commerce Department.In mid-October of 1996, the
Commerce Department told IBM its original request would be denied, the
officials said. In November, an employee of the IBM subsidiary took part in
installing the computers. In November of 1996, the Russian affiliate ordered
another computer and hardware and software for the laboratory, which was
shipped in February 1997 the same way as the other computers…"
* Times of London 8/4/98 Michael Evans "IRAQ is suspected of forging a
deal with a Russian company to buy key guidance equipment for long-range
ballistic missiles. The purchase would be in breach of a multinational
agreement signed by Moscow to stop the transfer of sensitive military
technology. Despite Western pressure on Russia to abide by the terms of the
Missile Technology Control Regime (MTCR), intelligence services have evidence
that a Russian company has agreed to sell Baghdad 120 accelerometers, the
principal components of advanced guidance and control systems. A Foreign
Office official in London confirmed that accelerometers were included in a
list of banned equipment detailed in the overall MTCR agreement. "
* 8/5/98 Defense Daily Sheila Foote "A defector from an elite military
intelligence unit of the former Soviet Union told Congress yesterday that it
is possible that Russia has smuggled nuclear suitcase bombs into the U.S. to
use in the event of war. Stanislav Lunev, a former colonel who defected in
early 1992 from the GRU, or Russian Intelligence Agency, testified before the
House National Security Committee (HNSC). He is the highest ranking defector
ever from the GRU. Lunev is the author of a new book, Through the Eyes of the
Enemy, that states that the Russian military and intelligence organizations
still regard the U.S. as a threat and continue to plan for World War III
scenarios in which Russia and the U.S. oppose each other. Rep. Curt Weldon
(R-Pa.), who presided over the hearing, called for the administration to do
more to ensure the U.S. is prepared for this threat from Russia. Specifically,
Weldon, who is the chairman of the HNSC's research and development panel,
promoted the idea of spending more money on a Wide Area Tracking System
intended to detect smuggled nuclear devices. The technology is under
development at Lawrence Livermore Laboratory. "Given the shocking possibility
that Russian nuclear suitcase bombs may even now be smuggled into the United
States, I hope the Clinton administration reverses its neglect of the
experimental WATS" system, Weldon said. Because Lunev has had his identity
altered under the federal witness protection program, he testified yesterday
behind a screen that blocked observers from viewing his face. "
* 8/14/98 Fred Weir Hindustan Times "Russia may use its air force to
bomb Taliban positions in northern Afghanistan in order to offset Pakistani
military aid to the advancing Islamic militants, a senior Russian
Parliamentarian says. "We cannot rule out any preventive measures against
the Taliban, including air strikes on their bases located along our borders,
"the official ITAR-Tass agency quoted parliamentary Security Committee
chairman Viktor Ilyukbin as saying Thursday night…"
* 8/31/98 Baltimore Sun Robert Freedman "WHILE THE Monica Lewinsky
affair has slowed the wheels of government in Washington, it has had much more
dangerous effect on American policy in the Middle East. Not only has President
Clinton not been able to prevent the deployment of surface-to-air missiles
which Russia sold to the Greek Cypriot side of the divided island of Cyprus, a
development that threatens to lead to war between two NATO allies of the
United States, Greece and Turkey.
* 9/29/98 United News of India "Russia has reaffirmed its commitment
to maintain defence supplies to India despite pressure from the United States
to scale down the level of Indo-Russian defence collaboration, the Voice of
Russia has said. In its comment on the forthcoming visit of an Indian defence
delegation to Moscow, the Voice of Russia radio network said the Kremlin will
go ahead with an agreement regarding the supply of ten new Su-10 fighter
planes, new generation of submarines and high-tech missiles to India, the US
pressure not to do so notwithstanding. It disclosed Russia's willingness to
assist India in the production of anti-missile weaponry…."
* STRATFOR 10/16/98 "…As Russia attempts to reassert itself as a
global power, it is reviving old alliances. A Russian delegation headed by the
Russian Minister for Emergency Situations, Sergei Shoigu, met with Libya's
Moammar Khaddafi in Tripoli on October 8, reportedly to deliver a message from
President Boris Yelstin to Khaddafi. On October 10, the substance of Russia's
overture to Libya was made known by Foreign Ministry spokesman Vladimir
Rakhmanin, who announced that Russia sought cooperation with Libya in the oil
and gas sector. However, the Russian newspaper "Segodnya" reported that same
day that the purpose of Yeltsin's letter to Khaddafi was to explore the
"prospects of the resumption of bilateral cooperation in the sphere of nuclear
power." Segodnya's report on Russian-Libyan nuclear cooperation was verified
by ITAR-TASS, on October 13. …. This direct threat to U.S. interests in the
region is another iteration of Moscow's new political agenda --Russia intends
to resume its role as a great power, on its own terms, with its own allies,
despite U.S. interests. On October 2, we reported that Khaddafi has responded
to the lack of support form the Arab community by turning his back on it and
attempting to develop a Libyan leadership role in Africa. Khaddafi decided
that, if the Arab community will not stand up against U.S. and UN efforts to
isolate Libya, then he would find his outlet to the world through the exertion
of Libyan hegemony on the African continent….Libya is but the next step in
reviving old alliances and rebuilding Russian power, and the nuclear
cooperation is a nice slap in the face of the U.S. in the process. However,
the real story is not the threat of a possible Libyan nuclear weapon in the
near future. The threat comes from the speed with which Russia is rebuilding
the bipolar world. In the midst of economic collapse, Russia has discovered
that many of its old friends may have been forgotten, but they're not gone.
The same political patterns and animosities, and even many of the people that
shaped the Cold War are intact…."
* Global Intelligence Update 10/15/98 Stratfor Inc. "…Divided over
every other policy issue, Russian politicians have come together to challenge
NATO intervention in Serbia. Even the most Western oriented have insisted that
only the UN Security Council has the right to authorize military intervention
in Yugoslavia, while the Communists have warned of the resumption of the Cold
War and radical firebrand Viktor Ilyukhin has gone so far as to threaten the
lives of Western diplomats in Moscow. Leonid Ivashov, the head of the Russian
Defense Ministry's main directorate for international military cooperation,
told Russian Public TV on October 13 that "the operation which is being
prepared against the Federal Republic of Yugoslavia is a provocation by the
alliance's military forces against Russia, too. Yes, this will only create a
precedent. Other countries in Europe, the CIS and Russia included, could find
themselves the next targets of NATO action." Ivashov said that, if NATO
launched strikes against Yugoslavia, Russia would resume full military
cooperation with Belgrade, including violating the arms sale embargo against
Yugoslavia. In addition, Ivashov claimed that Russia would respond to any
attack on Yugoslavia with "a change in partnership with NATO" and a search for
"possible new military allies to maintain the necessary military balance."
Prime Minister Yevgeny Primakov announced that Russia's relations with NATO
may have to be reevaluated, and Russia already recalled its representatives to
NATO on October 12…These themes unite Russia internally, help rebuild ties
within its former empire, and help reestablish Russia as a great power. But
talk, as they say, is cheap. More alarming than this rhetoric, however, have
been reports suggesting that Russia has already violated the arms embargo
against Yugoslavia, and has provided the Serbs with military aid. On October
7, the Times of London reported that Russia has supplied the Yugoslav army
with new warheads, fuses, and sensors for its SA-6 surface-to-air missiles, a
charge that Russian state arms export company Rosovooruzheniye has denied.
According to the International Institute for Strategic Studies, Yugoslavia has
eight surface-to- air missile batteries at eight sites, as well as 100 other
missiles. According to Jane's, the Yugoslav army has an unknown number of
SA-2, SA-3, SA-6, SA-8, SA-9, SA-11, and SA-13 towed or mobile surface-to-air
missile systems, as well as a variety of man-portable missiles….. According to
our source, a few weeks ago Russia shipped 50 2S6M "Tunguska" self- propelled
air-defense systems to the Serbs. The Tunguska is one of Russia's newest
weapons systems, mounting two 30mm antiaircraft guns and up to eight 9M311
(SA-19) two-stage, hypersonic, low to medium altitude surface-to-air missiles.
The Tunguska is reportedly in service only with the CIS and India. If this
report of deployment to Yugoslavia is true, it would indicate a serious threat
to either air-strikes or reconnaissance against the Serbs. It would also
demonstrate that Russia has crossed the line, putting its missiles where its
mouth is…"

NUCLEAR ARMS RACE SOUTHERN ASIA

* Clinton permitted the sale of satellite and missile technology to
China. China provided nuclear assistance to Pakistan and Iran. That prompted
India to boost its nuclear weapons program. And today Pakistan is once again
upping the ante. "China has had a major hand in what happened today," said
R. James Woolsey, former CIA director. Transfers: nuclear weapons design
information, ring magnets, M-11 short-range missiles and equipment used in
setting up a missile production facility, expertise, industrial furnace and
high-tech diagnostic equipment with military applications. India has said
that its nuclear tests were conducted in response to threats posed by China.
China stepped up military cooperation with Pakistan in 1995 in retaliation for
the United States' allowing Taiwan's president, Lee Teng-hui, to visit Cornell
University.
* On June 4, 1998 - the Nihon Keizai Shimbun - a financial daily -
reported that North Korea may have at least one nuclear bomb. The daily also
quoted a report saying that the nuclear tests by India and Pakistan might
tempt North Korea to resume its nuclear program. Pakistan and North Korea
have close ties. China and Pakistan have close ties.
* The U.S. Customs Service has opened an investigation into the sale
of super computer upgrades to India by IBM, in violation of US export laws.
U.S. law requires an American company to obtain an export license before
selling and shipping overseas any computer that performs more than 2 billion
operations per second. The computer that was sold operated at 1.4 billion
operations per second when installed in 1994. The Clinton Commerce Department
oddly granted a license for the sale of the sensitive computer, despite
knowledge the buyer was a missile site. IBM then upgraded it in March 1997 to
perform 3.2 billion operations per second and again in June 1997 to 5.8
billion, making it possibly the most powerful computer in India.
* Former UN Ambassador Jeane Kirkpatrick noted that the danger of
nuclear war is "greater now than any time since Hiroshima.." and that
President Clinton takes a "see no evil, speak no evil, hear no evil" attitude
toward nuclear proliferation.
* According to a Pakistan news source, the nuclear blast has "created
new and interesting opportunities for the country to embark upon a major
foreign policy initiative in the Middle East and particularly among the Gulf
states… The growing Indo-Israeli relations can go a long way in making through
to the circles concerned the real Indian designs in this region….It could mean
Pakistan exports to the region rising and could also mean more Pakistani
manpower in the region…"
* A recently retired CIA top intelligence officer, Gordon Oehler told
the Senate Foreign Relations Committee in June 1998 that the CIA was
``virtually certain'' that China transferred 34 intermediate-range missiles to
Pakistan from 1992 to 1996, and that China also assisted Pakistan in
developing its nuclear weapons. He said that although China promised reforms,
it was still "a major proliferator." He further identified the National
Security Council for dismissing the CIA evidence as preliminary or incomplete
to avoid triggering sanctions. He also said the CIA was pleased with the 1996
decision to move U.S. satellite decisions to Commerce since the CIA then had a
chance to review the licenses.
* The June 15th, 1998 article from Economic Times (India) reveals a
clear sense of betrayal: "THOSE gullible people who ask what is the threat
from China should now wake up after President Clinton's statement: ``Because
of its history with both countries, China must be a part of any ultimate
resolution of this matter''. This was with reference to India and Pakistan
resolving their differences, including Kashmir, through dialogue. In other
words, President Clinton was clearly signalling that from now onwards South
Asia will, in the US view, be the Chinese sphere of influence and China will
be the hegemonistic power of this part of the world as the US is over Latin
America and Europe. This is the first time the US President has come out
openly to advance China's hegemonic interests. In fact, the Indian nuclear
tests were meant to block that contingency…"
* North Korea publicly revealed for the first time on Tuesday that it
was selling missiles and demanded that the United States pay compensation if
it wanted the arms exports to stop. Defense analysts said Pakistan, Iran,
Iraq and Syria are among countries which have received the missiles.
* Maheshwar Singh Deo and his associates were arrested June 14 1998
for uranium smuggling at Salanpur and Raghunathpur in West Bengal in a deal
trading heroin for uranium, a component of a nuclear bomb. The uranium seized
was in a satchel stamped with the Ashoka Pillar and the official stamp of the
Jaduguda Mines and embossed on it was the word 'isoltope-238'.
* Continuing to express a feeling of betrayal, India's defense
minister said 6/18/98 that President Clinton should explain why the United
States believes that it can "trust China with nuclear weapons" while imposing
economic sanctions on India for seeking a nuclear deterrent against threats
from its nuclear-armed neighbors, China and Pakistan.
* The Heritage Foundation 6/19/98: China has provided Islamabad with
``highly enriched uranium, ring magnets necessary for processing the uranium
and education for nuclear engineers. Pakistan's nuclear bomb is widely
believed to be based on Chinese blueprints.'' In 1990 and 1992, China
provided Pakistan with nuclear-capable M-11 missiles'' and also the technology
for Islamabad ``to build a missile that could strike targets within a 360-mile
(576-km) range.'' The memo clearly noted that ``China's deep involvement with
Pakistan's nuclear programme contributed to the new Indian government's
decision to test nuclear weapons last month.''
* The U.S. Commerce Department approved exports of American nuclear
technology (from high speed computers to radiation warning badges) to India
over the last few years despite Pentagon objections (September 14, 1995):
"The provision of such technology serves to undercut international and U.S.
counter-proliferation policies.''
* India plans, with help from Russia, to build its first nuclear
powered submarine by 2004 and arm it with Sagarika nuclear warhead missiles -
estimated by 2005
* On 6/27/98 - in a prompt, strongly-worded reaction, India rejected
the US-China joint statement on South Asia, saying the approach was reflective
of "hegemonistic mentality" of a bygone era in international relations that
was completely unacceptable and out of place in the present day world.
* Iftikhar Chaudhry Khan, 29, a Pakistani nuclear scientist fled to
the US because he felt his country was considering a first nuclear strike
against India. Four associates also concerned are believed to be in England.
Pakastani Foreign Minister Gohar Ayub Khab said that this man is an impostor.
A person of that name worked for the Pakistan Atomic Energy Agency (PAEC) in
1980 - but this man is 29. He also said the other 4 were impostors.
* 7/6/98 Charles R. Smith softwar "Last month U.S. intelligence
sources revealed that a Chinese freighter, bound for Pakistan, contained a
load of anti-tank missiles. However, recent information published in the
Pakistan Observer on June 23, 1998 asserts that China also transferred a large
number of depleted uranium tank shells designed for the Pakistani armored
forces. …The new systems were supplied by a Chinese arms company, NORINCO,
which is owned by the Chinese army General staff. NORINCO has it's
headquarters in Islamabad. NORINCO is one of several companies owned by the
PLA. One of NORINCO's brother companies, Poly Technologies, had it's CEO, Wang
Jun, in the White House along with Charlie Trie. President Clinton had his
picture taken with Jun. Trie made a large donation which was later returned by
the DNC as tainted. A U.S. Poly Technologies facility was later raided on the
west coast by the BATF. The raid netted 2,000 automatic AK-47 rifles…."
* China Today 7/10/98 "China urged India on Thursday to halt its
nuclear weapons program and sign two major global nuclear weapons control
pacts. …"The most urgent task for India is to immediately abandon its nuclear
program and sign the CTBT (Comprehensive Test Ban Treaty) and the NPT
(Non-Proliferation Treaty) unconditionally and as soon as possible," Foreign
Ministry spokesman Tang Guoqiang told a news conference…. Tang was responding
to a reporter's question regarding a report that India had offered to sign a
nuclear weapons no-first-use pact with China. .."
* DAWN 7/10/98 Pakistan "US Secretary of State Madeleine Albright said
on Thursday that it was not right to blame China for Pakistan's nuclear
programme as it stemmed from the dispute with India over Kashmir and from
India's nuclear programme. She told the senate's finance committee that China
had played a significant and helpful role in trying to move India and Pakistan
back from the brink of a nuclear arms race. .."
* The Hindu 7/8/98 "The United States has given Chinese companies the
green light to sell missile technology to countries like Pakistan and Iran,
Mr. Gary Milhollin, a nuclear expert, has testified before a U.S.
parliamentary committee…Officials here said the American nuclear expert's
testimony confirmed India's concerns of Washington pursuing a policy of
duplicity on the issue of nuclear non-proliferation…."
* London Telegraph 7/11/98 Hugo Gurdon "The economic sanctions imposed
on India and Pakistan to punish them for their nuclear weapons tests collapsed
yesterday after the US Senate voted to resume farm exports. Only two months
after President Clinton expressed "grave displeasure" over the 11 underground
tests, he has backed legislation ending restrictions on the bulk of American
trade with the two states. At the same time, the World Bank has resumed aid to
India, with his blessing. The about-turn has taken place even faster than
predicted by sceptics, who said a mild slap on the wrist was the worst that
India and Pakistan need fear…"
* Hindustan Times 7/13/98 "The United States Senate's legislation
exempting the US farm credit programmes from the purview of the economic
sanctions against India and Pakistan is more aimed at bailing out the
crisis-ridden Pakistan economy and taking care of the immediate interests of
the US farm lobby rather than giving any real benefit to India….The fact that
as high a member of the government as the US Commerce Secretary himself is
talking against mandatory sanctions speaks eloquently of the acute
embarrassment being faced by the Clinton Administration on this issue…"
* 7/13/98 Hindustan Times/Indian Express "Palestinian president Yasser
Arafat today supported Pakistan's nuclear-tests saying if Israel possesses
nuclear weapons then why Pakistan cannot have the nuclear capability.
Addressing mediapersons at Islamabad airport during his brief stopover before
leaving for Beijing, Arafat said Arab and Muslim countries backed Pakistan for
its nuclear tests. There was a very positive and strong reaction from the
Muslim world to Pakistan's nuclear tests, he added…."
* Nando.net 7/13/98 "The Clinton administration asked Congress on
Monday for authority to waive the economic sanctions just imposed on India and
Pakistan, saying it would give the United States more leverage in slowing the
arms race in South Asia. "Our purpose is not to punish for punishment's sake,
but to influence the behavior of both governments," Karl F. Inderfurth,
assistant secretary of state for South Asian affairs, told a Senate hearing…."
* 7/16/98 Far East Economic Review Ahmed Rashid "…On June 24, Deputy
Treasury Secretary Lawrence Summers received an urgent call from a senior IMF
official whose message was simple but stark: Pakistan was likely to default on
its foreign debt before the end of July. If the U.S. was interested in
organizing a bailout for Islamabad, it had better move fast. …"
* 7/17/98 Hindustan Times (from N. C. Menon) "State Department
spokesman James Rubin yesterday confirmed that India's Atomic Energy
Commission Chairman Dr Chidambaram had applied on June 29 for a visa to attend
a scientific conference in Atlanta, and his passport and application fee had
been returned to him on July 9 on the ground that current visa procedures were
under review as a result of the May nuclear tests by India and Pakistan. "This
isn't technically a refusal," Rubin insisted. "We told them it was under
review. He hasn't persisted in his effort," he added…"
* WorldNetDaily Charles Smith 8/4/98 "New documents from the files of
Ron Brown reveal that secure satellite communications systems, super-computers
and even turbine engines for the most advanced U.S. ARMY helicopters were sold
to India. The documents provide detailed information on advanced U.S. military
technology sold during the 1994 Brown trade mission to India. The newly
released information was obtained from the U.S. Commerce Department using the
Freedom of Information Act. The January 1995 Commerce Dept. document, titled
"OGC (Office of the General Counsel) Summary of India Trade Mission
Deliverables" provides information on advanced technology sales to India. In
1994, the U.S. Commerce Department authorized Allied Signal -- Allison Engine
Company -- to sell T800 Comanche turbine engines to Hindustan Aeronautics Ltd.
(HAL) for a mere $35 million dollars. The turbine engines were slated for
India's Advanced Light Helicopter. The U.S. Army did not get the T800 until
two years AFTER the engine was exported to India. …. Furthermore, advanced
U.S. telecommunications helped India conceal the 1998 A-bomb tests from the
prying eyes of U.S. intelligence…. In 1998, however, India successfully used
advanced satellite communications purchased through the Brown Commerce
Department with encryption security to mask their A-bomb activity. CIA
officials were blocked from listening in on Indian A-bomb peparations and were
caught unaware by the blasts. … "
* Electronic Telegraph 8/9/98 Julian West "SHELLING along the 450-mile
Line of Control dividing Indian and Pakistani Kashmir has increased fears that
the region is heading for all-out war. Given that both India and Pakistan have
recently tested nuclear devices, the conflict could be catastrophic. Two of
India and Pakistan's three wars have been fought over Kashmir. The present
border bombardment, which locals describe as heavier than that during the
entire 1948 and 1965 wars put together, has seen an estimated 50,000 rounds of
ammunition expended so far, and heavy artillery used for the first time…."
* Deccan Herald (Press Trust of India) 9/8/98 "In an acknowledgment of
India`s security concerns, a US government-owned defence institute has said
Washington failed to stop technology and weapons of mass destruction-related
traffic between China and Pakistan, an issue repeatedly conveyed to Clinton
administration by New Delhi. These were some of the strongest arguments India
had advanced for its need to carry out nuclear explosions, but the Clinton
administration did not accept them, the in- house think tank on defence
issues, the national defence university`s institute for national strategic
studies said in its ''strategic assessment 1998.`` …."
* AP K.N. Arun "In exchange for signing a nuclear test ban treaty,
India wants the nuclear energy technology that it has been denied because the
material also has military uses, the prime minister said today. Atal Bihari
Vajpayee's comments to reporters confirmed speculation that ongoing talks
about the treaty with U.S. officials involve opening the flow of nuclear
technology to India…"
* Indian Express Press Trust of India 10/2/98 "China has transferred
M-11 missiles to Pakistan and poses a threat to the United States as a
significant proliferator of weapons of mass destruction, according to a
high-powered U.S. Congressional commission. The commission, in its report,
notes that China has supplied Pakistan with "a design for a nuclear weapon and
additional nuclear weapons assistance. It has even transferred complete
ballistic missile systems to Pakistan (the 350-km range M-11) and Saudi Arabia
(the 3,100-km range CSS-2)." Stating that "China poses a threat to the U.S. as
a significant proliferator of ballistic missiles, weapons of mass destruction
(WMD) and enabling technologies," the commission headed by former defence
secretary Donald Rumsfeld and including America's top missile and intelligence
experts, said the ballistic missiles armed with wmd payloads "pose a strategic
threat to the U.S." PTI report…."

EXCEPTIONAL TECHNOLOGY FOR CHINA

* Encryption expert Charles Smith (Softwar) pointed out that neither
Reagan nor Bush authorized the transfer of encrypted satellite control systems
to China. He also pointed out that in 1994, Hughes was denied a license to
export a satellite to Australia because it contained a single encrypted
control chip; but Clinton allowed this sort of sensitive technical
information to be placed in both the Loral satellite which was launched by the
booster that crashed in Southern China in 1996 (with the result that the
control chip is missing) and a Motorola satellite successfully launched by the
Chinese. In 1995 he pointed out that Clinton allowed Maneuvering Re-entry
Vehicle (MARV) technology to be sent to China on a Hughes satellite. Within a
year the Chinese had "tested" warheads using MARV technology off the coast of
Taiwan. MARV gives the incoming warhead the capability to evade anti-missile
defenses such as the U.S. Patriot missile. He also pointed out that Clinton
authorized the shipment of Iridium satellites to China by Motorola in 1997 and
1998. The launch of multiple satellites on one rocket requires technology that
can be used in Multiple Independently targeted Re-entry Vehicles (MIRV), that
enable multiple warheads to be carried on a single missile.
* Disputing the assumption that the Chinese cannot make military use
of civilian satellite technology, the New York Times reported on 6/13/98 that
"For the past two years, China's military has relied on American-made
satellites sold for civilian purposes to transmit messages to its far-flung
army garrisons, according to highly classified intelligence
reports…Administration officials said it was impossible to prevent China's
army from using American-made satellites sold abroad…" The article went on
the say that Hughes expected the government to vet its customers.
* To a joint hearing on National Security and International Relations,
John D. Holum, acting undersecretary of state for arms control, called U.S.
space commerce with China a "carrot" to encourage its leaders to slow or halt
their sales of missiles to nations such as Iran and Pakistan. In a 1997 memo
by Holum, "There's been no evidence to date that this [trade] policy is
having any effect…. Carrots have gotten us nothing." Holum addressed the
difference in his position by pointing out that in 1997 he was head of the
Arms Control and Disarmament Agency but now he is also is an undersecretary of
state.
* General Accounting Office 6/19/98: China could use even the limited
military deliveries from the US since the Tiananmen Square arms embargo to
improve its military capabilities. President Clinton has issued waivers of
military items valued at $36.3 million and licensing of commercial military
exports worth about $313 million. US government exports between 1990 and 1997
include four Mk. 46 Mod 2 torpedoes for test and evaluation purposes, avionics
for the F-8 fighter, and four AN/TPQ-37 Firefinder counter-artillery radar
systems. Commercial exports include satellites and related equipment and
Munitions List equipment for inclusion in civil products.
* 7/9/98 Tom Raum AP "China has obtained weapons-capable technology
from the United States that goes far beyond that of satellite exports,
Congress was told Thursday by the former director of the Pentagon agency that
oversees technology security. ``The export-control system is falling apart''
under the present jurisdiction of the Commerce Department, Stephen Bryen,
director of the Defense Technology Security Administration during the Reagan
administration, told a hearing by the Senate Armed Services Committee. In
particular, he cited Commerce Department approval of exports to China of
supercomputers, machine tools, jet engines and high-tech furnaces. ``China has
been able to get technology that was forbidden to the Soviet Union,'' he
said…"
* Prepared Testimony of Dr. Stephen Bryen for Armed Services Committee
US Senate 7/9/98 "…Export controls played an important role in countering the
military build-up of the Soviet Union, particularly from the mid 1970's until
the late 1980's, by denying the Soviets technology to enhance the qualitative
capability of their weapons systems. Today the export control system is in
disarray. Most of the key components of the program have disintegrated. A vast
array of sensitive goods and technology has been decontrolled, making it easy
for potential adversaries and hostile countries and groups to acquire
technology they can leverage against us. Even the remaining controls appear to
be administered loosely, and the quality of review seems to be slipshod.
Critical elements of the export control program, particularly end-user checks
and verification, have been scuttled to accommodate customers, especially
China, the only country that will not allow post shipment checks, and the only
country to get away with denying US authorities this access…China has been
able to get technology that was forbidden to the Soviet Union…."
* Softwar 7/98 "…In 1994, just prior to traveling with Brown, Mr.
Schwartz had his LORAL staff prepare a shopping list for the Chinese and Ron
Brown. This list, complete with very big pictures, would make LORAL's large
ticket items easier to understand and digest at Ron Brown's (executive) level.
However, the same list would also make anyone familiar with military equipment
go bananas. On that day Ron Brown stopped being Secretary of Commerce and
started his new career as an international arms dealer. The items LORAL
carried to the meeting with Ron Brown resemble a JANE'S Defense catalog of
high tech weapons. Some of the Loral suggested "red" ticket items up for sale
included "Airborne Reconnaissance Cameras, Weapon Delivery, Target
Acquisition, Missile Guidance, Shipboard Target Acquisition, Radar Warning,
Missile Warning, RF Jamming, IR Jamming..." and so on. Please note - Anything
that starts with "weapon", "missile" or "target acquisition" does NOT qualify
as a civilian application. The result of the 1994 China trade trip? Today,
China is using Loral satellites to perform all weather bombing using a
"western" based navigation system in their modified Russian SU-27 FLANKER jet
fighters. These navigation aids were originally sold to China under the
condition they would be used on "civilian" airliners. Of course, now that the
satellites are under PRC control, their civilian operation has been shifted
slightly. The SU-27s are made in Russia (soon to be copied by license in
China) and they are not going to complain about the navigation gear being
tuned to Schwartz's satellites. Thus, the next bombs to fall in anger from a
PLA warplane will come courtesy (and with great accuracy) via the USA. Another
US, high-tech, upgrade for the benefit of China's Generals and Commissars is
their new secure military communication system. China is now using US built
secure encoding systems to protect their military satellite and global
communications. This 21st century system is a decades leap forward for the
Chinese, who previously depended on former Soviet built analog scramblers to
protect their highest military orders. The great leap forward for the PRC did
not come at the end of years of costly R&D followed by careful deployment.
Instead, the Princes in Beijing can now issue nuclear launch code orders using
C4 (Command, Control, Communications, and Computers) systems that rival the
best in the free west. Basically, this is because their system was built in
the free west. …Additional proof of who authorized the military exports to
China comes not from a SOFTWAR FOIA but from a recently published GAO report
on US weapons exports to China. The GAO published a report on May 7,
NSAID-98-171, which states "According to State (Department) officials, since
1990, 11 Presidential waivers have been issued removing export restrictions on
21 satellite projects. Presidential waivers were also granted to permit the
export of encryption equipment controlled on the Munitions List". Thus, Bill
Clinton determined it was in our national interest to arm Red China. He wrote
the waivers. He authorized the sales... He took the donations.
* Softwar 9/1/98 Charles Smith "…Anewly released document obtained
from the Defense Department, using the Freedom of Information act, shows that
DoD joined the White House in a coordinated defense of the export to China.
The document, a 1996 response letter from the deputy secretary of Defense to
National Security Committee Chairman Floyd Spence, R-SC, also provides a
detailed view of the Chinese military C4 (Command, Communications, Computers
and Control) system. In 1994 SCM/Brooks Communications purchased large
quantities of secure communications gear for sale to a so called "civilian"
Chinese firm, New Galaxy Technology, including real time, encrypted,
fiber-optic video systems. AT&T officials who sold most of the equipment to
SCM/Brooks were adamant that there was no need to check the Chinese firm, New
Galaxy, since it was obviously led by a civilian, Ms. Nie Lie. However, Nie
Lie was the wife of Chinese Army General Ding Henggao. In 1994, General Ding
Henggao was director of the Chinese Commission of Science, Technology, and
Industry for National Defense or COSTIND. COSTIND, according to the GAO
"oversees development of China's weapon systems and is responsible for
identifying and acquiring telecommunications technology applicable for
military use." One member of New Galaxy management, according to the Defense
document, was Director and President "Mr. Deng Changru." Yet, Mr. Deng Changru
was then also Lt. Colonel Deng Changru of the People's Liberation Army, head
of the PLA Communications corps. Another Chinese Army officer in the New
Galaxy staff is co-General Manager "Mr. Xie Zhichao" who is really Lt. Colonel
Xie Zhichao, Director of the COSTIND Electronics Design Bureau. In 1994,
despite the red stars and green uniforms, New Galaxy was certified as a
civilian company by the Brown-led Commerce Department. New Commerce Department
export regulations did not require a pre-sale check on end use with civilian
companies. So the deal was completed and the People's Liberation Army obtained
an encrypted C4 system from America. And where was the U.S. military watchdog
on this? According to the Deputy of Defense, the export was of no concern
because "the PLA already has its own, extensive and very modern communications
infrastructure that incorporates very advanced technologies, including fiber
optic systems and a nation-wide microwave system". Again, what the Clinton DoD
left out is that the German built fiber optic system sold to China never
worked and was abandoned in 1994…"
* DAWN (Pakistan) 9/2/98 "Pakistan will learn little from the Tomahawk
cruise missile found unexploded in Pakistan territory after the Aug 20 US
attack on Afghanistan, defence and US Navy officials here say….Many experts,
however, believe Pakistan could allow Chinese missile experts to inspect the
Tomahawk and they could provide Pakistan the capability to do some reverse
engineering. This engineering capability could be used in improving both
Chinese and Pakistani missiles, their engines and other systems, including any
chances of improvising the 'Ghauri' long-range missile, said to be built on
North Korean technology…."

SOCKOWITZ

* While at Commerce, Sockowitz, a 1992 Clinton/Gore fundraiser, held a
top-secret clearance and kept classified files in a safe. After being
transferred to the SBA (without a debriefing) he came back to Commerce and
remove 136 files. After he left the SBA he was not debriefed. He now works
for the Strategic Planning Group in Bethesda, Md., an international business
consulting firm. Justice stopped looking into the security breach matter in
December '96 without ever talking to Sockowitz, or his boss whom he followed
to SBA, Ms. Lew. Nolanda Hill told Judge Lamberth in March of 1998 that
Brown worried that Sockowitz might have ''funneled information to others.''
* Among the files of Ira Sockowitz was ''A Study of the International
Market for Computer Software With Encryption.'' The CIA marked portions of
this report ''secret,'' and the U.S. Bureau of Export Administration said
disclosure could ''damage the national security by revealing export control
problems that could be exploited to the detriment of the United States.''
Sockowitz also got documents on satellite encryptions from Hoyt Zia, chief
counsel for Commerce's Bureau of Export Administration. Zia is a former
Democratic National Committee fund-raiser and close friend of Huang.
* Also in the Sockowitz files were memos, notes, and file folders from
Commerce and the National Security Council on encryption or decoding software,
exports and policy options; Satellite-project information; "Space Launch;"
"Uranium from Russia;" A CIA report on Russian economic development; and
Biographies on foreign political leaders in Bosnia, Croatia, India, Turkey,
and Russia.
* There are curious connections between Commerce and a Washington
based multi-billion dollar satellite company called Iridium, a company created
in 1987 with direct ties to late Commerce Secretary Ron Brown and the
Democratic party. Leo Mondale, a nephew of the former vice president, is vice
president of strategic planning for Iridium. Mondale and Motorola executive
Edward Staino hired four of Brown's former employees with high level security
clearances to help run Iridium's project on worldwide telecommunications.
Motorola also took part in Brown trade-mission trips.
* In May of 1995 a former assistant secretary of Commerce, Lauri
Fitz-Pegado, a long-time friend of Brown and special adviser to the chairman
of the DNC, became vice president of the Iridium division called Global
Gateway Management. Her responsibilities at Iridium include coordinating
meetings and trips with international investors. She was joined there by her
former Commerce assistants Pilar Martinez, Charlotte Kea and Andrew Balfour,
who was a director under the executive secretary for Commerce.
* Iridium and its investors are hoping to launch 66 low-orbiting
satellites to provide wireless communications to deliver voice, data,
facsimile and paging services anywhere on the globe at a price of $3 a minute.
Once the satellite fleet is in space the system is expected to be operational
in September 1998. The team: Russia's Ministry of Atomics; Krunichev Space
Research and Production Space Center in Balkonur, Kazakhstan; China Great Wall
Industry Group; Iridium China; Iridium Africa; COM DEV of Ontario; Iona
Technologies of Dublin; Thai Satellite; and Motorola of India. The America
list of companies includes Lockheed Martin Corp., Missiles and Space Division,
in California; Sprint; Hewlett Packard; McDonnell Douglas Aerospace of
California; Raytheon of Massachusetts; and ARINC of Maryland which does
contract work of the CIA.
* In 1993, Lockheed Martin (an investor) made one political
contribution. In 1995-96, the company made 576 contributions - both to
Republicans and Democrats, including $1.6 million in political action
committee, or PAC, gifts. Sockowitz walked out with the classified information
on the billion-dollar satellite deal that Lockheed entered into with the
Khrunichev Space Center in Russia - which is part of the Iridium deal.
* Russia's ministry of Atomics (an investor) was allowed to obtain
supercomputers capable of designing nuclear weapons. A Russian organized crime
figure, Clinton White House guest Grigor Loutchansky, is a player in Iridium's
telecommunication plan. Loutchansky is suspected of trafficking in nuclear
materials. Sockowitz had a folder called "Uranium from Russia," which may
have contained details on US efforts to purchase left over weapons-grade
uranium from Russia and revealed where 1,000 tons of such uranium may be
stored.
* Beijing (an investor) obtained special export waivers. In 1994, AT&T
was allowed to send video-conferencing and sophisticated remote command and
control systems to a Beijing based company HUA MEI, whose board of directors
are members of the People's Liberation Army, or PLA. In 1996 RSA Data Security
signed a distribution and development agreement with China's Ministry of
Foreign Trade and Economic Cooperation and the Chinese Academy of Sciences
Graduate School Laboratory of Information Security, which trains Chinese
intelligence agents. RSA had been courting a relationship with China ever
since the company attended an encryption conference in Beijing in 1995. The
company toyed with selling its encryption patent to the federal government but
never did. Indeed, it obtained a special waiver for sales to Beijing at a time
when competitors were being prosecuted for selling similar encryption
technology overseas. Sockowitz had the files on RSA and its patented
encryption technology.
* Iridium's Chinese partner, Iridium China (Hong Kong) Ltd., is
managed by mainland-born Wang Mei Yue. Wang Mei Yue also happens to be head of
China Aerospace International Holdings Ltd. (CASIL) in Hong Kong. CASIL is
part of China's defense industrial complex, and is also where Liu Chaoying,
the daughter of a top Chinese military official, was employed as a vice
president; she is the figure who allegedly funneled money to the Democratic
Party. According to the South China Morning Post of Hong Kong, three officials
from CASIL sit on the board of Iridium China.
* 8/28/98 Masood Haider DAWN (Pakistan) "The brother of Osama bin
Laden is a director of a US telecom giant, Irridium LLC, according to reports.
Although the Clinton administration has made Osama the world's most wanted
man, the rest of the family does millions of dollars in business with the US,
reports say. Sheikh Hasan bin Laden, one of Osama's many brothers in a Saudi
family of immense wealth and far-flung enterprises, is listed by the
Securities and Exchange Commission as a director of Iridium LLC, the New York
newspaper Daily News said…."

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Updated and reposted for newcomers, from the Downside Legacy list, draw your
own conclusions…
Posted by: Alamo-Girl (emailname) 10/22/98 09:56:29 PDT

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> To: Alamo-Girl

To answer your question, YES!

> From: gumlegs 10/22/98 10:06:27 PDT

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Source of the above and more news and discussion:
http://www.freerepublic.com/

Click on the "Latest on Clinton" link at
http://www.flex.com/~jai