Deal Gives China Access to Top Secret CIA, FBI Communications

NewsMax.com ^ | 2/25/03 | Carl Limbacher and NewsMax.com Staff

[kattracks]

A former New Jersey congressman is raising concerns that a Beijing-based buyout of bankrupt telecommunications giant Global Crossing could give Chinese military intelligence access to top secret FBI and CIA communications.

In a joint takeover bid that could thoroughly compromise U.S. national security, China's Hutchison Whampoa Company and Singapore Telemedia Technologies (STT) have offered $250 million for a 61.5 percent stake in Global Crossing, the South China Morning Post reported Wednesday.

Noting that the telecommunications company carries all the confidential data of the Justice Department, the FBI and the CIA, IDT Corp. chief executive and former GOP congressman Jim Courter complained, "Now we find there are sincere and very strong national security concerns about this international network being potentially controlled by a communist country."

Courter's IDT colleague, company chairman Howard Jonas, added, "We think it is against the national interests of the United States to sell this company to a foreign entity, particularly a hostile foreign entity like the communist Chinese and anyone who would be their partners, like the Singaporeans."

IDT Corp said it would top the Hutchison Whampoa-STT bid by $5 million.

In light of the new U.S. national security concerns, Hutchison and STT may need to submit a revised proposal for the Global Crossing buyout; one which includes "an assurance that they would not compromise U.S. national security," the Post said.

"We'll cooperate with the relevant regulator to gain approval," STT spokesman Melinda Tan told the Post.

Four years ago, Congressional Republicans and former U.S. defense officials blasted Hutchison Whampoa when it gained control of ports at both ends of the Panama Canal, complaining that the move gave China effective control over one of the globe's most strategically valuable waterways.

At the time, President Clinton said he felt comfortable with the Hutchison deal, the Post noted.

Read more on this subject in related Hot Topics:

China/Taiwan

[HighRoadToChina]

Communist Alert Ping!

Please FRemail me if you want off my list.

[Alamo-Girl]

Thanks for the heads up!

[PhilDragoo]

Anne Bingaman, wife of Senator Jeff Bingaman*, was paid a record $2 million for six months' lobbying FCC on behalf of Global Crossings.

Terry McAuliffe made $18 million on $100,000 investment in Global Crossings he dumped just before it tanked.

*Bingaman seated Charlie Yah Lin Trie on his commission to Beijing at the specific behest of his friend Bill Clinton--to whom Trie had just delivered a half-million dollars in a grocery bag.

Yes, and Trie also delivered a message from Beijing in his "Dear President" letter blackmailing Clinton to remove our carriers from the Taiwan Strait.

Clinton had PLA Gen. Xiong Guangkai in the White House January 24-26, 2000 to "renew military-to-military contacts".

Clinton covered for Loral CEO Bernard L. Schwartz (top Clinton donor in the 1996 cycle) who sent the PLA a 200-page fax compromising our guided missile secrets--a fax which the Department of Defense said in its May 1997 report "damaged national security".

traitorrapist42 belongs in Leavenworth, not in the position of Secretary-General of the UN or recipient of the Nobel Peace Prize.

[princess leah]

Wantta bet the Justice Dept. shoves this deal down the toilet, especially in light of the Clinton connection (not to mention Terry McCauliffe's sweet deal with Global Crossing)...Whenever it has any connection with the Clinton crowd,America is being sent down the river while they pocket more money!

[I'm ALL Right!]

Well, after Clinton's reign of treason, I'm not sure there are any secrets left to be discovered. China already has them all...

[Poohbah]

Deal Gives China Access to Top Secret CIA, FBI Communications

Are you and WorldNutDaily saying with a straight face that the FBI and CIA aren't using crypto for classified traffic?

[Cindy]

FREEREPUBLIC.com - Discussion Threads - Search Term: "GLOBAL CROSSING"
http://www.freerepublic.com/focus/news/search?s=GLOBAL+CROSSING&ok=Search&m=exact&o=score

FREEREPUBLIC.com - Discussion Threads - Search Term: "TERRY MCAULIFFE"
http://www.freerepublic.com/focus/news/search?s=TERRY+MCAULIFFE&ok=Search&m=exact&o=score

FREEREPUBLIC.com - Discussion Threads - Search Term: "CHINESE MILITARY"
http://www.freerepublic.com/focus/news/search?s=CHINESE+MILITARY&ok=Search&m=exact&o=score

[Pro-Bush]

A lot has gone on over the past two years:

Company Global Crossing Ltd.


CEO John Legere


Headquarters Madison, N.J.


Date Action


12.17.02 Bankruptcy Judge Robert Gerber confirms reorganization plan, subject to settlement of the Global Crossing pension objection

12.12.02 The confirmation hearing on Global Crossing’s reorganization plan adjourns again

12.11.02 Federal U.S. agencies delay the FCC's review of two Asian companies' deal to buy bankrupt Global Crossing

12.06.02 Global Crossing settles a dispute with a group of bondholders who had objected to its reorganization plan

12.05.02 Global Crossing factions make opening arguments

12.04.02 Judge considers reorganization plan

12.02.02 Noteholders object to the company's reorganization plan, arguing that their claims aren't treated fairly

11.26.02 Martin Cooperman of accounting and consulting firm Grant Thornton will serve as the examiner in Global Crossing's bankruptcy filing

11.18.02 China Netcom Communication Group Corp. will lead a group in the acquisition of Asia Global Crossing Ltd., a deal that could top $270 million in equity and debt

10.21.02 Judge extends exclusivity for Global Crossing up to 60 days if the telecom is unable to resolve objections before the Dec. 5 deadline

10.17.02 Global Crossing files an amended reorganization plan and plan disclosure statement

10.16.02 Global Crossing asks court approval of a settlement with Tyco Telecommunications to facilitate completion of its fiber-optic network

9.17.02 Analysts and industry observers say Global Crossing's real challenge will be turning a profit in a sour telecom market

9.16.02 Global Crossing files reorganization plan

8.09.02 Court approves Global Crossing's sale to Hutchison Whampoa and Singapore Technologies Telemedia

8.02.02 Global Crossing again extends bidding deadline in hopes of drawing bigger offers

7.31.02 Global Crossing prepares for auction, may stick to stand alone plan if bidding is too low

7.11.02 Global Crossing receives three bids to help the telecom emerge from bankruptcy protection

7.10.02 Gores Technology and Platinum Equity may make joint bid for Global Crossing

6.03.02 Asia Global Crossing receives multiple expressions of interest, but most of the expected participants do not submit bids

5.31.02 Global Crossing shareholder Michael S. Pascazi asks court to reject extension of Global Crossing's reorganization exclusivity period

5.28.02 Global Crossing to submit plan of reorganization after Hutchison Whampoa and Singapore Technologies pull their $750 million bid

5.23.02 Hutchison Whampoa and Singapore Technologies Telemedia face a May 24 bidding deadline or face competing at auction for Global Crossing

5.21.02 Negotiations extended for Hutchison Whampoa's and Singapore Technologies Telemedia's proposed stalking horse bid

5.20.02 Hutchison Whampoa and Singapore Technologies Telemedia are poised to hold their formal offer

5.13.02 Judge OKs payments to committee members

4.30.02 Asia Global Crossing sells stakes in 3 joint ventures to Hutchison Whampoa

4.16.02 Hutchison Whampoa invites Singapore Technologies Telemedia to bid on Asia Global Crossing

4.10.02 Global Crossing petitions for approval to commit $15 million to retention bonuses to be paid out to 300 key people

4.09.02 Global Crossing to take an $8 billion goodwill write down for the fourth quarter to reflect the drop in value of some assets

4.08.02 Global Crossing appoints three members to its board. Former Defense Secretary William Cohen announces his resignation from the board

3.28.02 Bankruptcy counsel Weil, Gotshal & Manges lets slip the names of 50 potential bidders for Global Crossing

3.25.02 Judge nixes challenge to Global Crossing reorganization

3.21.02 House financial services committee grills Global Crossing executives

3.19.02 Bidding procedures hearing is rescheduled for March 25

3.12.02 House Energy Commerce Committee formally requests Global Crossing to supply, by March 26, information related to the accuracy of its financial statements

3.11.02 Global Crossing's CEO reports that the company has more than 40 interested bidders, and the company will be an attractive buy when it is Ebitda positive by year's end

2.28.02 Global Crossing may not emerge from bankruptcy under the same name: the company may be broken up instead of refinanced

2.22.02 Global Crossing's shareholders file an objection to Hutchison Whampoa and ST Telemedia's plan; offer alternative proposal to raise as much as $5.5 billion in new capital to exit bankruptcy and repay all outstanding financial obligations

2.20.02 360networks Inc. to cooperate with SEC investigations of Global Crossing

2.19.02 Link to Global Crossing limits Qwest's options in face of credit crunch

2.13.02 Investigations of accounting practices may sabotage Hutchison Whampoa and ST Telemedia's $750 million Global Crossing takeover offer

2.11.02 SEC subpoenas Qwest for documents relating to Global Crossing, which the FBI also is investigating

2.07.02 Global Crossing has trouble finding buyers for its venture portfolio holdings

2.06.02 Hutchison and ST Telemedia offer to buy 79% of Global Crossing equity for $750 million, according to details of a proposed reorganization plan filed in New York

2.04.02 Hutchison and ST Telemedia must win the support of Global Crossing's bank lenders and bondholders in order to take control of the company

1.29.02 Hutchison Whampoa Ltd. and Singapore Technologies Telemedia Pte. Ltd. have an opportunity to purchase about 60% of Global Crossing for $750 million. U.S. Telecom IDT Corp. confirms its involvement in discussions to buy a portion of Global Crossing's US long-distance telephone network

1.28.02 Global Crossing and several affiliates file for Chapter 11 bankruptcy protection. The filing is prompted by an overly aggressive building plan that included a series of large acquisitions

11.19.01 Plans to sell its IPC Trading Systems units for $360 million in cash to an investment group led by Goldman Sachs Capital Partners 2000, a private equity affiliate of the Goldman Sachs Group Inc.

11.05.01 Global Crossing ends merger discussions with Asia Global Crossing, citing weak market conditions

10.04.01 Global Crossing will merge with its Asia Global Crossing unit to cut costs

Source: The Deal

[kattracks]

No, I'm posting an article from NewsMax, and I'm not saying anything.

[Nick Danger]

Are you and WorldNutDaily saying with a straight face that the FBI and CIA aren't using crypto for classified traffic?

The Chinese can only tap into cables if they own them. Everybody knows that. Now you tell one.

[Poohbah]

No, I'm posting an article from NewsMax, and I'm not saying anything.

OK, so NewsMax is saying that the CIA and FBI don't use crypto for their classified traffic.

Do you agree with that assessment?

[Poohbah]

The Chinese can only tap into cables if they own them. Everybody knows that. Now you tell one.

And the Chinese have no ability to intercept radio signals. Everyone knows that. Back to you.

[Man of the Right]

We're going to have to fight our own weapons against these bastards one day. Probably in the not too distant future.

[Man of the Right]

Time to bring back a moribund American institution: execution for treason.

[kattracks]

I haven't got enough information to form a judgement about it. Do you?

[GodfearingTexan]

Since we are selling all of these major private corp.s to a govt funded entity in China, why not make some real money and just allow them to buy the white house, or the grand canyon? i see a problem when we sell something so huge to a chinese operation. regardless of the fact that they will now be able, eventually, to get a better understanding of our electronic communications systems, if they own a majority share they can effectively do whatever they want - like move all their jobs back to the prc. or am i wrong?

[Poohbah]

Yeah, I do.

It's about as sensible as the former Congresscritter worrying that because the ChiComs can detect some US radio signals, they will have access to Top Secret US Navy and Air Force communications. It's about as sensible as saying that because microwave towers transmit some of their signal into space, the ChiComs would have access to any communications that went via microwave.

The rule in the INFOSEC business is "risk management," not "risk avoidance." If you make avoiding risk the main criterion, then the only way you'll achieve success is forbidding all electronic communication of classified information because "SOMEBODY might gain access to it."

[Poohbah]

i see a problem when we sell something so huge to a chinese operation. regardless of the fact that they will now be able, eventually, to get a better understanding of our electronic communications systems, if they own a majority share they can effectively do whatever they want - like move all their jobs back to the prc. or am i wrong?

If they move "all of the jobs back to the prc," then that means that someone else will provide the jobs over HERE. (They can't exactly rip out all of the fiber and take it to China--so any move as you describe would amount to abandoning their infrastructure investment.)

As for your fear of the ChiComs being "able, eventually, to get a better understanding of our electronic communications systems," please note that we use radio quite extensively in the military, and that those signals can be intercepted very easily by ANYONE, including the ChiComs, and that they can gain a better understanding of our electronic communications systems much more easily than they would with this deal--because the aiwaves cost them nothing to run.