RED CHINA LAUNCHES FIRST HOMEMADE AEGIS DESTROYER

Communist China's first locally produced "Aegis" Destroyer was launched in Shanghai, the Hong Kong Tai Yang Bao reports. The warship is designed to be equipped with an advanced radar system, stealth design, a vertical launch system, and long-range anti-aircraft missiles to fill in for the Red Chinese Navy's gaps in launching seaborne long- and medium-range antiaircraft attacks. It is expected that the destroyer will be officially integrated into the South Sea Fleet three to five years from now. The development of the destroyer indicates that Communist China has made far reaching progress in shipbuilding technology over the past 20 years, as the Red Chinese Navy is moving towards the stage of building itself into a blue water oceanic fleet. The homemade "Aegis" destroyers may not be operational before 2005 because verification of the destroyers' current computer integrated technology capability - specifically the ability to process a huge amount of signals needed to meet the needs of the phased-array radar systems - has yet to be completed.

In early June, a Communist Chinese artillery brigade, under the command of the Beijing Military Region, successfully launched a military exercise utilizing information warfare in a tactical context, reports the People's Liberation Army Daily. In line with actual combat requirements, the brigade's control center organized a network-based exercise with a focus on resisting the enemy's electronic jamming and air raids, as well as engaging in psychological warfare. The brigade also organized anti-aircraft operation training as well as successfully conducted counter-hacking training and information warfare by penetrating the network-based antivirus of the opposition. In 2003, the brigade organized more than 20 information warfare drills on simulated battlefields.

In an analysis of the potential "dim" outcome of a unilateral US military campaign in Iraq, the official Chinese People's Daily surmises that the US lacks the money to successfully prosecute the war and its aftermath single-handedly. The paper cites economic factors that could hamper a long-term operation, including the US - all-time high - trade deficit of $435 billion in 2002 [Editor: around $100 billion of the deficit was with Communist China]. In addition, the US budget deficit is over $300 billion and growing and in 2002, the US current account deficit reached an all-time high of $504 billion. These factors added to the cost of the war and the post-war reconstruction could have a negative toll on the US economy. The paper also points out that the first Gulf War would have been impossible to finance without the support of Saudi Arabia, Germany and Japan. The report quoted the London Economist magazine stating that in opposition to the war, most US allies would not be as willing to donate financial resources to the war effort.

GWB GIVES RED CARPET TREATMENT TO NEW CHICOM LEADER

Peter Slevin and John Pomfret write, concerning Red Chinese Vice President Hu Jintao’s visit to the U.S., that "Doors opened to Hu, 59, at a pace highly unusual for any nation’s second-ranking leader. In 24 hours, he saw the president, the vice president and the secretaries of state, defense, treasury, commerce and labor, as well as lawmakers on Capitol Hill and the president of the World Bank.

"Hu, a former hydrologist, is largely an unknown in China and the United States. He is expected by China watchers to become the Communist Party general secretary at the 16^th Party Congress in the fall, and then to succeed Jiang Zemin as president in the spring. …

"Chinese analysts said Hu’s U.S. visit is a step in his development of the necessary credentials to become China’s next leader. He spent years in the countryside during the Cultural Revolution, served as a provincial party leader and oversaw a military crackdown as party boss in Tibet. He later rose with remarkable speed through the party hierarchy in Beijing. …"

HU JINTAO REFUSES TO ACKNOWLEDGE HUMAN RIGHTS LETTERS

"Hu listened to U.S. concerns about human rights at each stop, including his 30-minute meeting with Bush. At a meeting Tuesday with congressional leaders, Rep. Nancy Pelosi (Calif.), the second-ranking House Democrat, tried to give Hu four letters regarding China’s treatment of dissidents and prisoners.

"One letter, signed by Pelosi and Rep. Frank R. Wolf (R-Va.), asked Hu to secure the release of 25 Tibetans imprisoned during China’s crackdown in the late 1980s and early 1990s when Hu was party secretary there. Another called for the release of three prominent dissidents jailed for trying to start an opposition party."

COURTESY IS NOT COMMON TO OUR COMMUNIST ENEMIES

"Pelosi put the letters on the table in front of Hu, but the Chinese leader did not take them. She then tried to get Li Zhaoxing, the deputy foreign minister, to take the letters, but he declined as well.

" ‘It’s just a common courtesy. I thought Hu at least would have taken the letters,’ Wolf said." Source: Washington Post, 5/2/02, pp. 1, A10

MILITARY COORDINATION WITH BEIJING WILL BE RESUMED

Hu "warned that American arms sales to Taiwan could jeopardize relations."

BIG BUSINESS GLOBALISTS HAIL HU

"Earlier this week in New York, Mr. Hu was warmly embraced by many titans of American business and finance who hope to increase investment and trade with China.

"Mr. Hu has been a consummate insider in China’s Communist Party, avoiding flamboyant actions or much contact with Western officials and scholars in the past. This trip is widely seen as an important step in preparation for his ascension later this year to the leadership of the Communist Party. …

"In the only concrete result announced today, Mr. Hu and Defense Secretary Donald H. Rumsfeld agreed to restore military cooperation and exchanges that have been on ice since the dispute last year over a downed American spy plane, a Chinese spokeswoman said tonight. …

"American officials were under orders not to discuss details of the visit. …

" ‘China’s leaders need good relations with the United States to achieve their larger goals,’ " said Bates Gill, a China expert at the Brookings Institution. Source: Erik Eckholm, The New York Times, 5/2/02, p. A13

Excerpted from Howard Phillips Issues & Strategy Bulletin of May 15, 2002

RED CHINA IS NOT OUR FRIEND. WHY DO GWB AND CONGRESS AID BEIJING?

"As Hu Jintao – the heir apparent in Beijing – meets President Bush … it is worth asking how much real substance remains in the U.S.-China relationship. Economic ties remain strong, of course, if lopsided. The U.S. is China’s largest export market, a major source of investment and an even more important source of technology, whether licitly or illicitly acquired. …

"Beijing’s top leaders are crisscrossing the globe, visiting anti-U.S. bastions such as Cuba, Iran and Libya, while trying to pry European allies away from their Atlantic ties. …

"China attempted to fill the gap left by Moscow’s apostasy and become the cornerstone of an antiliberal world coalition….

"From that decision has flowed a quixotic foreign policy that embraces unsavory regimes, from Burma to Cuba to North Korea. China also supplies advanced weapons to Iraq and Iran and nuclear technology to Pakistan – and is undertaking an unnecessary military buildup that has sown suspicion around China’s periphery. …

"China’s internal stability is increasingly dependent on good relations with the U.S. and other foreign powers, who pay the bills through imports and investment. Yet Beijing’s rhetoric and foreign policy continues to undercut that relationship." Source: Arthur Waldron, Wall Street Journal, 5/1/02, p. A18

Excerpted from Howard Phillips Issues & Strategy Bulletin of April 30, 2002

BOB SMITH AND JESSE HELMS ASK WHY GWB INVITES RED CHINA AND COMMUNIST VIETNAM TO SHARE OUR MILITARY SECRETS

Bill Gertz and Rowan Scarborough report (Inside the Ring, Washington Times, 4/19/02, p. A9) that "Two Senate Republicans are asking Defense Secretary Donald H. Rumsfeld to reverse a Pentagon decision to let a ‘rogue’s gallery’ of nations, as the lawmakers called them, observe the military’s up-coming Cobra Gold, a joint U.S.-Thailand exercise next month.

" ‘There may be a sensible explanation for the Pentagon’s decision to allow delegations from China, Vietnam, and Cambodia to observe the upcoming Cobra Gold,’ wrote Sen. Jesse Helms of North Carolina and Robert C. Smith of New Hampshire in a Wednesday letter to the defense secretary. ‘We say "may be" but we’re having a bit of trouble imagining what it could be.’

"The two asked whether inviting communist China affords ‘a militarizing adversary the opportunity to learn how we operate.’ They also asserted, in the form of a question, that allowing the Chinese top brass to observe alongside friendly nations sends ‘a clear message that China is a "normal" country about whose behavior we are not really concerned. Won’t this merely encourage a perpetuation of that misbehavior?’ "

WHY DOES DOD HONOR OUR ENEMIES AND BETRAY OUR FRIENDS?

"On inviting Vietnam and Cambodia, Mr. Helms and Mr. Smith referred to the countries’ hard-line rulers. ‘By pretending that we have common security interests with the likes of Hun Sen and Viet Minh, we are at once fooling ourselves and betraying those who are struggling for freedom in those two miserable countries,’ they wrote."

CLINTONISTAS REMAIN AT DOD

"They say they are ‘puzzled’ as to why Mr. Rumsfeld’s staff would sign off on the recommendation from Adm. Dennis Blair, who heads U.S. Pacific Command, based in Hawaii. Conservatives view Adm. Blair, who retires in May, as soft on China."

Excerpted from Howard Phillips Issues & Strategy Bulletin of April 15, 2002

RED CHINA’S MILITARY THREAT TO TAIWAN GROWS MORE OMINOUS

According to Bill Gertz, "China’s military is deploying more short-range ballistic missiles near the coast opposite Taiwan…. U.S. intelligence agencies tracked a shipment of some 20 CSS-7 short-range missiles to a missile base near the town of Yongan in Fujian province. The missiles were delivered in the past two weeks and were identified by U.S. military intelligence, the officials said.

"The shipment is part of a continuing Chinese missile buildup that has raised questions among senior defense officials about Beijing’s announced commitment to seeking a peaceful resolution of its dispute with Taiwan.

"Deputy Defense Secretary Paul Wolfowitz said in an interview with The Washington Times in August that the buildup of missiles near Taiwan has been steady and is [destabilizing]. Mr. Wolfowitz said the deployments are counter to China’s announced policy of seeking a peaceful resolution of its dispute with Taiwan. ‘I don’t see that building up your missiles is part of a fundamental policy of peaceful resolution,’ he said."

350-400 COMMIE MISSILES AIMED AT TAIWAN

"U.S. intelligence agencies now estimate that China has between 350 and 400 missiles deployed at several bases within firing range of Taiwan."

FLIGHT TIME TO TARGETS IS MINUTES

"The missiles are considered destabilizing because their flight time is so short – they can reach their targets within minutes – and there is no defense."

"WISHFUL THINKING" BY BUSH CONTINUES TO RESTRICT SALE OF ANTI-MISSILE DESTROYERS TO THE FREE CHINESE

"Last year, the Bush administration deferred a decision on whether to sell advanced Arleigh Burke-class guided missile destroyers to Taiwan in the hope that Beijing could be [persuaded] to halt the missile buildup against Taiwan. … Chinese missile deployments opposite Taiwan have been continuing at a rate of at least 50 new missiles per year, defense officials have said. Additionally, the Chinese are believed to be increasing the accuracy of the short-range missile force, the officials said." Source: Washington Times, 4/2/02, p. A3

RED CHINA’S LI KA-SHING PLANS MOVE INTO TAMPA, FLORIDA

"The U.S. Central Command headquarters in Tampa, Fla., may be getting a new neighbor. U.S. officials tell us Hutchison Port Holdings, the Hong Kong-based port conglomerate headed by billionaire Li Kashing, is trying to buy a new container facility in Tampa.

"Mr. Li is viewed by U.S. intelligence as having close ties to China’s communist leaders. And Hutchison is part of the same company, Hutchison Whampoa, that quietly obtained long-term leases on two port facilities at either end of the Panama Canal in … 1997. The ports give China easy access to the canal and any U.S. strategic cargo that passes through – like military supplies needed in the Pacific or Europe."

BEIJING COULD MONITOR U.S. CENTRAL COMMAND

"U.S. security officials are worried that if Hutchison gets access to Tampa, it would provide Chinese intelligence with a close-up viewing and listening post for Central Command headquarters, where the war in Afghanistan is being directed.

"Sen. Trent Lott, Mississippi Republican, set off alarms in 1999 when he wrote the Pentagon warning that U.S. ships could be blocked by the Chinese company from using the waterway. He stated that ‘we have given away the farm without a shot being fired.’

"The U.S. military has been concerned since the 1990s about communist China moving into strategic choke points around the world, using its pseudo-commercial entities as cover. The U.S. Southern Command, in charge of U.S. forces in Latin America, carried out an intelligence study in 1997 focusing on China’s efforts to obtain strategic bases at ocean choke points."

JACKSONVILLE-SAVANNAH-CHARLESTON-TACOMA ALSO THREATENED

"In this hemisphere, the company has port facilities in Panama; Vancouver, Canada; and the Bahamas. Other U.S. locations sought by Hutchison in its bid for a U.S. presence are Jacksonville, Fla.; Savannah, Ga.; Charleston, S.C.; Tacoma, Wash.; and Long Beach, Calif."

BOSTON BOWS TO BEIJING

"The port of Boston agreed in January to allow China Ocean Shipping Co. (COSCO) freighters to call in Boston beginning this month. COSCO was started by the Chinese military and has been used recently to ship military goods to Cuba." Source: Bill Gertz and Rowan Scarborough, The Washington Times, 3/29/02, p. A9

Excerpted from Howard Phillips Issues & Strategy Bulletin of January 15, 2002

RED CHINA SUPPLIED WEAPONS TO TALIBAN

Investor's Business Daily (12/27/01) editorializes that "A senior U.S. officials, according to The Washington Times on Dec. 21, 'said that a week after the terrorist attack, the ruling Taliban and the al-Qaida fighters embedded among them received shipment of Chinese-made SA-7 missiles.'

"Defense Secretary Donald Rumsfeld notes that American soldiers 'seem to have captured a good deal of Chinese ammunition.' American soldiers have found much of it in 'the caves of Tora Bora,' reported the Times...Rumsfeld says some Chinese have even been found fighting alongside the Taliban. ...

"This is the same nation that denied it was selling nuclear technology to Pakistan in the 1990s, even as shipments were being seized. The same nation that denied it was spying on America's nuclear weapons labs. That denied it was giving illegal campaign contributions in the U.S.

"Make no mistake about it: China is a terrorist power, as threatening to America's future as any ragtag collection of terrorists in the Middle East. The war on terrorism should not become a wall behind which evil regimes not directly responsible for Sept. 11 can hide.

"China's pledges of 'cooperation' in this war are as meaningless as Joseph Stalin's conciliatory words at Yalta...A deep anti-Western animus resides in the totalitarian ideology of China, making it a natural ally with anti-American Islamic powers. Radical Islam and Chinese communism are kindred spirits in many respects. ...

"Nevertheless, many members of the Western elite are as indulgent toward China as they once were toward the Soviet Union. Many would like to normalize China's abusive regime, and the war on terrorism has given them a pretext to advance this agenda, as they point to China's faux supporter for America after Sept. 11."

WILL U.S. DOLLARS CONVERT CHINESE COMMUNISTS TO COMPASSIONATE CONSERVATISM?

"Just as President George W. Bush gave final approval for granting permanent normal trade status to communist China, Harry Wu, perhaps the world's leading human rights dissident, strongly criticized the United States for what he considers inconsistent Western policies in dealing with dictatorships."

BUSH AND CLINTON FAVOR SUBSIDIES FOR RED CHINA, NOT SANCTIONS

"'What is America's China policy? The Americans and Europeans have an interesting idea---the idea that money can free the people oppressed by a totalitarian regime. The idea goes like this: "If we invest in the Chinese communist dictatorship, then soon they will be a thriving capitalist society and a democracy,"' Wu told WorldNetDaily in an exclusive interview."

U.S. SANCTIONS TOPPLED ANTI-COMMUNIST REGIME IN RSA

"'We also had sanctions against apartheid South Africa -- a pro-Western, anti-communist ally --because of human-rights problems. Before he left office, former President Clinton applied sanctions against the Burmese fascist dictatorship. If money can indeed change totalitarian societies, then we should re-examine our policies towards Cuba and Iraq.'"

SUBSIDIZING "SENSITIVITY TRAINING" FOR TYRANTS

"Speaking specifically about the European Union's announcement that it was creating a 'fund' to assist with human-rights issues inside China, Wu said, 'I don't think much of this action by the EU. The fund plans to train wardens and judges who serve the Chinese dictatorship. During World War II, did we train wardens and prison guards where the Nazis kept Jewish prisoners? No, the West never did this. During the Cold War, did we train Soviet wardens who ran the gulags? So then why train wardens running the logai prison system?"

BUSINESS WITH CHINA PROMOTES COMMUNISM, NOT CAPITALISM

"Wu -- who spent 20 years in a Chinese slave-labor camp -- is not convinced that the West's business relations with China are leading the communist regime towards the path of democratic capitalism.

"'When I talk to Western businessmen about their dealings with China, I raise what I feel are several important issues. First, business is not a charity. I tell Western businessmen, 'You are making money dealing with China.' From my view, Western business offers a blood transfusion of money to the Chinese government," Wu said."

AMERICAN CONSUMERS SUBSIDIZE FUTURE COMMUNIST ASSAULT ON U.S. MILITARY

"'[R]ecently, Russia received an order from the Communist dictatorship in China to buy two destroyers, destroyers that were designed by the Soviet Union to attack and defeat the U.S. Pacific fleet. Now let me get this straight. You have two communist dictatorships -- one was the Soviet Union and now, communist China. Today, Russia's government has no money. The other, China, has lots of money. Russia has no money because of her socialist economic system. China has lots of money to buy weapons because of her trade with Western businessmen. This is crazy.' ...

"'The Chinese military is using our money to buy weapons -- submarines, ICBMs and fighter jets. Imagine what the PLA will have ten years from now. Chinese spies are all around America, especially Washington, D.C. The PLA has stolen all kinds of equipment from America, including night-vision scopes. The FBI and CIA know this. It is an open secret.'"

U.S. AID TO CHINA AIDS POLITBURO NOT THE PEOPLE

"'The majority of money from trade and investment with the West is not going to better the lives of ordinary Chinese citizens. Rather, the majority of the money is going to the Chinese government in order to upgrade their military,' Wu said."

BEIJING IS A WORLDWIDE GEOSTRATEGIC THREAT BECAUSE OF $360 BILLION BOOST FROM THE WEST

"'China is the financier of most of America's enemies, including North Korea, Iraq, Libya and Iran. China is also building a new naval base in Burma and has expanded her reach into South Africa, the Panama Canal, close to the Suez Canal in Sudan and also into the Bahamas.'...

"'The West has invested $360 billion in China in recent times. This money has been used buy the communist dictatorship in Beijing to buy off dissidents and fund terrorists around the world. The Chinese problem for the West is no different than the problem with the Soviet Union. People ask me, "Why didn't people in America speak out about our business dealings with communist China?" I must answer, "Former President Clinton wanted to find financial resources for his re-election from the Chinese dictatorship."'

CHINESE REDS ARE NOT FIGHTING TERRORISM

"According to Wu, there can be no doubt that America's embrace of the communist dictatorship in Beijing as an 'ally in the war against terrorism' is a mistake that will haunt the West for generations to come....'China claims that her cracking down on Islamic separatists in the western regions is part of the West's war on terrorism. This is simply not true. I think it's clear that those seeking autonomy in western China are just like the Tibetans,' Wu said."

NAZI EXPERIMENTATION ON HUMANS —— WAS IT WORSE THAN CHINA'S?

"Wu explained that he testified before Congress about China's horrendous record for forced organ harvesting and about china's 'one-child' policy...'There is one sure way to combat China's organ harvesting. Stop the Chinese doctors who want to tend to the organ recipients from coming to America. Stop issuing them visas. Put them in jail. They are like Nazi doctors,' Wu said."

BOYCOTT "MADE IN CHINA"

"Concerning America's gargantuan importation of Chinese-made products, including toys, Wu said that the 'Chinese dissident community wanted to organize a boycott of Chinese-made goods for Christmas 2001, but we just ran out of time.'

"'It is impossible to avoid all Chinese-made items,' Wu said. 'But toys are different. Christmas gifts are given to express love. But think: Was this toy made by forced labor in a Chinese slave labor factory? If so, then this toy is a product of blood and tears. I would ask Americans to stop buying Chinese toys in order to show love to the Chinese people suffering in forced labor camps and factories.'" (Source: Anthony C. Lobaido in WorldNetDaily.com, 12/28/01)

Excerpted from Howard Phillips Issues & Strategy Bulletin of December31, 2001

RED CHINA’S TOP LOBBYIST FOR HUTCHISON WHAMPOA NAMED BY BUSH TO BE DEPUTY DIRECTOR FOR THE OFFICE OF MANAGEMENT AND BUDGET

According to The Wall Street Journal (p. 1, 11/30/01) "Cheney hand Nancy Dorn is expected to get the No. 2 job at the White House Office of Management and Budget. With budget director Daniels at odds with Congress’ GOP leaders, Dorn offers good Capitol ties: The Cheney staffer once worked for House Speaker Hastert. Former budget deputy Sean O’Keefe also was a Cheney ally."

As reported in HPISB #664, February 28, 2001, "Mrs. Dorn, whose husband was on the staff of Bob Dole, was previously hired to be national security adviser to GOP House Speaker Dennis Hastert, despite the fact that she had served as a registered foreign agent for the Chinese-controlled company, Hutchison Whampoa."

BUSH OFFERS BEIJING THE OPPORTUNITY TO FIELD A NEW GENERATION OF MOBILE, MULTIPLE WARHEAD MISSILES

According to Mike Allen (Washington Post, 9/2/01, p. 1), "The United States plans to offer China an advance look at plans for testing President Bush’s proposed missile defense shield, part of an emerging effort to soften Beijing’s opposition to the plan, Bush administration officials said yesterday.

"National security adviser Condoleezza Rice said the United States will begin intensive talks over the next several weeks to try to convince China it would not be threatened by the shield and should not accelerate a buildup of nuclear missiles pointed at the United States. …

"Another administration official said that as a sweetener for China, the United States will signal that it recognizes both sides might want to resume nuclear weapons testing in the future. Such tests, now precluded by a voluntary worldwide moratorium, could allow China to field a new generation of mobile, multiple-warhead missiles. …

"A missile defense shield, a system that would allow the United States to intercept enemy missiles, is one of Bush’s most earnestly sought goals. … The administration maintains that the shield is designed not to defend against world powers such as China, but to offer protection against terrorists and rogue states such as Iraq, Iran and North Korea. …"

WILL CHINA HAVE 240 MISSILES AIMED AT U.S. - OR 2400?

"China has about two dozen missiles pointed at the United States, and scholars expect that number to increase tenfold over the next decade. Rice said that because of the ongoing buildup, opponents of a missile defense shield should not argue that it ‘is somehow going to drive an arms race.’ …

"Conservatives warned the administration against giving too much ground for the sake of the missile shield. Kenneth Adelman, who was President Ronald Reagan’s arms control director, said he disagreed with the notion that ‘if you act very sweetly toward the Chinese, the Chinese will reciprocate.’

" ‘My experience over many years of negotiating with the Chinese is that they take what you give and give almost nothing in return,’ Adelman said."

BUSH MAY LIFT BAN ON MILITARY TRANSFERS TO RED CHINA

Steven Mufson and Philip Pan write (Washington Post, 10/17/01, p. 1) that "The Bush administration, seeking to promote exchanges of anti-terrorist intelligence with China, is considering a waiver on sanctions that bar the sale of military-related equipment to Chinese security forces, government sources said yesterday.

"The U.S. move on the sanctions, which were imposed after the 1989 crackdown on Tiananmen Square demonstrators, would clear the way for the sale of spare parts of Black Hawk helicopters the United States sold to China during the 1980s. The helicopters are designed for use at high altitudes typical of much of China, including its border with Afghanistan."

BUSH AGREES WITH CLINTON: PRC NOW HIS STRATEGIC "PARTNER"

"The waiver would signal a further thaw in U.S.-China relations on the eve of President Bush’s departure today for Shanghai for a meeting of the Asia Pacific Economic Cooperation group. …

"Having come into office calling China a ‘strategic competitor,’ Bush now is focusing on Beijing as a potential partner in the war against terrorism. …"

BUSH EMBRACES "ONE CHINA"

"When Bush and Jiang meet on the sidelines of the APEC summit, the highlights are expected to include a reiteration by Bush of U.S. support for a ‘one China’ policy, which holds there is only one China and the self-governing island Taiwan is part of it. It also is expected to include a joint statement on terrorism and Chinese agreement to a U.S. request to open an FBI office in Beijing.

"The U.S. focus on terrorism will probably prevent criticism of China’s tough stance toward Uighur separatists in the largely Muslim region of Xinjiang. …

"China has denied it violated that nonproliferation agreement [reached by the Clinton administration in November] and has asked that the Bush administration lift sanctions it imposed on China Metallurgical Equipment Corp. … Sources close to the administration said the administration had urged Beijing to nationalize the company, which is a private firm with close connections to the government."

PRC’S PROMISES BROKEN WITHOUT CONSEQUENCES

" ‘Since the sanctions were imposed, there has been no real response,’ said a senior administration official. ‘They are clearly not abiding by their November 2000 agreement with the Clinton administration.’

"Administration officials are also frustrated that China has failed to fulfill a promise made in November to publish a list of missile components barred from export and establish a system for enforcing it. China might issue that list during Bush’s visit, U.S. officials said. …"

BUSH HAILS JIANG AS "GREAT LEADER"

"[S]ince the attacks on New York and Washington, the two men [Bush and Jiang] have communicated by telephone twice and, according to Chinese sources, Bush described Jiang as ‘a great leader of a great nation’ in one conversation."

COLIN POWELL SAYS RED CHINA TARGETS OUR CITIES, NOT OUR DEFENSE FORCES

"Washington: US Secretary of State Colin Powell, fresh from his talks with Chinese leaders, has said China will continue to keep American cities within striking distance of its missiles and modernise its nuclear weapons. …"

BEIJING’S STRATEGY DIFFERS FROM THAT OF MOSCOW

" ‘The Chinese have always kept a relatively small amount of intercontinental ballistic missiles and they have never viewed them the same way as [the] Soviet Union did during the Cold War when we were constantly building up,’ Powell told reporters aboard plane en route home from Shanghai.

" ‘If we put them (missiles) in SSBNS (nuclear submarines), they would put them in SSBNS. If we had a triad (missiles in the air, on land and at sea), they had a triad,’ Powell said about the Cold War with erstwhile Soviet Union.

" ‘The Chinese were never part of that competition in the same way. They built a few first strike intercontinental ballistic missiles. They were not designed to go after somebody else’s nuclear forces. They were designed to go after something of enormous value - San Francisco, Los Angeles, Seattle - and as long as they could do that, their nuclear forces were serving their purpose,’ he said.

" ‘It is expected that over time one would modernise such a force. Can’t keep an old force around forever. The Chinese have been working to modernise that force, which tends to make it way more stable and safe,’ he added." Source: www.timesofindia.com, 10/24/01

Excerpted from Howard Phillips Issues & Strategy Bulletin of November 30, 2001

RED CHINA TRAINS FOR INVASION OF TAIWAN AND ATTACK ON U.S. NAVY

James Hackett writes (Washington Times, 8/28/01, p. A13) that "China’s President Jiang Zemin may have launched a charm offensive, but the generals of the People’s Liberation Army, in press releases and leaks over the past several months, have described how their forces are training to attack an aircraft carrier. And they leave no doubt the carrier they have in mind is American."

100,000-MAN INVASION ARMY

"The PLA spent all summer conducting a huge military exercise. Their invasion army of more than 100,000 men, with extensive sea and air support, has been practicing amphibious landings on Dongshan Island, off the Chinese coast opposite Taiwan.

"PLA officers have been candid about the purpose. Their main goal is to train for an invasion of the Pescadores, Taiwanese islands about 100 miles from the mainland, as a warm-up for the invasion of Taiwan itself. A secondary goal, according to the PLA, is to practice attacking foreign aircraft carriers that might come to Taiwan’s aid."

BEIJING’S THREE-PHASE ATTACK STRATEGY READY FOR IMPLEMENTATION

"In a July report in a Shanghai paper, the PLA exercise is described as having three phases:

• Phase one is information warfare, including electronic attacks on the enemy’s telecommunications and command-and-control systems. • Phase two is a series of coordinated strikes on airports and seaports, followed by amphibious and airborne assaults. • Phase three is an attack on foreign warships that might try to intervene.

"This exercise involved the combined use of the PLA’s modern destroyers, SU-27 and SU-30 jet fighters, sea-based anti-ship missiles, nuclear submarines, and land-based missiles. Several articles cited the PLA as listing ways to ‘inflict heavy losses on aircraft carriers.’ First is to attack their aircraft warning (AWACs) planes with anti-radiation missiles, and then strike the carriers with anti-ship missiles launched by China’s modern Russian jets. Saturation strikes by supersonic anti-ship missiles, the articles claim, could inflict heavy damage or even sink a carrier.

"The plan is to conduct simultaneous attacks on a carrier task force by aircraft, surface ships, submarines approaching from different directions, and according to the Chinese press, even ballistic and cruise missiles launched from the mainland and guided by surveillance satellites. Also, mines would be laid to block foreign warships from the Taiwan Strait.

"An article in a Beijing paper described in detail the capabilities of U.S. aircraft carriers, noting their powerful ability to attack land and sea targets with more than 50 modern aircraft. But the article then says it is very difficult to defend a carrier against the new supersonic anti-ship missiles that can change course in flight. A coordinated assault by a number of high-speed anti-ship missiles coming at the same time from the air, the land and surface ships, together with missiles and torpedoes from several submarines, could prove deadly for a carrier task force, the article claimed.

"Recent press reports on the four-month long Dongshan Island exercise said China’s two Russian-built Sovremenny-class destroyers, which the Chinese call ‘aircraft carrier killers,’ had fired two Sunburn anti-ship missiles in the exercise. In phase three, the Chinese forces supposedly were ‘strongly resisting U.S. intervention.’ …

"Whether bluff or not, the PLA’s aggressiveness is dangerous, as the forcing down of the Navy EP-3 plane showed. The PLA is the power behind China’s civilian government. The generals keep the civilian leaders in power, and the civilians keep the generals happy. Beijing has increased military spending more than 10 percent each of the past 13 years, and 17 percent this year. But what the generals seem to want most is a free hand to blockade Taiwan and invade its offshore islands.

"Today, China is ruled by more cautious civilians, who know it makes no sense to risk their huge economic gains by attacking Taiwan and the U.S. Navy. It also made no sense for Japan to attack Pearl Harbor in 1941, but the Japanese military did so anyway."

RED CHINA REPLACES RUSSIA AS CUBA’S BEST FRIEND

The China Reform Monitor reports (9/5/01, No. 406), that "The Deputy Chief of the Chinese Army’s political Department, Colonel General Yuan Shoufang, completes a four-day visit to Cuba that the Cuban state-run media calls as ‘fraternal and fruitful,’ reports Agence France-Presse. Yang’s delegation comes one month after another Chinese military delegation, led by Lt. General Qiao Qingchen, toured Cuban military installations. Gen. Qiao described that visit as ‘continuing systematic exchanges’ between the two communist nations’ armed forces.

"The two countries’ militaries are operating under an accord signed by Chinese Army commander Gen. Fu Quanyou and Cuban Deputy Defense Minister General Alvaro Lopez Miera. ‘We mutually support and help each other,’ Gen. Fu said in a television interview, ‘because we have the same objective which is the construction of socialism.’ The Cuban army is considered the largest in Latin America, with most of its out-dated Soviet-era technology currently being updated through Chinese assistance."

Excerpted from Howard Phillips Issues & Strategy Bulletin of October 31, 2001

RED CHINA AND OSAMA BIN LADEN ARE COLLABORATORS

Peter Finn writes from Milan (Washington Post, 10/20/01, p. A17) that "Chinese nationals visited Osama bin Laden terrorist camps in Afghanistan after a U.S. cruise missile attack there in 1998 and paid for the right to study and remove unexploded missiles, according to a conversation between two alleged veterans of the camps that was secretly taped by Italian police.

" ‘From every part of the world, businessmen who hate Americans have come to study the strategy of American missiles,’ said Lased Ben Heni, 31, a Libyan who was arrested in Munich this month on an Italian warrant. ‘In particular, businessmen have come from China. [Bin Laden] works a great deal with China. He’s got good relations with them.’ …

"Aerospace technology has been a major point of friction between China and the United States. In 1999, a congressional committee accused China of stealing U.S. technology related to jet fighter guidance systems and missile technology. The United States has also pressed China to limit its missile exports. …

" ‘He bargained with the Chinese and sold [missiles] to them for an enormous sum – I think 10 million dollars – but only after the sheik [bin Laden is often called "the sheik"] had studied them,’ Heni said."

GWB EMBRACES BILL CLINTON’S "STRATEGIC PARTNERSHIP" WITH RED CHINA

David E. Sanger writes from Travis Air Force Base in California (New York Times, 10/18/01, p. B3) that "President Bush, who came into office just months ago talking of China as a ‘strategic competitor,’ departed for Shanghai today on a trip expected to complete a significant shift in his policy toward Beijing as he seeks to build, maintain and expand a global coalition against terrorism. …"

DOES ANTI-TERRORISM REQUIRE PRO-COMMUNISM?

"The events of the last five weeks have made it critical for Mr. Bush to develop ties with China that more closely resemble the ‘strategic partnership’ envisaged by President Clinton and once openly disdained by President Bush [says The New York Times "reporter"].

"All talk of strategic competition has been omitted from Mr. Bush’s comments, officials say, and his aides have quietly sanded away all the hard edges from the message he will deliver to his Chinese hosts in his visit, starting on Thursday.

" ‘You won’t hear much about dissidents, or Taiwan, or the dust-up with the spy plane,’ one close adviser to Mr. Bush said this week, referring to the incident last spring when a Chinese fighter hit an EP-3 surveillance plane, forcing it to land. …"

CLINTONITES APPROVE OF BUSH’S ACQUIESCENCE

"James Steinberg, the deputy national security adviser under Mr. Clinton, said, ‘You’ll never hear the words strategic competitor again.’ "

"CONSERVATIVE REPUBLICANS" ARE SILENT

"While conservative Republicans called for a far tougher stance against China and a shift favoring Taiwan earlier this year, they have been silent in the weeks leading up to the Asian trip, mainly, some say, because their focus is elsewhere. …"

"HUMAN RIGHTS" SET ASIDE

"The Chinese want to redefine terrorism to provide a further justification for their crackdown on Muslim Uighur separatists and Tibetan independence supporters – people who might have been known in Mr. Bush’s Washington, until a few weeks ago, as dissidents."

Excerpted from Howard Phillips Issues & Strategy Bulletin of July 31, 2001

RED CHINA’S HUTCHISON WHAMPOA HAS A GLOBAL STRATEGY FOR SEA LANE CONTROL

Phil Brennan writes (NewsMax.com, 6/13/01) that "A huge, multibillion-dollar company closely tied to the Chinese army has set up operations in ports all around the world.

"From Panama to the Philippines, an arm of Hutchison-Whampoa, Hutchison Port Holding (HPH), has become the world’s largest seaport operator, embedding itself in strategic seaports all across the globe.

"Hutchison holds the exclusive contract to operate the Panama Canal. An animated map on the Hutchison-Whampoa Web site shows the extent of the encircling movement with seaport operations in Africa (Tanzania International Terminal Services Ltd.) in the Western Hemisphere with seaport services in [Buenos] Aires, Argentina; Freeport, the Bahamas; Veracruz, Mexico; and at both ends of the Panama Canal."

BEIJING HAS A PRESENCE AT 136 PORTS

"HPH’s latest acquisition, announced last month, involved eight Philippine ports. New ports in Mexico, Argentina, Saudi Arabia, Pakistan, Tanzania and Thailand make [Hutchison]-Whampoa the world’s largest private port operator with 23 cargo berths, bringing its worldwide total of ports to a staggering 136.

"Other ports include Jakarta, Indonesia; Karachi, Pakistan; India (where the company runs the cellular phone services); Burma; China; and Malaysia. There are port operations in Britain at Harwich, Felixstowe (Britain’s largest port), and Thamesport, and in the Netherlands at Rotterdam. The last acquisition has caused alarm at the European Commission.

"According to the latest reports, the company is interested in locating at South Korea’s largest port, Pusan, and has finalized an agreement to operate out of Kwangyang, another South Korean port."

"LOGISTICAL SERVICES FOR THE GLOBAL SUPPLY CHAIN"

"The company boasts of its worldwide scope on its Web site: ‘The World of Hutchison Port Holdings covers a broad spectrum of port operations and related service companies spanning the entire globe. With operations and services ranging from container ports, mid-stream operations and river trade to cruise terminals, warehousing, haulage and e-commerce companies, HPH has become a key provider of comprehensive logistics services for the global supply chain.’ ..."

PEOPLE’S LIBERATION ARMY (PLA) IS MILITARY HAND IN COMMERCIAL GLOVE

"According to a 1999 investigative report by the American Foreign Policy Council, ‘Hutchison Whampoa, through its Hutchison International Terminals [HIT] subsidiary or Panama Ports Company, has substantial links to the Chinese communist government and the People’s Liberation Army.

" ‘The Panama Ports Company is 10 percent owned by China Resource Enterprise [CRE], which is the commercial arm of China’s Ministry of Trade and Economic Co-operation. In its investigation into China’s attempts to influence the 1996 U.S. presidential campaign, the U.S. Senate Government Affairs Committee identified CRE as a conduit for "espionage – economic, political and military – for China." Committee Chairman Senator Fred Thompson said that CRE has "geopolitical purposes. Kind of like a smiling tiger; it might look friendly, but it’s very dangerous." ’ "

LI KA-SHING IS THE LINK – – –

Sen. Trent Lott has described the Hong Kong firm as ‘an arm of the People’s Liberation Army.’ The company is headed by a Li Ka-Shing, the chairman of Hutchison Whampoa Ltd. Intelligence sources say he has deep connections with the Chinese Communist government.

" ‘Li has invested more than a billion dollars in China and owns most of the dock space in Hong Kong. In an exclusive deal with the People’s Republic of China’s communist government, Li has the right of first refusal over all PRC ports south of the Yangtze river, which involves a close working relationship with the Chinese military and businesses controlled by the People’s Liberation Army,’ the AFP report stated."

– – –AND THE FRONT MAN

" ‘Li has served as a middle man for PLA business dealings with the West. For example, Li financed several satellite deals between the U.S. Hughes Corporation and China Hong Kong Satellite [CHINASAT], a company owned by the People’s Liberation Army. In 1997 Li Ka-Shing and the Chinese Navy nearly obtained four huge roll-on/roll-off container ships, which can be used for transporting military cargo, in a deal that would have been financed by U.S. taxpayers.’

"According to the Thompson Committee, Hutchison Whampoa’s subsidiary, HIT, has ‘business ventures with the China Ocean Shipping Company (COSCO) which is owned by the People’s Liberation Army.’ "

H-W’S "HIT" TIED TO "COSCO"

"COSCO, which failed in a notorious Clinton-backed attempt to lease the former U.S. Naval base in Long Beach, Calif., has been criticized for shipping Chinese missiles, missile components, jet fighters and other weapons technologies to nations such as Libya, Iraq, Iran and Pakistan, the AFP report revealed."

"CITIC" IS THE BANK FOR THE "PLA"

" ‘In 1996, the U.S. Customs Service seized a shipment of 2,000 automatic weapons aboard a COSCO ship at the port of Oakland, California. The man identified as the arms dealer, Wang Jun, is the head of China’s Polytechnologies Company, the international outlet for Chinese weapons sales. Jun also sits on the Board of CITIC, China International Trust and Investment Corporation, the chief investment arm of the Chinese central government. It is also the bank of the People’s Liberation Army, providing financing for Chinese Army weapons sales and for the purchase of Western technology.’

"Li is also a board member of CITIC. U.S. intelligence sources have described the company as a front for China’s governmental State Council."

CONTAINER PORTS IN PANAMA AND THE BAHAMAS CAN BE USED FOR TRANSFER OF ARMS AND TECHNOLOGY

"Rep. Dana Rohrabacher, R-Calif., has stated that CITIC has been used as a front company by China’s military to acquire technology for weapons development. ...

"The military intelligence report also warns that ‘Hutchison containerized shipping facilities in the Panama Canal, as well as the Bahamas, could provide a conduit for illegal shipments of technology or prohibited items from the West to the PRC, or facilitate the movement of arms and other prohibited items into the Americas.’ "

CHINA ENVISIONS "ELECTRONIC PEARL HARBOR" TO CRIPPLE U.S. COMMAND AND CONTROL

Al Santoli writes (China Reform Monitor, 5/29/01) that "A Chinese military ‘White Paper’ calls for the domination of East Asian, South Asian and Indian Ocean rim countries through an ‘electronic Pearl Harbor blitzkrieg,’ through use of advanced cyber warfare and electromagnetic interference technologies to cripple American military equipment and decision making process, the New Delhi Hindustan Times reports. The paper also advocates psychological warfare, use of media and undermining the economies of rival nations – principally Taiwan, Japan, Korea, Indonesia, and India.

"Another feature of the November 2000 white paper is China’s shifting away from land-based forces along the Russia [border] in favor of PLA Navy [PLAN] and PLA Air Force [PLAF] units, stationed mainly in south China. The PLA navy share of the 2001-2002 defense budget was increased to 35 percent, the air force to 29 percent and the army was sharply reduced to 29 percent of the total defense appropriation. …

"Stratfor.com reports that China is aggressively pursuing an expanded political and economic strategy in Southeast Asia and the South [P]acific, to prepare for a potential confrontation with the United States. The Sydney Morning Herald [reports] that China has opened dialogue with separatists from Indonesia’s province of Irian Jaya, with a high-level delegation of separatist leaders invited to Beijing in June. Indonesia’s central location between the Indian Ocean, the South China Sea and the Pacific Ocean makes it a strategic choke point for maritime trade and naval forces."

CONTROL OF SEA-LANES ALSO SOUGHT

"In the South Pacific, Stratfor continues, China is expanding or developing contact with Papua New Guinea, Vanatu, Kiribati, Tonga, and the Solomon Islands. Beijing has built a new Foreign Ministry building for the government of Papua New Guinea and has begun military contacts. Beijing has also developed [a] military relationship with Tonga and has built a satellite-and missile-tracking facility on Kiribati, located within 500 miles of the main US strategic missile defense test center at Kwajelein. These islands are situated among key shipping routes. The Chinese have aggressively developed shore-based anti-ship missile systems, which could eventually be deployed throughout the South Pacific Southeast Asia."

RED CHINA IS READY TO SACRIFICE MILLIONS OF PEOPLE AND ENTIRE CITIES TO ACHIEVE POLITICAL GOALS

Terence P. Jeffrey writes (Human Events, 6/11/01, p. 6) that "If some punk in a high school cafeteria were to threaten to commit mass murder, it is right and certain, in this post-Columbine era, that the threat would rivet the attention of the proper authorities. But when a mass murder threat was issued against Americans by a Chinese military officer, it was not at all clear that our government responded properly.

"The intended victims of the Chinese threat? The population of greater Los Angeles – about 16 million souls. In December 1995, President Clinton sent a U.S. aircraft carrier through Taiwan Strait. The deployment was intended to send a message: The United States still had the will and the might to defend Taiwan.

"About that time, an American named Charles W. Freeman was visiting Beijing. Freeman, a retired foreign service officer, was no rookie in world affairs. In 1972, he served as chief interpreter for President Nixon when Nixon visited China. Under the first President Bush, he served as ambassador to Saudi Arabia and, before that, as U.S. deputy chief of mission in Beijing. He was a man who knew China and knew diplomacy.

"And the Chinese had a return message for him to give Clinton, although they did not put it diplomatically. ‘In recent months,’ the New York Times reported on Jan. 24, 1996, ‘Mr. Freeman said he has relayed a number of warnings to United States government officials. "I have quoted senior Chinese who told me" that China "would sacrifice ‘millions of men’ and ‘entire cities’ to assure the unity of China and who opined that the United States would not make comparable sacrifices." ’ "

NUCLEAR BLACKMAIL IS A COMPONENT OF BEIJING’S STRATEGY

" ‘He also asserted,’ the Times said, ‘that "some in Beijing may be prepared to engage in nuclear blackmail against the U.S. to ensure that Americans do not obstruct" efforts by the People’s Liberation Army "to defend the principles of Chinese sovereignty over Taiwan and Chinese national unity." ’

"Three days later the Los Angeles Times followed up on the story. ‘Freeman was also told … Americans would not be willing to sacrifice Los Angeles on Taiwan’s behalf.’ …

"[T]he man who threatened to ‘rain nuclear bombs on Los Angeles’ was the head of Chinese military intelligence, the second-ranking officer in the People’s Liberation Army (PLA)."

GEN. XIONG GUANG KAI ISSUED THE THREAT

"On May 13, 1999, David J. Smith, who served as ambassador for missile defense-related negotiations in the first Bush Administration, testified in the Senate Foreign Relations Committee. Smith told the committee that the graphic threat to L.A. had been made by Gen. Xiong Guang Kai. Xiong, as Smith wrote later in Jane’s Intelligence Review, is ‘PLA deputy chief of staff and long-time PLA intelligence head.’ "

BUSH INVITES RED CHINA TO OBSERVE U.S. MILITARY EXERCISES

Bill Gertz writes (Washington Times, 6/15/01, p. A3) that "Chinese military forces are participating as observers in a U.S. mine-sweeping exercise near Singapore in their first joint military activity since China’s detention of 24 American service members in April.

"Chinese military observers were invited to what the U.S. Pacific Command is calling the Western Pacific Mine Countermeasures Exercise, which began Monday in waters near Singapore. ...

"The mine-sweeping exercises, sponsored by the Singapore government, are the first practiced jointly by U.S. and Singapore navies, with 14 other nations participating. ..."

BEIJING GAINS VALUABLE KNOWLEDGE TO PENETRATE TAIWAN’S PORT DEFENSE

"Some Pentagon officials are concerned that the exercises will provide China’s military with valuable intelligence on how the United States clears the sea of mines.

"That information would be useful in the event of a conflict between the United States and China over Taiwan, where defeating mine defenses would be a key objective of Chinese military forces.

" ‘Taiwan’s defense depends on laying mines,’ said one official. ‘What the Chinese could learn from these exercises is how better to "liberate" Taiwan.’ ..."

TAIWAN EXCLUDED FROM PARTICIPATION

"A Pacific Command spokesman had no immediate comment on whether Taiwan’s navy was invited to take part in the mine-sweeping exercises.

"However, Taiwan’s military has been deliberately excluded in the past from multilateral exercises based on a U.S. policy aimed at avoiding any activities that would upset Pentagon efforts to develop ties with the Chinese military. ...

"In contrast, the U.S. military has never been invited to take part in any Chinese military exercises, although observers have attended staged military demonstrations."

RED CHINA IS GAINING ON U.S. MILITARILY

Charles R. Smith reports (NewsMax.com, 6/20/01) that "According to a newly released Rand Corp. report, China’s military is narrowing its technology gap with the U.S. armed forces using U.S. commercial technology. Beijing is developing advanced systems and its military capabilities may approach or equal the United States in some areas, the study says.

"The Rand study, ‘The Military Potential of China’s Commercial Technology,’ states: ‘Potential theaters of conflict between China and the United States in the future may constrain the forces and capabilities the United States is able to employ. The U.S. military, including the U.S. Air Force, must prepare for the possibility of conflict under such conditions with a Chinese military that by 2020 will be significantly more advanced than it is at present.’

" ‘Although export restrictions may limit access to some items, China is nonetheless able to take ... advantage of various new technologies that are commercially available. They can’t compete with the U.S. military across the board, but if they can pick niche areas, they can make life more difficult for us.’ ..."

ACCESS TO "DUAL USE" TECHNOLOGY MAY YIELD A HIGH-TECH PEARL HARBOR

"According to Al Santoli, national security adviser to Rep. Dana Rohrabacher, R-Calif., ‘the Rand report underscores the "great leap forward" of China’s high-tech military modernization, that now rivals U.S. capabilities.’

" ‘It also shows the serious undermining of U.S. national security due to relaxed restrictions on export of dual-use technologies. The Chinese threat of a "high-tech Pearl harbor" is well within their reach,’ stated Santoli. ...

" ‘There is a report out on PRC research into Quantum computers. Some recent U.S. research notes that light-based Quantum computers could be a billion times faster than current supercomputers. Could the PRC make real breakthroughs in this area that would facilitate innumerable other breakthroughs?’ asked the source, who requested not to be identified.

" ‘A more recent example is the speed with which the PRC absorbed micro-satellite tech from the British. Less than two years from the signing of the co-development contract to the launching of the Tsinghua-1 microsat. That’s scary,’ noted the source. ...

"According to Jack Spencer, a defense analyst and fellow at the Heritage Foundation, the Chinese military is preparing itself for a future war with America.

" ‘Of course China is narrowing the technological gap. They are in the midst of a major military buildup that is driven by the belief that the United States will be its primary future competitor,’ stated Spencer."

U.S. TECHNOLOGY MIRED IN THE 1970’S

" ‘The United States continues to rely largely on 1970’s technology. Even America’s most modern fighter/bomber, the F-117, was first deployed nearly 20 years ago. What’s more, the United States relies solely on the aircraft carrier for power projection (unless you count the 21 B-2’s). And is completely dependent on its unprotected space-based assets and growing information networks."

WHO WILL CONTROL SPACE?

" ‘This allows China to put its modernization thrust behind the few technologies that they think will undermine America’s homogenous power projection and undefended space-based information networks,’ noted Spencer.

" ‘So if they can come up with a way to stop the carrier and/or blind a satellite, they have effectively stopped the American military, at least as it stands today. And that is why they are investing heavily in laser technology and advanced cruise missiles. ...

" ‘While the carrier will remain the backbone of U.S. power projection, its effectiveness could be greatly enhanced if combined with long-range precision strike capabilities. This may come in the form of more B-2’s or the arsenal ship or something else. More than likely, it will be some combination of new technologies and platforms.’ "

DEFENSE OF U.S. SPACE ASSETS ESSENTIAL TO POWER PROJECTION

"Spencer also warned of a newly developing scenario, in which a Chinese attack on a U.S. satellite could trigger a conflict between the two nations. Chinese intelligence officials threatened to shoot down a U.S. satellite in January, stating that the U.S. reconnaissance spacecraft were a threat to Chinese sovereignty.

" ‘The United States must acknowledge that its space assets will eventually be targeted by hostile powers and that it must develop a modern space national security policy now that combines defense of space assets with the ability to rapidly replace assets that have been compromised,’ warned Spencer."

RED CHINA’S THREAT TO TAIWAN GROWS MORE OMINOUS

Georgie Anne Geyer writes from Taipei (Washington Times, 6/15/01, p. A19) concerning the U.S. $4 billion arms sale to Taiwan that the "real threat here is no longer the direct amphibious attack of the past. Today, the real threat is one of gradual neutralization of this thriving, democratically governed island of 23 million, which would be accomplished through the sophisticated destruction of the island’s radar, command posts, airports, ports, fuel depots and power plants. Beijing would try to destroy the Taiwanese people’s will to resist, all the while building on policies designed to keep the United States from aiding the island, and then call for negotiations, which it would command.

" ‘If you look at China’s overall policy toward Taiwan, you see advanced weapons of all kinds,’ Dr. Joseph Wu, military analyst at Chengchi University here, told me. ‘They have presently deployed 300 short-range missiles on the coast facing toward Taiwan, and they are adding 50 every year. With 300 missiles, they might not destroy Taiwan – missiles dig huge craters in the ground about 60 feet wide – but our leaders are worried that by 2005-2006, the tilt will be toward China’s side.

" ‘Today, China’s thinkers have a common theme and scenario: Blockade the island and, with the missiles, take out the communications and military lines, paralyze the ports and airfields (we only have two international airports), all of which they could overtake quickly. They are now playing with asymmetric warfare – information warfare, cyber warfare. This is the "new security concept." ’ "

IS BEIJING STRANGLING TAIWAN’S ECONOMY?

"Due to the transfer of manufacturing facilities and international competition from China, unemployment in Taiwan has jumped to around 8 percent, reports China Online News. In a continuing trend, some 4,900 Taiwan plants shut down their operations last year. It is estimated that more than 140,000 Taiwanese have lost their jobs due to the movement of Taiwanese production lines to China. When China and Taiwan enter the World Trade Organization, Taiwan is expected to lose an additional 150,000 jobs. ‘Rather than any military threat from China,’ China Online concludes, economic competition with China is the greatest challenge Taiwan faces in the years to come.’ " Source: China Reform Monitor, 6/20/01

CHINESE REDS BUY U.S. TECHNOLOGY FOR USE IN MISSILES AND SATELLITES

Bill Gertz writes (Washington Times, 5/24/01, p. 1) that "Federal authorities have uncovered a major Chinese technology transfer program that illegally purchased thousands of U.S. radiation-protected computer chips for use in Chinese missiles and satellites.

"The military-related technology-buying program was revealed in court papers released in Orlando, Fla., earlier this month after a raid on a Chinese company involved in selling ‘radiation-hardened’ integrated circuits to Chinese government missile and satellite manufacturers, including several that were sanctioned in the past by the U.S. government for their missile sales.

"The company, Means Come Enterprises, Inc., is under investigation for ‘illegally exporting radiation-hardened integrated circuits to [the People’s Republic of China] without the required [Commerce Department] export licenses,’ according to documents obtained by The Washington Times.

"Three illegal diversions of the missile microchips by Means Come are described in a 27-page affidavit produced by the Commerce Department’s Office of Export Enforcement before a search of the company’s Orlando offices. …

"The raid on the Orlando company took place the same day FBI agents arrested two Chinese nationals and a third man for stealing Lucent Technologies software codes and selling them to China. According to Commerce export agent Roy A. Gilfix, who wrote the affidavit in support of a federal search warrant, Means Come sold China 2,316 embargoed integrated circuits in shipments in February, May and November 1998. The chips were made by Harris Semiconductor, a Melbourne, Fla., subsidiary of the Harris Corp. …"

U.S. POLICY: STUPIDITY OR TREASON?

"A month after the export license was rejected, Kao Ahwan, a Chinese national, and her husband, Kao Shuli, opened the Orlando office of Means Come and bought the 7,200 Harris computer chips from Atel Electronics Corp. in New York. Means Come paid $679,000 for the chips, which were sold by Atel for use only in the United States.

"However, Means Come exported the circuits without a license in three shipments in 1998, the affidavit states. ‘Means Come Enterprises’ customer, the Great Wall Industry Import and Export, is a state-owned corporation in China’s defense aerospace industry,’ the document said. ‘It develops strategic and tactical ballistic missiles, space launch vehicles, surface-to-air missiles, cruise missiles, military reconnaissance and communication mission and civilian satellites.’ …

"One company executive, Francis Chan, was questioned by Commerce export control agents and told them the company recently sought to purchase ‘U.S.-origin nuclear electronics for export to the PRC.’ …

"The company also brought officials from China’s state-run China Aerospace Corp. to the United States for inspections of technical equipment at its Orlando offices. The affidavit states that China Aerospace ‘specializes in various space products, such as satellites, missiles, launch vehicles and ground support systems.’ "

AT MINIMUM, COMMIE SPIES SHOULD BE DENIED VISAS

"Gary Milhollin, weapons proliferation specialist and director of the Wisconsin Project on Nuclear Arms Control, said the chips have military applications and could be used by the Chinese military to ‘improve their ability to target U.S. cities with long-range missiles.’

"Mr. Milhollin said the Bush administration should reverse the Clinton administration policy of ‘looking the other way and refusing to put Chinese companies like the Chinese Academy of Space Technology, CATIC, and China Aerospace Corp. on a special government watch list.’ "

WILL BUSH ENFORCE SANCTIONS ON BEIJING AS IS REQUIRED BY LAW?

Bill Gertz writes (Washington Times, 6/12/01, pp. A1,12) that "China is shipping arms and explosives to Cuba in a sign of increased military cooperation between Beijing and Havana, The Washington Times has learned.

"At least three arms shipments were traced from China to the Cuban port of Mariel over the past several months. All the arms were aboard vessels belonging to the state-owned China Ocean Shipping Co. (Cosco), according to U.S. intelligence officials. …

"One of the cargoes was described as dual-use explosives and detonation cord. The explosives were said to be ‘military-grade’ material. The latest shipment took place in December. That arms delivery coincided with the visit to Cuba in late December by China’s military chief of staff, Gen. Fu Quanyou. Gen. Fu signed a military cooperation agreement with Havana aimed at modernizing Cuba’s outdated Russian weapons.

"The arms shipments to Cuba could lead to the imposition of economic sanctions on China and Cosco, according to U.S. officials.

"A 1996 amendment to the 1962 Foreign Assistance Act requires that economic sanctions be imposed on any nation or company that provides lethal military assistance to a nation designated as a state sponsor of terrorism. Cuba is on the State Department’s list of nine nations designated as supporters of global terrorism.

"Sanctions would disrupt a major portion of the U.S.-Chinese shipping market controlled by Cosco, whose business lines include port terminals and warehousing, insurance, real estate and hotel management.

"Cuba has been increasing its ties to China in recent months. In April, Chinese President Jiang Zemin traveled to Havana and signed agreements worth about $400 million in loans to Havana.

"Other Chinese activities in Cuba include electronic eavesdropping on the United States and Chinese government radio broadcasting, according to U.S. officials familiar with intelligence reports. China also recently agreed to modernize Cuba’s telecommunications network. …"

COSCO IS OWNED BY BEIJING – NO PLAUSIBLE DENIABILITY

"Wei Jiafu, Cosco group president and chief executive officer, told reporters and editors of The Washington Times on June 2 that the shipping line has no connection to the Chinese military and is only interested in making money. … However, the shipper’s only shareholder is the Chinese government.

"Mr. Wei and other Cosco officials were in the United States to meet port officials in Massachusetts, where they had reached an agreement with the Massachusetts Port Authority to begin a weekly shipping service between Shanghai and Boston beginning next year."

COSCO ADVANCES RED CHINA’S ANTI-U.S. MILITARY OBJECTIVE

"Cosco has been linked in the past by U.S. intelligence agencies to illegal smuggling and international arms trafficking. James Mulvenon, a China analyst with the RAND Corp., said that the Chinese Communist Party’s military organ approved establishment of Cosco as an arm of the Chinese navy in 1985. Mr. Mulvenon stated earlier this year, in his book ‘Soldiers of Fortune,’ that Cosco’s establishment ‘legitimized the use of navy ships for civilian shipping and thus provided a legal cover for the navy’s smuggling.’ …

" ‘Cosco is the merchant marine arm of the PLA Navy,’ [former House committee investigator Edward] Timperlake said. ‘If the Chinese military ever mobilized troops for action against Taiwan, Cosco would be part of the operation.’ Cosco ships would provide arms and logistics support for Chinese military operations, U.S. officials said."

WILL BEIJING BE AUTHORIZED TO PROPAGANDIZE TAIWAN?

Mark Landler reports from Taipei, Taiwan (New York Times, 6/11/01, p. C1) that "With more than a dozen all-news channels on the television dial, the last thing this compact country would seem to need is another one. Yet if Taiwan gives final approval, Phoenix Satellite Television will begin broadcasting its Chinese-language news channel here as early as July.

"Phoenix would stand apart from its rivals in one crucial respect: it is a channel backed by the Chinese mainland – the first of its kind to be licensed on an island that was occupied by the Nationalist troops of Chiang Kai-shek after they were driven off the mainland by Mao Zedong and the Communists in 1949."

A JOINT VENTURE BY RUPERT MURDOCH AND PLA

"Phoenix, which is based in Hong Kong but controlled by interests from the Chinese mainland, is testing a proposition: that in an era of tighter economic ties between Taiwan and China, greater China is becoming a single media market. Phoenix is run by a former People’s Liberation Army soldier, Liu Chang Le, in a partnership with Rupert Murdoch’s Star TV. …

" ‘Six months ago, I would have said, "Not a chance," ’ said Arthur Shay, a lawyer in Taipei who represents media companies. ‘But with so many Taiwanese businessmen focused on China, Phoenix has a real opportunity.’ …"

COMMERCIALISM OVERRULES PATRIOTISM

"Thousands of Taiwanese are moving to China to oversee investments; they are curious about everything from politics to where they can go to meet members of the opposite sex. …

"Tom.com, a Hong Kong-based Web portal, recently acquired PC Home, a Taiwan magazine publisher that it plans to expand into China. Backed by the tycoon Li Ka-shing, the company says it has ‘the opportunity to create the biggest Chinese-language media company in greater China.’

"Next [a gossipy magazine published by Jimmy Lai] and Tom.com are from Hong Kong, a former British colony that has direct flights to Taipei. That makes them less alien to people here than a news channel backed by Beijing, which periodically threatens to invade Taiwan.

"For several years, China’s state-owned television network, China Central Television, or CCTV, has been available on Taiwan’s cable systems. But CCTV functions as a propaganda arm of the Communist Party, and it is watched by a small audience of mostly older viewers on the mainland. …

" ‘Part of Phoenix’s job is to disseminate China’s views abroad,’ said Andrew K. Collier, an analyst at Bear, Stearns in Hong Kong. ‘If they can do that in Taiwan, it will really help them with the Chinese leadership.’ "

Excerpted from Howard Phillips Issues & Strategy Bulletin of April 15, 2001

"VERY SORRY" FOR THE WRONG REASONS

Chris Ruddy writes (NewsMax.com, 4/11/01) concerning the U.S.-China spy plane conflict that "Any spin that plays this story differently simply will seek to delude Americans to the reality of what has transpired in the past 11 days.

"For almost two weeks China held Americans and America hostage. So far, there have been NO repercussions, and today they received an effective ‘apology’ from the U.S. government for having done nothing wrong.

"Ambassador Prueher’s letter today states: ‘We are very sorry the entering of China’s airspace and the landing did not have verbal clearance, but very pleased the crew landed safely.’

"The operative words ‘very sorry’ are nothing more than an apology. We are sorry that a Chinese jet collided with our propeller plane, causing it to almost crash, and forcing it to land in Chinese territory?"

NO APOLOGY BY BEIJING FOR ITS CRIMINAL BEHAVIOR

"Even worse in my mind was Prueher’s statement that followed his ‘very sorry’ concession: ‘We appreciate China’s efforts to see to the well being of our crew.’ Do we usually thank hostage takers? ...

"Each day that passed after the first two days – the longest reasonable amount of time our military personnel should have been kept against their will – China demonstrated to neighboring Asian countries and the rest of the world that the U.S. is no longer a great superpower. ..."

SUPPORT FOR CONTINUATION OF MFN SHOWS WORLD THAT BUSH LOVES COMMERCE MORE THAN HE LOATHES COMMUNISM

"This incident was good for China because it demonstrated that America will do anything to avoid confrontation, and will sacrifice its national honor to accommodate the Chinese.

"What message have we just telegraphed allies in Japan, Taiwan and South Korea? What about other rogue nations and terrorist groups that may take Americans hostage in the future?

"For almost two weeks China kept poking us in the eye with an ice pick. ...

"In truth, we should now be ‘very sorry’ for trading with China, opening up our universities to their students, opening our capital markets to their businesses, sharing our technology, and helping to make them a great power."

CHICOM FIGHTER WHICH ATTACKED U.S. RECONNAISSANCE FLIGHT WAS EQUIPPED WITH AVIONICS "MADE IN THE USA"

Jon Dougherty reports (WorldNetDaily.com, 4/11/01) that "American defense and aircraft firms won contracts in the late 1980s and 1990s to upgrade Chinese F-8II fighter jets of the type used to intercept an American EP-3E aircraft and force it to land at an airbase on China’s southern Hainan Island earlier this month.

"Northrup Grumman, a leading U.S. military aircraft maker, provided avionics upgrades for the F-8II – one of China’s first modern, indigenously-built fighters – under a ‘massive’ program that included guidance kits and weapons systems upgrades, as well."

GRUMMAN EXECS PUT THEIR FINANCIAL SECURITY BEFORE U.S. NATIONAL SECURITY

"In 1995, The New American magazine reported that following the 1989 Tiananmen Square massacre of Chinese students by People’s Liberation Army troops, ‘Chinese military officers were allowed back into the U.S. to resume work with Grumman’s massive modernization of …China’s F-8II fighter planes.’

"Also, in October 1998, Al Santoli, editor of the American Foreign Policy Center’s China Reform Monitor and a national security adviser to Rep. Dana Rohrabacher, R-Calif., wrote that China’s largest aerospace firm, the China Aero-Technology Import Export Company, ‘has been permitted to obtain avionics, guidance kits and weapons systems to upgrade the F-8 fighter-bomber, which was co-developed with U.S. aerospace manufacturers. …’ "

FOR $245 MILLION GRUMMAN SOLD ITS EXPERTISE TO CHICOM CRIMINALS

"And, the Federation of American Scientists, in an online analysis of the F-8 series aircraft, said, ‘Grumman signed a $245 million contract with China to substantially re-engineer the F-8 interceptor to the F-8II standard. …’ The FAS report also said that ‘several other Chinese aircraft incorporate Western systems, including the H-7 and Q-5 attack aircraft.’ …"

U.S. AIR BASE USED TO UPGRADE RED CHINA’S MILITARY DURING BUSH-CHENEY ONE

"According to Preservation of Aerospace Technology Projects, Inc., or PAT, a not-for-profit corporation providing research, technical and educational publications, the Chinese F-8II upgrade program was named ‘Peace Pearl,’ and was headed by one of the organization’s officials, retired Air Force Col. Will R. Stewart.

"Stewart was the test squadron commander for the program from April 1989 to April 1990. Information on PAT’s website said the program was held at Edwards Air Force Base in California.

"Stewart ‘directed test planning efforts of a major avionics upgrade to the People’s Republic of China’s F-8II interceptor aircraft,’ according to résumé information, and he was ‘responsible for [the] $13 million test budget.’ He oversaw ‘26 Air Force, 40 contractor and 40 Chinese workers on [the] largest foreign military sales program in existence with the Chinese.’ …"

McDONNELL-DOUGLAS AND BOEING ALSO HIRED OUT TO PEOPLE’S LIBERATION ARMY

"Kenneth R. Timmerman, writing for the American Spectator magazine in 1995, said, ‘One of China’s biggest and best suppliers of advanced U.S. technology is McDonnell Douglas, America’s largest defense contractor and maker [in addition to its line of MD-80 and MD-90 civilian airliners] of the F-15, F-18 and C-17 military jets.’ McDonnell Douglas is now a subsidiary of The Boeing Corporation."

RED CHINA DOESN’T NEED ESPIONAGE — U.S. DEFENSE CONTRACTORS GIVE THEM THE INFO THEY SEEK

" ‘According to U.S. government investigators probing a potential security breach, a team of Chinese procurement agents inspected the sprawling McDonnell Douglas C-17 plant in Columbus, Ohio, previously used by Rockwell to assemble the B-1 bomber, from September 11-19, 1993,’ Timmerman wrote.

" ‘The Chinese were allowed to photograph production lines inside the huge multi-story hangars and sought technical documentation on a wide variety of advanced production technology, much of it classified. The nine-day inspection by the Chinese was considered so sensitive that the company only allowed the inspectors in during the evenings and on the weekends, after the plant’s unionized workers had gone home,’ he said."

IS IT TREASON WHEN DISCLOSURES ARE AUTHORIZED BY U.S. GOVERNMENT?

" ‘Following their visit, the Chinese submitted an eight-page, single-spaced list of equipment they wanted to buy. It included 31 large, computerized machine-tools that the Joint Chiefs of Staff consider to be "militarily-critical" and that normally can only be exported to U.S. allies, if at all,’ he wrote.

" ‘The Commerce Department approved the licenses in August [1994], McDonnell Douglas confirmed. As promised by the Chinese, an agreement extending the MD-82 program was signed with CATIC [China National Aero-Technology Import and Export Corporation] in November’ of that year, said Timmerman. …"

U.S. TECHNOLOGY PLACED IN CHICOM MISSILES

"Additionally, Timmerman said research indicated that U.S. specialty steel parts – used in aircraft and airframe manufacturing – sold to CATIC were ‘sent directly to a military aircraft plant in Xian, China.’ CATIC also bought and shipped U.S.-made global positioning satellite systems to China, leading U.S. defense analysts to conclude that Beijing was successfully integrating GPS into cruise missiles, ballistic missiles, ‘and a new generation of military jets – some of which are sent to Iran.’ "

CHICOMS PROUDLY BEAR THE RED BANNER BEFORE GROVELING U.S. BUSINESS PROSTITUTES

Gary Bauer points out that (Campaign for Working Families, 3/26/01): "On Friday, Chinese Vice Premier Quichen Qian spoke at a luncheon here in Washington sponsored by the U.S.-China Business Council. Afterwards [sic], he took questions, including one from an American student who wanted to know what the opinion was in China today of the deceased dictator Mao Tse-Tung. The Vice Premier heaped lavish praise on Mao and his leadership. Keep in mind that Mao is arguably the biggest mass murderer of all history, responsible for millions of deaths. His iron fist was ruthless and his opponents were shown no mercy. Along with Hitler and Stalin, Mao represents almost unimaginable evil. Yet, the current Vice Premier of China praised Mao while the audience of American ‘capitalists’ warmly applauded. The episode is a sorry reminder of the power of the ‘big lie’ and of the tendency of free people to forget truth."

Excerpted from Howard Phillips Issues & Strategy Bulletin of August 15, 2000

RED CHINA PURSUES GLOBAL GEOSTRATEGIC OBJECTIVES

"According to the South China Morning Post [NewsMax.com, 7/27/00], Dr. Arthur Waldron of the University of Pennsylvania warned the U.S. Congress, 'The [Communist] party's absolute rule can only be justified by invocation of external enemies -- to make plausible the postponing of any political reform.' Waldron said a year of military tension may lie ahead."

FROM MOSCOW TO THE MIDDLE EAST

"Waldron said that Beijing was trying to break up U.S. alliances while at the same time building up its own network, ranging from Russia to the Muslim nations of the Middle East."

CONTROL OF SPRATLEY ISLANDS IS A PRIORITY

"In Asia, he said, Beijing is working politically on South Korea. Were the long-sought incorporation of Taiwan into the People's Republic be accomplished, he added, it would strengthen China's 'dubious' claims to the Spratley Islands and South China Sea and pull Singapore into its 'tilt.'"

U.S. OUT OF KIRIBATI, RED CHINA IN

"As Australia and the United States lessen their influence over island nations in the South Pacific, China and Taiwan are aggressively competing to fill the economic and political gaps created, according to the Australian Financial Review. ...

"For example, after American disengagement, China endorsed the application of Kiribati for United Nations membership and then built a major satellite and missile-tracking station there, on Tarawa, some 500 miles south of the main U.S. missile-defense target range on Kwajalein in the Marshall Islands. During World War II, Tarawa was the site of one of the bloodiest battles in the Pacific. Thousands of U.S. Marines died on its beaches to free it from Japanese occupation."

MANIFESTING MISSILE MUSCLE IN PAKISTAN

"The New York Times reports that U.S. intelligence agencies have discovered that China is continuing to help Pakistan to build long-range missiles capable of carrying nuclear weapons. In addition, Chinese experts have been seen moving around Pakistan's newest missile factory, which appears to be partly based on Chinese design."

SHOWING THE FLAG IN SOUTH AFRICA

"In a demonstration of China's growing naval power, a fleet of warships led by the new Shen Zhen missile destroyer has embarked on a three-ocean operation with port calls planned in Malaysia, Tanzania and South Africa, according to the Beijing Zhongguo Xionwen She official news service. ..."

BEIJING AIDS CUBA AND LIBYA

"In a Beijing meeting, Xinhua also reports, PLA Chief of Staff Gen. Fu Quanyou praised Ulises Rosales Del Toro Fu, a member of Cuba's Central Military Commission, for the expanding relations between the Chinese and Cuban armed forces. World Tribune.com reports that U.S. officials say China is selling missile technology to Libya. Clinton administration officials said Secretary of Defense William Cohen was raising the issue during his recent meetings in Beijing."

Excerpted from Howard Phillips Issues & Strategy Bulletin of February 29, 2000

CHINA INTENSIFIES ITS MILITARY ALLIANCE WITH RUSSIA

According to Craig Smith (New York Times, 2/9/00, p. 1), "China's first Russian-built guided-missile destroyer is expected to arrive in the East China Sea as early as this week, enhancing Beijing's ability to threaten American aircraft carriers in any future encounters over Taiwan.

"Within weeks of the Sovremenny-class destroyer's arrival, Russia is expected to deliver the ship's most formidable weapon, Sunburn anti-ship missiles specifically designed to penetrate American carrier battle group defenses. The Russian version of the sea-skimming supersonic missile can carry nuclear or conventional warheads."

ARMS CONTROL RESTRICTIONS ON NUCLEAR WARHEADS ARE EASILY CIRCUMVENTED

"Conventions to prevent the spread of nuclear weapons, as well as Russia's own strategic interests, make it unlikely that the missiles will be delivered with nuclear warheads. But Russia could provide, or China could develop, technology that would enable the missiles to deliver a Chinese nuclear warhead. ... Even with conventional warheads, China's new missile-armed destroyers, together with four recently purchased Kilo-class submarines from Russia, will raise the threshold for any future American intervention in the region, military analysts say. ...

"China has built its own guided-missile destroyers, but they are considered less threatening than the Sunburn-equipped destroyers from Russia. China purchased two of the Russian ships last year -- the second is expected later this year -- and is believed to be negotiating the purchase of at least two more."

WILL CONGRESS COMPLETE THE SALE OF DESTROYERS TO TAIWAN?

"'This is a generational leap for China into a much more advanced type of surface weaponry,' said James Lilley, a former American ambassador to China and now a fellow at the conservative American Enterprise Institute for Public Policy Research in Washington. ...

"Lt. Cdr. Terry Southerland said this week...there has been no decision on Taiwan's request to buy American Aegis destroyers to counter the Chinese purchases. ..."

REAGAN'S 1982 PRO-RED CHINA COMMUNIQUÉ PLACED LIMITS ON U.S. HELP TO TAIWAN

"Under the 1979 Taiwan Relations Act, the United States is obligated to help Taiwan defend itself from a mainland attack -- although in a 1982 joint communiqué with Beijing, Washington pledged not to increase the quantity or quality of arms sold to Taiwan. ..."

RUSSIA AND ISRAEL PROVIDE ADVANCED AVIONICS TO BEIJING

"The United States Navy currently has limited defense against the missile, which Russia designed in the 1980's to sink Arleigh Burke-class Aegis destroyers guarding American carrier groups or to hit the carriers themselves. The radar-guided missiles can deliver a 200-kiloton nuclear warhead to a target beyond the horizon in about two minutes. Even one of its conventional warheads could sink a cruiser or disable a carrier, depending on where it hits, military analysts say. ... With the United States and much of Europe refusing to supply China with advanced weapons, Russia and Israel have been the country's primary options. Israel has helped China with the avionics for a fighter aircraft it is developing. But Russia, with a sophisticated arsenal and weakened economy, has been a more willing supplier.

"Russia has sold China four quiet Kilo-class submarines, which carry 'wake-homing' torpedoes designed to detonate beneath a ship's keel. The torpedoes are difficult to detect because they approach the ship from the rear where their sound is masked by the noise of the ship's propellers. And Russia is helping China assemble Russian Sukhoi SU-27 fighters. ...

"[O]ther American analysts see a sinister logic to the procurement program, suggesting that the weapons purchases meet specific tactical needs within broader strategic goals -- the ability to challenge American dominance in the Taiwan Strait, for example, or to protect its claims in the resource-rich South China Sea. Some warn further that the incremental arms buildup represents the early stages of a broader armament intended to prepare China for potential conflict with the United States...."

Excerpted from Howard Phillips Issues & Strategy Bulletin of January 15, 2000

DEFENSE DEPARTMENT ACKNOWLEDGES RED CHINESE THREAT AT PANAMANIAN ISTHMUS

Bill Gertz reports (Washington Times, 1/12/2000, pp. A1, 16) that "A Pentagon intelligence report calls Chinese influence over the Panama Canal a potential threat to U.S. national security. ..."

U.S. TECHNOLOGY CAN BE SMUGGLED TO RED CHINA IN SEALED CONTAINERS

"'Hutchison [Whampoa Ltd.'s] containerized shipping facilities in the Panama Canal, as well as the Bahamas, could provide a conduit for illegal shipments of technology or prohibited items from the West to the PRC, or facilitate the movement of arms and other prohibited items into the Americas,' according to a declassified report by the U.S. Southern Command's Joint Intelligence Center. ..."

... AND COMMUNIST WEAPONS CAN BE SMUGGLED IN

"However, the Pentagon intelligence report states that the economic power conferred through the Hutchison Whampoa ports at either end of the Panama Canal and in the Bahamas would give China leverage over Panama, which has diplomatic relations with rival Taiwan.

"'For example, Hutchison Whampoa could threaten to shift some business from Panama to its Free Trade Zone in the Bahamas, thus giving the company additional leverage over the Panamanian government,' the report said. ..."

... JUDICIAL WATCH FORCES RELEASE OF INFO

"The Washington public interest group Judicial Watch made the report public after it was obtained under the Freedom of Information Act. ..."

U.S. PACIFIC OPERATIONS ENDANGERED BY LOSS OF CANAL

"Long-term military operations to resupply U.S. forces in the Pacific in such a conflict make the access to the canal 'crucial' to military planning, one Pentagon official said."

CHICOMS ARE PLANNING FOR WAR WITH USA

"Last week, Hong Kong's Cheng Ming newspaper quoted Chinese Defense Minister Chi Haotian as saying war with the United States is inevitable.

"'Seen from the changes in the world situation and the United States' hegemonic strategy for creating monopolarity, war is inevitable,' Mr. Chi told a military conference in early December.

"'We cannot avoid it,' he was quoted in the newspaper as saying. 'The issue is that the Chinese armed forces must control the initiative in this war....We must be prepared to fight for one year, two years, three years or even longer.' ..."

HUTCHISON WHAMPOA STRENGTHENS RED CHINESE PRESENCE IN WESTERN HEMISPHERE

"Hutchison's owner, Hong Kong tycoon Li Ka-Shing, 'has extensive business ties in Beijing and has compelling financial reasons to maintain a good relationship with China's leadership,' the report said. ...

"Marine Corps Gen. Charles E. Wilhelm, the commander in chief of the U.S. Southern Command...told the Senate Armed Services Committee hearing he believes China does use businesses for military purposes. ...

"Gen. Wilhelm...stated that China's goals in Panama are 'less a local threat to the canal and more a regional threat posed by expanding Chinese influence throughout Latin America.'

"Other experts see increased Chinese commercial activities in this hemisphere as providing Beijing with a potential base for anti-U.S. subversion during a future conflict with the United States."

BUSH ADVISER BELIEVES RED REGIME IN CHINA CAN BE PERSUADED TO SUBSTITUTE "DEMOCRACY" FOR MAOIST IMPERIALISM

One of George Bush's top foreign policy advisors, Paul Wolfowitz (touted as Bush's top choice for Secretary of Defense), currently a professor of international relations at the School of Advanced International Studies at Johns Hopkins University, asserts (Commentary, January 2000, p. 46) that "In the case of China, our limited influence on that country is more likely to be effective if we take the milder course that President Reagan followed in dealing with authoritarian regimes like the Philippines and South Korea than the approach he took toward our ideological rival in the cold war, the Soviet Union."

IS RED CHINA MORE LIKE THE PHILIPPINES UNDER MARCOS THAN THE SOVIET UNION UNDER ANDROPOV?

This is an extraordinarily unsound perspective.

South Korea and the Philippines have, throughout recent decades, been friends of the United States of America, whereas Communist China has declared us to be its main enemy. The issue is only partially related to Red China's authoritarianism. The key question for U.S. decisionmakers must be: Does our policy help Communist China pose a greater or lesser threat to U.S. vital interests?

Free market totalitarianism is not the answer. Wolfowitz is wrong in presupposing that Communist China is not an ideological rival.

Mr. Wolfowitz's thinking gives us a pretty good clue of the theoretical rationale for the pro-Red China policy now being contemplated by the prospective Bush administration. To be forewarned is to be forearmed.

Excerpted from Howard Phillips Issues & Strategy Bulletin of December 31, 1999

CHINESE REDS CONVERT MERCHANT SHIPPING TO MILITARY PURPOSES

"Based on reliable sources, with the coordination of the Ministry of Communications, the Chinese Navy is stepping up efforts to refit a great number of merchant ships in reserve to make up for the shortage of naval landing vessels. In principle, the refitting effort is aimed at 'using these ships both in peace time and war time.' ...

"Container ships can be equipped with container-type guided missile vertical launching systems or area air defense guided missiles, which have a ground fire control capability and can provide long-range air defense support for naval forces."

CONTAINER SHIPS CAN TRANSPORT TANKS AND MISSILES

"This military officer said that China is a major shipping country in the world having large shipping tonnage. The ship models include all kinds of container ships, freighters, passenger ships, and barges with a strong carrying capacity, high speed, and rapid loading and unloading capacity. ...

"The 'Haifeng' container ships of the China Ocean Shipping Company have large stern elevators that can help tanks for both sea and ground operations and armored vehicles launch attacks or land on beachheads. The large roll-on ships can rapidly load and unload all kinds of light vehicles and materials at the floating wharves quickly built by engineering troops. ...

"Some merchant ships with medium or higher displacements may also be equipped with large-caliber and multiple-tube rocket launchers, medium-sized and small caliber anti-aircraft guns, and heavy anti-tank missiles and shoulder-fired air defense guided missiles. ..."

ANTI-AIRCRAFT, ANTI-TANK, MINE LAYING, AND MISSILE LAUNCH CAPABILITIES FACILITATED

"[I]n blockade warfare and information warfare, guided by the military, merchant ships can carry out the missions of laying mines, launching missile attacks, installing electronic deception equipment, and data link systems. In addition, they can be used as launching and retrieving platforms or control stations for unmanned aerodynamic vehicles (UAVs)." Source: "PLA Refits Merchant Ships in Reserve", staff reporter, Hong Kong Ming Pao in Chinese, 11/2/99, p. b14)

RED CHINESE ESPIONAGE TARGETS CANADA

Fabian Dawson reports (www.vancouverprovince.com, 11/15/99) that "Politicians, bureaucrats, Mounties and spies are all being lined up by Canada's spy watchdog as it launches an investigation to look at why a top-secret probe into Chinese espionage activities was scrapped. ..."

WERE THE MOUNTIES AND THE POLITICOS CORRUPTED?

"Project Sidewinder, a joint CSIS/RCMP [Canadian spy agency/Royal Canadian Mounted Police] study, tracked a myriad of companies linked to Asian tycoons to determine whether they were fronts for Chinese espionage activities between 1994 and 1996. The study also looked at 'hundreds of thousands of dollars' that were being pumped into political parties to see if Canadian MPs were being unduly influenced."

COVERUP SUSPECTED

"Several sources, including senior Mounties, immigration officials and CSIS operatives, allege that 'political influence nixed the project.'"

LI KA-SHING IS ACTIVE BEYOND PANAMA

"The Province has learned that among those probed were Macao casino king Stanley Ho, who has extensive interests in Canada, and Li Ka-shing, one of the world's wealthiest men, known in Vancouver for his Expo lands purchase.

"Other companies tracked were linked to tycoons Robert Kuok, Cheng Yu Tung and Henry Fok and firms with connections to CITIC -- the investment arm of China's People's Liberation Army.

"The tycoons' massive links to Canadian real-estate, banking and finance sectors, ports, the computer and telecommunications industry and immigrant investor funds also were investigated."

CRIMINAL GANGS LINKED TO COMMUNIST SPIES

Andrew Mitrovica adds from Toronto (globeandmail.ca, 11/12/99) that "The watchdog over Canada's espionage agency has launched a formal review of its handling of the highly sensitive and controversial probe into the links between Chinese intelligence and criminal gangs in Canada.

"The Security Intelligence Review Committee body has requested the spy agency's files related to a joint RCMP/CSIS probe, code-named Sidewinder, SIRC chairwoman Paule Gauthier said yesterday. 'We have asked [the] committee's staff to examine the entire file and ask all the necessary questions.' ..."

DOCUMENTS DESTROYED BY TOP-LEVEL OFFICIAL

"The Sidewinder probe was halted in the late 1990s to the chagrin of the RCMP and CSIS agents working on the project;

"Important documents related to the probe were destroyed by CSIS on the orders of a senior spymaster; ...

"At its height in 1996, a team of as many as five civilian and police analysts and investigators from CSIS and RCMP were involved in the Sidewinder probe."

TRIADS LINKED TO PEOPLE'S LIBERATION ARMY

"The probe was born amid concern that leaders of criminal gangs, known as triads, had developed intimate relationships with intelligence agencies associated with the People's Liberation Army. It began with a single triad leader, but was quickly broadened to examine links between triads and the Beijing government generally, as well as links between criminal organizations and Chinese tycoons with business interests in Canada."

CHINESE SEEK FINANCIAL INFLUENCE AND CONTROL OF CANADA'S PORTS

"In July, 1997, CSIS produced a 12-page intelligence report. Based on its still highly classified findings, the Sidewinder team asked its superiors for more money and manpower to launch a wider probe into alleged Chinese activities. However, the request was rejected and the team disbanded.

"The Sidewinder team was busy analyzing how, through a wide and intricate web of front companies and legitimate businesses, triads and the Chinese government allegedly tried to gain a financial foothold in Canada's shipping ports, oil and gas companies, banks and brokerage firms and commercial buildings and hotels."

LI KA-SHING WAS ABLE TO SIDETRACK CANADA'S INVESTIGATION

Fabian Dawson reports (www.vancouverprovince.com, 11/17/99) further that "A secret police request to probe tycoon Li Ka-shing's billion-dollar buying spree in Canada was rejected after high-level negotiations between Ottawa and Hong Kong, The Province has learned. ...

"Described by various intelligence agencies and in U.S. Senate hearings as a 'front man' for communist Beijing, Li's empire covers the globe."

HUTCHISON WHAMPOA BOSS IS RED CHINA'S ARMAND HAMMER

"Li was born in Chiu Chow in southern China in 1928. He emigrated to Hong Kong in 1940 and started his first firm at age 22 in 1950, making plastic flowers and toys.

"That has grown into an empire that includes major interests in property development and investment, telecommunications, oil and electricity, retail trading and shipping. ..."

HONG KONG BILLIONAIRE FRONTS FOR PEOPLE'S LIBERATION ARMY

"[A] U.S. Senate hearing last month was told that Li Ka-Shing and his Hong Kong-based company and subsidiaries are closely associated with the Beijing regime and have a history of acting as sources of funding or acting as intermediaries in deals for the People's Liberation Army.

"Quoting American intelligence agencies, Republican congressman Dana Rohrabacher said Li is a board member of the China International Trust and Investment Corp., CITIC, which is a principal funding arm of the Chinese government and a technology-acquiring source for China's military."

CITIC, COSCO, AND CHINA RESOURCES CO. ARE BEIJING'S TROJAN HORSES

"Li is also a director of the giant communist Chinese shipping firm COSCO, which in addition to commercial transport, is the merchant marine for the Chinese military.

"COSCO has shipped Chinese missile technology and biological warfare components to North Korea, Pakistan, Iraq and Iran.

"'Li has also engaged in numerous business partnerships with the China Resources Co., a firm that has been identified by U.S. congressional investigators as a front for Beijing's intelligence agencies,' Rohrabacher told the Senate hearing."

VANCOUVER IS RED CHINA'S GATEWAY TO NORTH AMERICA

"The expansion of COSCO's operations in Vancouver, making the city its gateway to North America, is a key concern for the Americans.

"The 1988 request to probe Li was followed by another CSIS investigation in the mid-'90s that attempted to look at the influence of Chinese tycoons in Canada and their political contributions."

"SIDEWINDER" SIDETRACKED

"The Province revealed the existence of the study called Project Sidewinder last August. It was also hastily scrapped despite objections by investigators and documents pertaining to it destroyed. ...

"Brian McAdam, who was the former immigration control officer at the Canadian diplomatic mission in Hong Kong, said Li and several other tycoons were commonly called 'friends of the mission' by Canadian staff there.

"McAdam, who prompted the Sidewinder project, said many of the Canadian staff at the mission were treated to luxury cruises, opulent balls and executive suites at race tracks by the so called 'friends of the mission.'"

CLINTON PROVIDES RED CHINESE WITH AWACs INFO

Al Santoli reports in China Reform Monitor (11/10/99, American Foreign Policy Council) that "In Worldnet Daily, Charles Smith details a 1999 visit of high ranking members of the PLA Air Force to U.S. airbases. The Chinese Air Force and Navy aviation delegates were given detailed briefings on the coordination of military and civil air traffic control and coordination between AWACs, inflight refueling vessels, and jet fighter squadrons. Between May 14-20, 1999, the PLA officers were taken to the top secret Edwards Air Force Base in California and Tinker Air base in Oklahoma. The visit, part of the U.S./China military exchange program, was sponsored by U.S. aerospace giants MITRE Corporation, Raytheon and Lockheed Martin. United Airlines participated as well."

TAIWAN'S SECURITY IS JEOPARDIZED

"The tour included familiarizing the PLA and Chinese civil aviation delegates with radar data, tracking systems and details on Edwards AFB military operations. At Tinker, the U.S. Air Force briefed the Chinese on 'DOD Testing and Development of Software System for Integration and Interoperability' of civilian airport facilities for military. Smith adds that the Chinese PLA is actively involved in civilian aviation businesses. For example, according to the Congressional Cox Report, 'The PRC has used at least one commercial carrier to assist in its military technology transfer efforts.' A Dragonair Company plane was intercepted carrying missile parts. Dragonair is owned by CITIC, a Chinese government conglomerate [co-founded by tycoon Li Ka-shing of Hutchison Whampoa, now operating ports on the Panama Canal].

"The PLA Air Force air traffic control [ATC] command units control all civil traffic inside mainland China. According to a U.S. defense expert, the same PLAAF ATC officers control Chinese air war, sending fighters, bombers and missiles into combat. 'The key here,' says Bill Triplett, an expert on the PLA, 'is vectoring combat aircraft over the Taiwan Strait.'"

Excerpted from Howard Phillips Issues & Strategy Bulletin of November 30, 1999

CLINTON ADMINISTRATION PRESSES ISRAEL TO STOP AIDING RED CHINA

The New York Times (11/11/99, p. 1) reports that "Israel has long had a close, secretive military relationship with China that arms experts say has resulted in billions of dollars of weapons sales in recent years and raised a variety of concerns in the United States."

TAIWAN AT RISK FROM TRANSFER OF U.S.-ORIGINATED TECHNOLOGY

"But senior Pentagon officials fear that the advanced radar system, in particular, will enhance China's ability to extend its military might beyond its borders and threaten Taiwan. 'It is a significant capability,' a senior official said, 'and it will improve significantly China's ability to conduct operations in and around the Taiwan Strait. That obviously is our major security interest in the region.'

"Workers at Elta, a subsidiary of Israel Aircraft Industries, recently mounted the radar system on a Russian-made cargo plane destined for the Chinese Air Force, completing the first part of a complex deal that has been several years in the making.

"Elta designed the system, known as the Phalcon, for the Israeli Air Force, to be installed in a Boeing 707. China is reportedly interested in buying four to eight more of the systems and placing them aboard Russian aircraft. ..."

PENTAGON REBUTS ISRAELI CLAIM

"The Israeli government has assured administration officials that the sale does not involve American technology. But a Pentagon official said that given the amount of weaponry that the United States shared with Israel, it was difficult to separate American military technology from Israel's own. ...

"A Pentagon delegation led by Jacques S. Gansler, the under secretary for defense acquisition and technology, arrived in Israel today for a previously arranged visit. Although the sale is not explicitly part of Mr. Gansler's agenda, it is very likely to come up."

U.S.-DEVELOPED ASMs BEING SHIPPED TO INDIA

"During his visit, Mr. Cohen also expressed objections to Israel's reported plans to sell Popeye air-to-surface missiles to India, particularly at a time of tensions between India and Pakistan, the officials said. The Popeye missile was jointly developed by the United States and Israel. ..."

CHINESE AMBITIONS ABETTED BY AMERICAN TECHNOLOGY

"Representative Porter J. Goss, Republican of Florida, the chairman of the House Intelligence Committee, said today that the sale underscored the fact that China's military was 'extremely acquisitive' and raised questions about the possibility of 'American parentage' of some of the technology. ...

"'What is the point of a long-range radar surveillance?' he said. 'It has to do with an offense that extends their border or certainly their area of hegemony.'

"Representative Sam Gejdenson of Connecticut, the ranking Democrat on the House International Relations Committee, said it was 'bad policy' for Israel to sell advanced weaponry to China, particularly since China had a record of selling weapons to countries opposed to the United States and Israel, including Iran. ...

"Since the 1990's, China has embarked on a major program to modernize its military and has looked elsewhere. By far its biggest arms supplier has been Russia, which has sold it MIG fighter jets, warships, submarines and missiles."

ISRAELI-CHINESE MILITARY COOPERATION IS BAD FOR AMERICA

"Israel is China's second-largest supplier. A recent report by Kenneth W. Allen and Eric A. McVadon of the Henry L. Stimson Center, a research organization in Washington, said Israel had provided China with a range of weapons--including electronic components for tanks, communications and optical equipment, aircraft and missiles--during a relationship that began at least two decades ago. Full diplomatic ties were not established until 1997.

"'Both China and Israel appear to gain military and political benefits from the arms and technology transfer relationship,' the report said. 'Besides seeking money from China, some Israeli officials claim the sale of military technology to China will secure Beijing's agreement not to sell specific weapons to Israel's enemies in the Middle East.'"

RUSSIA IS THE SILENT PARTNER

"The sale of the Phalcon radar system is part of a complicated arrangement that began with Israel and Russia competing to sell China an aircraft equipped with an early warning radar system. In 1997, Benjamin Netanyahu, then Israel's prime minister, went to Moscow and reached an agreement with Russia to develop the aircraft jointly, with Russia supplying the aircraft itself and Israel adding the radar system. ..."

AWACs COULD BE OUTCLASSED

"What makes the sale troubling to Pentagon officials is that the radar system is comparable to and might exceed the abilities of the American early warning radar planes, called Awacs, a recent intelligence report concluded, according to a senior military officer.

"The system will allow Chinese commanders to collect intelligence and direct aircraft from a distance of 250 miles. Access to advanced electronic and information-gathering equipment has long been one of the weaknesses of China's military, though one that it appears bent on addressing, arms experts say."

Excerpted from Howard Phillips Issues & Strategy Bulletin of July 31, 1999

HUGHES ELECTRONICS HAS BEHAVED TREASONOUSLY.
THIS "PROFIT BEFORE PATRIOTISM" CORPORATION SHOULD BE BARRED FROM RECEIVING U.S. GOVERNMENT CONTRACTS. ITS OFFICERS SHOULD BE PROSECUTED.

On March 10, The Conservative Caucus began a campaign to bar from any future government contracts companies whose conduct could be characterized as treasonous, in terms of the strategically significant military secrets which they have provided to Communist China.

In a letter which I dispatched on March 10, I pointed out that "Hughes Electronics -- a major contributor to the Democratic and Republican Parties -- has provided Red China with sensitive national security information which greatly adds to the capability of the Communist Chinese to strike the United States with nuclear, chemical, or biological warheads on long-range missiles. ..."

GENERAL MOTORS CORP. OWNS HUGHES

"Prohibiting Hughes (a subsidiary of General Motors) from receiving any more government contracts would send a clear signal to Big Business collaborators with the Red Chinese that we, the American people, are not going to tolerate having our tax dollars (in the form of government contracts) awarded to any company which undermines our national security! ..."

TOSHIBA WAS PENALIZED -- WHY NOT HUGHES?

"Congress has already established a precedent for punishing companies which violate our national security.

"In 1988, Toshiba of Japan was banned by Congress from selling anything to the U.S. government for three years.

"The reason? They sold secret American submarine propeller technology to our Cold War enemy, the Soviet Union, earlier in the 1980's!"

HUGHES HELPED LOAD RED CHINA'S NUCLEAR GUN

"But Hughes's punishment must be more severe. After all, they sold Red China American technology that helps them target nuclear missiles at us! ...

"[E]ven Janet Reno's Justice Department 'has initiated a criminal probe of the CIA to determine whether the agency obstructed justice when it provided information to Hughes Electronics Corp. about the scope of an ongoing congressional investigation into the transfer of sensitive U.S. space technology to China, according to senior federal government officials...' (Washington Post, 12/5/98)

"The Post [12/9/98] said that the Defense Department 'concluded that Hughes Electronics Corp. provided China with information potentially damaging to U.S. national security following the 1995 crash of a Chinese rocket carrying a Hughes-built commercial satellite, administration officials said.'

"The Washington Times [12/10/98] added 'the report concluded that [Hughes] helped Chinese engineers to improve the sophisticated mathematical models necessary to predict the effects of wind, atmospheric buffeting and other forces on moving rockets...the transfer violated American standards against helping the Communist government in Beijing make better missiles and satellites....'"

U.S. BUSINESS IN SERVICE TO COMMUNIST MILITARY

"The Defense Department report concluded that Hughes's assistance to the Communists allowed the Red Chinese to gain 'specific insight into specific launch vehicle design and operational problems and corrective actions'.

"Investors Business Daily [12/10/98] concluded that 'the Chinese now can more effectively target American cities with their new and improved rockets'.

"The question now is simple: Will Hughes Electronics Corporation be punished for its sellout of American interests?"

AMERICA IS RED CHINA'S "MAIN GLOBAL RIVAL"

"China's leaders have left no doubt about their readiness to attack the United States. In 1994, Red China's military and political leaders had a major meeting in which the United States was designated 'China's main global rival'.

"And a senior analyst at the Chinese Society for Strategy and Management Research in Beijing openly stated: 'China is growing stronger in the world, and that is affecting the dominant role of the United States...a fundamental conflict will be inevitable.'

"China's goal is to overtake the United States as the world's preeminent military power and neutralize our capacity to defend vital national interests."

CLINTON IS RED CHINA'S NUMBER ONE SPY

Mark Levin observes (Washington Times, 5/27/99, p. A21) that "Unlike his predecessors Democrat or Republican, Mr. Clinton transferred primary legal authority for approving export licenses for advanced U.S. technology from the security-conscious State Department to the politically conscious Commerce Department for the purpose of making such exports easier.

"Mr. Clinton is also the first and only president to approve an export waiver authorizing two companies -- Loral Space and Communications and Hughes Electronics -- to transfer technological secrets in the face of a criminal investigation involving their prior alleged export violations. Mr. Clinton approved personally the export of their data relating to satellite- and missile-launch technology to China over the objections of his secretary of state, the Pentagon and others."

CONGRESS HAS FAILED TO PURSUE EVIDENCE OF TREASON

"And Mr. Clinton's political appointees at the Justice Department rejected repeated requests by the FBI to wiretap Wen Ho Lee, the Los Alamos lab scientist suspected of spying for China. Attorney General Janet Reno's defense of this blunder goes something like this: Even alleged spies have constitutional rights. The Justice Department refused even to bring the matter before a federal judge. ...

"During a Senate hearing last week [Notra] Trulock [acting deputy director of the Energy Department's Office of Intelligence] was asked what was done when these national security violations were made known to his superiors. His answer: What was done, in short, was nothing. Nothing.

"Mr. Trulock testified that in 1997 he was stopped repeatedly by Mr. Clinton's deputy secretary of Energy, Elizabeth Moler, from taking his concerns about spying to Secretary of Energy Federico Pena. He has also accused Ms. Moler of blocking him from telling Congress about his findings."

COMMUNIST CHINESE MILITARY FUNDED CLINTON-GORE

"At the same time, the Chinese military was funneling money into the Democratic National Committee and the 1996 Clinton-Gore campaign. ...One hundred twenty-one people connected with the fundraising scandal have either pleaded the Fifth Amendment or fled the country to evade law enforcement. ...

"There have always been spies, during Democrat and Republican administrations, who've succeeded in breaching U.S. national security, including Alger Hiss, Julius and Ethel Rosenberg, Klaus Fuchs, the Walker family, Jonathan Pollard and Aldrich Ames. What's unprecedented here, however, is that Mr. Clinton himself has taken steps to weaken the government's security apparatus. Moreover, when confronted with evidence of espionage he and senior officials he appointed sat on their hands for years and kept the information from Congress."

CLINTON COVERED UP RED CHINESE ESPIONAGE FOR FOUR YEARS

The New York Times (6/27/99, p. 4) reports that "Senior White House officials were informed that China might have stolen American nuclear secrets nearly a year earlier than the Clinton Administration originally disclosed, according to current and former United States officials....

"Until now, the Administration has left the impression that the White House first learned about the matter in April 1996, when Samuel R. Berger, then President Clinton's deputy national security adviser, was briefed on the case by Energy Department officials.

"But interviews with current and former officials show that warnings about possible Chinese nuclear espionage received high-level attention within the Clinton Administration early in the Government's investigation of the matter."

CIA TOLD BERGER IN 1995

"Indeed, by late 1995, within months of first learning of the case, the Director of Central Intelligence was convinced that the evidence showed that China had stolen design information from America's most advanced nuclear warhead, and had briefed President Clinton's national security adviser on the matter."

"BUNGLING", "INERTIA", OR TREASON?

"Yet the investigation into China's apparent theft of the nuclear secrets languished, plagued for the next four years by what many officials now describe as miscommunication, bureaucratic inertia and outright bungling by several agencies....

"But initially, the C.I.A. did not tell the Energy Department -- or anyone else in the Government -- that it had obtained the W-88 document, officials say.

"A former senior C.I.A. official said that soon after the agency realized the significance of the W-88 document, Mr. Deutch ordered him not to disseminate it to other United States intelligence agencies. ..."

THE FOUR-MONTH COVERUP IN 1995

"[B]y August 1995 Energy Department's analysts had obtained a copy, even though it would not be officially distributed throughout American intelligence agencies until that December.

"By then, analysts had concluded that the document indeed included American nuclear secrets, officials say. At that time, the document did not include a caveat saying that the source of the document was believed to be a double agent."

DID THE FBI TAKE A DIVE? FROM ZERO TO FORTY IN FOUR YEARS

"After the analysts reported to Mr. Deutch in November, a broader review, dominated by the Energy Department, reported similar conclusions in April 1996. Mr. Berger was then briefed that same month, and the F.B.I. opened its criminal investigation on May 30, 1996.

"But in late June or July 1996, the F.B.I. dropped its investigation, a senior United States official said....

"[W]hile the F.B.I. re-started its investigation, it remained a low priority, F.B.I. officials now concede. Only one or two agents were assigned to the investigation in 1996, officials say.

"By 1997, when the Justice Department denied the F.B.I.'s request to seek court authorization to wiretap and electronically monitor Mr. Lee, a move that has since become the subject of congressional inquiry, the F.B.I. still had only three or four agents on the case. Today, in the midst of a public furor over Chinese atomic espionage, the F.B.I. has assigned 40 agents to the investigation."

Excerpted from Howard Phillips Issues & Strategy Bulletin of July 15, 1999

DID CLINTON'S DECLASSIFICATION POLICY DO MORE HARM THAN CHINESE ESPIONAGE?

Robert Novak observes (Washington Post, 7/12/99, p. A15) that "An experienced weapons scientist found that the Cox Report erred in claiming that Chinese espionage penetrated U.S. weapons laboratories, while failing to recognize Clinton administration culpability. As much as President Clinton would rather not hear this, Republicans like it even less.

"That goes for William J. Bennett, Kemp's fellow Republican wise man and co-director of their conservative Empower America organization. The report by Gordon Prather, a nuclear physicist with long experience in government weapons programs....takes 26 pages to demolish the impressions left by the bipartisan report of the select House committee headed by Republican Rep. Christopher Cox of California. He declares that Clinton's unilateral nuclear disarmament opened the nation's nuclear secrets to the world...."

RED CHINA WAS INVITED TO USE U.S. TECHNOLOGY

"Prather says that Clinton's policy of 'openness' at the U.S. weapons labs 'damages' future national security. The United States let it be known that it never would build another nuclear weapon and 'invited the PRC weapons scientists to come over and check us out.' With millions of pages of secrets made public, there was 'no need to "spy" since the Clinton administration has thrown open the gates.'

"Further, the Prather Report suggests that openness was intended to extract Chinese secrets. If China's scientists picking up openly displayed U.S. secrets after being invited to get them is defined as espionage, 'then the Clinton administration asked U.S. lab scientists to "spy."'"

GOP SEEKS TO DISTINGUISH CLINTON-ERA LOSSES FROM THOSE OF REAGAN AND BUSH

"Prather dismisses highly publicized charges that Taiwan-born Peter Lee, a U.S. scientist employed at the Los Alamos laboratory, stole secrets of the neutron bomb and a miniaturized thermonuclear warhead. Whoever allowed the Cox committee to make these 'ridiculous' allegations, says Prather, 'did so because the alleged spying incident happened on Reagan's, not Clinton's watch.'"

Excerpted from Howard Phillips Issues & Strategy Bulletin of June 15, 1999

RED CHINA DECLARES U.S. TO BE "INTERNATIONAL ARCH ENEMY"

Robert Kagan writes in The New York Times (5/11/99, p. A27) that "Perhaps Beijing is just revealing what it really thinks about the United States. Six years ago, a report prepared by top Chinese foreign and military specialists declared that the United States was China's 'international arch-enemy.' When its military conducts war games, the primary adversary is the United States. When Chinese leaders map out their ambitions -- taking control of Taiwan and becoming the dominant power in East Asia -- they see the United States as the main obstacle. They are right. So far, the United States has insisted on remaining the leading power in East Asia. The Chinese believe their ambitions clash directly with the vital interests of the United States. They're right about that, too.

"Would that we in the United States were as clear-sighted. The Administration believes that if we don't treat China as an enemy, it won't become one. Those who recommend a tougher approach, those who call for containing China's ambitions, are usually accused of creating a self-fulfilling prophecy.

"But what if the prophecy has already been fulfilled?"

Excerpted from Howard Phillips Issues & Strategy Bulletin of May 30, 1999

U.S. GOVERNMENT OK'D $15 BILLION OF MILITARY COMPUTER HARDWARE TO RED CHINA'S PEOPLE'S LIBERATION ARMY

Gary Milhollin, director of the Wisconsin Project on Nuclear Arms Control, and Jordan Richie, senior associate at the project, have written in The New York Times (5/5/99, p. 31) that "Americans are right to be outraged that a suspected Chinese spy may have stolen the computer codes for the entire United States nuclear arsenal. But the loss of this data is only half the story. The other half is about hardware.

"Even after stealing the plan for an advanced warhead, one would need high-performance equipment to manufacture and test its precision parts. Sadly, China is getting those machines from the United States -- and it doesn't even have to steal them."

"DUAL USE" HAS A SINGLE PURPOSE

"A study we recently completed shows that the Commerce Department approved more than $15 billion worth of strategically sensitive exports to China in the last decade. Although supposedly intended for civilian purposes, the department's records show that much of this 'dual-use' equipment went directly to nuclear-missile and military sites, the vertebrae of China's strategic backbone...."

FOR WEALTHY CONTRIBUTORS, TREASON IS GOOD FOR BUSINESS

"More than half of the $15 billion in exports consisted of computers. China had been denied access to high-performance computers until President Clinton loosened computer controls in 1996, after strenuous lobbying by his political supporters in Silicon Valley. Then a flood of computer exports began.

"By now China has imported about 400 high-performance machines, just what would be needed to process the American nuclear codes and simulate the workings of our arsenal. Although China has insisted that these computers were imported for civilian uses, it has refused virtually all requests to let United States officials see what the machines are really doing. ..."

AID AND COMFORT TO OUR FOES IS THE ULTIMATE BETRAYAL

"American equipment was approved for export to the National University of Defense Technology, which helps the People's Liberation Army design advanced weapons; the University of Electronic Science and Technology, which helps develop stealth aircraft and advanced military radar, and the Beijing University of Aeronautics and Astronautics, which helps develop missiles and specializes in guidance, navigation and flight dynamics. ..."

RED CHINA WAS GIVEN THE CAPACITY TO WAGE WAR AGAINST U.S. AND OTHERS

"American companies were also licensed to sell China a great deal of noncomputer equipment that could be used for weaponry. This included $241 million worth of machinery for making special semi-conductors that can go into missiles, torpedoes, smart munitions, fuses and secure communications equipment; $131 million worth of high-speed oscilloscopes, which can record data from nuclear weapon tests, help design nuclear weapon firing circuits and develop missile guidance systems; $111 million worth of high-accuracy machine tools that can produce the precision parts needed for nuclear weapons and long-range missiles, and $5.4 million worth of vibration-testing equipment, which can enable nuclear weapons and missiles to withstand shock, impact and rapid acceleration. ..."

THEIR PRIVATE PROFITS JEOPARDIZE OUR PERSONAL SURVIVAL

"Are high-tech exports so vital that we are willing to help China build a potent nuclear arsenal and the modern missile force to deliver it?"

CHINESE REDS WASTE NO TIME PUTTING U.S. TECHNOLOGY TO WORK

James Risen and Jeff Gerth continue (New York Times, 5/14/99, p. 1) their report on the Chinese theft of U.S. secrets: "China is close to deploying a nuclear missile with a warhead whose design draws on stolen American secrets, United States intelligence officials say.

"A long-range Chinese missile, known as the Dong Feng-31, is being equipped with a small nuclear warhead whose design uses secret American technology....

"According to the assessments, the missile is expected to be deployed within three or four years, giving China what officials believe would be its first warhead designed using secret American technology...."

MOBILE MISSILE CAPABILITY WILL LIMIT U.S. OPTIONS

"American officials believe that the technology suspected of having been stolen for use in the DF-31's warhead will help China achieve its goal of building a modern nuclear arsenal that relies on mobility to evade attacks. The DF-31 will be a truck-based mobile missile that can be moved, thus making it more difficult to detect and destroy. ..."

5,000-MILE RANGE MAKES WEST VULNERABLE TO NUCLEAR BLACKMAIL

"China may soon be using secrets stolen from the United States on weapons capable of a significant range that could include Europe, Asia and possibly the western United States.

"American intelligence assessments say the DF-31 will have a range of approximately 5,000 miles. It is expected to be ready for deployment as early as 2002 or 2003.

"'The DF-31 ICBM will give China a major strike capability that will be difficult to counterattack at any stage of its operation,' a 1996 Air Force intelligence report on the DF-31 stated. 'It will be a significant threat not only to U.S. forces deployed in the Pacific theater, but to portions of the continental United States and to many of our allies.'"

Excerpted from Howard Phillips Issues & Strategy Bulletin of May 15, 1999

CLINTON COVERED UP CHINESE ESPIONAGE

Jeff Gerth and James Risen (New York Times, 5/2/99, p. 1) continue their investigative reporting on the Chinese espionage assault on the Los Alamos nuclear labs and the resulting threat to U.S. security:

A SIX-MONTH DELAY IN ACTING TO DEFEND U.S. SECURITY

"A secret report to top Clinton Administration officials last November warned that China posed an 'acute intelligence threat' to the Government's nuclear weapons laboratories and that computer systems at the labs were being constantly penetrated by outsiders.

"Yet investigators waited until March to search the computer of a scientist at Los Alamos National Laboratory who had been under investigation for nearly three years, suspected of spying for China. And it was not until April that the Energy Department shut down its classified computer systems to impose tighter security over their data.

"Meanwhile, in February, the scientist, Wen Ho Lee, tried to delete evidence that he had improperly transferred more than 1,000 files containing nuclear secrets, officials said."

NERO FIDDLED WHILE ROME BURNED -- CLINTON DIDDLED AS AMERICA GOT SCORCHED

"The classified report contains numerous warnings and specific examples showing that outsiders had gained access to the computer systems at United States weapons labs as recently as June 1998. ...

"The report, the first comprehensive review of its kind, was prepared by United States counterintelligence officials throughout the Government. It confirmed and elaborated on long-standing concerns about the vulnerability of the weapons laboratories to espionage."

WAS IT TREASON OR GROSS NEGLIGENCE?

"The report was distributed to the highest levels of the Government, including Bill Richardson, the Secretary of Energy; William S. Cohen, the Secretary of Defense; Janet Reno, the Attorney General; President Clinton's national security adviser, Samuel R. Berger, and three dozen other senior officials at law enforcement, defense and intelligence agencies. A Government official gave a copy of the report to The New York Times."

CORRECTIVE ACTION NOT TAKEN

"According to the report, the Energy Department recorded 324 attacks on its unclassified computer systems from outside the United States between October 1997 and June 1998, including instances when outsiders successfully gained 'complete access and total control to create, view modify or execute any and all information stored on the system.' ...

"The 25-page counterintelligence report contains many examples of lax security and serious intelligence breaches at the labs that have not been previously disclosed, involving more than a dozen foreign countries.

"Foreign spies 'rightly view D.O.E. as an inviting, diverse and soft target that is easy to access and that employs many who are willing to share information,' the report states. The Energy Department is responsible for building and designing America's nuclear weapons."

CLINTON PLAYS HOST TO RED CHINESE

"China is cited in the report as posing the most serious security threat to the Untied States weapons labs. The report also singles out Russia and India as immediate threats. ...

"'China is an advanced nuclear power yet its nuclear stockpile is deteriorating,' it continued. 'As such, China has specifically targeted D.O.E. for the collection of technical intelligence related to the design of nuclear weapons.' The report concludes, 'This effort has been very successful and Beijing's exploitation of U.S. national laboratories has substantially aided its nuclear weapons program.' ..."

ON WHOSE SIDE IS MR. BERGER?

"In July 1997, Mr. Berger was briefed again. This time, the briefing included evidence that the Chinese were focusing on computer systems at Los Alamos, in particular computer simulations and codes for nuclear weapons, according to one United States official. At about the same time, officials at the Energy Department, the lab and the F.B.I. were all also warned that the Chinese were attempting to gain access to computer systems at Los Alamos....

"In February, Mr. Lee took a second polygraph. This time, officials said, he was asked about his computer use and some of his answers were seen as deceptive. Two days later, apparently aware that investigators were now suspicious about his computer use, Mr. Lee deleted between 1,000 and 2,000 files, officials said.

"Mr. Lee's deletions involved millions of lines of computer codes he had downloaded, mostly in 1994 and 1995, from his classified computer system to an unclassified system. Such unclassified systems at the labs have been successfully attacked by outsiders, according to the 1998 intelligence report....

"[I]nvestigators pored through his computer records, recreated the deleted files and learned that Mr. Lee had downloaded computer data and code that, in effect, were the distillation of more than a half-century of research on how to perfect nuclear weapons, officials said."

COMMUNIST CHINA SETS UP SHOP IN CASTRO'S CUBA

According to China Reform Monitor (no. 201, 5/11/99), published by the American Foreign Policy Council, "The recent meeting between China's Minister of Defense Chi Haotian and his Cuban counterpart Raul Castro, has led to a joint military agreement that threatens the United States, the Orlando Sentinel reports. China has agreed to build a new electronic spying facility and modernize Cuba's satellite tracking base at Jaruco, Cuba. The facility neighbors the large Russian-manned signal intelligence complex at Lourdes, which can monitor U.S. civilian and military telecommunications in an area that covers from California to Europe. Under the agreement, the Chinese will also modernize Castro's telecommunications monitoring base in Havana."

Excerpted from Howard Phillips Issues & Strategy Bulletin of March 31, 1999

SANDY BERGER — FOOL, MONEY-GRUBBER, OR TRAITOR?

Edward Timperlake and William C. Triplett II, authors of Year of the Rat, are probably the leading experts in the United States on the Communist Chinese threat. In a breathtaking article in The Washington Times (3/22/99, p. A19) they point out facts which so many in the media have missed or ignored:

BERGER IS THE ANTI-NATIONAL SECURITY ADVISER

"We believe that, for the national interest, President Clinton's National Security Adviser Samuel Sandy Berger should resign immediately.

"For the past six years, Mr. Berger has presided over a failed and ultimately corrupt policy toward the Chinese military that betrays both the democratic standards of the American people and the national security of the United States. He is the classic example of the wrong person in the wrong job at the wrong time."

BERGER WAS CHIEF WASHINGTON TRADE LOBBYIST FOR RED CHINA

"Right out of the starting gate, Mr. Berger was an unfortunate choice for a national security position with the government because of his prior role as the chief Washington lobbyist for the Chinese government's trade office. Having once had a personal financial stake in the promotion of pro-Beijing policies raises an immediate question of his present judgment and decision-making. If only for appearances, let alone personal ethics, he should have recused himself from anything connected to Beijing and its military ambitions."

BERGER STILL PRIORITIZES RED TRADE OVER U.S. SECURITY

"Instead, Mr. Berger seems to be around whenever, in our opinion, Clinton administration decisions are made that favor People's Republic of China trade ties over American national security interests.

"We now know, for example, it was Mr. Berger who led the charge to repeal export controls on military useful satellites to China. According to White House Documents released to Congress in 1995, as soon as Secretary of State Warren Christopher made his decision to keep controls, Mr. Berger began campaigning from the White House to reverse the decision. In another White House retreat, the Berger decision was reversed three weeks ago when the administration was forced to withdraw an export license for a Hughes spy satellite destined for China."

BERGER SQUASHED ACTION AGAINST HI-TECH TRANSFERS

"We also now know it was Mr. Berger who was deeply involved in saving Bernard Schwartz's Loral Space systems from the bloodhounds at Justice. Even though Mr. Berger's own staff was informed by the State Department that Loral's offenses were serious and knowing...that Loral was likely to be indicted for secret help it gave China's missile program, he recommended going ahead with a presidential waiver. As a result, the leading donor to President Clinton's 1996 re-election campaign is very likely to escape prosecution."

BERGER HELPED DENY, DELAY, DISCREDIT EVIDENCE OF ESPIONAGE

"And we now know Mr. Berger was directly involved in the administration's decision to ignore a successful Chinese penetration of our nuclear weapons labs. Perhaps his judgment was clouded by campaign contributions from American companies eager to do nuclear power deals with Beijing or even more sinister PLA campaign donations."

SECRETS GIVEN TO CHINA KEPT FROM CONGRESS

"Regardless, when the senior leadership of the Executive Department deliberately withholds national security informationfrom [sic] congressional oversight, the very foundation constitutional checks and balances are in jeopardy.

"On Mr. Berger's watch, Chinese intelligence carried out a massive and successful penetration of the White House itself. A number of persons identified by the CIA as associates of Chinese intelligence poured millions of dollars in illegal campaign funds into the 1996 Clinton-Gore re-election effort. The Riady family of Indonesia, criminal syndicate figure Ng Lapsing, convicted entrepreneur Johnny Chung, fugitive businessman Ted Sieong and indicted Democratic fund-raiser Maria Hsia all had such connections, all were major donors and collectively, they had hundreds of contacts with the White House, President Clinton or Vice President Al Gore."

RED CHINESE BOUGHT INFLUENCE WITH CLINTON-GORE-BERGER

"On Mr. Berger's watch, American anti-proliferation laws have not been applied to Chinese military companies when illegal campaign contributions to Clinton-Gore were part of the mix. High-ranking Chinese military spy and arms dealer Liu Chaoying laundered hundreds of thousands of dollars into the 1996 campaign, all the while secretly selling cruise missiles to Iran. We have known who she is and what she does for a long time. There is no legitimate justification for the administration's failure to enforce the Gore-McCain Act against her activities."

WHITEWASHING CHINESE REDS BLOODY FINGERS

"On Mr. Berger's watch, the Clinton administration inaugurated a program of rehabilitation for Chinese generals who have the blood of Chinese young people on their hands. As near as we can determine, at least six People's Liberation Army general officers with personal command and control responsibility for the 1989 [Tiananmen] Square massacre have received the royal treatment in Washington. Nearly all this occurred in secret.

"On Mr. Berger's watch, Chinese military elements have occupied strategic islands hundreds of miles off the China coast. These military outposts sit astride shipping lanes in which all of Japan's energy needs are transported. The administration response has been one of attempting to interfere with legitimate congressional oversight to minimize the American people's knowledge of this emerging threat."

BERGER DEFENDS RED CHINA BEACHHEADS AT PANAMA LONG BEACH

"Finally, in a preview of the infamous definition of what is is, Mr. Berger told the Congress in 1997 there is no credible evidence COSCO (the China Ocean Shipping Co.) is engaged in a host of illegal activities, including arms smuggling. This misleading and dishonest statement completely ignores COSCO's pivotal role as the delivery boys for China's arms merchants. COSCO is on the record having delivered missiles to trouble spots and 2,000 fully automatic machine guns destined for drug gangs in the United States.

"On Mr. Berger's watch, America has been placed in greater jeopardy than when he took the oath of office. He has severely compromised our safety, and no excuse can hide the fact he did it with his eyes wide open. He must resign now."

Excerpted from Howard Phillips Issues & Strategy Bulletin of March 15, 1999

RED CHINA MAKES "GREAT LEAP FORWARD" IN ITS ABILITY TO COERCE U.S.

James Risen and Jeff Gerth, writing for The New York Times (3/6/99, p. 1), have broken a story of Chinese nuclear espionage, starting in the 1980's, at the Los Alamos National Laboratory in New Mexico. The Times reported that "Working with nuclear secrets stolen from an American Government laboratory, China has made a leap in the development of nuclear weapons: the miniaturization of its bombs...."

TRANSFER OF NUCLEAR SECRETS LETS BEIJING "MIRV" ITS MISSILES

"Until recently, China's nuclear weapons designs were a generation behind those of the United States, largely because Beijing was unable to produce small warheads that could be launched from a single missile at multiple targets and form the backbone of a modern nuclear force."

TREASON IN THE 1980'S, DETECTED IN 1995, ACTED UPON IN 1999

"But by the mid-1990's, China had built and tested such small bombs, a breakthrough that officials say was accelerated by the theft of American nuclear secrets from Los Alamos National Laboratory in New Mexico.

"The espionage is believed to have occurred in the mid-1980's, officials said. But it was not detected until 1995, when Americans analyzing Chinese nuclear test results found similarities to America's most advanced miniature warhead, the W-88...."

CLINTON'S "STRATEGIC PARTNERSHIP" WITH BEIJING CONTRIBUTED TO COVER-UP

"The White House was told of the full extent of China's spying in the summer of 1997, just before the first American-Chinese summit meeting in eight years — a meeting intended to dramatize the success of President Clinton's efforts to improve relations with Beijing....

"[S]ome American officials assert that the White House sought to minimize the espionage issue for policy reasons.

"‘This conflicted with their China policy,’ said an American official, who like many others in this article spoke on condition of anonymity. ‘It undercut the Administration's efforts to have a strategic partnership with the Chinese.’..."

THE TRUTH OF ESPIONAGE WAS AN INCONVENIENT FACT

"The New York Times reveals that throughout the Government, the response to the nuclear theft was plagued by delays, inaction and skepticism — even though senior intelligence officials regarded it as one of the most damaging spy cases in recent history."

FBI DID NOT PROMPTLY INVESTIGATE

"Initially the Federal Bureau of Investigation did not aggressively pursue the criminal investigation of lab theft, American officials said. Now, nearly three years later, no arrests have been made...."

ENERGY DEPARTMENT STALLED

"At the Energy Department, officials waited more than a year to act on the F.B.I.'s 1997 recommendations to improve security at the weapons laboratories and restrict the suspect's access to classified information, officials said."

COVER-UP OF TREASON WAS ORDERED

"The department's chief of intelligence, who raised the first alarm about the case in 1995, was ordered last year by senior officials not to tell Congress about his finding because critics might use them to attack the Administration's China policies, officials said.

"And at the White House, senior aides to Mr. Clinton fostered a skeptical view of the evidence of Chinese espionage and its significance."

CLINTON'S TECHNOLOGY TRANSFERS TO CHINESE REDS WERE INCREASED

"White House officials, for example, said they determined on learning of it that the Chinese spying would have no bearing on the Administration's dealings with China, which included the increased exports of satellites and other militarily useful items.

"They continued to advocate looser controls over sales of supercomputers and other equipment, even as intelligence analysts documented the scope of China's espionage...."

A "COVER STORY" TO AID THE "COVER-UP"

"In 1997, as Mr. Clinton prepared to meet with President Jiang Zemin of China, [senior National Security Council official Gary] Samore asked the Central Intelligence Agency for a quick alternative analysis of the issue. The agency found that China had stolen secrets from Los Alamos but differed with the Energy Department over the significance of the spying...."

THE THREAT IS REAL

"China's technical advance allows it to make small warheads for use in submarines, mobile missiles and long-range missiles with multiple warheads — the main elements of a modern nuclear force.

"While White House officials question whether China will actually deploy a more advanced nuclear force soon, they acknowledge that Beijing has made plans to do so at some point...."

AN "OPEN DOOR" POLICY FOR COMMUNIST SPIES

"The Clinton Administration was also using increased access to the laboratories to support its policy of engagement with China, as had been done under previous, Republican Administrations.

"In December 1996...China's Defense Minister, Gen. Chi Haotian, visited Sandia [National Laboratories] on a Pentagon-sponsored trip. Energy Department officials were not told in advance, and they later complained that General Chi and his delegation had not received proper clearances, officials said....

"By April 1996, the Energy Debarment decided to brief the White House. A group of senior officials including [Energy Department intelligence official Notra] Trulock [who first raised questions about the Los Alamos case] sat down with [Sandy] Berger, then President Clinton's deputy national security adviser, to tell him that China appeared to have acquired the W-88 and that a spy for China might still be at Los Alamos...."

DERIDE, DIVERT, AND DELAY EXPOSING TREASON OUT OF SEASON

"By June the F.B.I. formally opened a criminal investigation....When Energy officials asked at the end of 1996, they came away convinced that the bureau had assigned few resources to the case....

"After Federico Peña became Energy Secretary in early 1997, a previously approved counterintelligence program was quietly placed on the back burner for more than a year, officials said....

"‘In July 1997 Sandy [Berger] was briefed fully by the D.O.E. on China's full access to nuclear weapons designs, a much broader pattern,’ one White House official said....Congress was examining the role of foreign money in the 1996 campaign, as charges emerged that Beijing had secretly funneled money into Democratic coffers.

"The Administration was also moving to strengthen its strategic and commercial links with China in 1997. President Clinton had already eased the commercial sale of supercomputers and satellite technology, and he wanted to cement a nuclear cooperation accord at the upcoming summit meeting, enabling American companies to sell China commercial nuclear reactors...."

WHY DID THEY FAIL TO FIRE THE SPY?

"[E]ven if the bureau could not build a case, Energy could still take some action against someone holding an American security clearance. [F.B.I. Director Louis] Freeh told Energy officials that there was no longer an investigative reason to allow the suspect to remain in his sensitive position, officials said.

"But the suspect was allowed to keep his job and retain his security clearances for more than a year after the meeting with Mr. Freeh, according to American officials...."

CONGRESS FAILED TO DO ITS DUTY — AND CLINTON REFUSED TO COOPERATE

"The Administration explained aspects of the case to aides working for the House and Senate intelligence committees beginning in 1996. But few in Congress grasped the magnitude of what had happened.

"In July 1998, the House Intelligence Committee requested an update on the case, officials said. Mr. Trulock forwarded the request in a memo to and in conversations with Elizabeth Moler, then Acting Energy Secretary. Ms. Moler ordered him not to brief the House panel for fear that the information would be used to attack the President's China policy, according to an account he later gave to Congressional investigators....

"Meanwhile, Mr. Trulock has been moved from head of Energy's intelligence office to its acting deputy. While [Secretary of Energy Bill] Richardson and other Energy officials praise his work and deny that he has been mistreated, some in Congress suspect that he has been demoted because he helped the Cox committee.

"[Paul] Redmond, the C.I.A.'s former counter-intelligence chief, who made his name by unmasking the Soviet spy Aldrich Ames, says he has no doubts about the significance [of] Mr. Trulock's discoveries.

"As he put it, ‘This was far more damaging to the national security than Aldrich Ames.’"

IT'S AN OLD STORY

The Times followed up in their Sunday edition (3/7/99, p. 11) with a report that "In December 1997, a 58-year-old physicist, Peter Lee, admitted in a plea bargain agreement that in 1985 he gave China classified information involving the use of lasers to simulate nuclear detonations.

"Former officials of the Bush and Reagan Administrations say that, in retrospect, the Government was remarkably lax about lab security in the 1980's, even during the Reagan Administration's arms buildup.

"‘It is quite clear now that things were far too casual,’ James R. Lilley, the Ambassador to China from 1989 to 1991 and then a senior Defense Department official, said in an interview today. Mr. Lilley, who for years served as one of the Central Intelligence Agency's top operatives in Asia, including in China, said: ‘This has been going on for a long, long time. We had Ministry of State [Security] defectors and other Chinese who became agents, and they made it clear that this was a top priority of their industrial and intelligence apparatus.’"

WHY ISN'T TREASON GROUNDS FOR IMPEACHMENT?

William Safire writes (New York Times, 3/8/99, p. A19) that "Throughout the 1996 Clinton campaign for President, China's agents of influence had the run of the White House as they raised millions for the Clinton campaign. Chinese military intelligence officials were waved in without clearance. U.S. executives contributed megabucks as they lobbied for easier approval of sales of sensitive technology to Beijing."

A CALCULATED, CALIBRATED COVER-UP AND STALL

"In the midst of this — in April of 1996 — a Department of Energy official informed President Clinton's deputy national security adviser, Samuel Berger, (1) that China had probably stolen our secrets of making warheads small enough to enable long-range missiles to pack multiple nuclear punches, and (2) that the suspected spy was still at work in the Los Alamos laboratory in New Mexico.

"Mr. Berger, who sat in on most of the political meetings with Clinton's Asian fund-raisers, did nothing. The internal security division of the Department of Justice apparently did not ask a court for wiretap authority under the Foreign Intelligence Surveillance Act. At Reno Justice, investigating any Chinese penetration is a no-no.

"Over one year later, after news stories and columns about Clinton's ‘Asian connection’ had stimulated law enforcement officials and a Senate committee to bestir themselves, F.B.I. Director Louis Freeh and Director of Central Intelligence George Tenet went to the office of Energy Secretary Federico Peña. ‘Louis and George read him the riot act,’ a meeting participant tells me, ‘about lax security at Los Alamos.’...

"For months, the House select committee has been negotiating with the Clinton Secrecy Brigade to declassify most of its 700-page report. The White House hopes to delay clearance until the select committee goes out of business in April, when criticism of the espionage defeat and its Clinton cover-up could be diffused and buried."

CLINTON AND CREW BETRAYED OUR COUNTRY

"But Berger did not reckon with the journalistic enterprise of The Times's James Risen and Jeff Gerth. Their story on Saturday was headlined ‘China Stole Nuclear Secrets for Bombs, U.S. Aides Say’ and subheaded ‘Espionage Case at New Mexico Lab Is Said to Be Minimized by the White House.’

"They show how the theft of our nuclear secrets enabled China to leap a generation ahead with warheads that can be launched from under water....Now we're getting to the nub of it. Yanked to a complete turnabout on trade policy with China by the Riady family and other heavy campaign contributors in the satellite and computer businesses, Clinton didn't want Congress — empowered by law with oversight of intelligence — to know what the F.B.I., C.I.A. and D.O.E. suspected about China's spy in Los Alamos."

WILL THE TRAITORS BE HELD ACCOUNTABLE?

"Although aware of the dangerous spying, Clinton still insisted that regulation of the transfer of sensitive technology be controlled by his sell-'em-anything Commerce Department.

"He delivered for China. Will Congress now protect the interests of the United States?"

Excerpted from Howard Phillips Issues & Strategy Bulletin of January 31, 1999

COX COMMITTEE TAKES A DIVE ON U.S. BUSINESS'S TREASONOUS BETRAYAL OF U.S. NATIONAL SECURITY INTERESTS TO PROFIT FROM TRADE WITH RED CHINA

You'll have to ask Congressman Chris Cox (R-Calif.), Chairman of the House of Representatives China Commission, why no one is being held accountable for the turnover of American defense assets and military secrets to the People's Liberation Army of Communist China.

Perhaps it's because both the Bush and Clinton administrations each are guilty of facilitating such transfers.

Perhaps it's because both Republicans and Democrats have benefited from campaign contributions by U.S. corporations doing business with Red China.

Perhaps there's some other reason about which it would possibly be unfair to speculate.

"TUT-TUT" FOR TREASON ISN'T ENOUGH

But the reality is that Mr. Cox and his colleagues have issued a largely irrelevant "tut-tut", when, in fact, a few treason trials would seem to be more appropriate.

As reported by The Wall Street Journal (2/2/99, p. A6), a "special House committee on high-technology trade with China is calling for tighter controls on exports of supercomputers, greater security at U.S. nuclear weapons labs and stricter monitoring of foreign investment in defense-related industries.

"The classified committee report, according to U.S. officials, details a 20-year effort by China through trade and espionage to acquire U.S. nuclear secrets and other sensitive technologies. Even so, the committee's recommendations are far less sweeping than many high-tech companies feared when the panel, whose chairman is Republican Christopher Cox of California, began its work last year...."

BIPARTISAN SUPPORT REQUIRED LOWEST COMMON DENOMINATOR RECOMMENDATIONS

"Redacted from the recommendations was information on China's acquisition from U.S. weapons labs of sensitive nuclear-design information, including critical design secrets for the most modern U.S. warhead.

"The tone of the bipartisan findings is remarkably nonaccusatory — in large part because some of the worst violations occurred long before President Clinton took office and under both Democratic and Republican administrations."

WANTED: SHERLOCK HOLMES TO REPLACE INSPECTOR CLOUSEAU

"Congress seized on concerns about China acquiring U.S. technology for military purposes following reports that two U.S. satellite makers — Loral Space & Communications Co. and Hughes Electronics Corp. — may have helped China improve its missiles' reliability in helping analyze the explosion of two rockets carrying U.S. satellites. Initially, lawmakers focused on whether the Clinton administration relaxed scrutiny of exports to China as a result of campaign contributions, but the Cox committee investigation apparently found little evidence of that."

COX & CO. SUBMIT TO CORPORATE BOSSES WHO PROFIT FROM TRADING WITH THE ENEMY

"The panel's report largely refrains from specific calls for new procedures for government licensing of sensitive technologies with military uses, such as machine tools and encryption software. Indeed, the lawmakers seem at times to go out of their way to reassure U.S. business that, despite calls for tougher scrutiny of high-tech sales, they don't favor more cumbersome licensing procedures that could cost sales.

"The report falls back on calling for strengthening of international agreements aimed at controlling the export of weapons and militarily sensitive technology."

A LIMP-WRISTED SLAP IS THE BEST THEY COULD DO

"In one of its toughest recommendations, the report calls for reduction or a cutoff in sales of high-speed computers to China if Beijing refuses to accept surprise inspections to verify the computers' end users."

Excerpted from Howard Phillips Issues & Strategy Bulletin of December 15, 1998

TECHNOLOGY TRANSFER TO RED CHINA IS TREASON

The Wall Street Journal (11/27/98, p. A12) reports that "Michael Maloof is convinced China's military is grabbing sophisticated U.S. technology. His bosses at the Pentagon insist he is crying wolf...."

BEIJING BUILDUP IS MAJOR THREAT TO U.S. DEFENSES

"He considers Beijing's modernizing armed forces the U.S. military's next major threat. But administration officials portray the 55-year-old career Defense Department aide as a Cold War throwback who can't reconcile himself to the inevitable easing of export controls."

HUGHES ELECTRONICS KNEW WHAT IT WAS DOING — AND SO DID CLINTONISTAS

"Mr. Maloof, a manager in the Pentagon's Defense Technology Security Administration since 1986....is becoming a major headache for Hughes Electronics Corp., which he accuses of knowingly assisting the People's Liberation Army...

"In 1993, the Clinton administration eased licensing requirements for products — such as high-speed computers, telecommunications equipment and machine tools...."

WHICH SHOULD COME FIRST: COMMERCE OR DEFENSE?

"The export control system is now dominated by Commerce Department officials....For years, the DTSA was the influential voice of the Defense Department in export policy decisions. Now longtime staffers say their role in the process has been downgraded....The Pentagon even changed the agency's name recently to the Technology Security Directorate."

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