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In April 1994, U.S. Defense Secretary William Perry sat down with
his Chinese counterpart, Gen. Ding Henggao of the People’s
Liberation Army. Together, Perry and Ding hammered out a series
of agreements for U.S. technology transfers to China which were
approved by President Clinton. In 1994, Ding served not only as
a three-star general in the Chinese Army but also as director of
China’s Commission of Science, Technology, and Industry for
National Defense or “COSTIND.”
Four months later, Bernard Schwartz, the troubled CEO of Loral,
flew to China with the personal authorization of President
Clinton under a “Presidential Business Development Mission.”
Schwartz is the single-largest donor to Bill Clinton’s 1996
re-election. In fact, Schwartz has donated over a million
dollars to Democratic candidates.
In 1994, Bernard Schwartz very much wanted to shoot his
satellites into space on top of Chinese rockets. To do this
Schwartz also had to get help from the Clinton administration.
The Clinton administration arranged for Schwartz to meet a
select part of the Chinese leadership. Loral’s China contacts
have remained hidden inside the secret files of Ron Brown until
now. Softwar has obtained that list from the Commerce
Department using the Freedom of Information Act (FOIA).
Bernard Schwartz requested that the Clinton administration set
up a meeting between himself and Shen Rong-Jun, vice minister of
COSTIND. Shen Rong-Jun also happens to be a lieutenant general in the
People’s Liberation Army. In fact, according the Defense Intelligence Agency, all the
officers of COSTIND are active Chinese army personnel. COSTIND
is the missile and high tech buyer/seller for China’s
government. COSTIND, according to the GAO, “oversees
development of China’s weapon systems and is responsible for
identifying and acquiring telecommunications technology
applicable for military use”.
Yet, Lt. Gen. Shen of COSTIND is also the boss of one Wang
Jun, international arms dealer and friend of Bill Clinton
through Charlie Trie. The same Wang Jun, Chinese arms dealer,
who paid his way into a meeting with Bill Clinton inside the
White House. COSTIND owns Wang Jun’s company Poly Technologies
Corp. Poly Technologies also is backed by the Lippo Group and
Bill Clinton’s Indonesian billionaire friends — the Riadys.
Bill Clinton’s self-described “good friend” Charlie Trie took
the money he obtained from Jun and passed it directly to the DNC
as admission into the White House. John Huang, the “secret”
cleared, DNC fund-raiser/Commerce employee, also took money from
the Riadys and passed it on to Bill Clinton. Thus, the Chinese
Army contributed to Bill Clinton’s re-election campaign from
three directions. PLA money came from Johnny Chung, as published
in the New York Times. More money also came from Charlie Trie
and John Huang.
One of the deals that Schwartz made with COSTIND was for the use
of computer-generated secret codes to control satellites in
space. The export of secure control systems for satellites to
China had never been approved by any other U.S. president. In
fact, Bill Clinton denied the export of a U.S. satellite for
Australia because it contained a single encryption control chip.
Curiously, both Loral and Motorola have obtained the personal
approval of Bill Clinton to export advanced, secure satellite
control systems to China. The same kind of chips reported to be
missing from a failed Chinese Long March launch of a Loral
satellite which killed nearly a hundred Chinese villagers. The
very same “failed” launch that centers so significantly against Loral in the
much delayed grand jury investigation by the FBI and the Justice
The military application of being able to use encryption for
satellites is simple and as old as warfare. The same technology
can be applied to missiles, planes, tanks and ships. On the
modern battlefield you want your “bird” to respond only to your
voice. You must electronically cipher the commands whether they
are to humans or between computers and missiles to prevent the
other side from listening in or interfering. To issue secure
war commands worldwide you must have satellites. The Gulf War
is a prime example.
These systems are not easy to get. They cannot be obtained on
the Internet nor are they available even on the black weapons
market. These systems consist of radiation hardened chips that
can survive in the hostile environment of space and nuclear
warfare. These chips are not available on the open market nor
produced in great quantity. Just the kind of technology COSTIND
would buy for military missile communications.
Furthermore, COSTIND is more than a buyer of advanced weapons.
They also sell. COSTIND is a billion dollar, international
seller of weapons through a variety of companies set up for the
profit of the Chinese generals.
One COSTIND company is Wang Jun’s Poly Technologies Corp.
Wang’s claim to Poly Corp. fame is passing money to re-elect
Bill Clinton and having his photo taken with the president.
However, Poly Corp. also produces a fine line of consumer items
such as the AK-47 automatic assault rifle and the Parrot
shoulder fired, surface-to-air missile (SAM).
Poly Corp. is best known in military circles for exporting
Chinese long range chemical/nuclear tipped missiles such as the
M-11 tactical missiles they sold to Pakistan in 1993. Poly
Corp. is well known in Iran, Iraq, Libya, Pakistan and North
Korea for supplying missiles, aircraft, tanks and artillery. In
fact, Poly Corp. once tried to share it’s catalog of weapons
with U.S. customers. Poly Corp. was caught attempting to smuggle
thousands of fully automatic AK-47s into the U.S.
However, Poly Corp. is the not the only COSTIND deal with the
Clinton administration. In 1993, a U.S. company, SCM Brooks
Telecommunications, entered into a joint venture called “HUA MEI”
with Galaxy New Technology, a Chinese company controlled by
COSTIND. That joint venture resulted in the one and only time
the Ron Brown controlled Commerce Department issued a “GLX” or
“general license to export” encrypted video-conferencing, virtual
notebook, and teleradiology applications.
Interestingly, SCM Brooks was then controlled by a close friend
of Defense Secretary Perry, Prof. Lewis from Stanford
University. In fact, Lewis was troubled briefly when Stanford
investigated his use of their facilities to set up the HUA MEI
deal. That trouble, however, did not prevent him from
certifying that the end use customer in China, Galaxy New
Technology, was not military. The fact that Galaxy New
Technology was set up by COSTIND and owned by two generals of
the Chinese Army was ignored until the GAO wrote a report on it.
Although the GLX license was issued to HUA MEI as a “commercial”
venture, the Commerce Department is withholding many of the
documents on HUA MEI as “classified” for national security
reasons. This is because the military value of an encrypted,
real-time, secure fiber optic system is obvious. The GAO noted
the value HUA MEI had for the People’s Liberation Army. “These
applications include sharing of intelligence, imagery and video
between several locations, command and control of military
operations using video-conferencing, and medical support and
telemedicine between the battlefield and remote hospitals. When
used in a military application, both types of equipment require
encryption devices to protect communications from interception.”
Wang Jun’s traveling arms show in the White House was sponsored
by the same friendly folks who point nuclear weapons at America.
They set up Hua Mei, bought Bernard Schwartz’s satellites and
sent their agents inside the White House. President Clinton
sent U.S. military technology to the Chinese Army via the Brown-controlled Commerce Department. The People’s Liberation Army sent money to Bill Clinton via their front companies such as Poly Corp. and Lippo.
Some of the players involved were Gen. Shen, Ron Brown, Wang
Jun, Johnny Chung, John Huang, James Riady, Charlie Trie, Webb
Hubbell, Bernard Schwartz and Bill Clinton. China paid and in
return Clinton allowed a wide variety of weapons to flood the
world market, from nuclear-tipped missiles for rogue nations
to machine guns for U.S. bank robbers and drug gangs. That flood
came from COSTIND and the Chinese Army.
The People’s Liberation Army proved their historic communist
leader, Mao, was wrong. Chairman Mao once wrote “Power emanates
from the barrel of a gun.” That rule no longer applies. Today,
the pen is mightier than the sword. The Chinese Army took the
American White House, armed only with a checkbook.