On Aug. 2, 1999, Federal Judge Robert Payne issued a court
order against this reporter to remove a secret DIA (Defense
Intelligence Agency) report from the Internet. I was ordered to
remove the unredacted version of a DIA report by 5:30 p.m.
eastern time that same day.

Apparently, Department of Justice lawyer Joan Evans released the
unredacted version by mistake. The DIA document sent to me contained
the names of DIA agents who wrote the 1995 report on the Chinese Army
Unit COSTIND. The DIA requested that the names of the agents be
withheld under “Title 10, United States Code” to protect their identity.

I replaced the secret version with the redacted (blacked out)
version as per Judge Payne’s orders, prior to the 5:30 p.m.
deadline. As part of the process, I had to contact Assistant
U.S. Attorney Evans, in an attempt to comply with Judge Payne’s order to
return the DIA document.

Instead of resolving the situation, Evans swore vengeance and
threatened to “get” me. I took her threats to be officially sanctioned
by the U.S. Justice Department and the Clinton White House.

Of course, this is typical of the Clinton administration. Its
mistake compromised the identity of DIA agents. Instead of working to
minimize the damage to U.S. national security, it has engaged in
threats. Discover the truth, and come under attack.

The truth is that Ron Brown and the Commerce Department dealt with
the Chinese army. My original Freedom of Information Act request
(FOIA) was for “all information on COSTIND” or the Chinese “Commission
on Science, Technology and Industry for National
Defense.” In 1994, this PLA unit was led by General Ding
Henggao with his two vice “minister” sub-commanders, General
Huai Guomo and General Shen Rougjun.

In my 1998 appeal to the Commerce Department, I submitted a document
showing that “COSTIND Vice Minister Shen Rougjun”
met with Commerce Secretary Ron Brown and LORAL CEO Bernard
Schwartz in August 1994. The Commerce Department has correctly
released a mountain of information on “COSTIND,” including data
on COSTIND “Minister” General Ding and “Vice Minister” General

COSTIND Vice Minister Shen was a general in the Chinese army.
COSTIND is a Chinese army unit. Gen. Shen traveled to the U.S.
in May 1994 and arranged for COSTIND to purchase a Hughes Corporation
satellite, called Apstar 2, that was later destroyed in a crash.
The PLA blamed the satellite for the crash and tried to pin the
higher insurance rates on Hughes.

Afterwards, Gen. Shen investigated the crash. Commerce Department
officials participated in and authorized the Hughes crash
analysis to be passed back to the Chinese under Vice Minister Shen. In
the process, Hughes passed significant nose cone technology directly to
COSTIND under the direction of Shen.

In 1994, Gen. Shen also actively sought help from the Commerce
Department in obtaining employment for his son, Shen Jun, at
LORAL. Gen. Shen succeeded in obtaining a sensitive position
for his son at Hughes. Gen. Shen, his son, and Hughes officials
met to discuss the satellite crash.

PLA intelligence operations are frequently family-run operations
similar to organized crime (RICO). PLA Generals often arrange
for relatives to take employment as a bribe. Documents obtained
from this action shows that COSTIND Minister Gen. Ding also
participated in such a kick-back scheme with his wife, Madam
(General) Nie Li. Even Ding’s wife held rank in the PLA.

Another key report found at the Commerce Department is a 1997 Rand
Report on the Chinese army. The Rand Corp. found that PLA
bribes paid for “lavish parties, luxury foreign automobiles and
Swiss bank accounts”.

The Rand report, “Chinese Military Commerce and U.S. National
Security” also details the CITIC bank-owned Poly Technologies
and the smuggling of 2,000 fully automatic AK-47s from Chinese army
inventories. According to the Rand report, U.S. Custom agents, posing
as U.S. drug gangsters, arranged to purchase the machine guns in a sting
operation that led directly to the Chinese army in Beijing.

However, the Customs PLA machine-gun sting crossed with Poly
Tech President Wang Jun and his visits to the White House. The
Rand report ignored the donations made by the PLA through
operatives to Mr. Clinton. The Rand Corp. missed the Chinese
atomic espionage altogether.

The report states, “Despite the serious national security
concerns they raise, this report argues that Chinese military
and defense-industrial enterprises should be allowed to operate
within the United States.”

The answer to the big miss in Rand analysis becomes all too
clear upon closer inspection. The 1997 Rand report was
sponsored and, in part, authored by Asia-Pacific “policy” expert
Gareth C.C. Chang. Chang is a familiar player in the Chinagate
affair. Even in the 1997 Rand report Chang is listed as “Senior
Vice President” of Hughes Corporation.

In fact, Chang is also in the 1999 Cox report. On April 4,
1995, Hughes Electronics Senior Vice President Gareth Chang
wrote a memorandum to Hughes CEO Steven Dorfman regarding the
Apstar 2 failure.

Chang wrote, “We need to personally share our findings with the
Chinese leadership. A senior Hughes executive, armed with
detailed scientific and technical evidence, should meet with
General Shen of COSTIND and Chairman Liu of CASC before anything
is said to the media.”

Hughes’ Chang and COSTIND PLA General Shen traveled in the
same small circle of international arms dealing as Poly Tech Wang Jun
and Loral CEO Bernard Schwartz. All of the above elected to connect
their weapons business through Commerce Secretary Ron Brown.

Both Loral CEO Schwartz and Hughes CEO Michael Armstrong donated
over a million dollars to Bill Clinton. Both also won a meeting
with General Shen of the Chinese army, courtesy of Bill Clinton.
The mix of money and the ever-present “Swiss bank account” was
enough to make even hardened criminals swoon with delight.
The Democrat parade of weapons smugglers and Chinese agents
through the White House was mixed with million-dollar donations.

The ugly truth about Bill Clinton is that he dealt directly with
arms smugglers and sold our national security for pennies. The
truth is that Ron Brown was an arms trader and his main
customers were Chinese generals.

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