Skip to comments.(RON PAUL opposes) Administration Plan to Subsidize China’s Nuclear Industry
Posted on 07/22/2007 2:02:07 PM PDT by OrthodoxPresbyterian
Administration Poised to Subsidize Chinas Nuclear Industry
by Timothy P. Carney
A Japanese-owned company is building nuclear power plants for Communist China, and the Bush administration is ready to use U.S. taxpayer dollars to subsidize the deal to the tune of $5 billion. Although Chinas government-owned nuclear industry has a long record of illegal nuclear deals with Iran and Pakistan, administration officials say the technology is not transferable to nuclear weapons, and that the subsidy will create 5,000 jobs in Pennsylvania.
The Export-Import Bank of the United States (Ex-Im) is a federal agency that subsidizes U.S. exports by lending taxpayer money to foreign buyers (such as the Chinese government), or guaranteeing private loans, so that the foreign buyer can purchase U.S. goods.
Westinghouse Electric is a wholly owned subsidiary of the Japanese company Toshiba. Westinghouse manufactures the AP 1000 -- a new model of nuclear power generator -- in Monroeville, Pa.
In February 2005, Ex-Ims board of directors granted preliminary approval for a $5 billion subsidy -- an unspecified combination of loans and guarantees -- to the China National Nuclear Corporation (CNNC) as a way of aiding Westinghouses bid for the contract (a French company and a Russian company were also competing for the contract.)
This year, the Chinese government awarded the contract to Westinghouse, bringing the record subsidy closer to reality, although the preliminary approval does not guarantee Ex-Im will provide financing. A Westinghouse spokesman told HUMAN EVENTS the company was in the process of applying for Ex-Im financing. Ex-Im spokesman Phil Cogan told HUMAN EVENTS that while a preliminary commitment is by no means a promise by Ex-Im, it indicates that this is the kind of thing Ex-Im would subsidize.
Congressional critics from both ends of the spectrum, including Senator Bernie Sanders (I.-Vt.) and Republican Representatives Ron Paul (Tex.), Jeff Fortenberry (Neb.), and Ed Royce (Calif.), have resisted this deal.
For the critics, the deal is problematic on at least three fronts. First, Chinas state-owned nuclear industry has a long history of illegal nuclear weapons proliferation, and this subsidy enriches that very industry. Second, some of the jobs generated by this record subsidy deal will not be in the U.S. Finally, aiding Chinas nuclear power industry could boost its military capabilities including its nuclear submarine programs.
The CNNC is the branch of the Chinese government that manages both nuclear weapons and nuclear power. In recent months, CNNC and other state agencies founded the State Nuclear Power Technology Company (SNPTC). SNPTC, entirely owned by the Chinese government, is now the official purchaser of the nuclear reactors from Westinghouse.
CNNC is a known serial proliferator of nuclear weapons materials. In the late 1990s, U.S. intelligence agencies found that the CNNC had sold 5,000 ring magnets to Pakistans A.Q. Khan Research Laboratory. Later, the CIA found that the CNNC sold Pakistan high-temperature furnaces. Both the furnaces and the ring magnets are crucial tools used in enriching uranium to produce fissionable -- i.e., weapons grade -- uranium. Shortly after these sales, Pakistan tested its first nuclear weapon.
In 2004, A.Q. Khan, the Pakistani scientist on the buying end of the CNNCs sales, was arrested for selling centrifuge materials to Libya. Khan is also known to have aided the nuclear weapons programs of North Korea and Iran. CNNC has, on at least two occasions, had dealings with Irans nuclear weapons program, but it is not clear if China has ever actually executed a sale of nuclear weapons materials to Iran.
Westinghouse and Ex-Im officials have defended this subsidy by pointing out that without it, China would still build the nuclear power plants, but in collaboration with the Russians or the French. By greasing the skids for the Westinghouse contract with its preliminary commitment in 2005, Ex-Im has helped make work for 5,000 manufacturing workers in Monroeville, Pa. In April, however, Westinghouse announced that portions of the power plants would be built in South Korea and other parts in China. Ex-Im cannot finance an export unless most of the goods are made in the U.S.
Westinghouse and the Bush administration point out, however, that if these cutting-edge reactors do well in China, it would spur domestic and world-wide business for Westinghouse, making more jobs in Pennsylvania.
Helping Chinas Military?
In late May, Representatives Christopher Smith (R.-N.J.), Diane Watson (D.-Calif.), Fortenberry, and Royce, asked Secretary of Defense Robert Gates in a letter whether the sale could boost Chinas military capabilities.
Henry Sokolski, executive director of the Nonproliferation Policy Education Center said that there are reasons to worry about providing China with this technology. Youre building an infrastructure that can be used and retooled to help out in [Chinas] naval reactor sector -- and they do want this for nuclear subs, the Christian Science Monitor quoted Sokolski.
Last year, during the debate on reauthorizing Ex-Im, the House passed by a 331-to-114 vote an amendment by Representatives Paul and Sanders that would have blocked a subsidy for this deal. The measure, however, was not in the final bill.
As of Tuesday morning, Ex-Im had not yet received an application from Westinghouse or any of its partners with regard to the sale. Sanders, Paul, or Fortenberry will likely act once Ex-Im receives the application, and possibly hold hearings on the deal, which would be the largest subsidy in Ex-Im history.
Your kneepad's are showing, no shame. Your problem isn't with Dr. Paul at all. This attack would have been warranted should this had been(enter your favorite target here), at least in your eyes. Blackbird.
Sorry Ron, but I could never support the closing of the Gitmo detention facilities at this time. I see no purpose in continuing listening to you and your positions any further.
The U.S. subsidizing Red China's acquisition of advanced nuclear technology is an astonishingly silly waste of taxpayer money. We have to borrow money every year to run our government as it is; thinking part of that money that is borrowed is going to the PRC acquiring more nuclear technology is bad enough, but when you consider that Red China is currently lending money to our government, that really takes the cake.
We will be paying the Red Chinese to take the reactors; the money that we are using to pay is borrowed in part from Red China; and we are going to pay interest on that money forever!
Red China has plenty enough dollars to finance this technology. My goodness, they are trying out to figure out how to invest the $1.2 trillion that they have sitting around presently, and have used a small fraction of that to buy into the Blackstone Group (a Carlyle enterprise, by the by; I have left an accompanying Japanese translation in):
China to invest in U.S. private equity group
by Andrew Ross Sorkin and David Barboza
IH：May 20, 2007
NEW YORK: The Chinese government said Sunday that it would acquire a $3 billion stake in Blackstone Group, the private equity firm, in the first effort by Beijing to diversify its $1.2 trillion in foreign exchange reserves beyond U.S. Treasury bills and into commercial enterprise.
The deal, set to coincide with Blackstone's $4 billion initial public offering this year, will give China a roughly 8 percent stake in Blackstone, which owns companies with 375,000 employees and $83 billion in annual sales.
It would also represent a watershed for the booming private equity industry as it attempts to gain a foothold in China.
"It's a historic change," Stephen Schwarzman, co-founder of Blackstone, said during an interview. "It's a paradigm shift in global capital flows."
「歴史的変化だ」 とブラックストーンの共同創立者スティーヴン・シュワルツマンがインタビューの中で言った。 「グローバル・キャピタル・フローのパラダイム・シフトだ」。
He called the Chinese government's decision "huge" and even "surprising."
China has been grappling with how to invest its foreign reserves more aggressively. In March, China said that it would set up a special investment vehicle - the State Foreign Exchange Investment Company - to handle a portion of those reserves, which are now held by the central bank, in the hopes of earning a higher return for the country.
The agency is not yet operating, but the Blackstone deal suggests that the Chinese government is eager to put its vast reserves to work outside of China. Still, as Blackstone begins to invest in emerging markets like China, the deal offers the prospect that at least some of the money could find its way back to China. Indeed, Blackstone is planning to open offices in Hong Kong and Beijing this year.
この期間は未だ稼動していないが、ブラックストーンとの合意は、中国政府は莫大な外貨準備に中国国外で稼がせたがっている事を示唆している。 しかし、ブラックストーンが中国のような新興市場で投資を開始する中、この取り決めは、少なくともこの資金の一部は中国へ還流出来る、という可能性を提供している。 確かに、ブラックストーンは今年、香港と北京事務所の開設を計画している。
For years, China has invested in foreign currency, particularly U.S. Treasury bonds, which have earned a safe but modest return. But now, with the dollar in decline and the Chinese government willing to take on more risk to earn higher returns, the new agency is being modeled, in part, on Temasek Holdings, the state-owned investment vehicle in Singapore, which has invested billions of dollars around the world, particularly in China.
A similar investment agency in China would effectively create the world's largest hedge fund. Some analysts say that the China fund's investment of billions of dollars in the global financial markets could push global asset prices higher, affecting U.S. and European stocks, bonds and interest rates, as well as the value of energy and natural resources in Africa and the Middle East.
Meanwhile, the Blackstone Group, which is based in New York, has been moving aggressively in recent months to find investments in China. Blackstone is trying to catch up to the Carlyle Group, which has a large operation in China.
In January, Blackstone hired Anthony Leung, the former Hong Kong financial secretary, to run its business in China, Hong Kong and Taiwan. And last month, Reuters reported that Blackstone was seeking to acquire a stake in the Guofeng Group, one of the largest Chinese makers of plastic products.
1月、ブラックストーンは中国、香港、台湾でのビジネス運営用に、Anthony Leung元香港財務長官を採用した。 そして先月、ブラックストーンは、中国最大のプラスティック・メーカーの一つであるGuofengグループの株式を取得しようとしている、とロイター通信が伝えた。
Under the terms of the Chinese government investment in Blackstone, it will buy nonvoting shares as part of the firm's initial public offering at 95.5 percent of the public-offering price. It has agreed to keep its stake for at least four years.
China may reduce its stake after the public offering so that it holds fewer than 10 percent of Blackstone shares. The public offering is expected to value Blackstone at as much as $40 billion.
While the investment may presage further Chinese investment in private equity firms in the future, China has promised not to invest in a competing private equity firm for a year.
Blackstone - which has led multibillion-dollar buyouts of Equity Office Properties, Freescale Semiconductor and Michaels Stores - manages a $15.6 billion buyout fund. In its prospectus, it reported $2.3 billion in profit in 2006.
Equity Office Properties、Freescale Semiconductor、そしてMichaels Storesの、数十億ドル規模の乗っ取りを率いたブラックストーンは、$156億相当の乗っ取りファンドを管理している。 目論見書によれば、2006年の利益は$23億との事。
I disagree with him on a minor point.
I don't even agree with myself 100%
Maybe if you were a Southern Baptist instead of just a "grandchild" of a few, you would be able to tell the difference between a Christian Patriot prayer for our President and a pagan prayer to a lesser deity.NYT: Ron Paul for President... of the 'Wackos'? [Birchers, Israel-Haters, etc.], #449
An “irrationality of Middle Eastern politics” bump!
You mean back to US, the people they stole it from to begin with? I think Dr. Paul could be persuaded. Blackbird.
immigration, bush for, paul against,
north american union, the destruction of us sovernignty, bush for, paul against
federal reserve, a private banking institution, bush for, paul against
income tax, bush for, paul against.
giving us tax payer money to one of the best economies in the world, china, bush for, paul against
despite some of the other things paul may say, he really is against a lot of things most freepers are against.
as ltc said in apocalypse” one day this war is going to end..” than it will be too late to deal with these other issues.
someone delcared war on the american tax payer and forgot to tell us.
Enough of kissing China’s butt.
Answer your own question. Ask someone who might know. You are no doubt sleuth enough to find RP’s office phone or this mag’s contact info.
If the charge is serious (and it seems to be making you all a-quiver), then do some digging, sherlock.
But please also find the column where RP expresses any crpyto-neo-mystico ideas (I love the adjectives you use - I thought only college campus liberals called anyone crytpo- anything.) I suspect you, with your obsession with this idea, have a crytpo subliminal RP fetish. Just give in.
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.
I see. The way you said it earlier it looked to me like you thought he was running 3rd party. My mistake.
if all these groups are for preserving the constitution, eliminating the private banks under the title of federal reserve and eliminating the illegal income tax, against immigration (our conservative prez w wanted), against the north american union than these groups cant be all that bad.
5 billion tax dollars to china??
i supported w. have gotten christmas cards from him every year since he was gov in texas. he has let a lot of us down.
paul served in the military, maybe another reason he is picking up some of their support as well.
your non arguments, just name callings are very weak. may say a lot about the so called conservative candidate you are supporting. your better than that, right?
Beyond your ridiculous characterization of Paul's support (which would not describe most of the people I met at the last local Ron Paul Meet-Up at all) that's a pretty short-sighted view for you to take. If you're running for Election, you don't care who votes for you or for what reasons.
Just so long as they vote for you, and not your opponent. You don't turn down anyone's vote... after all, it's not like you're required to appoint them to a Cabinet position after you're elected.
You really are an elitist, aren't you.
The fact that the majority of Paul's supporters are just hardscrabble folks who deeply care about the Constitution and are disgusted with the political process & both parties doesn't mean you can malign them.
Who do you think these folks would vote for if Paul wasn't running? They'd stay home or vote 3rd party like they always do. Shouldn't the GOP libertarianize a little and attract these folks instead of mocking them during the campaign and then screaming at them when their RINO candidate lose the election, like they always do?
LOL. I'm just glad he's in the race. I don't think Paul has a chance of winning either, but you need to realize that there are issues out there that aren't being discussed, and people are fed up over the war. Real folks who has sons and daughters serving.
Of course, if Paul is nominated I probably won't be sober for a week from celebrating.
The best approach to Iran, and Syria for that matter, is to heed the advice of the Iraq Study Group Report---Ron Paul, in his own words