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In 1994, Chinese Gen. Ding Henggao announced a new project to modernize the People’s Liberation Army (PLA). In 1994 PLA Gen. Ding Henggao was the head of COSTIND (Chinese Commission of Science Technology and Industry for National Defense). Gen. Ding introduced the world to the Red Army “16 Characters Slogan” or “military production first” project.

The General’s new project showcased a joint U.S./Chinese commission, co-chaired by Ding and U.S. Defense Secretary Dr. William Perry. According to an article published in Aviation Week and Space Technology, a Pentagon spokesman stated the Commission was “not going to be selling arms to China” (March 21, 1994).

>However, Gen. Ding had other things in mind. According to documents
forced from the Clinton administration in Federal Court, upon returning
from an October 1994 trip to Beijing, Perry promised PLA Gen. Ding a
“Cray supercomputer to be used by the Chinese nuclear weapons
establishment to help design newer and safer nukes.”

In addition, according to the Commerce Department documents, PLA generals openly discussed with the Clinton officials a wide array of military technology including the main functions of theArmy unit COSTIND, “1) Aerospace, 2) Aviation, 3) Electronics, 4) Ground Force Military Equipment, 5) Shipbuilding, [and] 6) Nuclear.”

PLA Gen. Ding Henggao led a delegation of Chinese Army officers to Washington, D.C., in November 1994. The mission to Washington included a closed meeting at the U.S. Commerce Department with Defense Secretary William Perry.

Ding, of course, was not alone on his visit to Washington, D.C. The Commerce Department meeting included some of the highest-ranking PLA officers to travel outside of China. Gen. Ding brought his trusted aide, and second in command at COSTIND, Lt. Gen. Huai Guomo. In addition, Ding brought Maj. Gen. Fu Jiaping, and Maj. Gen. Chen Kaizeng. He even brought one of the top spies in the Chinese Army, Maj. Gen. Hou Gang, the Deputy Director of the Intelligence Department of the PLA General Staff Headquarters.

Nor was Perry alone on the American side at the Commerce meeting. The official U.S. government delegation included several familiar Pentagon faces such as Ken Bacon, Assistant to the Secretary of Defense for Public Affairs, and Maj. Gen. David McIlvoy from the office of the Joint-Chiefs of Staff. The meeting also included Commerce Deputy Undersecretary Barry Carter, Dr. Eden Wong from the office of the Secretary of Defense, and the Assistant for White House Affairs, Margaret Sullivan.

In addition, Perry was also assisted by his trusted friend, Dr. John Lewis. Perry appointed Lewis to the Defense Policy Broad. Lewis, however, is listed at the 1994 PLA meeting as “Stanford University, Civilian Consultant to SECDEF.”

According to the Commerce documents, Dr. Lewis was a paid consultant for the Department of Defense and a “consultant” to Dr. William Perry. Ironically, Gen. Ding, Gen. Huai, Secretary Perry and Dr. Lewis also shared a joint business deal. In fact, their “joint” business sold advanced, secure, communications equipment to the Chinese Army.

In 1994, Dr. Lewis, Dr. Perry and Gen. Ding helped form a U.S./China joint venture called Galaxy New Technology that included the U.S. company SCM/Brooks Telecommunications. This venture led to the direct export of advanced, secure, fiber-optic communications systems to a Chinese Army unit.

A 1996 report from the Department of Defense shows that Dr. Lewis was being paid three times for the same meeting in 1994. First, Lewis was paid by the Chinese Army as a member of the Galaxy New Technology project. Second, Lewis was paid by the Pentagon for serving on the U.S. Defense Policy Board. Finally, Lewis was paid by Secretary Perry as his personal defense contractor.

Since the Federal Court order from Judge Payne stated “all” documents, the Commerce Department either withheld or failed to deliver the same 1996 report from DOD. Commerce could only deliver a single page of the multi-page document. The remaining pages are either being withheld, have been destroyed, or were never found.

Commerce neglected to check the SOFTWAR lawsuit and the SOFTWAR web page. This reporter included the entire 1996 DOD report as evidence in the original lawsuit and the full DOD report has been available for nearly a year on the Internet. The entire DOD report was delivered to SOFTWAR in 1998 as being found at the Commerce Department. In fact, the report was returned in response to a previous Freedom of Information (FOIA) request against Commerce.

According to these documents, in 1994, Defense Secretary Perry personally pushed for the Galaxy New Technology deal and personally lobbied against NSA objections. Perry hired one of the two key “matchmakers” of the Galaxy New Technology deal, Professor John Lewis from Stanford, as his personal contractor. Perry brought Lewis to the meeting with Gen. Ding and Lt.Gen. Huai.

The Chinese connection to the Galaxy New Technology venture was a defector also working at Stanford. “Defector” Hua Di was born into a family of prominent Communist officials. Hua studied missile engineering in Russia and worked inside China’s missile program for 24 years. In 1989, Hua fled China after the Tiananmen Square crackdown on student democracy demonstrators.

In America, Hua went to work as a researcher at Stanford’s Center for International Security and Arms Control. The Center’s co-directors were William Perry and John Lewis.

In 1992, COSTIND Lt. Gen. Huai Guomo contacted Hua Di to start a joint venture called Galaxy New Technology. The very same Lt. Gen. Huai who attended the November 1994 meeting with Gen. Ding, Defense Secretary Perry, and Dr. Lewis.
“Lewis and I were matchmakers,” recalled Hua about Galaxy New Technology in 1996. “(Gen.) Huai is my good friend.”

The Galaxy New Technology U.S. partner, 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 Madam Nie Lie.
Madam Nei, however, is the wife of Gen. Ding Henggao. Madam Nei Lie holds her own military rank, Madam “General” Nie of the People’s Liberation Army. Not only was the firm led by a Chinese general, the so-called “civilian” company 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. Col. Deng Changru of the PLA, head of the PLA communications corps. Another Chinese Army officer in the Galaxy New Technology staff was co-General Manager “Mr. Xie Zhichao” or Lt. Col. XieZhichao, Director of the COSTIND Electronics Design Bureau.

The Galaxy New Technology deal went public in 1996, drawing a firestorm of press and a GAO report. According to the GAO, “Defense Department officials told us that broadband telecommunications equipment could be used to improve the Chinese military’s command and control communications networks.”

In 1997, Congressman Henry 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.”

Despite the GAO, Congress and the public press reports, the honorable General Janet Reno did nothing.

In late October 1998, it was announced that Hua Di had returned to China. Hua Di 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 Hua’s business partner, John Lewis, have written to the Chinese government appealing for Hua’s release. The Clinton administration, Dr. Perry and the mainstream press remain strangely silent about imprisoned defector Hua Di.

Hua Di passed false missile 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 Gen. Ding. In the end, Hua arranged for his two employers, Gen. Ding and William Perry, to profit in a deal to harden and secure Chinese military communications.

Hua Di returned home to a hero’s welcome and a fat bank account made on profits from the Galaxy New Technology deal. Hua Di was no fool — nor was he a dissident. Hua Di was a spy. One of many in a network of spies run by Chinese mastermind Gen. Ding.

In a single stroke, Dr. Perry and the Clinton administration sold Ding far more than his spies could ever steal in a decade of espionage. In the process, the Marxist Gen. Ding and his American partners, Perry and Lewis included, also made a tidy profit.

In 1994, Gen. Ding came to America with the “16 Characters Slogan” project. Gen. Ding, the master of spies, openly bragged of his ambition to make the PLA the most powerful military force on earth. Today, Ding can brag of his success. Sixteen characters that made the Chinese General a very rich man and turned the PLA into a nuclear force poised to dominate the world.


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