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FOREIGN INFLUENCES
COSCO, Poly Technologies, Chung, Trie
"COSCO is not a benign private
commercial enterprise.
It is a wholly owned subsidiary of China's People's
Liberation Army. It serves as the merchant marine
of the Chinese military, and there is every reason to
believe it will do their bidding in terms of smuggling,
intelligence-gathering and weapons shipments."
Sen. James M. Inhofe 1
"[There] is a direct link between the White House
fundraising with China and assets that have gone
in favor of Communist China that could pose as a
national security threat to the United States.
I have intelligence reports that state so.
I have facts that also state so…"
- Representative Randy "Duke" Cunningham 2
COSCO
While reports vary on the exact length of
time, the Chinese Ocean Shipping Company (COSCO) has had a presence at the Long Beach
Naval Station in Long Beach, California since the early 1980’s.3 They lease a
portion of the space directly from the city. (71) In 1997, they attempted to lease the
entire former 144-acre Long Beach Naval Station. (72) COSCO planned to demolish the
existing structures and build a new $200 million terminal, thereby allowing its 600 ships
to sail directly to America’s shores without having to pass through U.S. Customs.4
The following information, compiled or
quoted directly from the related sources, details the sequence of events that lead
Congress to stop the sale.
In 1992 "the U.S. Federal Maritime Commission fined COSCO $400,000
for paying kickbacks instead of legal tariffs."5
In 1993 "a COSCO ship was caught
transporting 87 pounds of heroin into the United States."6
Another COSCO ship had been caught
smuggling illegal aliens. The Coast Guard had cited various ships on 6 separate occasions
for security infractions.7
In 1994, "John Chung began dropping
money to the DNC, the very year the Clinton administration closed the base."8
"By April 1995, California records
show, Chung had created the first two of at least seven export-import or real-estate
companies that he has formed with foreign citizens."9 "He and Chen signed
papers to incorporate the two companies that April 10. Two days later, Chung paid the
party $125,000 to take Chen and others to the dinner with the president at Spielberg's
house."10
In 1995, "while the National Security
Council staff [worried] about Chung portraying himself as being sanctioned by Clinton to
negotiate the release of human-rights activist Harry Wu from a Chinese gulag, Chung set up
meetings with then-Democratic National Committee, or DNC, chairman Don Fowler."11 "They
met on March 9, 1995, at about the same time Chung was providing Hillary Clinton's top
aide, Margaret Williams, with a $50,000 political donation."12
After the DNC meeting, "Fowler
arranged for Chung and COSCO representatives to attend a Clinton radio address. Chung and
six Chinese ‘business executives’ listened to the radio address and, shortly
afterward, Chung dropped $50,000 to the DNC."13
"Federal Election Commission records
show several of [Chung’s] largest political donations were made as he created shell
corporations."14
"In 1996, a Justice Department sting
operation [known as Dragon Fire] exposed one of COSCO’s ships, which had smuggled and
attempted to sell 2,000 AK-47s to California street gangs, with the promise of delivering
missiles to knock a 747 airliner out of the sky."15
In 1996, President Clinton gave the Chinese
$50 million for "trade." He also supplied them with a $137 million
"nonrecourse" loan to build 5 new ships. A non-recourse loan means that if China
defaults, the American taxpayers will make good on the loan.16
"Even as it denied payments had been
made by the government of China to the Clinton/Gore campaign fund and other Democratic
Party causes, the White House pressured preservation officials in the Navy, State
Department and local government to abandon efforts to preserve the historic buildings at
the naval station."17 According to news reports, Dorothy Robyn, working with
preservationists to fight the lease, was urged by a Clinton appointee to "abandon
their effort[s]."18
"In 1997, the New York Times raised
questions concerning why a ‘Clinton-administration official made what several people
involved describe as highly unusual telephone calls to push for construction of a
container terminal that would be leased to a shipping company owned by the Chinese
government.’"19
The Long Beach Harbor Commission reportedly
supported the move, which would net millions in rent, $1 million in taxes, and several
hundred jobs for the area.20 President Clinton, himself, affixed his "seal of
approval" on the deal.21 The Administration forwarded the line that "`all
intelligence agencies that briefed us have assured us that COSCO represents no threat to
our national security."22
The people who reportedly made the "no
threat" decision were former Secretary of Navy Dalton and former Secretary of State
Haig.23, 24 Dalton is a former employee of Stephens Inc., a Little Rock,
Arkansas-based investment banking firm.25 This is the same Stephens, Inc., that
allowed John Huang to repeatedly use their offices to contact Lippo Ltd. after having
attended top-secret meetings at the White House.26 This is the same Stephens, Inc.
that has business ties with the Riadys.27 Further, Haig served on the advisory
board for COSCO.28
The "brief" upon which the
Administration claimed "no threat" was a complete fabrication. According to Rep.
Cunningham’s April 15, 1997 statement, "the same intelligence briefers, the CIA,
the National Security, the Coast Guard, have all stated that no such comment was ever made
[or] ever intended." Further, "an updated report from the FBI…states that
COSCO is currently actively involved in placing intelligence officers, spies, in all of
their ports of call."29
Ultimately, it took an act of Congress to
prevent the lease.30 Nevertheless, COSCO is once again attempting to lease another
base, this time in Los Angeles. Further, it has secured an alternate route into America:
"COSCO will this month launch a new TransPacific container service, and for the first
time will use the Port of Vancouver as the gateway to U.S. destinations with CPR as the
land carrier to Chicago. CPR is the only rail carrier that can move freight from the Port
of Vancouver to Chicago over its own track."31
Poly Technologies
Poly Technologies was founded in 1985 as a
subsidiary of China's powerful central bank, CITIC (China International Trust and
Investment Corporation). CRS reports that Poly Technologies "(also known as Baoli) is
a cover for COSTIND personnel under the General Staff Department’s Equipment and
Technology Department."32
In 1994, President Clinton and the Congress
passed the ban on assault weapons. The ban was effected for weapons manufactured after
September 13, 1994. According to news reports, Poly Technologies used this
"loophole" to dump a large amount of weapons into the American market.33
"According to a Scripps Howard report
by Michael Hedges (which ran on the front page of the March 14, 1997 edition of the
Arkansas Democrat Gazette) on February 2, 1996, the Clinton administration granted Wang
Jun's Poly Technologies importation permits to flood America with over 100,000
semi-automatic weapons and millions of rounds of ammunition - despite the president's own
gun ban."34
On February 6, 1996, three interesting
things occurred at the White House:
Poly Technologies Chairman, Wang Jun, met with Ron Brown, head of the
Commerce Department.36 Mr. Wang is a Chinese arms dealer and the son of one of
China's most reactionary leaders, the late Wang Zhen, who advocated the massacre at
Tiananmen.37
Later that night, Wang Jun attended a White House "coffee"
session at the behest of Charlie Trie.38
Yah Lin "Charlie" Trie, a Little
Rock restaurant owner turned DNC fundraiser, would become a frequent visitor to the White
House. In April of 1996, President Clinton appointed Mr. Trie to the Commission on U.S.
Pacific Trade and Investment Policy. Trie eventually funneled $640,000 of illegal campaign
contributions into the President’s legal defense fund. Trie "agreed to plead
guilty to two counts of violating federal election laws--one felony and one
misdemeanor--and will receive a maximum of three years' probation, according to court
papers."39
When COSCO’s ship was caught in the
Justice Department’s "Dragon Fire" sting, a total of 2,000 illegal AK-47s
were seized.40 These weapons were manufactured by Poly Technologies.41
Indictments would be brought against Jun and Robert Ma, Poly Technologies’
representative in the United States.42
"Poly Technology Executive Director,
Xie Datong, stated on the record that the machine gun transfer did not require permission
from the Chinese General Staff. Xie Datong, also a corporate officer of Poly's American
subsidiary PTK, claimed the weapons were transferred from stockpiles from the General
Logistics Division of the PLA."43
According to a May 23, 1996 Associated
Press report, "Those arrested also discussed the sale of explosives, antiaircraft
artillery and other powerful weapons with U.S. undercover agents, [Congressman Charles]
Schumer said he was told. Rejecting the notion that those arrested were operating entirely
on their own, Schumer said, ‘You can't export as many as 2,000 weapons from China
unless you have someone in the government going along with this.’"44
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