From the Progressive Revew








JUNE 2008




CHARLES R. SMITH, NEWSMAX - China has deployed special vans equipped with sophisticated electronics designed to jam U.S. GPS satellite navigation signals. The fear inside the Pentagon is that China will deploy large numbers of these vans to jam GPS signals over large sections of its territory.

Intelligence officials are watching the vans carefully to assess their capabilities and to see whether China moves to export the technology to other nations like Iran. The U.S. intelligence agencies have photos of the vans, taken from space and on the ground, but are not sure how capable they are in jamming GPS-guided weapons in the American arsenal.

Iraq deployed similar technology during the Gulf war but was unable to exploit its capabilities because the U.S. quickly modified GPS bombs to home in on the jammers.

Pentagon officials are concerned that U.S. bombs and missiles may not have that same capability against the Chinese GPS systems.

Defense analysts noted that the recent Chinese anti-satellite missile test demonstrated a capability to destroy GPS and low orbit reconnaissance satellites. The weapons demonstrated by Beijing are aimed at destroying or degrading the U.S. GPS system. These weapons include the jamming vans, anti-satellite missiles, and cyber-warfare attacks against computers and communications systems.

Beijing obtained detailed information on the U.S. GPS system through the Clinton administration during the 1990s. Chinese military officers were given detailed briefings on construction, design, coding, and manufacturing GPS systems through President Clinton.

For example, in 1997, Chinese army officers were given a demonstration in Sunnyvale, Calif., by Ashtech, a maker of GPS receivers. The briefing for the PLAAF and Chinese Navy officers states, "Ashtech produces a receiver that uses both the U.S. GPS signals and the Russian GLONASS signals resulting in significantly greater availability and integrity."

In 1999, the Clinton administration offered the PLAAF the latest in advanced "mobile radars," command and control systems, GPS navigation, and "surveillance avionics" such as "air to air," "air to ground," and "surface area movement" surveillance radars.

The FAA documents forced from the Clinton administration by the Freedom of Information Act also show extensive briefings on GPS technology given to the PLAAF officers. One such document describes in English and Chinese the workings of the GPS "space segment" and the system's "ground control segment" including the central control location in Colorado.

The document also details how GPS works using "triangulation from satellites" to "measure distances using the travel time of a radio signal" and "very accurate clocks."

The Clinton gift of GPS technology to Beijing also gave the People's Liberation Army a new offensive punch.

It is known that Chinese air force aircraft are often equipped with U.S. GPS receivers for navigation and more accurate bombing. In addition, many of the aircraft and missiles sold by China to Iran and Sudan are equipped with GPS systems.



CRS - The rise of China from a poor, stagnant country to a major economic power within a time span of only 27 years is often described by analysts as one of the greatest economic success stories in modern times. From 1979 (when economic reforms were first introduced) to 2005, China's real gross domestic product grew at an average annual rate of 9.7%, the size of its economy increased 11-fold, its real per capita GDP grew eightfold, and its world ranking for total trade rose from 27 to 3. By some measurements, China has become the world's second-largest economy, and it could be the largest within a decade.

China's economic rise has led to a substantial growth in U.S.-China economic relations. Total trade between the two countries has surged from $4.9 billion in 1980 to $289 billion in 2005. For the United States, China is now its third-largest trading partner, its fourth-largest export market, and its second-largest source of imports. Inexpensive Chinese imports have increased the purchasing power of U.S. consumers.

Many U.S. companies have extensive manufacturing operations in China in order to sell their products in the booming Chinese market and to take advantage of low-cost labor for exported goods. China's large-scale purchases of U.S. Treasury securities have funded federal deficits and helped keep U.S. interest rates relatively low.

Despite the perceived threat from China, the U.S. economy has recently maintained full employment and robust economic growth. To date, the growth in Chinese exports appears to have come partly at the expense of Asian competitors. However, the emergence of China as a major economic superpower has raised concern among many U.S. policymakers.

Some express concern that China will overtake the United States as the world's largest trade economy in a few years and as the world's largest economy within the next two decades. In this context, China's rise is viewed as America's relative decline. Another concern are the large and growing U.S. trade deficits with China, which have risen from $10.4 billion in 1990 to $202 billion in 2005, and are viewed by many . . . as an indicator that China uses unfair trade practices (such as an undervalued currency and subsidies to domestic producers) to flood U.S. markets with low-cost goods and to restrict U.S. exports, and that such practices threaten American jobs, wages, and living standards.

Many warn that this situation will get worse as China increasingly moves toward production and export of more high-value products, such as cars and computers. A more recent concern has been efforts by Chinese state-owned firms to acquire U.S. companies and China's accumulation of U.S. Treasury securities. Negative congressional perceptions of China's economic practices have led to the introduction of numerous bills, including some that would impose sanctions against China unless it reforms its currency policy, and others that would apply U.S. countervailing laws on Chinese products deemed to have been subsidized by the government.

JUNE 2006


THE WEN HO LEE case just go weirder with the agreement of several major media corporations - including the Washington Post and the NY Times - to pay a large sum to Lee rather than risk having their reporters jailed for refusing to tell who leaked information to them about the nuclear scientists.

The problem with this case is that numerous parties have misrepresented the situation. The government clearly went overboard in charging Lee with crimes beyond the evidence. Lee and his supporters turned him into a victim, including of racism, when in fact even he admits he committed a felony. The media, in its backtracking, has given credence to this myth. And both the media and Lee's supporters have distorted the apology of US District Judge James Parker to Lee, suggesting that it was an exoneration when in fact the judge's unhappiness was with the way the Clinton administration had handled the case. Parker, one of the few good guys in this whole affair, told Lee:

"You have pled guilty to a serious crime. It's a felony offense. For that, you deserved to be punished. . . I want everyone to know that I agree, based on the information that so far has been made available to me, that you, Dr. Lee, faced some risk of conviction by a jury if you were to have proceeded to trial. Because of that, I decided to accept the agreement you made with the United States Executive Branch . . . Further, I feel that the 278 days of confinement for your offense is not unjust; however, I believe you were terribly wronged by being held in custody pretrial in the Santa Fe County Detention Center under demeaning, unnecessarily punitive conditions. I am truly sorry that I was led by our Executive Branch of government to order your detention last December."

This distinction, lost in the coverage, raises one of many questions: what was the Clinton administration thinking when they went after Lee so roughly? Other questions: What made them back off? Who leaked the information about Lee? (One speculation is that it included Bill Richardson, Secretary Energy and now presidential hopeful). Why did Lee take the information and so much of it?

US DISTRICT JUDGE JAMES PARKER, 2000 - Dr. Lee, you have pled guilty to a serious crime. It's a felony offense. For that, you deserved to be punished. In my opinion, you have been punished harshly, both by the severe conditions of pretrial confinement and by the fact that you have lost valuable rights as a citizen.

Under the laws of our country, a person charged in Federal Court with commission of a crime normally is entitled to be released from jail until that person is tried and convicted. Congress expressed in the Bail Reform Act its distinct preference for pretrial release from jail and prescribed that release on conditions be denied to a person charged with a crime only in exceptional circumstances.

The Executive Branch of the United States Government has until today actually, or just recently, vigorously opposed your release from jail, even under what I had previously described as Draconian conditions of release. During December 1999, the then United States Attorney, who has since resigned, and his assistants presented me, during the three-day hearing between Christmas and New Year's Day, with information that was so extreme it convinced me that releasing you, even under the most stringent of conditions, would be a danger to the safety of this nation. . .

In my opinion and order that was entered December 30, 1999, I stated the following: 'With a great deal of concern about the conditions under which Dr. Lee is presently being held in custody, which is in solitary confinement all but one hour of the week, when he is permitted to visited his family, the Court finds, based on the record before it, that the government has shown by clear and convincing evidence that there is no combination of conditions of release that would reasonably assure the safety of any other person and the community or the nation.'

After stating that in the opinion, I made this request in the opinion right at the end: 'Although the Court concludes that Dr. Lee must remain in custody, the Court urges the government attorneys to explore ways to lessen the severe restrictions currently imposed upon Dr. Lee while preserving the security of sensitive information.'

I was very disappointed that my request was not promptly heeded by the government attorneys.

After December, your lawyers developed information that was not available to you or them during December. And I ordered the Executive Branch of the government to provide additional information that I reviewed, a lot of which you and your attorneys have not seen.

With more complete, balanced information before me, I felt the picture had changed significantly from that painted by the government during the December hearing. Hence, after the August hearing, I ordered your release despite the continued argument by the Executive Branch, through its government attorneys, that your release still presented an unacceptable extreme danger.

I find it most perplexing, although appropriate, that the Executive Branch today has suddenly agreed to your release without any significant conditions or restrictions whatsoever on your activities. I note that this has occurred shortly before the Executive Branch was to have produced, for my review in camera, a large volume of information that I previously ordered it to produce.

From the beginning, the focus of this case was on your motive or intent in taking the information from the secure computers and eventually downloading it on to tapes. There was never really any dispute about your having done that, only about why you did it.

What I believe remains unanswered is the question: What was the government's motive in insisting on your being jailed pretrial under extraordinarily onerous conditions of confinement until today, when the Executive Branch agrees that you may be set free essentially unrestricted? This makes no sense to me.

A corollary question I guess is: Why were you charged with the many Atomic Energy Act counts for which the penalty is life imprisonment, all of which the Executive Branch has now moved to dismiss and which I just dismissed?

During the proceedings in this case, I was told two things: First, the decision to prosecute you was made at the highest levels of the Executive Branch of the United States Government in Washington, D.C. With respect to that, I quote from a transcript of the August 15, 2000, hearing, where I asked this question [of Lee's lawyers]: 'Who do you contend made the decision to prosecute?'

[Defense attorney Mark] Holscher responded, 'We know that the decision was made at the highest levels in Washington. We know that there was a meeting at the White House the Saturday before the indictment, which was attended by the heads of a number of agencies. I believe the number two and number three persons in the Department of Justice were present. I don't know if the Attorney General herself was present.'

It was actually held at the White House rather than the Department of Justice, which is, in our view, unusual circumstances for a meeting." . . .

I want everyone to know that I agree, based on the information that so far has been made available to me, that you, Dr. Lee, faced some risk of conviction by a jury if you were to have proceeded to trial. Because of that, I decided to accept the agreement you made with the United States Executive Branch . . .

"Further, I feel that the 278 days of confinement for your offense is not unjust; however, I believe you were terribly wronged by being held in custody pretrial in the Santa Fe County Detention Center under demeaning, unnecessarily punitive conditions. I am truly sorry that I was led by our Executive Branch of government to order your detention last December.

Dr. Lee, I tell you with great sadness that I feel I was led astray last December by the Executive Branch of our government through its Department of Justice, by its Federal Bureau of Investigation and by its United States Attorney for the District of New Mexico, who held the office at that time.

I am sad for you and your family because of the way in which you were kept in custody while you were presumed under the law to be innocent of the charges the Executive Branch brought against you.

"I am sad that I was induced in December to order your detention, since by the terms of the plea agreement that frees you today without conditions, it becomes clear that the Executive Branch now concedes, or should concede, that it was not necessary to confine you last December or at any time before your trial. . .

It is only the top decision makers in the Executive Branch, especially the Department of Justice and the Department of Energy and locally, during December, who have caused embarrassment by the way this case began and was handled. They did not embarrass me alone. They have embarrassed our entire nation and each of us who is a citizen of it.

I might say that I am also sad and troubled because I do not know the real reasons why the Executive Branch has done all of this. We will not learn why because the plea agreement shields the Executive Branch from disclosing a lot of information that it was under order to produce that might have supplied the answer.

Although, as I indicated, I have no authority to speak on behalf of the Executive Branch, the President, the Vice-president, the Attorney General, or the Secretary of the Department of Energy, as a member of the Third Branch of the United States Government, the Judiciary, the United States Courts, I sincerely apologize to you, Dr. Lee, for the unfair manner you were held in custody by the Executive Branch. Court will be in recess."

ADAM LIPTAK, NY TIMES - Specialists in media law said such a payment by news organizations to avoid a contempt sanction was almost certainly unprecedented. Some called it troubling. In a joint statement, the five organizations said they made the payment reluctantly.

"We did so," they explained, "to protect our confidential sources, to protect our journalists from further sanction and possible imprisonment and to protect our news organizations from potential exposure."

A senior vice president of ABC, Henry S. Hoberman, said the decision to settle was made after a long, hard legal fight.

"The journalists found themselves between a rock and a hard place after years of seeking relief from the courts and finding none," Mr. Hoberman said. "Given the absence of a federal shield law and the consistently adverse rulings from the federal courts in this case, the only way the journalists could keep their bond with their sources and avoid further sanctions, which might include jail time, was to contribute to a settlement between the government and Wen Ho Lee that would end the case."

WIKIPEDIA - After an intelligence agent from the People's Republic of China gave U.S. agents papers which indicated that they knew the design of a particularly modern U.S. warhead, the W88, the FBI started an investigation codenamed Operation Kindred Spirit to look into how China could have obtained that design. The investigation eventually fixated on Wen Ho Lee to a degree that was later widely criticized.

Under pressure from the U.S Department of Energy, which funded the Los Alamos National Laboratory, the University of California fired Lee from his job at the laboratory on March 8, 1999. On the same day, Lee's name was leaked to the media, with the New York Times publishing a story about his case. However, FBI investigators soon determined that the design data the PRC had obtained could not have come from the Los Alamos Lab, because it related to information that would only have been available to someone like a so-called "downstream" contractor, meaning one involved in the final warhead production process, and this information was only created after the weapon design left the Lab.

Even though this left Wen Ho Lee apparently in the clear, the FBI and the Department of Energy decided at this point to conduct a full forensic examination of Lee's office computer.

Release The examination of Lee's computer determined that he had backed up his work files, much of which was classified as secret restricted data, onto tapes, and had also transferred these files from a system used for processing classified data onto another, unsecure, system designated for unclassified data. Lee was arrested in December 1999 and held without bail in solitary confinement for 278 days until September 13, 2000, when he accepted a plea bargain from the federal government. . .

Post-release In his memoir, My Country Versus Me, Lee charged that his Chinese ethnicity was a primary factor behind his prosecution by the government. . .


JAMES RISEN, NEW YORK TIMES: Although he was not charged with espionage, senior government officials now say that Wen Ho Lee, the former Los Alamos scientist arrested Friday and charged in the case, jeopardized virtually every nuclear warhead in the American arsenal through unauthorized computer transfers of many of the country's most sensitive nuclear secrets. The officials also said much of the information Lee removed was missing because he had copied the data onto portable computer tapes, many of which the Federal Bureau of Investigation cannot find. The officials said they found the methodical and comprehensive way in which the data had been copied particularly alarming.

NY TIMES: Most officials at the lab now accept the proposition that Lee's downloads were at least partly related to a notice he received in 1993 that he might be laid off, since that is when his intensive downloading began. A number of lab officials and scientists now also believe Lee wanted the computer programs or "codes," not to give them to a foreign power, but to continue using them in his field of expertise, hydrodynamics, the study of how solid materials behave as they turn to fluids under extreme pressure . . . As a general rule, scientists say, the codes Lee downloaded would be of little value to a non-nuclear state, of moderate value to a fledgling nuclear nation, such as Pakistan, and of extreme value to an advanced nuclear nation such as China, where scientists could use the codes to better understand the yield-to-weight ratio of US weapons, as well as their design characteristics and their vulnerabilities.

ELAINE SHANNON, TIME: The most complete explanation I've heard is that [the interrogation] was not a calculated ploy to make him sweat and confess, but rather the blind action of a rather clumsy system: The FBI had urged that he be held incommunicado because they were concerned about the possibility that he was communicating with an outside power. They say they didn't ask for shackles during exercise and the rest of the conditions about which Lee is complaining. The problem was, according to my sources, that the jail where he was held was operated on contract by a private company, and only had one way of administering solitary confinement. It was a one-size-fits-all policy, usually used for very violent offenders who had attacked other inmates or guard. So Lee found himself treated the same way as a crazed drug dealer who was constantly attacking guards, which was a sort of lockdown . . .

The investigators haven't necessarily changed their views on Wen Ho Lee, but their evidence fell apart. . . They could imagine no innocent reason why Lee might have downloaded and removed seven or 10 tapes containing highly sensitive codes used in the design of US nuclear weapons. Federal investigators believe there was too much hype, and they lost the battle in the public mind. Part of the problem was that somehow during the feeding frenzy over Chinese nuclear espionage, Lee's name had become synonymous with Chinese spying, and they're sorry about that. They know that he broke the law in downloading that data, but they don't know why he did it.

WASHINGTON POST: Working secretively, often late at night and on weekends, Lee downloaded 1.4 gigabytes of data, little more than half of which -- 800 megabytes -- was classified. That's the equivalent of 430,000 pages, a stack of paper 134 feet high.

MAY 2006


LE MONDE, FRANCE - How far will Western societies' collusion with the Beijing regime go? Where will the denial of Chinese reality - political and economic - in the name of preserving commercial interests lead? The cynicism with which multinational capital operates in the Middle Kingdom is certainly not a new phenomenon. Families plunged into mourning by the Tiananmen repression had not even dried their tears before a cohort of foreign businessmen were already back in Beijing, impatient to stake out their own niche in the heart of "the world's workshop," which offers a made-to-order and compelled labor force. Unique in the annals of this connivance is accounting firm Ernst & Young's report. Rarely will an act of contrition by a foreign operator snubbed by Beijing have been as humiliating and shocking from the point of view of business ethics.

On May 3rd, Ernst & Young published its annual report on the bad loans of banks throughout the world. With respect to China, the study established that the quantity of these "non-performing loans" ran to 911 billion dollars. The sum is considerable. It represents close to half of Chinese GDP and exceeds the "war chest" of foreign currency reserves the country has garnered. It is, above all, far higher than Beijing's official, notoriously underestimated, statistics. Although it created a sensation, Ernst & Young's figure nonetheless seemed credible. It included the totality of commitments from the banking system and not only those from the club of four state-owned commercial banks ("Big Four"), whose windows had been opportunely wiped just before their introduction on foreign centers.

It's this contravention of its image that Beijing judged unacceptable. The Chinese government does not put up very well with any doubt insinuating itself concerning the reality of its "miracle," or with any suspicion taking hold with respect to its "shadow side," a brew of embezzlement, corruption and chaos. That's why it vigorously denounced the report. After all, that's its role. But the surprise came from Ernst & Young, which - invoking a problem of consistency with another internal report - it has just retracted. The firm presented its "apologies." Its back-pedaling is better understood when you know that it counts among its clients . . . Chinese banks.

One must beware, of course, of comparing this affair with other formal retractions, like those of the Internet and computer companies - Google, Yahoo!, Microsoft, Cisco - that have agreed to compromise with the Chinese "Big Brother." Ernst & Young hasn't handed over any cyber-dissidents. But the logic at work is that of a resignation, in the name of commercial interests, to a truncated - financial or political - truth. It's a very short term calculation. And reality always ends up taking its revenge.



MARINA WALKER GUEVARA AND BOB WILLIAMS, CENTER FOR PUBLIC INTEGRITY - An oil company controlled by the government of China bankrolled one of the most intense, multi-pronged lobbying blitzes in recent memory in a bid to take over U.S. petroleum giant Unocal this summer, according to an in-depth analysis of new disclosure filings by the Center for Public Integrity.

In an eight-day span in June, lobbyists from Akin Gump Strauss Hauer & Feld contacted federal and state officials nearly 250 times in an unsuccessful effort to build support for an $18.5 billion bid for Unocal by China National Offshore Oil Co. And Akin Gump was just one of six top-flight lobbying firms hired by CNOOC to push its bid.

At Akin Gump, a strike team made up of more than a dozen of the firm's most influential lobbyists descended on Capitol Hill with newspaper excerpts, Wall Street Journal editorials and talking points that highlighted the Western qualities of CNOOC, 70 percent of which is owned by the Chinese government. The team drafted "Dear Colleague" letters for members of Congress to pass on to their fellow legislators. Rep. James Moran, a Virginia Democrat, even stopped by Akin Gump's swanky offices for a personal briefing on CNOOC's bid. . .

While CNOOC's lobbying onslaught might seem an unusual strategy to be used by a state-owned company from the world's largest communist country, it is really just the latest and most visible example of China's long-running and rapidly escalating efforts to influence U.S. policy and public opinion.

Since July 1997, the Chinese and Hong Kong governments and government-controlled companies and organizations have spent at least a combined $19 million lobbying the U.S. government, according to a Center for Public Integrity analysis of foreign agent lobbying disclosure records filed with the U.S. Department of Justice. A small amount of that total accounts for lobbying efforts by private companies in mainland China and Hong Kong, such as the conglomerate Hutchison Whampoa. . .

JULY 2005. . .


FINANCIAL TIMES - "If the Americans draw their missiles and position-guided ammunition on to the target zone on China's territory, I think we will have to respond with nuclear weapons," said General Zhu Chenghu. Gen Zhu was speaking at a function for foreign journalists organised, in part, by the Chinese government. He added that China's definition of its territory included warships and aircraft. "If the Americans are determined to interfere [then] we will be determined to respond," said Gen Zhu, who is also a professor at China's National Defence University. "We . . . will prepare ourselves for the destruction of all of the cities east of Xian. Of course the Americans will have to be prepared that hundreds . . . of cities will be destroyed by the Chinese.". . .

Some US-based China experts cautioned that Gen Zhu probably did not represent the mainstream People's Liberation Army view. "He is running way beyond his brief on what China might do in relation to the US if push comes to shove," said one expert with knowledge of Gen Zhu. "Nobody who is cleared for information on Chinese war scenarios is going to talk like this," he added.

JUNE 2005. . .


PETER GRIER, CHRISTIAN SCIENCE MONITOR - In recent weeks Washington has become increasingly wary of one of the most powerful geopolitical trends in today's world - the emergence of China as an economic superpower. The unsolicited Chinese bid to take over a US oil company has riled Congress in particular. Many lawmakers are calling for retaliation against a nation they believe has long flouted the rules of fair international trade.

The White House, for its part, has been reluctant to publicly criticize a deal that may never be consummated. And in general, say analysts, attempts to hobble China's economic rise would be as futile as using ropes to try to restrain a rocket. They would only earn the enmity of the nation that may be most likely to emerge as the world's next superpower. . .

That China is now the economic engine of Asia is indisputable. Its economic rise may indeed threaten American economic preeminence in a way in which the explosive growth of Japanese firms in the 1970s and 1980s did not. China's Gross Domestic Product is now about half that of the United States. Projections hold that in 30 years, Chinese and US GDPs will be about the same.

Currently China consumes about six million barrels of oil a day, and the US about 20 million. In 20 years, China will also need 20 million barrels of oil per day, predicted Christopher Hill, assistant secretary of State for East Asia and the Pacific, at a recent Senate Foreign Relations hearing on China's economic rise.


CHARLES R SMITH - The Bush administration has accused Sun Microsystems Inc. of violating export rules in high-speed computer sales it made to China during the Clinton administration. According to a letter the company received in February 2002 from the U.S. Commerce Department's Bureau of Industry and Security, the illegal sales took place in 1997 and 1998. The letter was released on Sept. 30 by Sun in a regulatory filing. According to the letter, in 1997 Sun sold equipment to a Hong Kong reseller, which later sold the hardware to military organizations in China. Sun officials would not discuss the nature of the equipment. However, Sun Microsystems has a long history of equipment sales to military users inside China. For example, on Dec. 26, 1996 a Hong Kong reseller for Sun Microsystems, Automated Systems Ltd., sold a supercomputer to the Chinese Scientific Institute, a technical institute under the Chinese Academy of Sciences. . . At some point after the sale but before delivery, the computer was sold to Yuanwang Corp. Yuanwang is an entity of the Chinese army unit COSTIND (Commission on Science, Technology, and Industry for National Defense). According to Defense Intelligence Agency documents, COSTIND oversees nuclear weapons research and design for the Chinese army. Sun officials claimed in 1997 that they were unaware of the supercomputer transfer to the Chinese nuclear weapons lab. However, according to the Chinese Foreign Ministry, Sun Microsystems was aware of Yuanwang Corp.'s Chinese military ties. According to the Cox report, the Chinese Ministry of Foreign Trade and Economic Cooperation explained that the actual buyer of the computer was the "Yuanwang Corporation" and that Sun was aware of "this corporation's PRC military ties."

UN WIRE - A recent survey conducted by China's State Forestry Administration says that 28 percent of the country's land mass has been overtaken by desert, with 18 percent of the country being decimated by the effects of overgrazing and deforestation, China Daily reports. The latest report comes in the wake of a separate survey saying that soil erosion is affecting 37 percent of the country's land. As of 1999, desertification affected 2.6 million square kilometers of China, of which 1.74 million resulted from "human activity," the report said. "Most dry lands in China have been degraded by overcultivation, overgrazing, deforestation and poor irrigation practices," the report said . . . Chen Lei, vice minister of water resources, said it will take "nearly half a century" for China to control the problem and rehabilitate damaged MORE

||| NEWSMAX - Though he insists now that his relationship with bankrupt telecommunications giant Global Crossing was strictly business, Democratic National Committee Chairman Terry McAuliffe admitted in 1999 that he once worked for Global CEO Gary Winnick, who, McAuliffe said, hired him to "help him work on deals" because Winnick "was looking for a little political action." After President Clinton's reelection to a second term, the top Clinton fund-raiser began "operating out of an office in downtown Washington that belonged to Mr. Winnick's Pacific Capital Group, a billion-dollar operation based in Beverly Hills," the New York Times reported in Dec. 1999. Winnick had retained Mr. McAuliffe as a "consultant," the paper said. The DNC chief told the Times, "Gary (Winnick) likes the action. He wanted a stable of people around him with great contacts" to "help him work on deals." . . . The bankrupt ex-billionaire seems to have gotten what he wanted. Not only did Winnick's company win a $400 million Pentagon contract with the help of the Clinton White House, but he managed to get a public endorsement from the president himself. "Gary Winnick has been a friend of mine for some time now and I'm quite thrilled by the success that Global Crossing has had," then-President Clinton told a Calif., fund-raiser in Nov. 1999. MORE


ROCKY MOUNTAIN NEWS - China, according to a government estimate, will have 75 to 100 nuclear missiles aimed at the United States within the next 15 years - enough to overwhelm any American missile shield. The National Intelligence Council report on "Foreign Missile Developments and the Ballistic Missile Threat Through 2015" confirms earlier predictions by the CIA and other agencies that President Bush's decision to pull out of the ABM treaty and develop a missile defense system will accelerate China's missile program . . . China now has 20 CSS-4 silo-based intercontinental ballistic missiles capable of hitting the United States. The CIA says it is developing three new missile systems, two truck-launched and one submarine-launched, to be deployed by 2010. It also plans to put multiple warheads on its older ICBMs, vastly increasing their destructive potential. Twenty missiles could be taken out by any of the defense systems now envisioned by the Pentagon; 100 could not be, especially if some of them are armed with multiple independent re-entry vehicles, or MIRVs. Russia has even more missiles to overwhelm any U.S. shield. "Unless Moscow significantly increases funding for its strategic forces, the Russian arsenal will decline to less than 2,000 warheads by 2015, with or without arms control," says the report, but adds that "Russia still maintains the most comprehensive ballistic missile force capable of reaching the United States." MORE

REUTERS - McDonald's outlets in the southern Chinese city of Guangzhou could face fines of $1,200-$12,000 after a Snoopy doll promotion which turned violent, the Xinhua news agency said. Dwindling supplies of the hot-selling cartoon canine doll triggered a run on the U.S. fast food giant's restaurants last May, resulting in scuffles among customers and a smashed window at one location. An investigation by the city's industry and commerce administration found the chain's 34 Guangzhou outlets were not licensed to sell the toy, said Xinhua . . . McDonald's sold 233,140 Snoopy dolls in April and May, said Xinhua, citing investigators. But the promotion soured after excited children, anxious parents and entrepreneurs keen on a quick buck thronged McDonald's outlets . . . Parents complained their children's education was on the line as disappointed students who collected anything but the full set of six dolls lacked the will to pursue their studies. MORE

CHINA HAS SHUT DOWN MORE than 17,000 cyber bars that have allowed customers to view web sites considered subversive or pornographic. That leaves 77,000 "wanga ba" centers still in operation. Only about two percent of Chinese residents log on - but that's still 27 million.

J. MICHAEL WALLER, INSIGHT: Should U.S. financiers whose trading adversely affects Chinese "red-chip" companies be assassinated? China's People's Liberation Army, or PLA, is discussing the concept. Should Beijing covertly fund political-influence operations in the United States? A new PLA book openly asks the question. Facing a potentially huge nuclear-weapons buildup as well as an even bigger high-tech conventional-arms race to reach parity with the United States and Russia, members of the echelon of senior colonels who will be among tomorrow 's PLA flag officers are looking beyond the nuclear age to a new and more stealthy form of war." The book, titled Unrestricted Warfare, is part of a larger effort within the PLA to develop a means of challenging the United States through "asymmetry" - not by trying to match the United States missile for missile, but by turning the strength of China's adversaries against themselves as a judo artist subdues a larger, stronger foe . . . Americans, in the Chinese colonels' view, are too wedded to "weapons whose immediate goal is to kill and destroy." In unrestricted warfare, "there is nothing in the world today that cannot become a weapon." So the war should be brought into every aspect of American life: "As we see it, a single man-made stock-market crash, a single computer-virus invasion or a single rumor or scandal that results in a fluctuation in the enemy country's exchange rates or exposes the leaders of an enemy country on the Internet can be included in the ranks of new-concept weapons. MORE

DAVID E. SANGER, NEW YORK TIMES: Seeking to overcome Chinese opposition to its missile defense program, the Bush administration intends to tell Beijing that it does not oppose its plans to build up its small fleet of nuclear missiles, senior administration officials said. One official said that the United States and China may also discuss resuming underground nuclear tests if they are needed to assure the safety and reliability of their arsenals. Such a move might allow China to improve its nuclear warheads and lead to the end of a worldwide moratorium on nuclear testing. Both messages appear to mark a significant policy change. For years, the United States has discouraged China and all other nations from all nuclear tests and from increasing the size or capability of their nuclear arsenals . . . The new approach, administration officials say, is intended to convince China that U.S. missile shield plans are not aimed at undercutting China's nuclear arsenal, but rather at countering threats from so-called rogue states.

REUTERS: Intelligence showed that China funded a covert operation to influence the 1996 U.S. elections, focusing on congressional candidates believed to be sympathetic to Beijing's concerns, a Senate Intelligence Committee report . . . China devised an official plan and made funds available to implement it with the goal of influencing the U.S. political process favorably toward Beijing, the committee said . . . The Senate Intelligence Committee "discovered no direct evidence or information of an actual attempt to influence a particular member of Congress," the report said . . . Democratic fund raiser Johnny Chung, a key figure in a 1996 campaign finance scandal, admitted helping to funnel $300,000 from a high-ranking Chinese military officer to former President Bill Clinton's reelection campaign. Intelligence information showed that the intermediary between Chung and the Chinese official was Liu Chao-ying, the daughter of General Liu Hua-qing, formerly the highest ranking military officer in China, the Senate Intelligence Committee report said.

REUTERS: Intelligence showed that China funded a covert operation to influence the 1996 U.S. elections, focusing on congressional candidates believed to be sympathetic to Beijing's concerns, a Senate Intelligence Committee report . . . China devised an official plan and made funds available to implement it with the goal of influencing the U.S. political process favorably toward Beijing, the committee said . . . The Senate Intelligence Committee "discovered no direct evidence or information of an actual attempt to influence a particular member of Congress," the report said . . . Democratic fund raiser Johnny Chung, a key figure in a 1996 campaign finance scandal, admitted helping to funnel $300,000 from a high-ranking Chinese military officer to former President Bill Clinton's reelection campaign. Intelligence information showed that the intermediary between Chung and the Chinese official was Liu Chao-ying, the daughter of General Liu Hua-qing, formerly the highest ranking military officer in China, the Senate Intelligence Committee report said.


MARK O'NEILL, SOUTH CHINA MORNING POST: The Communist Party has closed one of the mainland's key theoretical journals as part of an attack on those who oppose the decision of President Jiang Zemin to end a ban on membership by private business people. Staff at Zhenli de Zhuiqiu (Seeking Truth) said authorities had ordered the closure of the monthly magazine after 11 years, ahead of publication of the August issue, and that its 10 employees would retire or be moved to other jobs . . . The monthly has been devoted to the theory of Marxism, Leninism and Mao Zedong Thought and its application to China.


Chinese edition

BBC: The Three Tenors are to perform a concert in the Forbidden City in Beijing as a showcase to display the city as fit to hold the Olympic Games. But some Chinese locals have expressed shock at ticket prices. Opera's most famous tenors, José Carreras, Placido Domingo and Luciano Pavarotti, are due to perform on Saturday in the ancient palace of China's Emperors. But seat prices of between $60 and $2,000 are beyond the reach of most Chinese although one online retailer reports they are almost all sold, with many of the tickets being snapped up by the Hong Kong Chinese. MORE

JOHN SCHAUBLE, THE AGE, AUSTRALIA: Television viewers in China will soon be subjected to a homespun version of the Survivor genre of reality television. More than 200,000 people aged between 12 and 70 have signed up in a bid to be among the 18 finalists chosen to participate in Castaway . . . What is perhaps surprising is that there is room for a survival program in a country where physical survival is a day-to-day reality for about 200 million Chinese estimated to be living in absolute poverty. Volunteers for Castaway have included everyone from students to gold miners, white-collar workers to retired grandmothers. MORE

JUNE 2001

SOHU: Opera superstar Luciano Pavarotti sang a duet with Chinese president Jiang Zemin after his Three Tenors concert in Beijing. The 66-year-old singer was joined by the Chinese leader in a rendition of "O Sole Mio" at a lunch for Pavarotti, Placido Domingo and Jose Carreras, the Hong Kong iMail reported . . . Pavarotti, speaking at a Hong Kong press conference ahead of a performance in the territory on Wednesday night, recalled in his broken English: "We suddenly began to sing. The president made a duet with me of O Sole Mio. "I think it was very good, very good. I would like to say the word romantic, absolutely, even though it's very difficult in 2001 to say something like that. "We finished the day drinking - a little drink, just so you don't think we were singing because we were drunk"


REUTERS: AOL Time Warner hopes its refrain "You've got mail" will translate into Chinese through a $200 million joint venture with top mainland PC maker Legend Holdings. The venture, to be 51 percent-owned by Legend and 49 percent by the U.S. media giant, will provide consumer Internet services in China, with each group pledging to commit $100 million over time, company officials said in Beijing. While it has bolder aspirations if rules ease, the venture will initially provide technical support and services to Legend's portal and internet service provider FM365, abiding by China's ban on foreign ownership of content providers, officials said . . . [AOL CEO Gerald Levin] said the venture would try to find the most appropriate form of Internet service in China while respecting Beijing's rules on content. China exercises tight control over the Internet, banning content it deems politically sensitive or pornographic. Beijing has in the past periodically blocked the CNN news network and banned Time magazine, both owned by AOL Time Warner. MORE

BILL GERTZ, WASHINGTON TIMES: Federal authorities have uncovered a major Chinese technology transfer program that illegally purchased thousands of U.S. radiation-protected computer chips for use in Chinese missiles and satellites.
The military-related technology-buying program was revealed in court papers released in Orlando, Fla., earlier this month after a raid on a Chinese company involved in selling "radiation-hardened" integrated circuits to Chinese government missile and satellite manufacturers, including several that were sanctioned in the past by the U.S. government for their missile sales. The company, Means Come Enterprises Inc., is under investigation for "illegally exporting radiation-hardened integrated circuits to [the People´s Republic of China] without the required [Commerce Department] export licenses," according to documents obtained by The Washington Times . . . Gary Milhollin, weapons proliferation specialist and director of the Wisconsin Project on Nuclear Arms Control, said the chips have military applications and could be used by the Chinese military to "improve their ability to target U.S. cities with long-range missiles." Mr. Milhollin said the Bush administration should reverse the Clinton administration policy of "looking the other way and refusing to put Chinese companies like the Chinese Academy of Space Technology, CATIC, and China Aerospace Corp. on a special government watch list."

MAY 2001

CHARLES R. SMITH, SOFTWAR: Armed with information from a high-ranking defector, President Bush is reported to be on the verge of shutting down Chinese military espionage in America. The defector, identified by the BBC as Lt. Col. Xu Junping, is said to be singing like a bird about Chinese army intelligence operations inside the United States. According to Taiwanese news sources, Xu is a senior colonel in charge of North American affairs for the People's Liberation Army General Staff Department. Xu's reported expertise is arms control and U.S. military to military contacts . . . The information obtained from Xu has led U.S. intelligence officials to question the previous free access given to Chinese army officers during the 1990s. The Clinton strategic partnership with the People's Liberation Army included military training, computers, encrypted communications equipment, satellites and exclusive access to U.S. military facilities inside America. Xu confirmed that Chinese army intelligence officers frequently abused civilian programs to mask their military and economic espionage. According to documents previously obtained from the U.S. government using the Freedom of Information Act, China abused a civil air traffic control program to obtain important military information such as "Combat Readiness." The documents also show that the Chinese attempted to conceal the military background of the representatives.

CHARLES R. SMITH, NEWSMAX: The Clinton administration abetted China's suppression of its people by approving the sale of sophisticated communications systems now being used to persecute dissidents . . . Documents obtained from the Ron Brown Commerce Department show that in June 1995, then-President Bill Clinton personally OK'd the export of Motorola secure radios and cell phones directly to the Chinese government. Clinton approved the sale of $100 million in Motorola secure radios for the communist Chinese Peoples Armed Police with the stroke of his pen on a waiver. Motorola's role in obtaining the sale started nearly two years before Clinton's waiver with then White House national security adviser Dr. Richard Barth. Barth, a holdover from the Bush Sr. administration, left the White House in the fall of 1993 to join Motorola as a lobbyist. MORE

APRIL 2001


ONE OF THE SIGNS of an empire in trouble is when its own troops start causing more trouble than its enemies. In recent weeks we have been treated to a series of self-inflicted embarrassments including a sub ramming a Japanese fishing boat, a long-time FBI agent being charged with long-time spying, and now a spy pilot apparently unable to tell the difference between surveillance and collision. The military-intelligence complex has given fresh proof to John Ralston Saul's maxim that all systems tend to work against their intended purpose.

The snafus are also in marked contrast with official and media rhetoric which is, in another sign of late empire decadence, stridently arrogant even as the empire itself has ever less to be arrogant about. Your editor is one of the few Washington journalists still around who covered the U2 incident some four decade ago. What is strikingly different about that spy plane affair and this one is that the government felt guilty enough about what the U2 was doing to deny it. And there was shock when the public found out that their own government had lied to it.

But the government survived the crisis and learned only that, with time, it could get better at - and the public would become more accepting of - its lying, resulting recently in a national consensus that public prevarication doesn't matter as long as the stock market is going up.

The other interesting thing about this incident is that it comes in the wake of years of conscious transfer of formerly top secret or highly sophisticated technology to the Chinese. One piece of electronic gear, for example, was sold, to the Chinese who then reconfigured it and sold it to the Iraqis who used it to defend themselves against American planes. In other ways - from Ron Brown trade missions to stocking China from Super Computers 'R' US to rewriting trade regulations at the behest of prominent Democrats - we have been giving the Chinese far more than an adversary normally would. In fact, perhaps the major distinction between the current horror at the Chinese having a look at one of our spy planes and past indifference to them having our super computers and other technology would appear to be that they neither paid an American corporation nor the Democratic National Committee for viewing rights.

STRAIGHTS TIMES, SINGAPORE: American EP-3 aircraft ~ have frequently entered Taiwan's air space illegally to spy on the island, it was reported. The Chinese-language United Daily News said the recent collision of an EP-3 aircraft and a Chinese fighter plane off the east coast of China has rekindled the memories of mid-air interceptions of US spy planes by Taiwanese pilots. 'Much of the time, EP-3s showed up off the south-eastern part of the island to gather electronic information when the Chungshan Institute of Science and Technology test-fired missiles,' the paper said, quoting retired air force pilots . . . The paper said that initially, Taiwan's air force dispatched single-seat fighters to drive away the EP-3s, but later had to send twin-seat fighters. One retired military pilot said several EP-3s would play a game of cat-and-mouse with Taiwanese fighters dispatched to chase them away. They would sometimes slow down unexpectedly or shut off two of their four turboprop engines, he said. Jet fighters can stall if they slow their speed dramatically. The pilot said another EP-3 trick was to make a sharp turn. 'Maybe the American pilots thought interceptors would immediately fly away when the EP-3 made a sharp turn, so they time and again played the tricks,' the unnamed Taiwan pilot was quoted as having said. He said the ill-fated Chinese pilot who was missing after his jet crashed during the collision might have failed to notice a sharp turn by the EP-3, bumped into the US aircraft and crashed into the sea.

CALUM MACLEOD, WASHINGTON TIMES: Chinese "apology companies" are cleaning up in several Chinese cities by saying sorry on behalf of clients too hidebound by culture and "face" to apologize in person or in full. These "emissaries of regrets," who promise to smooth the most ruffled feathers, have prospered because of an Asian preoccupation with full, formal apologies . . . While Chinese believe foreigners say "sorry" so often as to render it meaningless, apologies are best avoided in China, as their giving and acceptance require best-concealed expressions of emotion, and are complicated by issues of face. Some Chinese scholars argue that China still lacks a proper apology culture, hence the success of the apology companies. Clients of the Tianjin Apology and Gift Center, in the busy trading city of Tianjin, one hour's drive from Beijing, include estranged lovers, former business partners and families riven by conflict between generations. For just $2.50 to $3 per apology, any remorseful soul can seek redemption, without the torment of doing it oneself, and the terrible risk of losing face by having one's apology refused. The professional apologizers are mostly middle-aged intellectuals, with backgrounds in law and education, good verbal skills and an interest in psychology.

Exploring China
Bill Blum

Some historical background which may explain China's intransigence on the downed American plane and personnel:

In 1952, many incursions into China by the United States were made by small commando-type teams air-dropped in for intelligence and sabotage purposes. In November 1952, two CIA officers, John Downey and Richard Fecteau, who had been engaged in flying these teams in and dropping supplies to them, were shot down and captured by the communists. Two years passed before Peking announced the capture and sentencing of the two men. The State Department broke its own two-year silence with indignation, claiming that the two men had been civilian employees of the US Department of the Army in Japan who were presumed lost on a flight from Korea to Japan. "How they came into the hands of the Chinese Communists is unknown to the United States ... the continued wrongful detention of these American citizens furnishes further proof of the Chinese Communist regime's disregard for accepted practices of international conduct." Fecteau was released in December 1971, shortly before President Nixon's trip to China; Downey was not freed until March 1973, soon after Nixon publicly acknowledged him to be a CIA officer. The Peking announcement in 1954 also revealed that eleven American airmen had been shot down over China in January 1953 while on a mission which had as its purpose the "air-drop of special agents into China and the Soviet Union". These men were luckier, being freed after only 21/2 years. All told, said the Chinese, they had killed 106 American and Taiwanese agents who had parachuted into China between 1951 and 1954 and had captured 124 others. Although the CIA had little, if anything, to show for its commando actions, it reportedly maintained the program until at least 1960. There were many other CIA flights over China for purely espionage purposes, carried out by high-altitude U-2 planes, pilotless "drones", and other aircraft. These over-flights began around the late 1950s and were not discontinued until 1971, to coincide with Henry Kissinger's first visit to Peking. The operation was not without incident. Several U-2 planes were shot down and even more of the drones, 19 of the latter by Chinese count between 1964 and 1969. China registered hundreds of "serious warnings" about violations of its air space, and on at least one occasion American aircraft crossed the Chinese border and shot down a Mig-l7.


NEWSMAX: In September 2000, Tokyo issued a formal protest to Beijing because People's Liberation Army Navy vessels entered Japanese territorial waters. According to the Japanese navy, a Chinese spy ship penetrated inside the international 12-mile limit. Tokyo also complained to Beijing that armed Chinese warships, escorting the spy ship, also breached Japanese territorial waters during an August PLAN war game. The incident, according to Japanese military sources, involved a Chinese "spy" ship equipped with sophisticated electronic monitoring devices. Chinese navy electronic warfare ships are operated under the direct command of the People's Liberation Army Headquarters 4th Department located just outside Beijing. The Chinese navy war game reportedly raised serious concerns inside Japanese military circles because it demonstrated that China intends to blockade Japan during an invasion of Taiwan . . . In March 2001, the Philippine navy forced 10 Chinese vessels from Scarborough Shoal, a rocky outcrop in the South China Sea. In order to avoid diplomatic problems, the Philippine navy forced the vessels to leave instead of seizing them. According to sources inside the Philippine military, China was secretly building structures on the shoal. Beijing immediately issued protests over the incident and claimed that the shoal was "under its control."

BRIAN HSU, TAIPEI TIMES: A US Navy surveillance aircraft that was forced to make an emergency landing on Hainan Island on Sunday was collecting information on a Russian-made Sovremenny-class destroyer, an intelligence source told the Taipei Times. The propeller-driven EP-3 plane had attempted to fly away after colliding with one of two Chinese jet fighters, the intelligence source said. The collision caused the fighter to crash into the sea. The source said the EP-3's attempt to fly away was aborted after the second jet fighter opened fire with its machine gun as a warning. The source -- who had monitored the incident by radar and also listened to cockpit exchanges -- said he believed the EP-3 was forced to land by the Chinese fighter plane at an airport on Hainan. US officials, on the other hand, have said the collision with the Chinese fighter had caused sufficient damage to the US plane for it to issue a "Mayday" signal and make an emergency landing . . . According to the intelligence source, Taiwan's military radar detected the EP-3 flying in circles in the vicinity of the Sovremenny at a low altitude and at a speed of around 250km per hour. Two Chinese jet fighters taking off from their base in Guangdong Province arrived to intercept and drive away the visitor - but the US Navy plane did not at first show any intention of leaving. The two jets flew in formation side by side with the EP-3 for some time before one of the planes found it could not fly as slow as the US plane, which is powered by four turboprop engines. The Chinese jet tried to slow down by making a turn, the source said. Its attempt to do so caused the fighter to bump into the US aircraft and then crash into the sea.

THE SPY PLANE INCIDENT has led to some creative legal concepts on the part of the Bush administration, such as Admiral Craig Quigley'a claim that "as a piece of American property [it] is a piece of American territory that under international law . . . is considered the property of the parent country that should not be subject to search or seizure or confiscation without the specific invitation of the owning nation." This from the same folks who have lately been issuing ultimatums, complete with precise deadlines, to the Yugoslavian government, which is only sovereign when it does what we want. Chinese spokescomrade Zhu Bangzao said, "If this plane is sovereign American territory, how did it land in China?" The Chinese news agency Xinhua reported that "In accordance with the Convention on International Civil Aviation of 1944 and a law concerning territorial waters and the neighboring areas of the People's Republic of China, U.S. planes should obtain approval from the Chinese side before entering Chinese airspace, the official said." . . . And even the NY Times argued in an editorial: "It is unrealistic to expect the Chinese not to inspect the aircraft and its sophisticated electronic gear. If the roles of the two countries were reversed, Washington would not hesitate to look over an important piece of Chinese military equipment that showed up on American soil." . . . Back to the computer, Quigley; the Toxic Texan needs better spin that that.

BBC: The US spy plane that made an emergency landing in China after colliding with a Chinese fighter jet belongs to an elite highly classified reconnaissance unit. The EP-3E Aries II is the US Navy's principal long-range electronic surveillance aircraft, described by one expert as "a really big flying tape recorder." It is packed with sensitive receivers and antennas capable of intercepting and analyzing military and civilian radio and other electronic communications, including e-mails, faxes, and telephone conversations. All the information is fed for analysis into a huge on-board computer which sends information back to defense officials at the Pentagon, in Washington . . . "It's a disaster if that equipment is analyzed by the Chinese Government," said US aviation expert Jim Eckes. "It's one of the most sensitive aircraft in the US fleet. It's totally designed to intercept communications anywhere in the world." . . . [NOTE: This story brings to mind how easy it is for the military to spy on Americans as well as the Chinese]

CHRISTOPHER DREW, NY TIMES: If the collision between the Navy surveillance plane and a Chinese fighter jet occurred where the Pentagon has indicated, the Bush administration has strong legal standing in demanding that both the plane and its crew be released promptly, several legal experts said. But in the more practical realm of negotiating that release, they said, the American position could be damaged, to a degree, by some of the Pentagon's own cold war escapades. For instance, the Bush administration has insisted that the Chinese have no right to hold or even to inspect the Navy's EP-3E surveillance aircraft, which made an emergency landing on China's Hainan Island after the collision with a Chinese jet that was tailing it. All 24 Americans survived and are being held in China; the Chinese plane crashed and its pilot is missing. Yet the Pentagon itself has often rejected appeals from other countries similar to the ones it is making. For instance, in 1976, when a defecting Soviet pilot flew a MIG-25 fighter jet to Japan, American intelligence officials, despite Soviet protests, spent nine weeks taking it apart and inspecting it before sending the plane back to Moscow - in packing crates. And even now, defense analysts said, the Pentagon maintains programs to obtain military equipment from potentially hostile nations, including China, through practically any means possible. Indeed, some experts said China's delay in releasing the Navy crew and its plane stems in part from the animosity that Chinese officials feel at being the object of such American intelligence operations.

PAUL SPERRY, WORLD NET DAILY: The Navy and Air Force told the Clinton administration in December that Chinese fighter jets had begun a systematic campaign of "buzzing" dangerously close to U.S. planes and ships in waters near China as early as a year ago, but the administration failed to brief Congress, World Net Daily has learned. The provocations started in April 2000 and got closer and closer, congressional sources say, but the Pentagon didn't formally complain to the White House until December - out of respect for its ongoing "strategic partnership" with China. "The Clinton administration wanted to keep all this quiet, which they did," a senior Senate aide told World Net Daily on the condition of anonymity. "They never told the Congress."

CHARLES R. SMITH, NEWSMAX: Armed with information from a high-ranking defector, President Bush is reported to be on the verge of shutting down Chinese military espionage in America. The defector, identified by the BBC as Lt. Col. Xu Junping, is said to be singing like a bird about Chinese army intelligence operations inside the United States. According to Taiwanese news sources, Xu is a senior colonel in charge of North American affairs for the People's Liberation Army General Staff Department. Xu's reported expertise is arms control and US military-to-military contacts . . . The information obtained from Xu has led US intelligence officials to question the previous free access given to Chinese army officers during the 1990s. The Clinton strategic partnership with the People's Liberation Army included military training, computers, encrypted communications equipment, satellites and exclusive access to US military facilities inside America. Xu confirmed that Chinese army intelligence officers frequently abused civilian programs to mask their military and economic espionage.



If treason, in one of its typical forms, consists of trading the national interest of one's country to another for profit, then FBI Agent Robert Hanssen had some stiff competition. In the past decade or so this form of disloyalty has been codified, advocated, and revered not only by our own leaders in the government, media, and business, but by their peers in what is still quaintly known as the "free world." You can find it in its most precise form in various trade agreements such as NAFTA and GATT, in its mathematical form in the listing of foreign contributions to our political campaigns, and its rhetorical form in the statements of many of our most favored political commentators.

Beyond doubt, the new trade agreements have done more damage to our national, state and local sovereignty than any foreign enemy or all the spies of American history combined. The last three presidents have helped give the Chinese more secrets than they could ever have hoped to acquire through archaic techniques of personal espionage. And in the end, we have learned not to worry because it has all occurred for trade not treason, corporate not individual profit, and public policy rather than private perversion.

Consider, for example, some words Vaclav Havel wrote in that intellectual Leisure World for lemming liberals, the New York Review of Books:

"In the next century I believe that most states will begin to change from cult-like entities charged with emotion into far simpler and more civilized entities, into less powerful and more rational administrative units that will represent only one of the many complex and multileveled ways in which our planetary society is organized."

"The practical responsibilities of the state -- its legal powers -- can only devolve in two directions, downward or upward; downward, to the non-governmental organizations and structures of civil society; or upward, to regional, transnational and global organizations."

Thus in a few paragraphs, Havel scraps democracy at every level of society leaving us to be run, presumably, by business improvement districts and NATO. It is a profoundly anti-democratic and anti-patriotic view, because at none of Havel's levels is the consent of the governed considered.

He is not alone. Here was Strobe Talbott writing in the July 20, 1992 issue of Time: "Within the next hundred years . . . nationhood as we know it will be obsolete; all states will recognize a single, global authority . . . All countries are basically social arrangements, accommodations to changing circumstances. No matter how permanent and even sacred they may seem at any one time, in fact they are all artificial and temporary."

Agent Hanssen, you are hereby charged with betraying the sacred trust of a cult-like entity - basically a social arrangement that is artificial and temporary, otherwise known as the United States of America. It just doesn't have quite the ring of a capital crime.

In fact, though, nothing has been more central to the character of American politics over the past few decades than a cynical, corrupt, unconstitutional and, yes, commercial betrayal of the national interest. The continuing symbiosis of drug lords, politicians, and law enforcement has betrayed our land and our constitution. The Iran-Contra affair involved not just bad politics but the betrayal of America for profit. The cover-up of the BCCI scandal by the first Bush administration was a betrayal of America to protect, in no small part, foreign profits.

Perhaps China represents the best case in point since the Chinese know as much about espionage as anyone. While the Soviets and then the Russians were allegedly playing their John LeCarre games with Agent Hanssen, the Chinese were taking care of serious business.

As journalist Robert Parry has noted, "Little-noticed evidence from the Iran-contra files reveals that it was the Reagan-Bush administration that opened the door to sharing sensitive national security secrets with communist China in the 1980s. This clandestine relationship evolved from China's agreement to supply sophisticated weapons to the Nicaraguan contras beginning in 1984, a deal with the White House that entrusted China with one of the government's most sensitive intelligence secrets, the existence of Oliver North's contra supply network. In the years after that secretly brokered deal, the Republican administration permitted trips in which US nuclear scientists, including physicist Wen Ho Lee, visited China in scientific exchange programs. Those visits corresponded with China's rapid development of sophisticated nuclear weapons, culminating in the apparent compromise of sensitive US nuclear secrets by 1988. Seven years later, in 1995, a purported Chinese defector walked into US government offices in Taiwan and turned over a document. Dated 1988, the document contained detailed information about US-designed nuclear warheads. The document showed that Chinese intelligence possessed the secrets of the W-88 miniaturized nuclear bomb by the last year of Ronald Reagan's presidency. China's first test of a light warhead similar to the W-88 was conducted in 1992, the last year of George H.W. Bush's presidency."

The Chinese connection exploded with the arrival of the Clinton administration. A younger crowd of American politicians had skipped the part about patriotism, about the pledge of allegiance, about loyalty not only to country but to much of anything other than themselves. The Clinton policy towards China was merely an extension of these values: what's in for us and how soon? The notion of national security was almost alien to them; besides they had the new paradigm of globalization to keep them warm. Here are just a few of the things that happened along the way:

- Named Commerce Secretary, Ron Brown treated his post as just another place to wheel and deal. He was irrepressible, on one occasion okaying the sale of new American engines for China to put in its cruise missiles. The engines had been built as military equipment but Brown reclassified them as civilian.

- Neither was Brown above doing a little business on the side. The Saudis wanted some American planes; Brown told them: you want the planes you also want a phone contract with ATT. Cost of the planes and hardware: $6 billion. Cost of the phone contract: $4 billion. Part of the deal, it turned out, was an ATT side agreement with a firm called First International. The owner: Ron Brown

- Former London Sunday Times correspondent James Adams wrote a book in which described the Chinese success with the Clinton crowd as "an espionage coup of epic proportions."

- According to the New York Times, Clinton removed $2 billion in trade with China from national security scrutiny. Among the results: 77 supercomputers - capable of 13 billion calculations per second - that could scramble and unscramble secret data and design nuclear weapons. These were purchased by the Chinese without a peep stateside. At least some of them would be used by the Chinese military.

- With the transfer of the Panama Canal, four of Panama's ports ended up being controlled by a company partially owned by Hutchinson-Whampoa Ltd., which in turn was owned by Li Ka-Shing, a billionaire so close to the Chinese power structure that he was offered the governorship of Hong Kong. Another owner of the Panamanian ports was China Resources Enterprise, called an
"agent of espionage" by Senator Fred Thompson. CRE was also a partner of the Lippo Group, owned by the Riady family that played a central if mysterious role in the rise of William Clinton. According to congressional testimony by ex-JCS chief Admiral Thomas Moorer, Hutchinson-Whampoa won the right to pilot all ships thought the Panama Canal, including US naval vessels.

- President Clinton signed national security waivers to allow four US commercial satellites to be launched in China, despite evidence that China was exporting nuclear and missile technology to Pakistan and Iran, among other nations. One of these satellites belonged to Loral. Nine days later a Chinese Long March rocket carrying a $200 million satellite belonging to Loral failed in mid-flight. A subsequent law suit charged that the circuit board from the highly classified encryption device in the satellite was found to be missing when the Chinese returned debris from the explosion to US authorities, even though a control box containing the circuit board was recovered intact. After the crash, NSA reportedly changed the encoded algorithms used by US satellites because of the apparent release of highly classified information.

- President Clinton approved a waiver allowing the launch of another satellite on board a Chinese rocket, despite a recommendation by the Department of Justice that the waiver would have a significant adverse impact on any prosecution arising from its pending investigation of Loral.

- The NY Times reported in 1998 that the Defense Technology Security Administration said Loral's unauthorized release of sensitive technology to the Chinese gave rise to at least three "major" violations of US national security, three medium violations and twelve "minor" infractions.

- Throughout these dealings, the CEO of Loral, Bernard Schwartz, contributed at least $1.5 million to the Democrats, making him the single largest contributor to these groups during the period in question.

- Softwar newsletter reported that that some of the radios and cell phones being used by Chinese police in their campaign against dissidents were those sold the Chinese by Motorola after Clinton overrode human rights objections by the State Department.

- In the end, the brunt of the evidence was that the Chinese had obtained more American military secrets over the past two decades than all the previous spies in American history put together. They had basic information on all nuclear weapons systems, they got our most advanced supercomputers, they gained extraordinarily important information about satellite systems. Some of this knowledge they used for themselves; some they retrofitted and repackaged and sold to other countries like Iraq, where it was used against our own fighter planes. While the problem occurred under both Republican and Democratic administrations, it got completely out of hand under Clinton. Some of the information was stolen, some was given to China in the classic manner of spies, but a stunning proportion was obtained either as a direct result of political and economic decisions by the Clinton administration or as a result of what can best be described as premeditated indifference.

- Three major players in the China scandal - John Huang, Charlie Trie and Johnny Chung - were all allowed by the Justice Department to cop pleas.

- Carol Cameron of Fox News reported that cover stories provided by Chinese operatives to hide China's illegal campaign contributions may have come from or been approved by President Jiang Zemin. Transcripts of FBI wiretaps obtained by Fox News also pointed to the possibility that President Clinton may have known of both the illegal donations and what was to be said if they were discovered. Johnny Chung told Congress he was under orders from the Chinese to keep the whole thing quiet. His orders, he said, came from a suspected Chinese intelligence operative named Robert Luu, who worked for a Los Angeles law firm. In a phone conversation tapped by the FBI, Chung was told by Luu to say the campaign money came from the so-called princelings: Chinese leaders' grown sons, who live, study and often live lavishly in the West.

A transcript of the wiretap, obtained by Fox News, contains the following:

LUU: "Shove the blame on the shoulders of the princelings."

CHUNG:"So blame it on the princelings. Do not implicate the Chinese government."

LUU: "Yes. Chairman Jiang agreed to handle it like this; the president over here also agreed."

- Newsweek quoted intelligence officials as saying that the Chinese
"penetration is total. They are deep into the (US nuclear weapons) labs' black programs."

- In an AP story ignored by major media, former CIA Director R. James Woolsey accused the Clinton administration of pursuing a policy of appeasement toward China and likened it to the way Britain and France dealt with Nazi Germany on Czechoslovakia before World War II.

- Last year, the Wall Street Journal wrote: "Top business executives are issuing a blunt warning to federal lawmakers: Vote against the trade deal with China, and we will hold it against you when writing campaign checks. Phil Condit, chairman of Boeing Co., and Robert N. Burt, chairman and chief executive of FMC Corp., said a coming vote to facilitate China's entry into the World Trade Organization will be a measure of every lawmaker's friendliness to business.

- Operating with an interim top secret clearance (but without FBI investigation or foreign security check) Commerce official Huang requested several top secret files on China just before a meeting with the Chinese ambassador. Huang and the Riadys then held a meeting with Clinton. Not long after, Huang went to work as a Democratic fund-raiser, but remained on Commerce's payroll as a $10,000 a month consultant. Huang raised $5 million for the campaign. About a third of that was returned as having come from illegal sources. Among the problem contributions: $250,000 to the DNC from five Chinese businessmen in order to have a brief meeting with Clinton at a fund-raiser.

- Macao businessman Ng Lap Seng, closely linked to a couple of major Chinese-owned enterprises, was regularly bringing in large sums of money to the US, according to customs records. On one occasion, he arrived with $175,000 and then two days later met with Charlie Trie and Mark Middleton at the White House. That evening Ng sat at Clinton's table at a DNC fund-raiser.

This is just a sample, not of treason, but of politics as it has been practiced. Now, let's turn to the recently arrested Agent Hanssen. So far there is no evidence that he helped the Russians build a missile, suppress dissidents, or buy US politicians. Instead, in the FBI's own words, "The affidavit alleges that Hanssen compromised numerous human sources of the US Intelligence Community, dozens of classified U.S. Government documents, including "Top Secret" and "code word" documents, and technical operations of extraordinary importance and value. It also alleges that Hanssen compromised FBI counterintelligence investigative techniques, sources, methods and operations, and disclosed to the KGB the FBI's secret investigation of Felix Bloch, a foreign service officer, for espionage."

Hanssen's major alleged crime, in other words, is not the betrayal of America but of the (note capitals) US Intelligence Community, its personnel, its manuals, and its tricks of the trade. Open up Robert Hanssen and - as with a Russian doll - you just get another spy who is busily betraying another spy, all of whom are keeping secrets not so much from some foreign country as from the citizens of their own.

It is all bizarre, incestuous, of little known purpose, and, in the best postmodern manner, flexible. Just as American politicians and lawyers have redefined bribery so that the official bribee can escape punishment for the same crime for which the citizen briber, so the rules of loyalty to one's country now vary immensely not according to the nature of one's action but according to one's position. Henssen will probably go to prison and may even be executed. Marc Rich's more acceptable foreign entanglements are used to justify his pardon.

Don't look for it written down anywhere. Except for the basic rule, laid down in 1613 by John Harington: "Treason doth never prosper: what's the reason? Why if it prosper, none dare call it treason."


HUMAN RIGHTS WATCH has called on Motorola Corp. to reassess its promotion and sale of communications equipment to the police in China. Motorola has actively pursued sales of two-way radios to Chinese authorities, including placing a prominent advertisement in a Chinese police magazine. "The Chinese police have a history of repressive tactics, from the arbitrary arrest of peaceful activists to the beating of Falun Gong demonstrators," said Jan van der Made, Hong Kong-based researcher for Human Rights Watch. "Is this the kind of customer Motorola really wants to have?" On several occasions last year, Motorola published a full-page advertisement in a Chinese police magazine, "People's Police." The advertisement featured a picture of a large pair of handcuffs for "special use in the overall communications plan of the public security system," along with information about two-way radio systems sold by Motorola in Beijing.


[We have suggested from time to time that the Clinton administration's blasé and uncritical embrace of China -- based more on the needs of its campaign contributors than on the national interest -- could use some serious revision. The chickens may be coming home to roost]

JOHN POMFRET, WASHINGTON POST: In 1998, when China issued its second white paper on national defense, representing the consensus view of the government, the document mentioned the United States 10 times, each time positively. Last month, China's third white paper mentioned the United States 13 times. All but two of the references were negative. The numbers underscore an important shift that will likely vex the next US administration. Faced with what it feels is a shaky security environment and a strong and sometimes arrogant America, Beijing has increasingly viewed the United States as an obstacle to its rise as an Asian power. In government pronouncements, stories in the state-run press, books and interviews, the United States is now routinely portrayed as Enemy No. 1. Strategists writing in the pages of China Military Science, the military's preeminent open-source publication, are grappling publicly with the possibility that the United States and China could go to war, specifically over Taiwan. "A new arms race has started to develop," wrote Liu Jiangjia, an officer in the People's Liberation Army, in a piece in the magazine. "War is not far from us now."


CONSORTIUM: Little-noticed evidence from the Iran-contra files reveals that it was the Reagan-Bush administration that opened the door to sharing sensitive national security secrets with communist China in the 1980s. This clandestine relationship evolved from China's agreement to supply sophisticated weapons to the Nicaraguan contras beginning in 1984, a deal with the White House that entrusted China with one of the government's most sensitive intelligence secrets, the existence of Oliver North's contra supply network. In the years after that secretly brokered deal, the Republican administration permitted trips in which US nuclear scientists, including physicist Wen Ho Lee, visited China in scientific exchange programs. Those visits corresponded with China's rapid development of sophisticated nuclear weapons, culminating in the apparent compromise of sensitive US nuclear secrets by 1988. Seven years later, in 1995, a purported Chinese defector walked into US government offices in Taiwan and turned over a document. Dated 1988, the document contained detailed information about US-designed nuclear warheads. The document showed that Chinese intelligence possessed the secrets of the W-88 miniaturized nuclear bomb by the last year of Ronald Reagan's presidency. China's first test of a light warhead similar to the W-88 was conducted in 1992, the last year of George H.W. Bush's presidency.