Posted on 07/22/2007 2:02:07 PM PDT by OrthodoxPresbyterian
Administration Poised to Subsidize China’s 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 China’s 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-Im’s 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 Westinghouse’s 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, China’s 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 China’s nuclear power industry could boost its military capabilities including its nuclear submarine programs.
Rewarding Proliferators
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 Pakistan’s 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 CNNC’s 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 Iran’s nuclear weapons program, but it is not clear if China has ever actually executed a sale of nuclear weapons materials to Iran.
American Jobs?
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 China’s 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 China’s 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. “You’re building an infrastructure that can be used and retooled to help out in [China’s] 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.
Our number one problem is China. It is our number one problem because Bush and his twin brother Bill have put business interest before national security. Ron Paul offered several ways to deal with the W.O.T. that are Constitutional and effective. As well he supported going after Bin Ladden but of course you don't dare mention that.
But the real issue is nobody and I mean nobody gives Da Crowned Bush advice. Why do you think Bush placed so many Yes Men around making policy him who are Idiots! That makes Bush the biggest threat to having a dictatorship since FDR himself. Bush's own words calling the United States Constitution "A ****ed piece of paper" say it. If Ron Paul said that you would be demanding his removal from office.
Bollocks. There are MANY Conservative Issues which are MORE IMPORTANT than trying to referee an Islamic Civil War in Iraq: Abortion, Illegal Immigration, Gun Control, Domestic Socialism... Abortion kills at least one 9-11 worth of Unborn Americans EVERY DAY. Illegal Immigrants murder at least one 9-11 worth of American Citizens EVERY YEAR. And, of course, Gun Control killed 200 Million+ human beings in the last century alone, and Creeping Socialism is its economic adjunct. Every one of these classically Conservatives issues is FAR more important than a monomaniacal focus on trying to keep Shi-ite Terrorists from killing Sunni Terrorists in a god-forsaken hell-hole 7,000 miles away.
I don’t know if he agrees with them. I have no problem denouncing communists, Nazis, skin heads, or any other group of haters. If my writings were appearing in their publications, I’d make damn sure everyone knew I had nothing in common with them. Is that too much to ask? If you associate with people (as he appears to do), why would it be my responsibility to save his reputation? Surely, that’s his job. Maybe then the “coincidence” that his foreign policy is anti-Zionist wouldn’t seem like it was animated by some baser instincts. He’d just be anti-Israel because he’s a man of principle. After all, it’s not in the constitution that we’ll help Israel.
Yeah, next time I'm about to get mugged, I'll just follow the Bush Plan --- I'll slit my own throat, and hand them my wallet.
I see no reason to indulge them with the publicity. That would be counterproductive, IMHO.
trying to keep Shi-ite Terrorists from killing Sunni Terrorists in a god-forsaken hell-hole 7,000 miles awayThat's exactly what I mean when I say sticking your head in the sand. You just proved my point completely.
They want to kill you. And me. And your family. And mine.
Wake up. Smell the Turkish Coffee. It's time to fight or die.
Bush thinks China and Mexico are our friends.
5000 jobs in PA.
5 Billion of my tax dollars.
1 nuclear reactor in China.
Wouldn’t it just be easier to give the 5 billion dollars to the 5000 unemployed in Penn?
I don’t think they would mind taking the money and not having to work.
He’s regularly published in their paper, yet he should ignore them. That sounds convenient now that he is on the national stage.
Westinghouse employee here (although I’m in services, not new plants).
A couple of things to note.
1. The discussion revolves around a LOAN, not a gift. I’m not entirely familiar with the finances, but I do believe that it mainly serves as a vehicle to make payments from the communists to an American firm. So all of the Freepers who are clever with the math, please correct your statements that this would be like a LOAN of $1M to 5000 Americans.
2. The article is correct in that a large fraction of the work will be farmed out to South Korea. That’s because the United States lost all capabilities to make large forgings after orders of nuke plants died after Three Mile Island. The United States simply doesn’t have the capability to make the larger components.
3. Although I’m not real thrilled that we’re building nukes for a communist country, the article is correct in that it was going to happen anyway. In any case, the big benefit for this contract with the Chinese is that it will allow Westinghouse to staff-up in anticipation of a large number of domestic nuke plant orders. We’ll build them plants that are significantly safer than what the Russians would have built...and by the time we’re done, the next generation of plants will be available.
4. The article implies that we’re giving vital military knowledge away. The Chinese already have the bomb. The deal has been reviewed by the department of defense, and they didn’t have a problem with it.
I take it this is your first week out since graduating from Attack Dog School? You didn't get your money's worth. Lame. Blackbird.
Read and then comment please.
It is not the government’s place top do either.
top do should have been “to do”
“Ron Paul’s friends at American Free Press.......”
Paul does not copyright his writings and they can be published by anyone. He does not write “for” them.
Oh, it’s a civil war. I see...
Actually, as the article notes, it's a Japanese-owned firm.
So, basically, we're subsidizing the transfer of nuclear technology to China, so that the same Japanese Company which sold our submarine-propulsion technology to Soviet Russia can make big profits.
Brilliant.
Are you absolutely sure Ron Paul "writes for" Carto's publication? Or is that from something you read here posted by a Paul hater?
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