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The secrets of the Clipper chip
Posted By Charles Smith On 01/12/1999 @ 1:00 am In Commentary | Comments Disabled
In 1993, Vince Foster, Webster Hubbell and Bernard Nussbaum were
told about the Clipper computer chip. Clipper was a secret
encryption project intended to monitor all U.S. secure computer
communications. The chip was to be mandated by federal law to
be installed in all U.S.-manufactured computers much like the
“V” chip is for U.S.-made TVs.
According to congressional investigators, Webster Hubbell and
Vince Foster were given access to highly classified “encryption”
chip designs. Their access included secure encryption
algorithms and details on how the National Security Agency
secretly built the hidden “exploitable” (back door) features
inside the Clipper chip.
In July 1993, the death of Vince Foster came as a major blow to
the Clinton administration. Yet, the alleged affair between
Foster and first lady Hillary Clinton over-shadowed the
discovery of classified materials in Foster’s White House
After Foster’s death, Clinton White House lawyer Bernard
Nussbaum managed to clean out Foster’s files while law
enforcement officials were kept waiting outside. According to
Foster’s secretary, Nussbaum removed two binders, marked TOP
SECRET from the NSA, from Foster’s office.
The real history behind the Clinton selection of Foster and
Hubbell for a secret computer chip project dates back to the
1980s and leads to William Cravens, former head of an Arkansas-
based computer company called Systematics.
William Cravens is an old Clinton friend. William Cravens first
met the Clintons in the mid-1980s when he was president of
Worthen Bank. Mrs. Clinton, along with Rose Law partners Vince
Foster, and Webster Hubbell, worked with Cravens on Worthen’s
It was during the early Clinton years that Cravens also met
James Riady, son of Indonesian billionaire Mochtar Riady and the
owner of the massive Lippo Group. The Riadys jointly purchased
the Worthen bank with Arkansas billionaire Jackson Stephens.
Mochtar’s son, James Riady, ran the bank and the employer of
In the early 1990s, Cravens left Worthen bank and took the CEO
spot at Systematics, an Arkansas-based computer security company
owned by Jackson Stephens. Once at Systematics, Cravens
selected the Rose Office Law firm to perform some special legal
work. One such legal contract involved a top secret
intelligence agency, the NSA, and Systematics.
Interestingly, during 1993, Cravens would deny that any such work
took place and even threatened to sue anyone who dared suggest
that the late Vince Foster or First Lady Clinton worked on
classified contracts for Systematics.
In 1995, Washington Weekly forced the Clinton administration to
admit there was such a contract. The NSA, in response to a
Washington Weekly Freedom of Information request,
admitted that Systematics had a secret contract involving the
construction of a Secured Compartmentalized Information Facility
(SCIF) at an Army base in Georgia.
It was also reported that Mrs. Clinton hired Systematics to
secure computer records from the Rose Office accounting systems,
including data on the now infamous Whitewater land deals and the
Riady holdings in the Worthen bank.
After Bill Clinton was elected in 1993, Cravens left Systematics
and obtained a new job at the Arkansas-based ENTERGY Group,
headed by Edwin Lupeburger. According to Federal Election
Commission (FEC) records, Cravens donated money to a Democratic
Senatorial candidate in May 1996, listing his employer as
Cravens, however, had not really left the Clinton/Lippo/China
relationship. In 1994, Ron Brown led a delegation of U.S.
businesses to China. Among the businesses allowed to fly with
the Commerce Secretary was Entergy Corp., a U.S.-based utility
company that did business in Louisiana, Arkansas, Mississippi
Entergy CEO Edwin Lupberger traveled to China with Brown and
later received a personal letter congratulating Entergy for
its success in China. Entergy signed a $2 billion deal
with the North China Power Group to build a 1200-megawatt power
plant in Datong, China. Brown provided U.S. financial backing
for the deal.
The Entergy deal was worth quite a bit to the Lippo Group. In
fact, the Red Chinese North China Power Group renamed the
project the “Lippo Entergy Datong Power Plant,” giving top
billing to the largest investor and financier.
According to an interoffice memorandum written by J. “Chip”
Brown, head of the Hong Kong office for Entergy Corp., Entergy
officials met Jude Kearney, Clinton’s deputy assistant secretary
of Commerce in Washington. Chip Brown sought a spot for
Entergy’s chief executive on the August 1994 trade trip to
According to Brown’s memo, Kearney “indicated competitive nature
of being selected to ride on the plane with the secretary. Also
indicated that politics of the situation were important and he
as a political employee would push those that were politically
According to Kearney, the fact that Entergy executives made more
than $80,000 in contributions to the Democratic Party qualified
it as “politically connected” and thus, eligible to a ride paid
for by American tax dollars.
There are more contacts between old Clinton friends and Arkansas
businesses. According to a 1994 document obtained from the
Commerce Department, William Cravens replacement at Systematics,
John Steuri, sought and obtained clearance to accompany Ron
Brown on foreign trade trips. The Commerce Office of General
Counsel “vetted” (cleared) the Jackson Stephens owned company
Systematics and the new CEO to travel to South America with
Additional testimony before Sen. Fred Thompson’s committee shows
that the Lippo Group is a joint venture of China Resources, a
trading and holding company “wholly owned” by the Chinese
communist government and used as a front for Chinese espionage
Current allegations of espionage inside the Clinton White House
center on Mochtar Riady. For example, a Riady “gardener”
contributed hundreds of thousands of dollars to the Clinton-Gore
campaign. In fact, the same gardener was caught on video tape,
shaking Clinton’s hand and saying “James Riady sent me.”
Another focal point is former Lippo executive John Huang and
what he did while employed at Ron Brown’s Commerce Department.
Huang is clearly associated with advanced encryption chip
technology, and large amounts of illegal money flowing from the
far east into the Clinton-Gore campaign.
While at Commerce, Huang attended 37 classified briefings given
by the CIA on encryption technology. After each briefing, Huang
would walk across the street from the Commerce Department to the
Lippo-Stephens office. Once inside the Stephens Group — safely
away from prying eyes — Huang made hundreds of phone calls and
faxes to points unknown.
Huang also attended secret White House meetings in June 1994
with Bill Clinton, Webster Hubbell and James Riady. The secret
meetings resulted in a quick payment to Hubbell of over $100,000
by a Lippo company.
There is no question the Chinese generals selected American
“encryption” technology as a prime target. The Red Chinese
technology “focal point” was secure computers and
communications. The red generals wanted to know if there were
any secret Clipper-like “back-door” features built into the U.S.
systems they purchased.
Motorola, Hughes, and Loral all made huge sales of “encrypted”
satellite communication systems to China. Each sale required
the personal signature of Bill Clinton to waive laws passed by
Congress prohibiting such export. Each sale was preceded by a
long series of memos to Ron Brown all begging to sell encryption
technology to China.
Another example of the central focus on encryption is the Hua
Mei fiber-optic project which included encryption computer
source code. The one and only contract for Hua Mei is the
General Logistics Division of the Chinese army. Still another
focus of the Red Generals in Beijing was the encrypted — secure
– satellite Air Traffic Control (ATC) system transferred to
the Chinese air force under Bill Clinton’s signature.
In order to inspect a computer chip one must first obtain
access. It is often difficult to obtain access to a working
satellite in orbit without a space shuttle. That problem was
solved by the Chinese when they simply ripped the chips out of a
working satellite exported to the PRC for launch. The missing
“encryption” control board of chips from the Loral Intelsat came
from a launch that crashed, killing 200 innocent Chinese
The Intelsat crypto-board provided the Chinese army with
significant amounts of information on the operation of radiation
hardened circuits. It was also an opportunity to see (at the
microchip level) if the U.S. had installed secret back doors to
eavesdrop on the Chinese army satellite communications. The
fact that it cost some 200 lives to obtain also reflects how
valuable the information was to the Chinese generals.
All this brings us back to Foster and Hubbell, non-technical
lawyers with access to highly technical, classified
information. The ties between President Clinton, Foster,
Hubbell and the Chinese army scream to be investigated. So far,
Janet Reno has yet to explain why she is not in conflict of
interest investigating her former right-hand man Webster Hubbell.
Information warfare is defined by humans. The Foster data was
covered by “National Security,” and thus carried the death
penalty if illegally released. The absolute value of what he
carried is rated as being worth a life or many lives. Clearly,
of all the data that Foster had at the time of his death, none
was more valued, nor more dangerous, than the secrets hidden on
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