US diplomats alerted over Chinese computers

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

[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

[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]

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