Posted on 07/22/2007 2:02:07 PM PDT by OrthodoxPresbyterian
Administration Poised to Subsidize China’s Nuclear Industry
by Timothy P. Carney
A Japanese-owned company is building nuclear power plants for Communist China, and the Bush administration is ready to use U.S. taxpayer dollars to subsidize the deal to the tune of $5 billion. Although China’s government-owned nuclear industry has a long record of illegal nuclear deals with Iran and Pakistan, administration officials say the technology is not transferable to nuclear weapons, and that the subsidy will create 5,000 jobs in Pennsylvania.
The Export-Import Bank of the United States (Ex-Im) is a federal agency that subsidizes U.S. exports by lending taxpayer money to foreign buyers (such as the Chinese government), or guaranteeing private loans, so that the foreign buyer can purchase U.S. goods.
Westinghouse Electric is a wholly owned subsidiary of the Japanese company Toshiba. Westinghouse manufactures the AP 1000 -- a new model of nuclear power generator -- in Monroeville, Pa.
In February 2005, Ex-Im’s board of directors granted preliminary approval for a $5 billion subsidy -- an unspecified combination of loans and guarantees -- to the China National Nuclear Corporation (CNNC) as a way of aiding Westinghouse’s bid for the contract (a French company and a Russian company were also competing for the contract.)
This year, the Chinese government awarded the contract to Westinghouse, bringing the record subsidy closer to reality, although the preliminary approval does not guarantee Ex-Im will provide financing. A Westinghouse spokesman told HUMAN EVENTS the company was in the process of applying for Ex-Im financing. Ex-Im spokesman Phil Cogan told HUMAN EVENTS that while a preliminary commitment is by no means a promise by Ex-Im, it indicates that “this is the kind of thing” Ex-Im would subsidize.
Congressional critics from both ends of the spectrum, including Senator Bernie Sanders (I.-Vt.) and Republican Representatives Ron Paul (Tex.), Jeff Fortenberry (Neb.), and Ed Royce (Calif.), have resisted this deal.
For the critics, the deal is problematic on at least three fronts. First, China’s state-owned nuclear industry has a long history of illegal nuclear weapons proliferation, and this subsidy enriches that very industry. Second, some of the jobs generated by this record subsidy deal will not be in the U.S. Finally, aiding China’s nuclear power industry could boost its military capabilities including its nuclear submarine programs.
Rewarding Proliferators
The CNNC is the branch of the Chinese government that manages both nuclear weapons and nuclear power. In recent months, CNNC and other state agencies founded the State Nuclear Power Technology Company (SNPTC). SNPTC, entirely owned by the Chinese government, is now the official purchaser of the nuclear reactors from Westinghouse.
CNNC is a known serial proliferator of nuclear weapons materials. In the late 1990s, U.S. intelligence agencies found that the CNNC had sold 5,000 ring magnets to Pakistan’s A.Q. Khan Research Laboratory. Later, the CIA found that the CNNC sold Pakistan high-temperature furnaces. Both the furnaces and the ring magnets are crucial tools used in enriching uranium to produce fissionable -- i.e., weapons grade -- uranium. Shortly after these sales, Pakistan tested its first nuclear weapon.
In 2004, A.Q. Khan, the Pakistani scientist on the buying end of the CNNC’s sales, was arrested for selling centrifuge materials to Libya. Khan is also known to have aided the nuclear weapons programs of North Korea and Iran. CNNC has, on at least two occasions, had dealings with Iran’s nuclear weapons program, but it is not clear if China has ever actually executed a sale of nuclear weapons materials to Iran.
American Jobs?
Westinghouse and Ex-Im officials have defended this subsidy by pointing out that without it, China would still build the nuclear power plants, but in collaboration with the Russians or the French. By greasing the skids for the Westinghouse contract with its preliminary commitment in 2005, Ex-Im has helped make work for 5,000 manufacturing workers in Monroeville, Pa. In April, however, Westinghouse announced that portions of the power plants would be built in South Korea and other parts in China. Ex-Im cannot finance an export unless most of the goods are made in the U.S.
Westinghouse and the Bush administration point out, however, that if these cutting-edge reactors do well in China, it would spur domestic and world-wide business for Westinghouse, making more jobs in Pennsylvania.
Helping China’s Military?
In late May, Representatives Christopher Smith (R.-N.J.), Diane Watson (D.-Calif.), Fortenberry, and Royce, asked Secretary of Defense Robert Gates in a letter whether the sale could boost China’s military capabilities.
Henry Sokolski, executive director of the Nonproliferation Policy Education Center said that there are reasons to worry about providing China with this technology. “You’re building an infrastructure that can be used and retooled to help out in [China’s] naval reactor sector -- and they do want this for nuclear subs,” the Christian Science Monitor quoted Sokolski.
Last year, during the debate on reauthorizing Ex-Im, the House passed by a 331-to-114 vote an amendment by Representatives Paul and Sanders that would have blocked a subsidy for this deal. The measure, however, was not in the final bill.
As of Tuesday morning, Ex-Im had not yet received an application from Westinghouse or any of its partners with regard to the sale. Sanders, Paul, or Fortenberry will likely act once Ex-Im receives the application, and possibly hold hearings on the deal, which would be the largest subsidy in Ex-Im history.
great points.
as he gets more and more popular, the more the media and the establishment will try to tear him down.
i supported w twice like i did his pop. the first cast i voted for prez was reagan.
time for us all to drop the name callings and dividing the country and concentrate on who really is sticking it to us and do something about it.
Kneepads??? Are you one of Ron Paul’s Gay supporters?
Is it the same cranks and weirdos or is this cult breaking out into a wider audience of True Believers.
It’s like talking to people in a cult. I cannot believe they’re this devout about the man who is either a tool of the Left or simply a naive to the point of not realizing that ideas have consequences.
He won’t even be president, so what type he’ll be is irrelevant. How would you get the majority of Americans to vote for him? You realize that’s required, don’t you?
Ron Paul enjoys significant Independent and even libertarian-leaning Democrat cross-over support. I don't see many of the other GOP candidates drawing that sort of support from "across the fence".
What would a number be that is significant? Enough to get Hillary elected? I am so reminded of Perot when I hear this stuff that I really hope people can remember the baleful effect that that enthusiasm led to.
Except that Paul is not running Third Party. He is running as a Republican. Obviously, any Republican candidate should hope to get Independent and even Democrat cross-over support.
Facts don't matter to the Paul bashers.
From dope smokers, anti-Semites, Gays, anarchists, anti-defense Liberals and Conservatives, radical isolationists, and others? Come on. America isn’t perfect, but it’s not time to throw in the towel, get stoned, and turn the world over to the Islamists Nazis abroad and the skin heads at home. Libertarianism that leads to anti-Americanism is no virtue.
Heh, sorry, wrong thread!
Doesn't matter, he's already accomplished one of his goals - addressing the need to maintain our Constitution and our sovereignty. And big government.
If Paul goes deep in the primaries, the other candidates will have no choice but to address some of his ideas. And Paul has a huge cross-section of voters, lots of independents out there. People who were disgusted with the political process or never paid attention to politics are now supporting him.
His legacy is already sealed. Paul is already one of the most honorable Congressmen of all time.
So was Bill Clinton.
How would a vote for Paul get Hillary elected? Or do you know so little that you don't even realize he is running in the GOP primary?
Agreed. Not necessarily something to be proud.
Are you kidding. He has total cross-over appeal. Both the right and the left are supporting Paul.
Paul will go deep in the primaries and he'll force the leading GOP candidates to acknowledge the real issues.
Well, I’m done discussing this. I don’t think he’s going to win a single state. If I’m wrong, you can remind me of it.
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