There is a process in place to review international corporate mergers and buyouts and White House spokeswoman Dana Perino said she’d like to let that move forward before commenting on a planned purchase of the U.S. company 3Com.


Rep. Thaddeus McCotter, R-Mich.

That company, which develops defense-network computer technology for the Pentagon, is being allowed, as WND reported, to consider a buyout by a Chinese company.

“We’re dropping a shark in a fish bowl if we allow a communist Chinese company to buy 3Com,” said Rep. Thaddeus McCotter, R-Mich., chairman of the House Republican Policy Committee.

“Given China’s persistent attacks on Pentagon computers, we have got to quit hoping for the best and realize that communist China is our enemy,” said McCotter, who warned colleagues in Congress about the deal in a letter this week.

Perino was responding to a question from Les Kinsolving, WND’s correspondent at the White House, about the situation.

“Congressman McCotter says that he’s concerned about a Chinese company that is purchasing 3Com, which develops defense network computer technology. And my question: Given the hacking attempts reported in the defense computer systems in the United States, does the president share McCotter’s concerns?”

“There’s a process in place that is run out of the (U.S.) Treasury Department, and I’ll let that – they take into consideration any possible national security concerns on those big mergers, and I’ll let that process play out before commenting,” she said.

As WND reported recently, Huawei Technologies, a Chinese company with close ties to the military, is buying a 16.5 percent share in 3Com Corp.



“America does not wish to face the reality that communist China is not a friendly nation to the United States,” McCotter told WND.

“It’s the immediate rush of what people believe to be prosperity resulting from trade with China,” he continued. “But many of us in the Midwest have found out this so-called ‘free trade’ with China is nothing more than an attempt by China to destroy our manufacturing base.”

“The rest of the nation has to be made aware of what communist China is up to,” McCotter said, “so they can then begin the hard work of planning to ensure that the United States sovereignty, liberty, and national security is perpetuated.

“This blindness to China is not just President Bush,” McCotter argued. “I like to remind my Democratic friends that the guy who condemned Tiananmen Square as a candidate and signed the permanent normalization of trade relations with China was Bill Clinton.

“We now have a plurality of members of Congress on both sides of the aisle who either are willfully ignorant of the threat communist China poses, or have allowed themselves to believe trade with China is a wonderful thing,” he explained, “despite our huge trade deficits and the massive amount of our debt China holds in their hands.

“There is a lot of money involved in this 3Com deal,” McCotter emphasized, “and it shows you that money drives Republicans and Democrats alike when it comes to our trade relations with China. This is becoming a very dangerous situation for all Americans.”

McCotter has circulated a letter to members of Congress objecting to the sale.

“In light of communist China’s continued cyber warfare attacks, the acquisition of 3Com by communist China’s Huawei Technologies is a direct threat to we free people,” McCotter wrote.

“This is a sanity check for the Committee on Foreign Investments in the United States,” McCotter told his House colleagues. “I call upon this body of sovereign Americans to do their duty and deny Huawei Technologies from purchasing any part of 3Com or any other company responsible for defending America.”

On July 26, Bush signed into law the Foreign Investment and National Security Act of 2007, passed after last year’s controversy over the effort made by Dubai Ports World to acquire London-based Peninsular & Oriental Steam Navigation, which would have given Arab emirate-controlled company a share in the operations of up to 22 U.S. ports.

The Foreign Investment and National Security Act of 2007 was passed to strengthen the examination requirements of the Committee on Foreign Investment in the United States, or CFIUS, a highly secretive bureaucratic panel constituted by the Treasury Department to pass verdict on the national security implications of foreign investments in the U.S.

“We must tell the communist Chinese that America’s security is not for sale,” McCotter wrote fellow House members.

The founder of Huawei Technologies, Ren Zhengfei, is a former officer in China’s People’s Liberation Army, as WND noted in 2002. He owns 1 percent of Huawei and the rest belongs to an unidentified “union,” according to Forbes. Most of Huawei’s customers are state-run businesses in China.

WND also reported nuclear arms-control expert Professor Gary Milhollin’s 2001 testimony before a House international security subcommittee in which he singled out Huawei for using technology received from the U.S. to threaten the U.S. military.

According to the Associated Press, the deal involves a buyout by Bain Capital, a private equity firm proposing to take 3Com private for a 44 percent premium to the stock’s Thursday of $3.68 per share.

In the deal, 3Com shareholders will receive $5.30 in cash for each share of 3Com they own.

In a second question, Kinsolving asked: “The Baltimore Sun, among other media, reported that when Republican presidential candidates appeared at Maryland’s Morgan State University, that university refused to display the United States flag, despite a protest from Congressman Duncan Hunter. And my question: Since the president is head of the Republican Party, what was his reaction to this Morgan State U.S. flag banning, which was nationally televised by PBS?”

“I don’t know, I haven’t talked to him about it. But, obviously, he would have liked to see more participation at the debate from the Republicans,” Perino said.

“Well, he believes that they should have the United States flag above that presidential debate, doesn’t he?” Kinsolving said.

“I think that a university or a college can make their own decisions about that,” Perino said.

“But doesn’t the president believe the flag should…”

“The president loves the flag,” she said.

“He loves the flag. I want to know does he believe the flag should have been displayed there, or not, as Congressman Duncan Hunter…”

“I think it’s a decision that’s up to the college,” she said.



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