On Aug. 17, 1998 President Clinton testified he had an improper
relationship with Monica Lewinsky. The president’s testimony was beamed
to Independent Counsel Kenneth Starr’s D.C. grand jury from the White
House over a state-of-the-art, scrambled, fiber-optic video
communications system. Clinton used the super-secure video system to
protect his personal and political privacy.

Yet, this was not the first time Clinton has used encrypted or
scrambled video. In 1996, Clinton testified before Starr’s Little Rock
grand jury over an encrypted, real-time, video link. In fact, the
president uses scrambled video communications to communicate with
military units around the world on a regular basis. Ironically, the
Clinton administration also approved the sale of a similar, fiber-optic,
secure video system directly to
the Chinese Army in 1994.

A newly released document obtained from the Defense Department, using
the Freedom of Information act, shows that DoD joined the White House in
a coordinated defense of the export to China. The document, a 1996
response letter from the deputy secretary
of Defense to National Security Committee Chairman Floyd Spence, R-SC,
also provides a detailed view of the Chinese military C4 (Command,
Communications, Computers and Control) system.

In 1994 SCM/Brooks Communications purchased large quantities of
secure communications gear for sale to a so called “civilian” Chinese
firm, New Galaxy Technology, including real time, encrypted, fiber-optic
video systems. AT&T officials who sold most of the equipment to
SCM/Brooks were adamant that there was no need to check the Chinese
firm, New Galaxy, since it was obviously led by a civilian, Ms. Nie Lie.

However, Nie Lie was the wife of Chinese Army General Ding Henggao.
In 1994, General Ding Henggao was director of the Chinese Commission of
Science, Technology, and Industry for National Defense or COSTIND.
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.”

One member of New Galaxy management, according to the Defense
document, was Director and President “Mr. Deng Changru.” Yet, Mr. Deng
Changru was then also Lt. Colonel Deng Changru of the People’s
Liberation Army, head of the PLA Communications corps. Another Chinese
Army officer in the New Galaxy staff is
co-General Manager “Mr. Xie Zhichao” who is really Lt. Colonel Xie
Zhichao, Director of the COSTIND Electronics Design Bureau.

In 1994, despite the red stars and green uniforms, New Galaxy was
certified as a civilian company by the Brown-led Commerce Department.
New Commerce Department export regulations did not require a pre-sale
check on end use with civilian companies. So
the deal was completed and the People’s Liberation Army obtained an
encrypted C4 system from America.

And where was the U.S. military watchdog on this? According to the
Deputy of Defense, the export was of no concern because “the PLA already
has its own, extensive and very modern communications infrastructure
that incorporates very advanced technologies, including fiber optic
systems and a nation-wide microwave system”.

Again, what the Clinton DoD left out is that the German built fiber
optic system sold to China never worked and was abandoned in 1994.
Furthermore, Chinese microwave communications are extremely vulnerable
to jamming, interruption, nuclear blackout
and monitoring. Clearly, COSTIND Lt. Colonel Deng Changru and Lt.
Colonel Xie Zhichao arranged the New Galaxy deal in order to replace the
failed German system.

In fact, COSTIND arranged several high-tech communications deals in
various ventures with Loral, Hughes and Motorola in response to the dead
German fiber optic system and the obsolete/leaky microwave command net.
In August 1994, COSTIND General Shen
Roujun met with Loral CEO Bernard Schwartz to buy into the Globalstar
communications system. The meeting between the PLA General and Schwartz
was arranged by Ron Brown and President Clinton. General Shen Roujun’s
son also worked for Hughes, exporting satellite communications systems
to China.

Yet, according to the Defense document, no noise was made by the NSA
or Pentagon about the deal. Normally, the NSA would have put up a fierce
fight to prevent an encrypted C4 system from being sold to China. The
NSA has come out of its black box on more than one occasion to appear
before the Hill and lobby hard against encryption. Yet, not one
objection was voiced from Ft. Meade.

Not even the FBI, nor its diminutive director, Louie Freeh, voiced
one single objection about the deal to send crypto to China. This flies
in the face of logic since FBI Director Freeh has openly testified of
his desire to ban all encryption.

Then Secretary of Defense William Perry was also a close friend with
the mastermind of the New Galaxy deal. The 1994 purchase involved two
American companies, Brooks Telecommunications International Inc. and
SCM, which was at the time run by
Stanford Political Science Professor (and close associate of William
Perry) John Lewis. The newly released document from DoD shows Mr. Lewis
was on the Chinese Army payroll while also serving on the U.S. Defense
Policy Board, and while drawing a
paycheck as a contractor to the Perry led Defense Department.

In June, 1998 former DoD Secretary Perry granted a rare interview to
Cal Thomas in which he claimed to have opposed technology transfers to
China. This, of course, flies in the face of documented evidence. For
example, a letter written to the Deputy Secretary of Defense in 1993 by
Lewis was copied to Perry. Lewis wrote that he was aware that the fiber
optic system he wanted to export to China would be opposed by the NSA
and the Pentagon. According to the Defense Department, Lewis and Perry
later met and discussed the New Galaxy deal but Perry made “no
commitments, either direct or implied.”

In 1994, the Clinton administration used an executive slight of hand
and redefined advanced high tech communications sales out from under
Defense review and formed a new license called “GLX.” The GLX license
placed advanced telecommunications, such as the New Galaxy fiber optic
system, under the Brown Commerce Department.

One 1995 document obtained from the Commerce Department on the GLX
license shows that even they found “potential missile technology
end-use” in a Chinese GLX export and “the high dollar volume approved
items are primarily encrypted cellular telephones and radios.”

Today, the New Galaxy project, called Hua Mei, is providing the
General Logistics Division of the People’s Liberation Army with secure
communications. Thus, the Chinese Generals can rest assured their C4
system will not be monitored nor disrupted even in the event of nuclear

So why did the Defense Department engage with the Commerce Department
in a cover-up, defending an obviously flawed export to China?

The Defense Department has two distinct sides, the political
appointees and the line troops. Was it the political Defense Department
that released the personal files of Linda Tripp to the press or the
“line” troops? The release was both a patently illegal act, and timed
perfectly with the wishes of the White House.

Much the same can be said about DoD’s response to the Chinese New
Galaxy deal and Secretary Perry. The act was both politically motivated
and in perfect sync with false cover stories issued by the White House.

The president has asked us to trust him and the information his
administration provides us as accurate. The recent Tomahawk strike is a
prime example. Clinton stated the targets were terrorist camps and a
nerve gas factory in Sudan. Clinton’s word is being backed by unproven
assertions from defense and intelligence officials.

If we cannot trust the President — then can we trust the word of a
politically appointed civilian or brass hat? Clearly, after viewing the
evidence on the New Galaxy export to China, the answer is no.


New DOD 1996 letter on Hua Mei C4 Export


GAO report on New Galaxy and Hua Mei C4 Export


HUE MEI – Commerce Document On GLX Exports


Note: Read our discussion guidelines before commenting.