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In 1996, American computer maker Sun Computer Corp. exported a
supercomputer directly to the Chinese army — or did it? According to
the Cox Report, the Chinese Ministry of Foreign Trade and Economic
Cooperation explained that the actual buyer of the computer was the
“Yuanwang Corporation,” but explained that Sun was, in fact, aware of
“this corporation’s PRC (People’s Republic of China) military ties.”

At the time, Commerce Department export enforcement officials in
Beijing could not identify companies owned by the Chinese army.
According to the Commerce officials in Beijing, the People’s Liberation
Army (PLA) simply did not provide such information.

Yet, according to a 1997 e-mail from Bureau of Export Administration
officer Mark Bayuk, a chart provided by the Defense Intelligence Agency
was used to “discover that Yuanwang Group, the importer that is alleged
to have imported the Sun computer shipped to the National Defense
Technical Institute of China in Changsha, was directly under the control
of COSTIND.”

An e-mail reply from Beijing Commerce officer Robert Bannerman
states, “This chart is the only list we have here in China of
PLA-affiliated companies. The Chinese government does not publish such a
list, nor do we know of any other published source or data base of
PLA-affiliated companies.”

Bannerman did not know how wrong he was. While export control
officials were scrambling to find some information on PLA operations –
the Commerce Department sales division, under Ron Brown, was well
informed.

There was a published list of Chinese army companies and it was
provided by one of the top Generals in the PLA. In 1995, Secretary Perry
informed Commerce Secretary Ron Brown that his PLA contact was “General
Ding Henggao” of COSTIND.

“Dear Ron,” wrote Perry in his 1995 letter to Secretary Brown. “I
recently received a letter from General Ding Henggao, the Minister of
the Chinese Commission for Science Technology and
Industry for National Defense (COSTIND). As you know, General Ding and I
head the Sino-American Joint Defense Conversion Commission that was
established during my visit to the PRC this past October (1994).”

“General Ding’s staff has prepared a list of 49 potential projects.
… We have provided the list to Barry Carter, who is a member of the
Commission. Your Bureau of Export Administration is working to make
information available to concerned U.S. businesses.”

According to Defense Secretary Perry, the U.S. contact for Ding was
Barry Carter, Commerce Deputy Undersecretary of Export Administration.
According to Federal Election Commission
records, Barry Carter is a Democratic National Committee (DNC) donor and
currently a Professor of Law at Georgetown University.

In 1994, Carter worked at the Commerce Department under Ron Brown.
Barry Carter exchanged correspondence with several major China-Gate
players including PLA Lt. Gen. Huai Guomo, PLA Major Gen. Deng Yousheng,
Ken Kay, a lobbyist for Sun Computers, and Eden Woon of the Washington
State China Relations Council.

The 1995 PLA list given to Carter is part of a series of letters
between Commerce, various Chinese Army officers and anxious U.S.
vendors. The 1995 list provided to Carter included “China YuanWang
(Group)” and several other well known Chinese army owned companies such
as “NORINCO,” “China National Nuclear,” “China State Shipbuilding,” and
“China Aerospace.”

Carter also included his own personal touch to the list, by providing
the phone, fax and address for his PLA contact in Beijing, “Lieutenant
Colonel Wang Zhongchao,” and his contact at the Chinese embassy in
Washington, D.C., “Colonel Xu Cunyong.”

Carter provided the list of PLA companies and contacts to Eden Woon,
donor to U.S. Senator Patty Murray, D-Wash., Executive Director of the
Washington State China Relations Council (WSCRC) and Director of the
Hong Kong General Chamber of Commerce. WSCRC includes major corporate
sponsors such as Northwest Airlines, Boeing, Microsoft and the law firm
of Preston Gates Ellis & Rouvelas Meeds.

However, in 1994, civilian Eden Woon also provided Commerce
Undersecretary Barry Carter advice on how to deal with the Chinese
generals. According to another Commerce document, Barry Carter informed
DIA Lt. Col. Dennis Blasko that Woon helped determine the text of his
official letter to PLA Gen. Huai Guomo.

Carter’s letter to Lt. Col. Blasko states, “Dear Dennis — First it
was a pleasure to meet and talk with you in Beijing. … Accompanying
this is a letter from me to Vice Minister (Lt. Gen.) Huai Guomo of
COSTIND. It is a follow-up to the Defense Conversion Commission meeting.
Eden Woon suggested that I write the letter, and I cleared the contents
with him. Eden said I should ask you to forward it to the Vice
Minister.”

The 1994 letter to Lt. Col. Blasko was copied to Eden Woon by Carter
in a following fax transmission. Carter wrote to Woon on the copy
attachment “Eden — FYI. Here is what I faxed to Lt. Col. Blasko last
week. … My Best, Barry.”

In December 1995, Eden Woon and the WSCRC hosted a delegation of
Chinese Army representatives from PLA-owned companies. Woon took them on
a tour of the Washington State companies anxious to do business with the
Chinese army.

The 1995 delegation to Washington state included “Feng Hui, Staff
officer” of the COSTIND “Foreign Affairs Dep’t.” Feng Hui is better
known as Major Feng Hui of the Chinese army. Major Feng was accompanied
by other officers from the PLA unit COSTIND, and a host of engineering
specialists from various PLA owned companies, including “Chengdu
Aircraft plant,” the “Jiangnan Shipyard” and “No. 614 Institute,” a PLA
institute staffed by weapons experts.

There is a clear reason why Feng trusted Eden Woon to help the
Chinese army do business in Seattle and beyond. Woon’s radical views of
U.S.-Sino relations do not include a free Taiwan.

In 1997, Woon and WSCRC sponsored a conference that included U.S.
Senator Patty Murray,
D-Wash. On Oct.14, 1997, at the close of the conference, the
participants issued a report that states, “The U.S. should ensure that
Taiwan understands that if conflicts arise (especially if apparently
provoked by Taiwan), it cannot necessarily count on the U.S. coming to
the rescue.”

The Chinese army, however, could count on Eden Woon and Barry Carter
for help. To that end, Carter’s personal attention also included
computer company lobbyist Ken Kay and the CSPP consortium of U.S.
supercomputer manufacturers.

In 1994, Carter corresponded with “Ken” Kay who was then “director”
of the Computer Systems Policy Project (CSPP), a consortium of powerful
U.S. computer makers. According to the CSPP, in March 1994, the CSPP
Director “Kenneth R. Kay,” was also “a partner in the law firm of
Preston Gates Ellis & Rouvelas Meeds.”

According to a CSPP document forced from the Commerce Department by
legal action, the CSPP members included the “chief executives of Apple,
AT&T, Compaq, Control Data Systems, Cray Research, Data General, Digital
Equipment, Hewlett-Packard, IBM, Silicon Graphics, Sun Microsystems,
Tandem and Unisys.”

In 1994, CSPP Director Ken Kay contacted Barry Carter and Ron Brown
in an extensive effort to expand computer exports to China and Russia.
Kay pressured Ron Brown by issuing an internal report to ease “export
control policy” and seek “new thresholds for computers.”

On March 11, 1994, Barry Carter replied to Kay and the CSPP report.
“Dear Ken,” wrote Carter. “Thank you for a copy of the CSPP report. I
studied it with great interest. I believe Secretary Brown has responded
more fully to you on this. I, of course, fully share his views.”

By April 1994, Ken Kay left the employ of Preston Gates and took a
new position at Podesta Associates, the powerful lobby firm owned by
Tony Podesta, brother of White House advisor John Podesta. Kay, of
course, took his CSPP clients with him by retaining his executive
directorship of the consortium.

The shift to Podesta Associates was quickly felt by the CSPP members
and the PLA. In August 1994, CSPP members IBM, Cray and Tandem were
invited to participate on a Brown trade trip to China. While on the
trip, CSPP member Tandem sold over $100 million in computers to
PLA-owned Great Wall Industries, manufacturer of the Chinese army
nuclear tipped missiles.

According to a May 1995 CSPP document sent to Ron Brown, “controls on
computer exports to Russia and China for commercial, civil end-users
should be eliminated; controls on exports for actual military end-uses
may be appropriate until there is greater certainty that neither country
poses a threat to U.S. national security.”

The Clinton administration saw no “threat” to U.S. national security
in the U.S. “strategic partner” Communist China. In response, CSPP
members IBM, and Tandem were given the list of
approved PLA owned companies wanting their business by Barry Carter.

In 1995, both companies elected to join the “Chinese Defense
Conversion” project. The list of IBM and Tandem contacts were given to
the Chinese Army in an exclusive report on U.S. companies provided by
Barry Carter directly to PLA Gen. Huai Guomo of COSTIND.

By November 1995, the CSPP sent a letter to Ron Brown thanking him
for the change in export policy. The CSPP letter states, “we want to
express our great appreciation for your role in the
President’s recent decision to significantly reform computer export
controls.”

Clearly, U.S. national policy was made in the corporate boardroom –
not inside the White House. Neither Clinton nor the corporate fat cats
at the CSPP consortium want to stop the flow of supercomputers for the
weapon makers in Beijing. Clinton does not want to offend the 3,000
PLA-owned companies identified by the Cox report nor their American
employees.

Yet, America could slow down Chinese army efforts to exploit nuclear,
chemical and biological weapons espionage without Bill Clinton’s
approval. We could save millions of lives and stop a
future global thermo-nuclear war with one simple act. America can stop
doing business with the Chinese army.

Congress can halt all exports of supercomputers to China and end
support for PLA-owned companies. Congress can return export controls for
super-computers back to the Defense Department and State Department.
Congress can end government handouts and federal grants to PLA
supporters, such as the CSPP companies.

American consumers do not have to buy Apple, IBM or Sun computers. We
can individually strike a blow for freedom and against corruption by
simply not doing business with those who
sold our national security to Communist China.


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