Skip to comments.(RON PAUL opposes) Administration Plan to Subsidize China’s Nuclear Industry
Posted on 07/22/2007 2:02:07 PM PDT by OrthodoxPresbyterian
Administration Poised to Subsidize Chinas Nuclear Industry
by Timothy P. Carney
A Japanese-owned company is building nuclear power plants for Communist China, and the Bush administration is ready to use U.S. taxpayer dollars to subsidize the deal to the tune of $5 billion. Although Chinas government-owned nuclear industry has a long record of illegal nuclear deals with Iran and Pakistan, administration officials say the technology is not transferable to nuclear weapons, and that the subsidy will create 5,000 jobs in Pennsylvania.
The Export-Import Bank of the United States (Ex-Im) is a federal agency that subsidizes U.S. exports by lending taxpayer money to foreign buyers (such as the Chinese government), or guaranteeing private loans, so that the foreign buyer can purchase U.S. goods.
Westinghouse Electric is a wholly owned subsidiary of the Japanese company Toshiba. Westinghouse manufactures the AP 1000 -- a new model of nuclear power generator -- in Monroeville, Pa.
In February 2005, Ex-Ims board of directors granted preliminary approval for a $5 billion subsidy -- an unspecified combination of loans and guarantees -- to the China National Nuclear Corporation (CNNC) as a way of aiding Westinghouses bid for the contract (a French company and a Russian company were also competing for the contract.)
This year, the Chinese government awarded the contract to Westinghouse, bringing the record subsidy closer to reality, although the preliminary approval does not guarantee Ex-Im will provide financing. A Westinghouse spokesman told HUMAN EVENTS the company was in the process of applying for Ex-Im financing. Ex-Im spokesman Phil Cogan told HUMAN EVENTS that while a preliminary commitment is by no means a promise by Ex-Im, it indicates that this is the kind of thing Ex-Im would subsidize.
Congressional critics from both ends of the spectrum, including Senator Bernie Sanders (I.-Vt.) and Republican Representatives Ron Paul (Tex.), Jeff Fortenberry (Neb.), and Ed Royce (Calif.), have resisted this deal.
For the critics, the deal is problematic on at least three fronts. First, Chinas state-owned nuclear industry has a long history of illegal nuclear weapons proliferation, and this subsidy enriches that very industry. Second, some of the jobs generated by this record subsidy deal will not be in the U.S. Finally, aiding Chinas nuclear power industry could boost its military capabilities including its nuclear submarine programs.
The CNNC is the branch of the Chinese government that manages both nuclear weapons and nuclear power. In recent months, CNNC and other state agencies founded the State Nuclear Power Technology Company (SNPTC). SNPTC, entirely owned by the Chinese government, is now the official purchaser of the nuclear reactors from Westinghouse.
CNNC is a known serial proliferator of nuclear weapons materials. In the late 1990s, U.S. intelligence agencies found that the CNNC had sold 5,000 ring magnets to Pakistans A.Q. Khan Research Laboratory. Later, the CIA found that the CNNC sold Pakistan high-temperature furnaces. Both the furnaces and the ring magnets are crucial tools used in enriching uranium to produce fissionable -- i.e., weapons grade -- uranium. Shortly after these sales, Pakistan tested its first nuclear weapon.
In 2004, A.Q. Khan, the Pakistani scientist on the buying end of the CNNCs sales, was arrested for selling centrifuge materials to Libya. Khan is also known to have aided the nuclear weapons programs of North Korea and Iran. CNNC has, on at least two occasions, had dealings with Irans nuclear weapons program, but it is not clear if China has ever actually executed a sale of nuclear weapons materials to Iran.
Westinghouse and Ex-Im officials have defended this subsidy by pointing out that without it, China would still build the nuclear power plants, but in collaboration with the Russians or the French. By greasing the skids for the Westinghouse contract with its preliminary commitment in 2005, Ex-Im has helped make work for 5,000 manufacturing workers in Monroeville, Pa. In April, however, Westinghouse announced that portions of the power plants would be built in South Korea and other parts in China. Ex-Im cannot finance an export unless most of the goods are made in the U.S.
Westinghouse and the Bush administration point out, however, that if these cutting-edge reactors do well in China, it would spur domestic and world-wide business for Westinghouse, making more jobs in Pennsylvania.
Helping Chinas Military?
In late May, Representatives Christopher Smith (R.-N.J.), Diane Watson (D.-Calif.), Fortenberry, and Royce, asked Secretary of Defense Robert Gates in a letter whether the sale could boost Chinas military capabilities.
Henry Sokolski, executive director of the Nonproliferation Policy Education Center said that there are reasons to worry about providing China with this technology. Youre building an infrastructure that can be used and retooled to help out in [Chinas] naval reactor sector -- and they do want this for nuclear subs, the Christian Science Monitor quoted Sokolski.
Last year, during the debate on reauthorizing Ex-Im, the House passed by a 331-to-114 vote an amendment by Representatives Paul and Sanders that would have blocked a subsidy for this deal. The measure, however, was not in the final bill.
As of Tuesday morning, Ex-Im had not yet received an application from Westinghouse or any of its partners with regard to the sale. Sanders, Paul, or Fortenberry will likely act once Ex-Im receives the application, and possibly hold hearings on the deal, which would be the largest subsidy in Ex-Im history.
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Well there’s one I agree with him on.
Perhapos they do good work that doesn’t make the press.
But every time the import/export bank comes up it seems to be in connection with either something that doesn’t make market sense or isn’t good for the country.
As for Ron Paul - I like the guy and he is often right - its too bad he buys into all that crazy conspiracy finance stuff - I could never see him a position of national leadership.
“RON PAUL opposes) Administration Plan to Subsidize Chinas Nuclear Industry”
It is a happy day when this man makes sense. Pop the champagne corks!
If Ron Paul were not actively working to discredit the mission of our troops in a war declared upon us by Islamic jihadists (hence “jihad” - their declaration of war) I might be able to give Paul an audience for his views. Instead I distrust and despise the man for being such an awful voice at a time when America must muster the resolve and will to win what will be a very difficult and challenging war.
Don’t wish to argue pro or con about Ron Paul.
Just thinking about this:
$5,000,000,000 ( 5 billion) divided by 5000 jobs =
$1,000,000 per job.
Suppose, instead, we give,say, $500,000 to each person to help them start a small business of their own. Thoughts?
Ron Paul: Principled Saviour of the nation, or weird dilettante with crypto Nazi pals? You decide.
What is Ron Paul’s position on the Patriot Act? And what is his position on holding Al Qaeda terrorists at Guantanamo?
What is wrong with George Bush?
I don’t have any more mad letters in me.........
Somebody else will have to write them.
“Well theres one I agree with him on.”
Me too, and so would Duncan Hunter, who has been the most vocal about Communist China.
DUNCAN HUNTER QUOTE: “Not only do we have a bad trade deal with China but they’re cheating on the one we do have. China is cheating on trade and they’re using our trade dollars to buy ships, planes and missiles. They’re becoming a super power and stepping into the shoes of the Soviet Union.”
In general, not worth the discussion, his impact on anything other than earmarks for is district is zero.
Ron Paul's friends at American Free Press for whom he writes are: a) Great American patriots taking on the Jewish conspiracy in America, or b) Malicious morons who deny the historical fact of the Holocaust?
If Ron Paul were not actively working to discredit the mission of our troops in a war declared upon us by Islamic jihadists (hence jihad - their declaration of war) I might be able to give Paul an audience for his views. Instead I distrust and despise the man for being such an awful voice at a time when America must muster the resolve and will to win what will be a very difficult and challenging war.You are exactly right. The Paulites scrambling to find issues that put RP in a good light -- after he's stabbed our troops in the back by voting with the worst of the leftist in the House -- is a bit like trying to promote the fact that Hitler was a vegetarian and was kind to kittens and puppies.
Who gives a sh*t? So what if RP gets a few things right? I don't.
He votes with the Friends of Jihad in Congress, in 2007, in the midst of America At War. I don't care if he also spit-shines his shoes or if he gives money to orphans in Uzbekistan. That doesn't matter to me. He's a traitor to our troops, and on the side of the RAT Jihadists in congress. That trumps everything.
I view him as a distraction who is undermining support for America and the WOT. He distracts many principled people and demoralizes others. And his association with Holocaust deniers is a moral flaw. Some people deserve to be shunned, and Ron Paul’s unwillingness to shun them puts him in that category.
(RON PAUL opposes) Administration Plan to Subsidize Chinas Nuclear Industry
Dr. Paul is my hero!
I contacted the mods on that link. You keep posting that BS that Ron Paul is pro-Nazi.
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