US diplomats alerted over Chinese computers

The Daily Telegraph ^ | May 20, 2006 | Francis Harris

[MadIvan]

American diplomats have been instructed not to keep classified material on 16,000 newly purchased computers because the manufacturer is partly-owned by the Chinese government.

Richard Griffin, the assistant secretary of state, told Congress he would ensure that the machines did not "compromise our information and communication channels".

The row erupted when a congressman raised questions about the purchase of machines from Lenovo, the world's third biggest personal computer maker. The company is 28 per cent owned by a state-controlled Chinese entity.

At least 900 of the computers were to be used by diplomats at embassies around the world and would have been used to access classified material.

Some that had been installed are being removed and all will undergo "inspection and verification". The State Department said that in future it would track the ownership of computer manufacturers.

Frank Wolf, a Republican congressman, said the purchase was a mistake. "This decision would have had dire consequences for our national security.

"It is no secret that the United States is a principal target of Chinese intelligence services."

It had been suggested that the computers may have some sort of electronic eavesdropping mechanism installed. But the company's spokesmen denied that there was any risk in using their machines.

"We are absolutely confident in the security of our manufacturing process," said Jeffrey Carlisle. "These computers do not present a risk to US security."

Fears about Chinese espionage are fast rising in America. Numerous operations aimed at high-tech industries have been uncovered in recent years and the FBI has greatly increased its counter-intelligence operations.

This week, a Chinese businessman pleaded guilty in Florida to trying to purchase fighter jet engines, air-to-air missiles and long-range, nuclear capable cruise missiles for Beijing. He faces 30 years in prison.

[MadIvan]

Oops.

Regards, Ivan

[MadIvan]

Ping!

[null and void]

Hardware backdoor, or malware? Nahhhhhh, that would never happen...

[Citizen Tom Paine]

As an old computer guy both for the Government and in private industry building our own PCs, I can't imagine why Uncle has to buy 16,000 computers from the ChiComs. There are thousands of dealers in the US that would custom build anything that they wanted configured precisely the way they wanted.

If an order for 16,000 PCs were placed at one time on one procurement, the Contracting Officer should have his a$$ kicked, to be blunt. There is no reason for such an action.

One reason that large procurements were issued is that small businesses can't compete on delivery times. Therefore, in some instances there is less work for the CO.

[BenLurkin]

Don't we have a buy American policy for government purchases?

And if not - time to have one!

[Texican]

Ivan:
My friend will you please put me on any and all of your ping lists. I have long admired your posts and replies. I have right in front of me now my registration for RightGoths.com. It is dated August 21, 2004. I have only used it a couple of times, but I still have it.

Good evening and the very best to you and yours.

Semper Fi
Tommie

[o_zarkman44]

We should trust the Chinese because they are moving towards democracy and they are becoming a consumer based economy.

NOT!

[caltaxed]

The communists will sell us the rope to hang ourselves.

[neodad]

You know, more and more Tom Clancy storylines sound true. The big intel coup in the Bear and the Dragon was malware on the Chicom bigwig's pc.

[hedgetrimmer]

Any number of instructions can be easily burned into ROM at the time of manufacture. Even instructions that give a backdoor to the manufacturer to access the computer over a network.

10 posted on 03/30/2006 11:37:29 AM PST by hedgetrimmer ("I'm a millionaire thanks to the WTO and "free trade" system--Hu Jintao top 10 worst dictators)

The Other Side of the US Lenovo Spy Probe

[hedgetrimmer]

"free traders"

[hedgetrimmer]

China's Lenovo welcomes U.S. probe if needed

...the Chinese government is the primary share holder. Congress approved a communist buyout of an American firm. The miniaturization alone wrapped up in IBM's PC division should be an advance for Chinese technology. America is up for sale, and our government is playing a lute.

2 posted on 03/24/2006 6:24:56 PM PST by John Filson

[antisocial]

Dang, I just bought a Toshiba laptop. It has Windows XP and I've had a devil of a time getting used to it. The danged print size is so small you need a microscope to read it. I finally figured out how to increase the print size, but strangely on some websites the browser heading remains normal and the webpage shows below it at half the width of the screen with tiny print. Any of you youngsters know how
I can make that part bigger?

[hedgetrimmer]

The Committee on Foreign Investments in the United States, a multiagency panel that evaluates acquisitions of American companies by foreign entities, unanimously approved Lenovo's plan to buy IBM's Personal Computing Division

The CFIUS, same anti-American bureaucrats who approved the UAE/ports acquisition and the UAE/Doncaster acquisition.

[BnBlFlag]

This is incredibly stupid and reflects gross incompetence in our State Department. Or does it?
This could mean something even worse. Commie sympathysers embedded in the State Dept. doing the will of the Chicoms.
Red China is the most dangerous country in the world. They do not spout off nearly as bad as the worthless Muzzies but as they are building the largest (and increasingly Hi-Tech) military in the world, they are reaching the point where they can back up their threats.

[hedgetrimmer]

FYI

[hedgetrimmer]

and 5 years from now, you will see Dell and HP exiting the desktop PC business entirely because china will be dumping them into the US market for $200.

You say this like $200 PCs would be bad for the US economy.

13 posted on 02/26/2005 10:33:49 PM PST by Toddsterpatriot (Protectionism is economic ignorance!)

IBM Discusses Security Measure In Lenovo Deal

[1rudeboy]

Wait a minute, hedge, not too long ago I was defending Dell from you. You had it in your mind that Dell wasn't as valuable a part of our economy because it was an assembler and not a manufacturer. Now you are worried about defending Dell?

[hedgetrimmer]

What?

[quesera]

The moron who authorized this purchase in the first place is the real blame and should be terminated. I would even investigate him/her for possibility of accepting a bribe on this transaction or worse for being a traitor.

With all the morons, greedy employees, and traitors in our government, including Congress, it is only by the grace of GOD that we still have our freedom and democracy. I have absolutely no confidence in this government.

[1rudeboy]

It's just one of those protectionist moving-target sort of things. They say one thing one day, and the opposite the other.

[hedgetrimmer]

Your as always, refuse to discuss the article, but instead want to talk about me. I'm flattered.

[hedgetrimmer]

All members of the Committee on Foreign Investment in the United States (CFIUS) understand that their top priority is to protect our national security, including homeland security.

Yeah, right.

1) Please provide a list of the names and job titles of the members of CFIUS

1. Members of the Committee on Foreign Investment in the United States:
Secretary of Treasury - John W. Snow
Secretary of State - Condoleezza Rice
Secretary of Defense - Donald Rumsfeld
Secretary of Commerce -- Carlos M. Gutierrez
Attorney General of the United States - Alberto Gonzales
Secretary of the Department of Homeland Security - Michael Chertoff
Director of the Office of Management and Budget - Josh Bolton
U.S. Trade Representative -Peter F. Allgeier (Acting)
Chairman of the Council of Economic Advisers -- Harvey Rosen
Assistant to the President for National Security Affairs - Stephen Hadley
Assistant to the President for Economic Policy - Allan Hubbard
Director of the Office of Science and Technology Policy - John Marburger

2) Did the letter to Treasury from Reps Manzullo, Hunter and Hyde
trigger the extended review of the IBM/Lenovo deal? If that letter had not been sent, would CFIUS have studied the IBM/Lenovo deal in detail?
I cannot comment on specific transactions which may be under review by CFIUS.

3) Is there a list of parties who have corresponded with CFIUS voicing concerns about the IBM/Lenovo deal? Is this correspondence available to the public?
I cannot comment on specific transactions which may be under review by CFIUS.

4) Regarding the most recent CFIUS meeting relating to IBM/Lenovo:
I cannot comment on specific transactions which may be under review by CFIUS.

A) Please provide the date and location of the meeting.

B) Who attended on behalf of CFIUS? of IBM? of Lenovo? Any attendees presenting against the deal?

C) was this a public or private meeting?

D) are there minutes available from the meeting or a transcript?

E) Was a vote taken on approval of the IBM/Lenovo deal at this meeting?

Bloomberg reports that the committee could not come to an agreement at this meeting. http://afr.com/articles/2005/02/28/1109546795065.html
I cannot comment on specific transactions which may be under review by CFIUS.

5) Regarding the IBM Facility in Research Triangle Park, NC

A) What sorts of activities take place in the IBM-retained portion of this facility? What technologies beyond the standard PC components are researched in the IBM-retained portion, and are there any specific military/strategic applications for these technologies?

B) Are the CFIUS members primarily concerned about the knowledge
transfer possibilities contained in the Lenovo-controlled area of the facility, or more concerned with Lenovo penetration of activities in the IBM controlled area?

C) Can you confirm that the Secret Service and FBI visited the
facility, as per Bloomberg's report? Can you provide dates of visits?
Number of US gvt personnel involved involved in the visit or visits?
I cannot comment on specific transactions which may be under review by CFIUS.

6) Please lay out the possibilities for what could happen next, and the likely dates when these things might happen (i.e. approval, Presidential Review, resubmittal, denial, etc)
I cannot comment on specific transactions which may be under review by CFIUS.

7) Has the Dept of Defense submitted material opposing the deal? If so, can you describe the nature of the Dept's concerns?
I cannot comment on specific transactions which may be under review by CFIUS.

8) What kind of feedback has Treasury provided to the three abovementioned members of Congress, and what is the most recent date that information was provided?
I cannot comment on specific transactions which may be under review by CFIUS.

Questions Submitted to March 1, 2005 to Tony Fratto, Deputy Assistant Secretary, U.S. Department of the Treasury by Greg Spotts

[Golden Eagle]

Thanks for the ping. Thread from yesterday.

http://www.freerepublic.com/focus/f-news/1635109/posts

[lilylangtree]

And the govt didn't see this coming when the contract was awarded? Sheesh!

[1rudeboy]

Some time ago, you used Dell as an example of the decline of American manufacturing, as if it had already occurred.
Now, you have used Dell as an example of American manufacturing that must not be allowed to decline, as if it might occur.
So yes, it's all about you.

[Toddsterpatriot]

Now hedgetrimmer will use her math skills (hard to say that with a straight face, I know) to show that the money Americans would save buying $200 dollar PCs will harm our economy.

[Toddsterpatriot]

You can't expect protectionists to be consistent. They whine we don't make anything here anymore. Ignoring all evidence to the contrary. Only $3 trillion in the last 12 months. We're doomed.

[hedgetrimmer]

This article talks about chinese manufactured computers that have security holes so that they cannot be used to store classified data. Now, what 'system' has broken down our sovereignty and security so adeptly that our government, against the wishes of its citizens, allowed a federal agency in charge of international affairs to purchase these machines?

Can you say "free trade"?

[killjoy]

They took over the production of Thinkpads from IBM. All this means is the US government decided to buy Thinkpads. They should be congradulated on buying good machines. I love mine.

[hedgetrimmer]

If someone was protecting our national security, the criminal CFIUS group wouldn't have approved the purchase of these chinese spying-enabled computers, now would they? 'Protectionists'(American Indenpendents is a more accurate term) identified this security issue, not the "free traders".

[1rudeboy]

We do agree on one thing. There must be a better method to determine what is and what isn't a legitimate national security risk to determine whether a transaction should occur.

Buying Chinese computers for the State Dept. is a bad idea. Buying pink flamingo lawn decorations from China is not, in my opinion. One size does not fit all.

[hedgetrimmer]

We do agree on one thing

Did hell just freeze over? :-)

[cardinal4]

"It is no secret that the United States is a principal target of Chinese intelligence services."

The Clinton Legacy lives on..

[1rudeboy]

I have no way to find out, but it's likely.

[Toddsterpatriot]

If someone was protecting our national security, the criminal CFIUS group wouldn't have approved the purchase of these chinese spying-enabled computers

CFIUS has nothing to do with government purchases. I agree we shouldn't buy this kind of equipment for sensitive uses from China. If we inspect and find any sort of keyhole or spyware, we should retaliate.

[hedgetrimmer]

Under the sale agreement, Lenovo will get to use IBM's brand and the Armonk, New York-based company will be a reseller. Also, because IBM is approved as a computer vendor by the U.S. General Services Administration, Lenovo gains the U.S. government as a customer by acquiring the PC business, the people familiar said.

That concerned members of the committee from the Department of Homeland Security and the Justice Department, who demanded that IBM protect any information the Chinese could use to bug or infiltrate computers used by U.S. officials, the people said.

``We do not comment on matters that may or may not be before CFIUS,'' Treasury Department spokesman Rob Nichols said.

The members spelled out their position in a meeting last week in Washington with Stephen Ward, the head of IBM's PC unit, according to the people, who spoke on condition of anonymity. Ward is slated to become Lenovo's chief executive after the sale. --Bloomberg.net

[John Williams]

Dang, I just bought a Toshiba laptop. It has Windows XP and I've had a devil of a time getting used to it. The danged print size is so small you need a microscope to read it. I finally figured out how to increase the print size, but strangely on some websites the browser heading remains normal and the webpage shows below it at half the width of the screen with tiny print. Any of you youngsters know how
I can make that part bigger?

---

Go to Control Panel, click on the Display icon and hit the settings tab. There should be an advanced button along the bottom. Click on that and you should see the General tab with the DPI setting.

Set the DPI setting from 96 to 120 DPI and see how that works. If you can see the smaller type, then you're in good shape. If not, you can always use a custom setting and make it as large as you want.

Hope that helps.

Toshiba? I hope you don't have any problems with it. I known people who have had to shuttle them back and forth to the manufacturer due to hard drive, screen and motherboard problems.

[Toddsterpatriot]

Also, because IBM is approved as a computer vendor by the U.S. General Services Administration, Lenovo gains the U.S. government as a customer by acquiring the PC business, the people familiar said.

So, stop buying from Lenovo. I have no problem with that. In fact, I insist.

[Leatherneck_MT]

Try using Ctrl and + to increase the size of the browser font.

[antisocial]

Thanks, I've done that and FR and other sites show a full screen, however townhall and some others only display on half of the screen making the print very small.

So far it seems to work ok, I'm just hoping it doesen't have to be sent back.

Thanks again

[antisocial]

Thanks Leatherneck that will be my next attempted solution.

[spunkets]

That's {cntrl =} and {cntrl -} to increase and decrease respectively.

[antisocial]

Thank you

[spunkets]

You're welcome.

[Mase]

"free traders"

The government does something stupid and you act surprised? Funny, your solution for government stupidity is always to demand more government. Knowing your knee jerks three ways, I'm surprised you chose to to blame free trade instead of faulting Bush or illegal immigration.

[eclectic]

2 out of 3 :-)

[Mrs. Darla Ruth Schwerin]

"Fears about Chinese espionage are fast rising in America."

Lordy Be...Clinton was best buddies with them folks. Ya don't think they really did sometin' wrong, do ya? We dern trust 'em so much, they jist have access to ports. Fer money and all. Naah, them fellas is jist honest folks...

[A CA Guy]

I would think that all that could be done to a computer one of two ways.

#1 through the hard drive.
#2 through some preprogrammed chip that interacts with the communication ports.

I would think the best thing for any government agency of our to so would be have a central place where all computers go through for inspection.
One of the first things that should be done in turning one of these in for sale should be to remove or destroy the hard drive.

I think this doesn't have to be a problem for the good guys. :)

[hedgetrimmer]

Are you talking to the US Government?