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Anatomy of a cover-up
Posted By Charles Smith On 03/02/1999 @ 1:00 am In Commentary | Comments Disabled
On Feb. 23, U.S. Federal Judge Payne issued an order for the Commerce
Department to release documents on the Chinese army unit, COSTIND (the
Chinese Commission of Science Technology and Industry for National
Defense). The court order was in response to a suit filed by Softwar,
following a Freedom of Information Act denial by the Commerce
The Commerce Department claimed that records detailing meetings
between COSTIND army officers and Commerce officials did not exist. Much
like Mrs. Clinton’s claim that “Whitewater” billing records did not
exist, the Commerce claims turned out to be false.
The Commerce Department has already returned a vast array of
documented evidence on COSTIND. Some of the phantom records are on the
Internet, complete with signatures of the Clinton officials involved.
Federal Judge Payne viewed the pile of real documents presented by
this reporter, along with the words “Dear Ron” plastered all over them
and exploded. The judge found the lame defense presented by the Clinton
administration to be an insult.
The Commerce Department lawyer was forced to admit that 13 records
responsive to the Freedom of Information Request on COSTIND have been
found. Judge Payne ordered that all documents, including those withheld
for national security, be reviewed by the court to ensure that none are
being illegally withheld.
President Clinton has offered U.S. trade favors to China at every
turn, claiming the communist state will become less of a monster. The
logic is that if China is fat and happy on western consumer goods it
will no longer be a nationalistic, radical nation looking to even its
old border disputes.
Instead, the Chinese army bought high-tech military items and sold
goods made by cheap slave labor in massive quantities to American
merchants eager for a quick buck. The trade imbalance between America
and China reflects the communist tax and regulation war against imported
The Chinese army is converting the massive trade surplus with America
into an ambitious arms build up to dominate the 21st century. Our cash
for goods is fueling the next arms race.
In addition, the Communist state has grown less tolerant of freedom.
The Chinese Communist Party is using advanced U.S. “law enforcement”
technology to round up dissidents at a higher rate than during the
Tiananmen Square massacre. The monster is growing stronger and much more
evil, fed by mounds of cash from the West.
President Reagan once had a similar problem with the former Soviet
Union. Many in the Republican Party pressed for open trade and a
no-questions-asked policy with the Soviet Union. They cited the
unrestricted actions of trading partners in securing lucrative deals
behind the Iron Curtain. The strict Soviet Empire, they argued, would
crumble under an onslaught of western goods.
Instead, Reagan picked the hard line, arming America like no
president had done before, banning high-tech exports, and electing to
negotiate more important things than trade. Things that appear to be
unknown to this administration, such as human rights and arms control.
The Clinton administration has no major treaty signed with China for
strategic arms. While we are bound by SALT and the ABM treaties with the
Soviet Union, a nation that no longer exists, China has no such
restraints. The fact that Clinton has no Chinese nuclear arms treaty is
clear evidence of his lacking in history’s embrace of peacemakers.
Nor is there any evidence that the PRC would adhere to treaties even
if signed. In fact, according to documents obtained using the Freedom of
Information Act, the Clinton administration has openly rewarded Chinese
misdeeds and treaty violations.
In 1998, Chinese officials denied America the right to inspect
U.S.-built super-computers exported for a so-called “academic” venture
at Xian University. The denial was an open violation of a 1983 U.S./Sino
The Clinton administration responded to the violation by allowing the
export of more ultra-fast computers without inspection, violating U.S.
trade restriction laws passed by Congress. Xian University, of course,
is a major PLA weapon testing and development site.
There is worse news. According to the General Accounting Office
(GAO), the Clinton administration allowed super-computers to be exported
directly to Russian and Chinese nuclear laboratories. The GAO also noted
that the super-computer exports took place with no evaluation of the
impact on Chinese nuclear weapons development, missile design, genetic
or biological weapons research or even the impact on national security
by breaking our
One fact remains above the sex, sordid lies and dangerous phone
calls: The White House was penetrated by Chinese army agents. COSTIND
Col. Lui met with Bill Clinton in the White House after donating money
through Johnny Chung. The Chinese army engaged in the most successful
espionage effort of the 20th century. Of course, they picked an easy
target, Bill Clinton.
China can be generous with its friends. China has every reason to
share its good fortune. Defense experts are already tracing the vast
array of advanced U.S. military technology sold to China in the missile
arsenals of Iraq, Iran and North Korea.
In February, the repercussions of the China-gate scandal shot down
$500 million worth of satellites for Communist China. The cancellation
of the Hughes sale to Asia Pacific Mobile Telephone (APMT) is a victory
for western national security. APMT, the buyer of the Hughes satellites,
is reported to be half owned by COSTIND, the same Chinese army unit that
penetrated the White House.
According to the Defense Department, the Hughes satellites were
equipped with a sophisticated 40-foot antenna that could intercept U.S.
military communications. The APMT satellites sales also included secure,
encrypted, voice and data communications.
Both the Defense and State departments stuck to the argument the
Hughes sales were a military transfer. DOD and State were backed by a
vast array of documented abuses from inside the Commerce Dept. Their
objections won the day and forced Clinton to turn down the Hughes
Hughes, of course, does not like this. Hughes, and its former CEO,
Michael Armstrong, donated millions of dollars to the DNC and Bill
Clinton. Both have also openly complained that national security reviews
are a threat to their profit margins. Obviously, their investment in
Clinton, like the Asian satellite market, has turned sour.
Yet, the threat to Hughes profits are minor in comparison to another
threat — global thermo-nuclear war. Rep. Dana Rohrabacher, chairman of
the House Space Sub-committee recently illustrated that very real
Rohrabacher said, “Some of the industry people that are complaining
have betrayed their country. They have provided upgrades to communist
Chinese rockets that threaten to incinerate millions of Americans. The
administration has overseen and acquiesced to the transfer of rocket
technologies to the communist Chinese that threatens the lives of every
American. It’s a disgrace.”
Clearly, the Hughes executives involved have no heart, no brain and
certainly no honor. They, however, do have a wallet. The pain issued by
loss of income clearly outweighs a long stay in the Hotel Hubbell
Minimum Security Prison/Lippo Creative Accounting Institute. The lesson
to be learned inside all U.S. corporations is that lost sales due to bad
publicity far outweighs profits obtained from the Chinese army.
Rohrabacher is not alone in his conclusion of “betrayal.” The
Department of Defense accused both Hughes and the Commerce Department of
passing advanced technology to the Chinese army. The DOD reported that
Hughes and the Commerce Department knowingly passed significant missile
nose-cone design technology under the guise of a civilian launch
According to the DOD report, the Commerce Department approved of the
transfer even though they could NOT issue such a license. The Defense
Department report states the Commerce Department issued licenses to the
Chinese military that constituted a “defense service” within the meaning
of the State Department’s International Traffic in Arms Regulations
(ITAR) under the Arms Control Act (ACEA).
The Defense Department wrote: “This was clearly beyond the scope of
Commerce export control jurisdiction because only the Department of
State is authorized to issues licenses for defense services.”
Furthermore, according to the Defense Department, “the documents DoD
reviewed reveal that Hughes was conscious of ‘government constraints’ in
providing assistance to the Chinese. … Commerce revealed the existence
of these reports and other documents during interagency preparations for
June 1998 Congressional hearings on satellite exports for launch in
In 1998, Commerce claimed to this reporter that the records on
COSTIND did not exist or if they did, they would be secret. In 1999,
Federal Judge Payne shot down the “national security” excuse. He ordered
Commerce to produce everything — including national security materials
– so the Court can double check.
Who is it that Bill Clinton wants to keep the so-called secret from?
The American people or the Chinese army? The Chinese army knows what
went on in the Ron Brown meetings. The PLA Generals were there. They
know exactly what they obtained from Loral, Hughes and Motorola.
This reporter was forced to take the Commerce Department to federal
court in an effort to discover the truth. Armed with the federal court
order, this reporter is sure many more documents will soon be released.
The American people will learn of the secret deals inside the White
House, sooner rather than later.
Commerce officials, including Secretary Daley, have every right to
worry that the words “contempt” and “four years in jail” might appear
next to their names. The alternative of full disclosure may yet save
them from such an unfortunate fate.
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