The real truth about Chinese missile scientist Hua Di remains unpublished by the mass media. What appears to be a foolish defector arrested by the Chinese government is a cover story for espionage. Hua Di was the self-described “matchmaker” in a Clinton administration high-tech deal for the Red Army.

Hua Di was a Red Chinese double-agent.

Hua Di was born into a family of prominent Communist officials. He studied missiles in Russia and worked in China’s missile program for 24 years. In 1984, Hua went to work for the China International Trust and Investment Co. (CITIC), a firm part-owned by the Chinese Army.

In 1989, Hua became a defector, leaving China after the Tiananmen Square crackdown on student democracy demonstrators. Hua went to work as a researcher at Stanford’s Center for International Security and Arms Control, whose co-directors are former Secretary of Defense William Perry and Stanford political science professor John Lewis.

In late October 1998, it was announced that Hua Di had returned to China. He met with Chinese security officials in late 1997 and was assured that he would not be prosecuted. On December 31, 1997, Hua returned to China.

On Jan. 6, 1998, Hua was arrested and charged with passing state secrets to U.S. officials. Stanford officials and John Lewis have written to the Chinese government appealing for Hua’s release.

Stanford Provost Condoleezza Rice said professor John Lewis “had provided evidence to the fact that the source materials for publications written by him and Mr. Hua were provided by approved Chinese authorities or already were available through the Stanford University library.”

Hua Di and John Lewis shared more than an academic career. In 1992, Chinese Commission of Science, Technology, and Industry for National Defense (COSTIND) Lt. General Huai Guomo contacted Hua Di to start a joint venture called Galaxy New Technology.

Then Perry was also a close friend with the mastermind of the Galaxy New Technology deal, John Lewis from Stanford.

“Lewis and I were matchmakers,” recalled Hua about Galaxy New Technology in 1996. “(General) Huai is my good friend.”

SCM/Brooks Communications purchased large quantities of secure communications gear for sale to a so called “civilian” Chinese firm, Galaxy New Technology, including real-time, encrypted, fiber-optic video systems.

The Galaxy New Technology fiber-optic communication system is providing the General Logistics Division of the People’s Liberation Army with secure communications. The Hua Mei system is safe from nuclear attack and secure from prying U.S. intelligence-monitoring.

John Lewis and Hua Di worked together in 1994 on the Hua Mei project using SCM/Brooks. Hua Di located Ms. Nie Li to run the project as the Chinese co-chair. Lewis located Adlai Stevenson III, the former Democratic Senator from Ohio, to lead the American side.

Documents obtained from the Department of Defense using the Freedom of Information Act (FOIA) show Lewis was being paid by the Chinese Army for Hua Mei while serving on the U.S. Defense Policy Board and working for the Department of Defense as a contractor.

Galaxy New Technology head Madam Nie Lie was also the wife of Chinese Army General Ding Henggao. In 1994, General Ding Henggao was director of COSTIND. General Ding Henggao was also the boss of Lt. General Huai Guomo, the PLA contact for Hua Di.

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.”

SCM/Brooks contracted AT&T to ship advanced, secure, communication systems directly to the Chinese Army. AT&T officials who sold most of the equipment and software to SCM/Brooks were adamant that there was no need to check the Chinese firm, Galaxy New Technology, since it was led by Ms. Nie Lie.

The so-called “civilian” firm was heavily packed with Chinese Army officers and experts. One member of Galaxy New Technology management, according to the Defense document, was Director and President “Mr. Deng Changru.” Mr. Deng Changru was also Lt. Colonel Deng Changru of the People’s Liberation Army, head of the PLA communications corps.

Another Chinese Army officer in the Galaxy New Technology staff is General Manager “Mr. Xie Zhichao” who is really Lt. Colonel Xie Zhichao, Director of the COSTIND Electronics Design Bureau.

The Galaxy New Technology deal went public in 1996, drawing a GAO report and the Defense document cited here. It also drew far too much public attention to Hua Di and John Lewis.

In 1997, John Lewis was charged with using Stanford University funding to set up the profitable Hua Mei deal. Lewis faced an investigation from the Stanford University administration because he has used University stationery for his Hua Mei business.

In the 1997 investigation, Provost Rice said, “We’ll follow what is a normal process under these circumstances,”

“Similar issues arise quite frequently,” Rice added. “It’s not all that unusual that issues arise concerning conflict of interest,” she said.

Lewis was charged, but no actions were taken against him despite the Stanford policy on conflict of commitment and interest.

Janet Reno, however, needed to be publicly scolded in order to invoke some action. In 1997, Congressman Hyde wrote Attorney General Reno a letter outlining his concerns about Galaxy New Technology.

According to Congressman Hyde’s letter to Reno, “In 1994, sophisticated telecommunications technology was transferred to a U.S.-Chinese joint venture called HUA MEI, in which the Chinese partner is an entity controlled by the Chinese military. This particular transfer included fiber-optic communications equipment which is used for high-speed, secure communications over long distances. Also included in the package was advanced encryption software.”

In 1997, Janet Reno quickly responded to the threat to U.S. national security. Reno held back the FBI investigation of the Hua Mei deal until the “matchmaker” Hua Di could skip America. Reno neatly dodged a major scandal linked to her boss, Bill Clinton, by doing nothing.

Hua Di passed false information to the west, obtained secure communications for the Chinese Army and penetrated into the Clinton White House through the U.S. Secretary of Defense. Hua Di served his party, and comrade General Ding. Hua Di returned home to a hero’s welcome.

Hua Di was no fool — nor was he a dissident. Hua Di was one of many in a network of spies run by Chinese mastermind General Ding.


Documents on Hua Di and the Hua Mei Project

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