Crypto and campaign money

August 11, 1998

One key feature of national security and campaign money that has
surfaced again and again in the Clinton/China scandal is U.S.
cryptography. The sale of U.S. technology for scrambling
messages and satellite control with secret codes. For example,
Mr. Clinton used his pen to help Loral, Motorola and Hughes to
obtain export licenses for encrypted satellite telemetry chips
that can withstand the intense radiation of space … or an
atomic war.

The Motorola man inside the White House was Dr. Richard Barth.
Dr. Barth worked at the White House National Security Council
(NSC) under President Bush and President Clinton. Dr. Barth
left the NSC in 1993 but came back to make encryption policy in
the White House. In 1993 and 1994, ex-NSC member Barth, made
U.S. export policy, as a contractor, while employed as Assistant
Director for Trade Relations at Motorola Corp.

On December 23, 1993, George Tenet wrote a National Security
Council Secret memo to Daniel B. Poneman, tasking Richard Barth
to help make policy. Tenet wrote to Poneman that he had “a
lengthy meeting yesterday with Sue Eckerd, and Bill Clements …
finalizing our PRD (Presidential Review Directive) and
discussion paper on exports for a restricted/modified principals
meeting on encryption that I hope can be scheduled for mid-January.”

“Next week,” continued Tenet in the December 1993 secret memo,
“we should sit down and discuss all of this. I will give you as
much background as you may need. Clements and Barth continue to
work the issue for Commerce. Sue Eckerd and I have established
a good relationship all of this as well.”

Yet, two months later ex-NSC turned contractor Barth would
receive a request from U.S. Commerce trade assistant Melissa
Moss for Motorola to contribute information for the 1994 Brown
trade mission to Russia. Barth’s reply included the bio of
Motorola’s CEO, Gary Tooker, and Motorola’s desire to end all
the cold war restrictions on high-tech trade with Russia.

On March 11, 1994, Barth (the Motorola employee) wrote a reply
to the Commerce Dept. with documents outlining Motorola’s
desired participation. “We look forward to a very positive
outcome of the presidential level talks leading to abolishing of
COCOM restrictions on communications products and the
streamlining of procedures within the Russian Government.”

Thus, Barth not only knew what was on tap for the Russia trade
trip — he knew what the export policy would be, in advance,
because he helped make it.

Further documents show later in November 1994, Barth began
pressuring the State Department, through Assistant Secretary
Thomas McNamara, for the export of Motorola encryption
technology to China. This letter was obtained from the White
House National Security Council (NSC).

“This is to request that your office initiate action to obtain a
waiver from requirement for individual export license
notifications to Congress for wireless mobile communications
systems containing encryption for China,” wrote Barth to
McNamara. “Such a waiver was issued by the President in
September of this year for civilian satellite systems and
encrypted products for use by American firms operating in
China.”

Clearly Richard Barth knew that President Clinton wrote an
encryption equipped satellite export waiver in September 1994.
Clinton’s waiver was written one month after the August 1994
Brown trade trip to Beijing. Loral’s CEO, Bernard Schwartz, met
with Lt. General Shen Roujun of the People’s Liberation Army
(PLA) on that trip, a meeting arranged by Ron Brown and Bill
Clinton.

Another 1995 Motorola document details the close working
relationship between Motorola and the White House. This
document, obtained from the NSC, is a fax letter which was cc’d
to various Clinton administration players such as George Tenet
inside the White House. Barth and Motorola sought a
Presidential waiver for encrypted radios for China. Barth
blamed Britain and their NSA agency, called GCHQ (General
Communications Head Quarters) for allowing European companies to
sell encryption to China.

Barth wrote “I urge you to get in writing to the State
Department asap language that seeks a waiver for ‘cellular, PCS
and two way radio systems,’ as recently agreed.”

Furthermore, Barth also opened the door for radiation hardened
space-encryption systems. Barth wrote “while we now are not yet
applying for licenses for encrypted systems for satellite system
positioning, we may within months be applying for such licenses
for our Iridium systems.”

One of the most recent documents obtained by using the Freedom
of Information Act has the CEO of Motorola issuing his personal
thanks to Ron Brown for helping obtain Clinton’s signature.
This document, written in July of 1995, is included in a series
of Motorola memos exchanged between Motorola’s CEO, the NSA, the
White House National Security Council, Secretary of State Warren
Christopher, and Ron Brown.

In July, 1995, Tooker wrote to Brown “I am writing to thank you
and some key members of the Commerce Department for your
assistance in obtaining the Presidential waiver for encryption
export sales to China.”

In short, the State Department objected where Motorola wanted to
sell. Motorola told State to get out of the way because they
had White House backing. Clearly, the path to 1600 Pennsylvania
Avenue went through the Brown Commerce Department. In the end,
Motorola got the deal and sold the encrypted radios to the
Chinese People’s Armed Police (PAP).

One year later, in 1996, the head of the Bureau of Export
Administration, William Reinsch, wrote a secret memo on the
failure of the Clinton encryption export controls. One reason
Reinsch cited for the failure was the export of strong
encryption devices to the “security forces” of other nations.
Security forces such as the People’s Armed Police (PAP).

The red PAP is the execution branch of the Communist party and
the guards of the “Lao Gai” concentration camps. I recently
confirmed the PAP Motorola equipment with human rights activist
Harry Wu. Wu is best known for his exposure of PAP units
executing Chinese dissidents and then selling their human body
organs for transplant. Mr. Wu confirmed that the PAP and
Chinese Security services used Motorola encrypted radios when
they arrested him.

How many may have died for this technology? It is known that
Loral is missing the encryption board from their failed Intelsat
that fell on 200 Chinese civilians in 1996. The satellite in
question was authorized by President Bush in 1992.

Yet, the real problem with the Loral Intelsat crash is why were
the crypto chips onboard the satellite in the first place?

Radiation hardened encryption chips were listed as a separate
item to be reviewed by the State and Defense Department under
the U.S. Munitions List. There is no indication that President
Bush made such a second or special designation in his waiver for
Loral. In fact, President Clinton even denied the export of a
satellite equipped with encryption to Australia in 1994.

In 1998 Hughes admitted they exported two satellites with
hardened crypto control chips without U.S. government
permission. Loral, Hughes and even the Motorola Iridium
satellites have all been exported with encryption. In June,
1998, the GAO testified “Waivers were also granted to permit the
export of encryption equipment controlled on the Munitions List.
One case involved a $4.3-million communications export to
China’s Air Force.”

The next orders for Red Chinese bombs to fall will be secured
from interception thanks to President Bill Clinton.

And where is Janet Reno, the CIA or FBI?

Ms. Reno met with CIA Director Deutch, and FBI Director Freeh in
her office in May 1996, to review encryption policy, including
exports. At the same time — a team of FBI agents were
investigating the missing Loral encryption chips in China and
their connection to Clinton. Within days of Ms. Reno’s meeting,
Loral requested that President Clinton delay processing their
next satellite waiver request.

Two months later, Loral asked Clinton to resume processing a
modified satellite waiver. In July 1996, Bill Clinton signed a
Presidential waiver for Loral to export Globalstar satellites to
Russia for launch. Curiously, the waiver contained a second
special feature — the export of a fully operational satellite
encrypted telemetry ground station to China.

Charles Smith

Charles R. Smith is a noted investigative journalist. For over 20 years, Smith has covered areas of national security and information warfare. He frequently appears on national television for the Fox network and is a popular guest on radio shows all over America. Read more of Charles Smith's articles here.

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