Red General and the First Lady

Chinese General Xiong Guangkai is in Washington, D.C., this week. The mainstream media will portray Gen. Xiong's mission to Washington as a benevolent visit. Yet nothing could be further from the truth.

Gen. Xiong is here to re-establish the "military-to-military" relationship between the United States and China, tainted after the downing and capture of the U.S. Navy EP-3 surveillance airplane.

Gen. Xiong is well known inside Beijing party circles for being a friend of the people. In 1989, Gen. Xiong ran the "Er Bu" or "Second Department" of the Chinese army intelligence.

Xiong's secret police identified and targeted student leaders in the massacre at Tiananmen Square. Xiong's agents planted weapons on the bodies of students as his snipers and tank troops surged forward in an orgy of murder.

Gen. Xiong earned a promotion for his work at Tiananmen Square. Gen. Xiong is currently the No. 2 commander in the People's Liberation Army and head of Chinese military intelligence.

Xiong's best-known public comment was a thinly veiled threat to vaporize Los Angeles. However, one of Gen. Xiong's more recent public statements is on North Korea. According to Xiong, the relationship between communist China and North Korea is like "lips and teeth."

North Korea recently admitted that it has violated agreements with the U.S. and it is currently developing a nuclear bomb. The fanatical North Koreans had some help from Xiong.

Chinese nuclear weapon and missile technology export control is directly under the command of the Chinese Army General Staff, including Gen. Xiong. The State Department accused China of shipping nuclear warhead and missile technology to North Korea.

In addition, Gen. Xiong is also responsible for the successful effort to funnel illegal campaign contributions to the Clinton-Gore re-election effort in 1996. Xiong has been inside the White House before, at least by proxy, through direct payments from the Chinese army to Bill Clinton.

In 1996, Gen. Xiong sent his second in command, Gen. Ji, to meet with Johnny Chung in the basement of a Hong Kong restaurant. At the same time, Johnny's daughter and a teen-age friend were inside communist China.

"We like your president," Gen. Ji told Chung before passing a check for $300,000 across the table. "We want him re-elected."

Johnny Chung was certainly in no position to disagree with Gen. Ji. Some of the $300,000 in red army money made it to Clinton and Gore through the Democratic National Committee.

Johnny Chung pleaded guilty and currently cites his bank account record as proof that Chinese army money was passed to the Clinton-Gore campaign. Janet Reno, however, did not pursue the evidence against Xiong.

Another of Gen. Xiong's field agents, Lt. Col. Liu Chaoying, actually made it inside the Clinton White House. On one such occasion, according to Johnny Chung, Col. Liu bragged of others who funneled Chinese army money into the Clinton-Gore campaign.

For example, Sen. Hillary Clinton never answered the accusations that she assisted PLA Gen. Xiong in funneling money into the DNC. Instead, the senator from New York has remained silent about the hard, cold cash passed in brown paper bags through her White House office by Johnny Chung.

Mrs. Clinton did recently urge the Bush administration to act against the threat of man-portable missiles against airliners. In a personal letter addressed to Tom Ridge, Mrs. Clinton urged the Bush administration to "develop an action plan as soon as possible to address the potential threat to U.S. airliners by shoulder-fired missiles."

"We need to ensure that we are taking every possible step to keep our air travelers safe," wrote Clinton.

Ironically, in 1996 then-first lady Clinton said nothing when Chinese agents offered to sell the same type of shoulder-fired surface-to-air missiles to drug dealers inside the United States. Perhaps that was because her hubby had recently met with the CEO of the same Chinese company that made the illegal missile offer.

In 1996, Norinco and Chinese-army-owned Poly technologies Corporation were both accused of attempting to sell a wide variety of advanced weapons to U.S. drug dealers, including surface-to-air missiles and machine guns.

Allegedly, Poly Tech's man in America, Robert Ma, conspired with Norinco representative Richard Chen to import 2,000 fully automatic AK-47s into the United States to customs agents posing as Miami drug smugglers. Lu Yi Lun, described in court documents as Norinco's No. 2 official, was also charged in the case.

U.S. investigators say arms broker Hammond Ku, a key figure in the case, told undercover U.S. agents three times that China's government knew what was happening. The Customs officials added that the Chinese apparently believed the automatic rifles were going to U.S. street gangs.

According to the 100-page federal indictment from one of the key undercover agents, Chen and Ma had difficulty in getting the machine gun "barrels" because they required "higher-level permission."

Clearly, that permission had to come from then head of the Chinese army intelligence, Gen. Xiong. The fact is that Gen. Xiong and his buddies at PLA headquarters not only control Poly Technologies but they also own Poly Technologies.

More importantly, U.S. investigators also said Chinese company representatives tried to sell undercover U.S. agents "rocket launchers, anti-aircraft missiles, machine guns and even tanks."

In August 1996, the China Ocean Shipping Company (COSCO) ship Princess Bride was caught in an attempt to smuggling over 2,000 machine guns into the United States.

According to Customs officials, the bust was nearly foiled by a leak from inside the Clinton administration to COSCO, forcing the agents to move early on the Princess Bride while it was still docked in Los Angeles harbor.

"Poly's U.S. subsidiaries were abruptly closed in August 1996. Allegedly, Poly's representative, Robert Ma, conspired with China North Industries Corporation's (NORINCO) representative, Richard Chen, and a number of businessmen in California to illegally import 2000 AK-47s into the United States," states a 1997 Rand Corporation report.

All those charged by the Reno Justice Department were released pending a trial. All of those released, including Ma and Chen, fled to China and have never faced a U.S. jury. The Clinton administration never pursued the alleged criminals nor sought extradition from the PRC. Again, Janet Reno refused to pursue the evidence.

Of course, the fact remains that President Clinton met with the Wang Jun, the CEO of Poly Technologies in February 1996, prior to the arms bust by U.S. Customs agents. Clinton's close Arkansas friend Charlie Trie brought Wang to the White House.

Bill Clinton also took a $50,000 donation from Charlie "Yah Lin" Trie at that same meeting. Clinton, Trie and Wang then shared coffee inside the White House. None of the three ever explained where the $50,000 came from.

The double irony here is that not only is Poly Technologies owned by the Chinese army, but it also supplied hundreds of shoulder-fired surface-to-air missiles to Osama bin Laden.

Gen. Xiong and his fellow PLA officers played a key role in arming al-Qaeda with SA-7 surface-to-air missiles. Hundreds of the Chinese-made missiles were discovered in abandoned al-Qaeda caves during the Afghan war.

The same SA-7 missiles were recently fired at the Israeli airliner in Kenya. The same missiles cited by Sen. Clinton in her urgent letter to Tom Ridge. Once again, none of these advanced weapons could have been exported without direct permission from Beijing and Gen. Xiong.

Perhaps the best "action" plan for the Bush Administration is to tackle the source of advanced weapons sold to Osama bin Laden. The Bush administration should ban all Chinese army companies from doing business in the United States and seek a total ban against any military contacts with those responsible for arming al-Qaeda.

Today, Gen. Xiong is quietly touring a cold U.S. capitol and Pentagon, seeking to sucker the Bush administration into assisting the Chinese war machine. Perhaps he should stop and visit Sen. Clinton before he leaves town. After all, she did take his money.

The truth about Gen. Xiong's visit to America is a cold lesson of missile-armed terrorists, nuclear weapons and money politics.

Chung: Top Chinese General 'Had to Know' of Corruption

Johnny Chung
Thursday January 27, 2000

"We like your president. We want to see him reelected."
Those were the words of former Chinese intelligence chief Gen. Ji Shengde, as he sat across a dinner table from me in 1996 and pledged $300,000 to the Democratic Party for the express purpose of reinstalling Bill Clinton in the White House.

Now, in a stunning development that has shaken China's ruling class to its core, the general has been arrested as part of a massive crackdown on widespread government corruption. The scandal revolves around billions of dollars in smuggled merchandise and apparently touches dozens of high-ranking Communist Party, police and banking officials.

Ji is being held pending his full cooperation with investigators. It's not clear whether he's under house arrest or has actually been jailed.

The New York Times reported last Saturday:

"During the 1990s, the sprawling syndicate smuggled billions of dollars worth of cars, oil and industrial materials through the bustling Southeastern port of Xiamen, evading huge sums in taxes, according to officials familiar with the case . . .

"Bit by bit, officials in Xiamen and Beijing have privately confirmed to foreign reporters many startling details about a case that has Beijing's political cognoscenti buzzing with speculation about where it may lead."

My sources tell me that the investigation has now led to some of the same Chinese government officials whom I came to know after I became famous in China for my friendship with Bill and Hillary Clinton. Besides Ji, Liu Chaoying, the China Aerospace executive who introduced me to the general, is now under investigation.

As the Times reports, the dimensions of this scandal are something never before seen in China. Even the vice minister of China's Justice Department has been detained and questioned.

When I testified before Congress about Ji's offer to help re-elect Clinton, Beijing was not pleased. It sent agents to assassinate me. The FBI has confirmed the arrest of at least one of them.

As for Ji, he was demoted. He's now a teacher, which is a far cry from the status he once enjoyed as the keeper of China's intelligence secrets. For the son of one of China's most powerful military men, Ji's demotion is a personal disgrace.

Just days ago, after months of refusing to talk, Vice Minister of Justice Li Ji-Zhuo implicated Ji in the smuggling conspiracy. Li was compelled to talk after Yang, a low-level informant in Southern China, named Ji along with 50 other top Communist Party officials.

At the center of the scandal is Xiamen businessman Lai Changxing, president of the Yuanhua Group, who investigators say bribed local customs officials to look the other way as his smuggling operation grew.

Key witness Yang was the intermediary between Lai and Ji, with whom Yang worked very closely.

According to the Times:

"The authorities have closed down (Lai's) Yuanhua company, and at some point last fall Lai disappeared, presumably into a secret life abroad."

Lai isn't the only one with a secret life abroad. Sources tell me that Chinese investigators have learned about United States bank accounts held by Ji's wife totaling millions of dollars. And if that weren't bad enough, both Mr. and Mrs. Ji own million-dollar-plus homes in a wealthy Los Angeles neighborhood, according to the latest revelations.

For now, Ji has thrown up a protective umbrella over his relationship with Lai and has yet to tell probers where the mysterious businessman is hiding.

While the scandal rocks Beijing's princeling class, Ji's former boss, Gen. Xiong Guangkai, is enjoying a red-carpet welcome at the Clinton Pentagon as he cajoles top U.S. military officials to trim military aide to Taiwan and abandon America's own plans for a missile-defense shield.

Could Xiong be involved in the smuggling conspiracy as well? There's no evidence to suggest that yet. Still, the way things work in the Chinese military, it's hard to believe Ji would do anything that Xiong hadn't already approved.

People's Republic of China President Jiang Zemin has yet to address the burgeoning scandal directly. But in a Jan. 14 address to the Communist Party's Central Disciplinary Inspection Committee, Jiang made a thinly veiled reference to the rampant corruption, according to a report in the People's Daily the next day:

"Leading cadres who are found to have violated discipline and the law must certainly be strictly investigated and handled . . . No matter who they are, no matter what their seniority, they should be punished in whatever way is appropriate."

Now, Beijing's ruling class waits and wonders: If Gen. Ji Shengde begins to talk, whom is he liable to bring down with him? And how will President Jiang react as the scandal spreads to China's princelings?

GEN. XIONG PAYS A VISIT TO PAKISTAN
William C. Triplett II
Published 3/19/2002
The Washington Times

A Chinese general makes a quick stop in Islamabad, signs a couple of agreements and goes home. Routine or momentous?

The traveler was Gen. Xiong Guangkai, deputy chief of staff for intelligence and arguably China's most important military figure. He first came to public notice in January 1996 when the New York Times reported his offhand threat to incinerate Los Angeles with nuclear weapons. Los Angeles is more valuable to America than Taipei, he told a former Clinton defense official. The general may well have given the "Go" signal to North Korea's Taepodong I missile test in August 1998. Another Xiong visit, this time to Pyongyang, preceded the test by a few weeks. The multistage North Korean missile passed over Japanese territory and demonstrated an ability to strike parts of the United States.

The general is very good at what he does. Cultured, multilingual, as China's top military spy, he cultivates Americans who think they are influencing him, instead of the other way around. Recently, he arranged to have a career military intelligence officer assigned as the top PLA officer at the Chinese Embassy in Washington. In the past, regular PLA staff officers have been the Defense Attaches here, but now Maj. Gen. Chen, from the PLA's Second (Intelligence) Department, is Gen. Xiong's man in Washington.

Putting Gen. Xiong's signature, and not that of some lesser figure, on the agreements sends a number of important signals. First, it confirms to the Pakistani military the high regard Beijing has for them. By the same token, it sends a warning to countries in the region, primarily India and the Gulf states. Given the importance to Beijing of its military relations with Pakistan, having Gen. Xiong take the lead probably means he will at least survive, if not prosper, under the new Chinese Communist Party leadership changes later this year.

There were two agreements announced in Islamabad on March 12, a "defense cooperation" agreement and a "defense production" agreement. Allied intelligence services are undoubtedly going full bore to find out the details - "Cooperation" against whom? Does this mean a de facto alliance? "Production" of what? Typically Chinese agreements of these kinds are multiyear and, typically, there are secret protocols, in the manner of the Molotov-von Ribbentrop Pact of 1939.
In January 1990, Iran and an element of the Chinese military signed a 10-year "defense technology transfer agreement." This led to an aggressive, and lucrative, proliferation of chemical weapons, biological weapons, nuclear technology, ballistic missiles and advanced conventional weapons (cruise missiles) transferred from Beijing to Tehran. The Clinton administration was forced to sanction Chinese military companies several times for this illicit trade. At her confirmation hearing in January 1997, Secretary of State Madeleine Albright even admitted to Sen. Robert Bennett, Utah Republican, that Chinese military companies were selling germ warfare equipment to Iran.

Pakistan's strategic weapons program simply would not exist without vigorous Chinese participation. Beijing has been instrumental with regard to the nuclear fissile materials, weaponization and the ballistic missile delivery system. Following on from the Iranian example, there is much more in the PLA inventory that could be transferred to make South Asia an even more dangerous place - ballistic missile upgrades, biological warfare equipment and technology, cruise missiles, chemical weapons equipment and technology, information warfare techniques and so on.

One wonders how Pakistan will pay for the new Chinese arms and military technology - increase taxes on the people of Pakistan or some other way? Pakistan wants renewed access to Western military hardware. Export control officers in Western countries will wonder if anything transferred to Pakistan will remain in country or if it will be passed to Beijing in part-payment of Pakistan's arms debts.

The PRC is clearly the biggest winner here. It cements the relationship between the PLA and the Pakistani military officials who run the country. If, as many Indians believe, the PRC has a Grand Design to surround and strangle India, these agreements certainly would further such a plan. Much as the Gulf might like to show Islamic solidarity to Pakistan, forward-looking officials there must be equally concerned about the long-term implications of these agreements.

Pakistan and the Pakistani people are just as clearly the biggest losers. After September 11 and with the military cooperation regarding Afghanistan, the Americans had looked for a course change in Pakistani politics. We had hoped that Pakistan's political and military leadership would see the wisdom of a sharp break with the past. Pakistan should be tying its future to the world grouping of moderate and democratic countries, not aligning itself with the likes of anti-democratic regimes in China, North Korea, Burma and Cambodia.
In Goethe's classic, "Faust," a proud and ambitious man sold his own soul to the Prince of Darkness in order to gain power on earth. President Musharraf has pledged the future of his entire country to Gen. Xiong.

William C. Triplett II, a defense specialist, is completing a book on Taiwan.

Chinese Billionaire Wants Global Crossing
Charles R. Smith
Tuesday, Feb. 12, 2002
Red Moneyman Seeks to Take Over U.S. Communications Giant

Global Crossing, the largest telecom company in U.S. history to seek Chapter 11 bankruptcy protection, has agreed to a buyout by Hong Kong's Hutchison Whampoa Ltd. and Singapore Technologies Telemedia Ltd.

Under terms of the agreement, Hutchison and STT would each invest $375 million in cash in the Bermuda-based company. Creditors would receive the remaining 21 percent equity of the firm, $300 million in cash and $800 million in notes, in exchange for forgiving the company's debt.

According to the agreement, Global's shareholders would receive nothing.

However, the Global Crossing buyout by Hutchison Whampoa is drawing fire from inside Capitol Hill. At issue is the role of billionaire Li Ka-Shing, Hong Kong's most well-known businessman, whose companies make up 15 percent of the market capitalization of the Hong Kong stock market.

Li Ka-Shing's empire includes Hutchison Whampoa, Chinese ports, telecom, energy assets and the Panama Canal.

Rep. Dana Rohrabacher, a California Republican, has sent letters to President Bush, the attorney general, the Department of Defense and the investigative arm of Congress demanding an inquiry into the plan, according to Al Santoli, national security adviser to Rohrabacher.

"The purchase of Global Crossing by Li Ka-Shing is another step as his role of a stalker for the People's Republic of China," stated Santoli.

Rep. Rohrabacher claims Li's close connections to the Chinese government should disqualify him from owning Global Crossing's network. Li Ka-Shing's ownership also raises national security issues. Global is a major bidder for U.S. Defense communications contracts.

Global Crossing recently lost a $400 million U.S. defense contract to provide secure communications for the U.S. military. The contract remains a major part of the controversy surrounding the bankrupt telecommunications giant, which also reportedly controls 20 percent of all the fiber-optic cable leaving the United States.

"China is gaining access to global communications via [Li's] acquisitions in air, land and space. There will be a big price to pay for this if the PRC were to decide to call in its chips in the event of conflict with the West," noted Santoli.

"The Chinese government helps Li Ka-Shing, and his close ties to PLA intelligence are well known," said Santoli.

Li Ka-Shing's Links to the PLA

There is overwhelming evidence to support the assertions that Li Ka-Shing is part of the communist Chinese government. According to documents obtained using the Freedom of Information Act "Li's relationship with senior PRC officials is very strong."

Li is not only in business with PRC President Jiang Zemin's son, jointly developing property inside Tiananmen Square for the communist government, but he also is directly in business with the Chinese military through its vast empire of front companies such as weapons maker Poly Technologies Inc.

Li Ka-Shing's direct business contacts with the Chinese army were documented in a 1997 Rand Corporation report on the Chinese military industry.

According to the 1997 Rand report, "Hutchison Whampoa of Hong Kong, controlled by Hong Kong billionaire Li Ka-Shing, is also negotiating for PLA wireless system contracts, which would build upon his equity interest in Poly-owned Yangpu Land Development Company, which is building infrastructure on China's Hainan Island."

According to a recent biography entitled "Li Ka-Shing," the billionaire formed a partnership with two leading members of the Asian "Triad" organized crime families, Robert Kwok and Henry Fok, to form the China International Trust Investment Company (CITIC).

The Rand Corporation report noted that CITIC had acted as a front for Poly Technologies Inc., the arms manufacturer owned directly by the Chinese army.

"CITIC does enter into business partnerships with and provide logistical assistance to PLA and defense-industrial companies like Poly," noted the 1997 Rand report.

"Poly Technologies, Ltd., was founded in 1984, ostensibly as a subsidiary of CITIC, although it was later exposed to be the primary commercial arm of the PLA General Staff Department's Equipment Sub-Department," states the Rand report.

"Throughout the 1980s, Poly sold hundreds of millions of dollars of largely surplus arms around the world, exporting to customers in Thailand, Burma, Iran, Pakistan, and the United States."

"Poly's U.S. subsidiaries were abruptly closed in August 1996. Allegedly, Poly's representative, Robert Ma, conspired with China North Industries Corporation's (NORINCO) representative, Richard Chen, and a number of businessmen in California to illegally import 2000 AK-47s into the United States," states the Rand report.

Li Ka-Shing is also part owner of a firm involved in the illegal transfer of missile technology to the Chinese army. The Commerce documents show that Li owns one-third of Asia Satellite Telecommunications Holdings, or AsiaSat.

According to Aviation Week and Space Technology, AsiaSat is also partly owned by the Chinese army. AsiaSat satellites regularly carry "military communications" traffic for PLA units and Chinese military-owned companies.

U.S. defense contractor Lockheed Martin pleaded guilty to 30 counts of illegal missile technology exports to AsiaSat. Lockheed Martin agreed to pay the U.S. government $13 million in fines for the illegal transfer of "kick-motor" technology to AsiaSat in order to avoid export restrictions.

Li Ka-Shing's Links to PRC Intelligence

The Hong Kong billionaire has even closer ties to the Chinese army. Li Ka-Shing is in business with China Resources, a firm operated directly by the Military Intelligence Department of the PLA headquarters. According to Senate testimony, China Resources is "an agent of espionage – economic, military and political – for China."

China Resources Enterprises has previously been accused of illegal donations to the Clinton-Gore 1996 re-election campaign. According to Senate testimony, China Resources Enterprises was directly linked to Chinese military espionage and Indonesian billionaire Moctar Riady.

"Lippo group, run by the Riady family, which employed [John] Huang, had over the past few years become a major business partner with China Resources, a trading company wholly owned by the Government of the peoples republic of China, and which has reportedly served as an intelligence-collection front for China," noted Sen. Thompson during his summary of the China campaign finance scandal.

According to a frantic 1996 cable from the U.S. Embassy in Panama, China Resources put a $400 million investment into Li Ka-Shing's Hutchison Whampoa as part of a "front" company controlled by Beijing.

"Embassy Panama has received information to the effect that HIT (Hutchison International Terminals) is controlled by mainland Chinese perhaps through a Macao front which allegedly recently invested $400 million in HIT," states the cable. "Such control would have security implications and might affect the Panamanian government's views on awarding the port concessions."

In fact, according to an Oct. 1999 "Intelligence Assessment" prepared by the U.S. military Southern Command, the Hong Kong billionaire is a potential threat to America.

"Hutchison'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," concluded the U.S. military intelligence report.

U.S. Commerce Department documents also show that U.S. law enforcement agencies were very concerned about billionaire Li Ka-Shing and his connections to international smuggling.

A 1995 cable from the American Embassy in Nassau noted that Li Ka-Shing had signed an agreement to build an $88 million container ship terminal in the Grand Bahamas. The U.S. Embassy in Nassau copied the cable to several law enforcement agencies including the U.S. Customs Service and the Drug Enforcement Agency.

"Reftel describes U.S. agencies' security concerns about possible smuggling attempts through the terminal," states the cable from the American Embassy. "Post will request via septel assistance in addressing these concerns while port development plans are still on the drawing board."

According to recently declassified documents from the U.S. Commerce Department, Li Ka-Shing is a very special man in Beijing, Washington and Hong Kong.

"Li is reputed to have a close business relationship with key figures in Beijing," stated an August 1999 cable from the American Embassy in Hong Kong.

"Li is a leading member of Hong Kong's ethnic Chinese business elite, a tycoon who is no democrat. This fact is reflected in his recent claim that he canceled a HK$10 billion (US$1.3 billion) project because of the unfavorable business climate created by Hong Kong's politicized (more democratic) business climate," continued the cable.

The Monkey's Uncle

Despite his hostile attitude toward democracy, Li Ka-Shing met frequently with the Clinton administration.

Documents from the Commerce Department show that Clinton Commerce Secretary William Daley met with the Beijing tycoon at a 1997 luncheon hosted by the powerful investment firm Goldman Sachs. Daley later went on to lead Vice President Al Gore's failed 2000 presidential bid.

The Commerce documents note that an informal "talk" between Daley, Li and several "influential business people" was held on the Goldman Sachs boat, the "Monkey's Uncle," during a 1997 Hong Kong trade trip.

"Goldman Sachs' boat ('Monkey's Uncle') will depart from the Causeway Bay Typhoon Shelter at 11:30 am. The boat will sail near the new airport site at Chek Lap Kok. Lunch will be served on board."

The Commerce documents also show that Daly and Li met on board the "Monkey's Uncle" with some of the leading Beijing-owned businesses, including some directly associated with the Chinese army – China Resources, CITIC and China Everbright.

The documents note that alleged organized-crime "Triad" gangsters were included on the 1997 voyage of the "Monkey's Uncle." According to official U.S. Commerce materials, Secretary Daley sailed on a paradise cruise from Hong Kong with the "who's who" of Triad mob families.

Some other "influential business people" were also included on the guest list for the lunch cruise. Among the leading figures are Raymond Kwok, Robert Kwok and Canning Fok. The Fok family leader, Henry Fok, is reported to be a member of the 14K Triad.

According to Ed Timperlake and Bill Triplett, co-authors of "Red Dragon Rising," "Henry Fok first made his name by running United Nations–embargoed goods to China during the Korean War. His son was later convicted for trying to bring Chinese machine guns into the United States."

Robert Kwok reportedly leads the Kwok family businesses and allegedly is involved in the heroin smuggling business inside Burma. In 1997, Commerce Secretary Daley met with Kwok and his son Peter. Peter Kwok is the business partner of Sen. Dianne Feinstein's husband, Robert Blum. Feinstein is a Democrat from California.

Peter has also worked for Li Ka-Shing and the Chinese army. In 1989, he helped CITIC and Li Ka-Shing raise $120 million to buy a Highes-built communications satellite for AsiaSat, a company part-owned by the Chinese army unit COSTIND (the Commission on Science, Technology and Industry for National Defense).

Clearly, Li Ka-Shing is not only a tool of the People's Liberation Army, he also should be a member in standing when one considers the vast amount of technology, money and resources he has brought to the Chinese military.

It is sad testimony that after the disastrous events of Sept. 11 we should so quickly forget the fact that the Chinese army continued to supply al-Qaeda with arms even after the terrorist strikes.

Rep. Dana Rohrabacher's efforts to investigate Beijing's billionaire takeover of Global Crossing deserves the highest priority, because our national security is at stake.

Poly Technology executive director, Xie Datong, stated on the record that the machine gun transfer did not require permission from the Chinese general staff. Xie Datong, also a corporate officer of Poly's American subsidiary, PTK, claimed the weapons were transferred from stockpiles from the General Logistics Division of the PLA.

In August 1996, Robert Ma and company fled the country. Gun runner Ma, and all the Chinese executives who served Poly Tech, escaped the grasp of Janet Reno and Louis Freeh. Ma was reportedly one step ahead of FBI agents who had a warrant for his arrest.

The Rand report noted that Poly Technologies, a firm directly owned by the Chinese general staff, made great profits in America thanks to Bill Clinton and the 1994 Democrat-controlled Congress. The so-called "assault" weapon ban was, in reality, a financial windfall profit for the Chinese army.

However, the affair between Bill Clinton and Beijing is far deeper than one sweetheart gun deal. Poly Technologies functioned inside the U.S. by hiding itself behind a corporate camouflage of alias names and shells of bureaucratic paperwork. The Rand report noted that one such subsidiary of Poly Tech, namely PTK International, was also involved in espionage.

"Poly's operations in the U.S. quickly diversified into a series of subsidiaries and holding companies. In 1988, (the) Poly Technologies 75 percent stake in PTK was transferred to Dynasty Holding Company, a wholly-owned U.S. subsidiary of Poly," states the Rand report.

"Dynasty handled all incoming and outgoing money for Poly, including management of all Poly investments in the U.S., and coordinated procurement of defense related materials with PTK and U.S. firms. Allegedly, Dynasty illegally shipped some of these materials, including advanced radar systems, minicomputers, and advanced communications equipment for use in the PLA UH-60 Blackhawk helicopters, to China under the guise of non-restricted merchandise."

The connection between Bill Clinton and Beijing is Poly Tech. The Rand Corporation report also noted that the Chinese army CITIC bank is an "investment concern under China's governmental State Council." CITIC, according to the Rand Corporation "became identified with the PLA as a result of the scandal surrounding Wang Jun and his visit to the White House on 6 February 1996."

Who is Wang Jun?

The Rand Corp. noted that "Wang Jun is both director of CITIC and chairman of Poly Group, the arms trading company of the General Staff Department." In February 1996, President Clinton met with Chinese Poly Tech Chairman Wang Jun after taking a donation from Arkansas DNC donor Charlie Trie.

Wang, according to a high-level defense source, travels the globe on a PRC diplomatic passport. Wang is also authorized by Beijing to cut billion dollar arms deals with Chinese allies around the world. Wang's customers include Libya, Iran, Serbia, Iraq and Afghanistan.

Poly Tech is one example of a PLA owned company. The Chinese army is alive and well inside America. U.S. military estimates indicate that over 2,000 Chinese army owned firms now operate inside the U.S.A.

President Clinton continues to ignore a 1998 Federal law that requires him to identify Chinese army-owned companies operating in the U.S.A. Officials like Wang Jun can open U.S. bank accounts and compete with U.S. citizens for resources. Hidden by Clinton's silence, Chinese army-owned firms raise financing, take loans, bid for government projects and obtain government backed insurance for trade deals.

Poly Tech was set up as a front company for the Chinese army General Logistics Division to act as a global arms surplus outlet. Poly Tech is one People's Liberation Army company with banking records that point a smoking gun directly at Bill Clinton.

Li Ka-Shing's joint ventures with the Chinese military are not limited to high-tech satellites and communications deals. One joint venture led by Li Ka-Shing nearly added four new invasion ships to the Chinese navy.

In January 1997, President Clinton authorized four huge "roll on-off" container ships for export directly to China. The four container ships were to be constructed for the China Ocean Shipping Company (COSCO) and Li Ka-Shing's Hutchison Whampoa Ltd. by the Alabama Shipyards in Mobile, Ala.

The four U.S. ships were to be built using $138 million in private loans backed by the U.S. government. The loans had very favorable terms including low interest rates and a 25-year repayment plan, longer than the expected life of the ships. The loans were also U.S. backed, so even if the ship and owner disappeared, the federal government would still repay the lenders.

COSCO is the flag carrier for China, hauling official cargo exported by the Chinese government, including weapons; for example, the fully automatic AK-47 machineguns from Poly Technologies that were confiscated in the 1996 U.S. Customs sting operation were found onboard a COSCO ship.

Recent U.S. Navy photos show COSCO cargo ships carrying missile-armed patrol boats bound for Iran and tons of depleted uranium anti-tank shells for Pakistan. COSCO ships have carried jet fighters, missile parts and tanks for export to Iran, Iraq, Syria and Libya.

The COSCO container ship deal fell apart in November 1997 due to "commercial" reasons blamed on the Asian financial crisis, Senator Thompson's hearings into the Clinton White House and the Poly Technologies sting. In 1998, Clinton officials nervously pointed out that "no money" was involved because the deal fell apart.

Nevertheless, the Chinese navy deal to acquire these ships actually started in 1993 when Bill Clinton and the Democrats were starved for donation cash. The Maritime shipyard-funding program, managed by the Department of Transportation, was created to finance American-built ships sold to U.S. flag companies.

In 1993, the Democratic-controlled Congress joined President Clinton and altered the program o allow U.S. financing on ships built for export. Li Ka-Shing, COSCO, Ron Brown and Bill Clinton worked to provide the four container ships, including the low cost, 100 percent U.S. government-backed loans, to Hutchison Whampoa and COSCO.

COSCO-which is part of the Chinese navy and wholly owned by the Chinese government-is best known for the recent unsuccessful attempt to purchase the former Long Beach Naval station. COSCO and Li Ka-Shing's Hutchison Whampoa Ltd. now control both ends of the Panama Canal.

Bill Clinton considers Li Ka-Shing to be a power in red China equal to that of Chinese President Jiang Zemin. Bill Clinton's White House opened its doors to Li Ka-Shing and his Beijing buddies in the Chinese army surplus outlet store. Poly Technologies. It is the responsibility of Congress to look into Li Ka-Shing and Bill Clinton despite the lies and spin from the White House.

The only thing silly about Li Ka-Shing's relationship to Bill Clinton is the White House denial that the Chinese billionaire is part of the red leadership in Beijing. Li Ka-Shing's relationship with Bill Clinton is documented by his own administration.

The Money Trail:

Wall Street's Role In The Red Chinese Arms Build-Up
The Center for Security Policy is a non-partisan, non-profit, Washington-based think tank headed up by Frank Gaffney, a former Deputy Secretary of Defense under President Reagan. The Center has been warning the federal government and Wall Street since 1997 that the PLA has penetrated the U.S. securities markets by issuing billions of dollars worth of dollar-denominated bonds in the American market. This borrowing mechanism provides large Chinese government-owned enterprises and banks closely connected with the PLA with access to large amounts of cash-no questions asked.
China has issued at least $10.5 billion in dollar-denominated bonds on the U.S. market, including $800 million from CITIC (China International Trust and Investment Corporation), $2.3 billion from the Bank of China, and $3.2 billion directly in the name of the People's Republic of China.

CITIC is controlled by the Chinese General Staff, which is controlled by the Chinese Military Commission. The chairman of CITIC is Wang Jun. Wang's father, Wang Zheng, was a leader of the hard-line faction that ordered the Tiananmen Square massacre. Wang Jun is also the chairman of Poly Technologies, the arms trading company of the PLA. He has been described as Red China's most notorious arms dealer. He can no longer obtain a visa to enter the U.S. because of allegations that Poly Technologies was involved in efforts to smuggle 2,000 AK-47s to west coast street gangs. Despite this, CITIC has been allowed to raise $800 million on the U.S. bond market and, most incredibly, Wang Jun was invited to a Democratic fund-raising "coffee" at the Clinton White House in 1996!

By issuing bonds in the U.S., Japan, and other western countries, the Chinese military has been given a remarkably efficient mechanism for using American mutual funds, pension funds, insurance companies, and other market participants to help undermine activities that threaten U.S. national security. Through this method, the PLA has access to large sums of cash with no enforcement restrictions on their use.

Furthermore, these Chinese funding arrangements have forged symbiotic relationships between China's military and Wall Street. Now there is a politically and financially powerful constituency in America with a vested financial interest in ensuring that Red China is not subject to future economic sanctions and other forms of international isolation or penalties. In other words, through a growing number of American holders of Red Chinese debt instruments, the Chinese could gain even greater influence in Washington.

It is no accident that former Treasury Secretary Robert Rubin's old firm, Goldman Sachs, had executives appear on CNBC and CNN to discourage retribution against their friends in Beijing after the Cox Commission Report was released. Goldman Sachs has a huge financial stake in Red China; they were the lead manager in at least 2 CITIC U.S. bond issues.

The fact that a corporation with direct links to the PLA could become so closely tied to the American investment industry calls into question whether that industry can be relied upon to help protect U.S. national security interests in the case of foreign bond issues. After all, the corporate leader of Red China's military-industrial complex has been attracting large sums of money from American investors. In this type of environment, U.S. securities markets may be the most attractive funding source for potential adversaries.

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