DOWNSIDE LEGACY AT TWO DEGREES OF PRESIDENT CLINTON
SECTION: BEHIND THE TREASON ALLEGATIONS
SUBSECTION: RED FLAGS OF TREASON – General Part 3
Revised 7/21/99

 

New York Post 5/11/99 Dick Morris "...THE Justice Department's efforts to block the FBI investigation of the worst episode of espionage in 50 years raises the most important issues of obstruction of justice by Attorney General Janet Reno and her deputy, Eric Holder. Incredibly, unbelievably, it now appears that Reno's department did more to protect atomic spy Won Ho Lee than was even suspected before. Not only did Justice deny the FBI access to Lee's computer; it denied it even though Lee had signed a waiver specifically allowing access to his computer files.... Well, how did Janet Reno come to stay on as attorney general in Clinton's second term? The president had planned to get rid of Reno once he won re-election. Having once complained to me that she was his ''worst mistake,'' he was determined to rid himself of this nuisance. He was sick and tired of her refusal to endorse tough administration initiatives on crime. In addition, as George Stephanopoulos has speculated, he might have been angry that she had intervened gratuitously and backed Kenneth Starr's assertion of criminal jurisdiction over Clinton ally and Arkansas Gov. Jim Guy Tucker. ....But then, shortly before the inauguration, Clinton met with Reno. He called me after their chat to report that he had told her that few attornies general had ever served for eight years and that he had indicated that he did not think it was a good idea for her to do so. He said she had ''pleaded to be allowed to stay on for one more year'' and that he had grudgingly agreed, with the understanding that she would then resign..... After winning that one-year reprieve, Janet Reno changed, suddenly metamorphosizing into a loyal administration advocate. She has stayed on the job ever since. Apparently, her service to the president in refraining from the appointment of independent counsels to investigate campaign fund-raising earned her a reprieve from her scheduled year-end departure. ...Her decision that the independent-counsel law did not mandate a special probe of campaign finance is a matter of interpretation and subject to reasonable disagreement. But Justice's refusal to let the FBI act on massive suspicion of espionage of the most vital sort is a breech of national security of the first magnitude. If politics entered into this decision, the issue becomes one of malfeasance in office..... Remember the political environment in early 1997. Sen. Fred Thompson (R-Tenn.) had just launched his heralded probe of campaign finances and predicted that he would find a deliberate plot by the Chinese government to influence the American election. What remained obscure was China's motive. The Democrats loudly derided Thompson for his suspicions of a Chinese plot. If Thompson had been aware of major and systematic Chinese spying and theft of our most vital secrets while he was conducting his hearings, there would have been hell to pay. Reno did a great political service to the president and disservice to America in not allowing the FBI to proceed. Between the time of her rejection of the FBI request for access and the actual inspection of Lee's computer last month, reports indicate that upwards of 300 files have been transferred and deleted...."

Freeper Right-Winger on Barr's examination of Chung 5/11/99 "...Reasonable intent was that the General gave the money for donations? That's right. Gerneal Ji was worried about chung alking to FBI. That's right. Is chung in danger? That's right. I look over my back every day. Damaging leak that endangered prominent witness. Barr wants DOJ investigaton abou tleak to NYT. Drunign conversations with MR. Lu, did he ask abou tyour family? Yes. Not concerned about family, but telling you to be concerned. That's correct. "IF you keep your mout shut, you will be safe". Attorney - Mr. Brockway ATTY in LA. Meetings with Mr. Lu and Brockway. Lot of FBI agents around in club. Lu suggested he use brock for atty. Attys fees would be taken care of - Lu. Lu tell you he recieved money from Beijing? In that convesation, Yes...." And "... Mr. Brockway told you he had invfluence in DOJ? Yes. #3 man. Brock also knew judge who would try chung. Chung didn't think so. tho. PRESIDENTIAL PARDON IF HE KEPT HIS MOUTH SHUT! Brockway atty for watergate...." And "...When you testified that lu said he was getting money from general Ji, that's all on tape right? yes. audio or video. If soebody said, mr chung, DOJ didn't have any idea that money was coming from beijing, that wouldn't be true would it? He don't know. If money going to Lu, FBI should know. tapes. ...."

NY TIMES 5/12/99 TIM GOLDEN and JEFF GERTH "…Late in the spring of 1996, federal bank examiners discovered that the central bank of China was moving tens of millions of dollars into the United States, depositing it in a maze of accounts controlled by a fast-rising Chinese executive at a small California bank. The regulators struggled for almost two years to understand the transactions, guessing finally that they might have been intended to hide the private fortunes of Chinese officials. They turned their findings over to the Justice Department, the State Department and the FBI, but officials said no legal or diplomatic action was ever taken in the case….. The banker in California, Nan Nan Xu, turned out to have a series of ties to a Chinese military officer who has been identified as the conduit for at least $300,000 sent from the military's intelligence chief to a Democratic fund-raiser, officials said. And almost half of the $92 million that eventually flowed from China into the California bank, Far East National, came from a Hong Kong investment firm controlled in part by two men who American officials say have been associated with Chinese intelligence agencies. The purpose of the money remains a mystery. Some federal officials now suspect that it might have been intended to pay for Chinese intelligence operations. Others believe that it could have been amassed for political contributions or to purchase sensitive military technology…..But a close look at the case, based on interviews and confidential Government documents, shows that the Clinton administration was slow to pursue or even pull together the disparate leads uncovered over several years by different agencies…."

NY TIMES 5/12/99 TIM GOLDEN and JEFF GERTH "…The discovery of the Chinese money flow was the sort of information that typically sets off alarms among government investigators and the bank examiners alerted Justice Department officials early on. But officials said the department initially gave the matter only a cursory review, even as it was separately searching elsewhere for evidence of Chinese contributions to American political campaigns. Federal prosecutors in Los Angeles examined the case last year, but then referred it back to the Justice Department in July, asking that its international-affairs section determine whether the transactions might involve criminal activity in China….The FBI -- which had helped Ms. Xu, a Chinese national, to gain legal residency in the United States in 1992 and then tried unsuccessfully to recruit her as an informer -- paid relatively little attention to her in the years when her banking activities became suspect, several officials said…… "This information was in the hands of the Department of Justice, Department of State, and the FBI," the Republican chairman of the Senate Select Committee on Intelligence, Richard Shelby of Alabama, wrote in a letter last Friday asking the Senate Banking Committee to continue an inquiry into the matter begun by the Intelligence Committee last year. "We also provided this and additional information to the FBI and the Justice Department on numerous occasions during the course of our investigation," Shelby continued. "It is my understanding, however, that nobody from the federal campaign contributions investigation has followed up in any significant manner."

New York Times 5/19/98 William Saffire "...A president hungry for money to finance his re-election overruled the Pentagon; he sold to a Chinese millitary intelligence front the technology that defense experts argued would give Beijing the capacity to blind our spy satellites and launch a sneak attack. How soon we have forgotten Pearl Harbor. October 1996 must have been some tense month for Democratic fund-raisers. The New York Times, Wall Street Journal and Los Angeles Times had begun to expose "the Asian Connection" of John Huang and Indonesia's Riady family to the Clinton campaign. The fix was already in to sell the satellite technology to China. Bill Clinton had switched the licensing over to Ron Brown's anything-goes Commerce Department. Johnny Chung had paid up. Commerce's Huang had delivered his illegal money big time (though one of his illegal foreign sources had already been spotted). The boss of the satellite's builder had come through as President Clinton's largest contributor...."

New York Times 5/19/98 William Saffire "...Clinton's explanation, which used to slyly suggest that China policy was not changed "solely" by contributors, has now switched to total ignorange: Shucks, we didn't know the source of the money. But this president's DNC did not know because it wanted NOT to know; procedures long in place to prevent the unlawful inflow of foreign funds were uprooted by the money hungry Clintonites. Today, two years after this sale of our security (Article date: May 1998) comes the unforseen chain reaction: As China strengthens its satellite and missile technology, a new Indian government reacts to the growing threat from its longtime Asian rival and joins the nuclear club. In turn, China feels pressed to supply its threatened ally, Pakistan, with weaponry Beijing promised us no to transfer. This makes Clinton The Proliferation President...."

A/P wire service 5/11/99 "...The 1988 Chinese military document, obtained by the CIA in 1995, is key to current investigations into admitted security breaches at U.S. security installations...Nearly all the nuclear weapons on the 1988 document were developed and built at Los Alamos, The Times reported. The Times, citing U.S. intelligence officials it did not identify, said the Chinese-language document included a chart with data on six U.S. weapons, including the most sophisticated - the W-87, which has 10 independently targeted warheads in a re-entry vehicle and is used in the MX Peacekeeper missile. The document also mentioned the eight-warhead W-88, used on Trident submarines, and the W-78, a three-warhead system used in Minuteman III missiles. Three other systems, the W-56, W-67 and W-72, date to the 1960s and 1970s and are no longer deployed. ..."

WorldNetDaily 5/11/99 Jon E. Dougherty "....some congressmen were beginning to utter the "T" word -- treason -- when they began speaking privately about the Clinton administration and Chinese espionage. Even this past weekend, host Tim Russert of MSNBC was able to extract an admission of guilt from Energy Secretary Bill Richardson, who said, yes, the Chinese stole our nuclear technology and, yes, Bill Clinton knew about it in advance. Man. A scandal tailor-made in heaven for conservatives. But it was too late. The Chinese Embassy in Belgrade had already been bombed. Now, suddenly, the opportunity to get the Chinese to cooperate with U.S. agents investigating the alleged thefts had abruptly ended. When the walls of the Chinese Embassy came crashing down, so too did our chance to find out what really happened. At least, that's how the Clinton administration may spin this. You can just hear the excuse rolling off the lips of Clinton spinmeisters now, can't you?..."

NY TIMES 5/12/99 TIM GOLDEN and JEFF GERTH "…On June 23, 1997, about six months into the inquiry, Stipano convened from the Justice Department and other law-enforcement agencies to describe its initial findings. "We were not oblivious to the fact that this could be money laundering, that it could be embezzlement, that it could be campaign-finance related," one official said. The inquiry was completed early the next spring. No charges were brought, and no regulatory actions taken. At the time of the June 1997 meeting, Justice Department and FBI officials were already searching for flows of Chinese money into American political coffers. And they were focusing closely on one of Ms. Xu's relatives by marriage, a Chinese military officer and aerospace executive named Liu Chao-ying….Ms. Xu said she was not questioned by federal investigators until almost a year later, and then only briefly. She said the officials asked about her role in setting up a checking account for Ms. Liu in 1991, but dropped the matter after she explained that Ms. Liu was the sister of her younger brother's wife, and that she had no other business involvement with her. They are not my favorite people," Ms. Xu said of her in-laws. "I live in a different world." Several American officials privately questioned that assertion, saying Ms. Liu traveled to China with Ms. Xu at least once, in 1991. Ms. Liu has also used Ms. Xu's identity as an alias on at least one occasion, officials said.

NY TIMES 5/12/99 TIM GOLDEN and JEFF GERTH "…On June 3, 1998, the comptroller's office called a second, larger interagency meeting to present the findings of its investigation into Far East National. "This was a situation where we had identified a piece of a much bigger puzzle," Stipano, the agency's enforcement director, said. "And the rest of the puzzle was not something that we had the ability or the authority to investigate." Because the investigators thought some of the $92 million might have been diverted by Chinese officials, a State Department official was asked to consider raising the matter with Beijing. The Department decided against that. "It was not a foreign policy issue that one raises with the Foreign Ministry," one official said. At the FBI, an official said the matter was initially passed on to a task force investigating campaign-finance cases questions. The task force later referred it back to the bureau's headquarters in Washington, which forwarded it to the FBI field office in Los Angeles. Although the field office brought the case to the office of the U.S. attorney there, word of it only belatedly reached agents in foreign counterintelligence -- those who knew the most about Ms. Xu…."

NY TIMES 5/12/99 TIM GOLDEN and JEFF GERTH "…In his letter to the Banking Committee, Shelby warned that he was especially concerned about accusations that the former comptroller of the currency, Eugene Ludwig, had blocked an investigation of Far East National. Both Ludwig and a spokesman for the comptroller's office strongly denied that. Interviews with two people who participated in the investigation also suggested that there was no evidence to support those claims, which were made in an Aug. 27, 1996 memorandum from a Federal Reserve examiner. While the comptroller's office expressed pride about their inquiry, other officials said the investigation was slow to get underway and might never have taken place had it not been for prodding by the Federal Reserve. The comptroller's office began its investigation in mid-July 1996. On Aug. 5, Hwang, a lifelong Republican, gave $10,000 to the Democratic Party, records show. He said his contribution was prompted by President Clinton's sympathy and support for ethnic minorities in America. A week later, the examiners began a second, more specific inquiry. But according to officials and internal documents, Federal Reserve officials came away dissatisfied with both the bank's forthrightness and the resolve of the comptroller's office to force its disclosure of key documents.

Drudge reports 5/11/99 "...The TIMES' Jeff Gerth keeps up the pace -- a pace he alone has set, sans Bill Gertz at the WASH TIMES -- with an exclusive built on confidential Government documents and interviews. Late in the spring of 1996, federal bank examiners discovered that the central bank of China moved more than $92 million into the United States, depositing it in a maze of accounts controlled by a fast-rising Chinese executive at a small California bank, Gerth and TIMES Tim Golden reveal. "The purpose of the money remains a mystery. Some federal officials now suspect that it might have been intended to pay for Chinese intelligence operations. Others believe that it could have been amassed for political contributions or to purchase sensitive military technology." ...."

NY TIMES 5/12/99 TIM GOLDEN and JEFF GERTH "…Ms. Xu told banking regulators that much of the money consisted of Chinese loans to small investment companies that she and Hwang had established in California, documents show. Yet a detailed report on the matter written last year by investigators for the Office of the Comptroller of the Currency cast doubt on that explanation, concluding that the money was probably being hidden for Chinese officials…..Neither Hwang nor Ms. Xu were obvious partners for Peoples' Bank of China, as the country's central bank is called…..Henry Hwang helped start Far East National Bank in 1974 with $1.5 million in capital and a single branch office in the Chinatown section of Los Angeles…. The key to his success was Nan Nan Xu. Ms. Xu (pronounced "shoo"), 48, came to the United States in 1987 with a student visa and plans to learn some English…. Ms. Xu was made a senior vice president in 1993, a managing director in 1994 and, according to Hwang, was its highest-paid executive after himself at one point before she left the bank in 1997 a consulting firm. ….As Far East National's China business was starting to flourish, the bank was also quietly taking in huge deposits of Chinese government money….

NY TIMES 5/12/99 TIM GOLDEN and JEFF GERTH "…In late November of 1992, Far East National received the first $5 million in a series of wire transfers from the Peoples' Bank of China, from one of its apparent subsidiaries, and from another state bank. ….In January 1993, Ms. Xu incorporated her own California shell company, Four Earth Investment and Trading Corp., and over the next 32 months, it absorbed a flood of Chinese money. Another $40 million came from the central bank. The China Construction Bank wired $5 million. More than $42 million came from United Wide Investments, a Hong Kong concern that American regulators believe was controlled by the Chinese Government. Officials said one of Ms. Xu's accounts also received an early deposit of almost $50,000 from a Chinese military company that manufactures and markets advanced weaponry. ….Government documents show the regulators found many of her transactions suspicious…. As far as the investigators could determine, $10 million was never repaid to the Peoples' Bank of China. Some of the activity in Ms. Xu's accounts, like some of her business in China, points to an influential Chinese official whom she described to regulators as an old friend: Chen Yuan, a former deputy governor of the central bank and the son of a powerful Chinese official of the 1970's and '80's…."

Global News Wire 5/12/99 Jim Gibson "....Johnny Chung testified yesterday before the Congressional Committee investigating illegal Chinese campaign contributions to China Bill Clinton and the DNC. Our Republican congressmen used their time "on the clock" making obvious attempts to unearth facts about the behind-the-scenes goings-on with pointed questions and polite discourse. As understandably disappointed Americans have come to expect, we watched The Democrats, to a man (or woman), squander their time covering up, accusing Chung of changing his story, and basically proving that the Democrats as a group care very little about putting and end to such Ponzy schemes.....Democratic Minority Obfuscator Extraordinaire, Rep. Henry Waxman of California, made the point that "Saying that you 'can' give this money to the President is different from telling you that you 'have to' give the money to him, isn't it?" My, my. How very insightful and probative, Henry. You traitor. Shades of "Well, I suppose that would depend on what you feel the definition of 'is' is..." Must be a Democrat thing. Rep. Bob Barr from Georgia made the point that secret meetings in restaurant basements might cause a raised eyebrow from the average voter. True, but fairly obvious also. What is really frightening is that NO ONE asked, "Why does the Chinese Military 'really like' Bill Clinton?" NO ONE asked "Why did Chinese Intelligence want to see Bill Clinton re-elected?" ...."

Fox News 5/12/99 reported by Right-Winger "...This sounded like a big story which had 3-4 stories bound up in it. The Administration ignored the North Korean weapons program which he knew about a year ago. In addition to the two Lees, 3 other Labs scientists are under investigation. I didn't catch the last one clearly, trying to digest the previous two so a HUGE grain of salt here. I thought that Carl Cameron just mentioned that FBI wanted to brief a sentate committee about the labs fiasco, but the breifing was cancelled by 3 senators (think he said Democrat, but not sure). ..."

Boston Herald 5/13/99 "....From the candidate who criticized George Bush for being soft on tyrants, Bill Clinton rapidly evolved into the regime's most reliable friend - approving the transfer of sophisticated dual-use technology and mouthing platitudes about our ``strategic partnership'' with China as its rulers threatened Taiwan and sold missiles to outlaw nations. As Chung testified, Clinton's friendship with China wasn't one-sided. While nuclear secrets and technology transfers went out one door, campaign cash flowed in the other. More than enough questions for a special prosecutor to examine, if only one were appointed...."

The New York Times 5/13/99 Jeff Gerth "...."Coke's 130-year-old secret is more secure than our nuclear weapons research," Murkowksi said. A Democrat on the committee, Sen. Blanche Lambert Lincoln of Arkansas, said the failure to quickly search the computer "still angers me." "Supposedly everybody was watching, and in reality no one was watching," she said...Requests by the FBI for permission to obtain a search warrant for the scientist, Wen Ho Lee, were rebuffed twice in 1997 by the Justice Department. It was not until March of this year, after obtaining Lee's consent, that investigators examined his computer.....But the difficulties of gaining access to a computer at a government-owned weapons laboratory prompted senators to complain on Wednesday about how security concerns could be improperly subordinated to privacy protections or the demands of espionage investigations, most of which never result in prosecution. Ms. Sullivan and her aides said the Energy Department may search someone's computer if there is a reasonable basis to suspect work-related misconduct. But a search in a criminal case requires a higher standard, probable cause that a crime has been committed. Thus, the Energy Department may forgo its right to search -- as it did in the case of Lee -- if it fears that a defendant may legally challenge the evidence. This legal caution can create a dilemma in which no one is charged with a crime, yet national security may be harmed because no one does a search...."

5/13/99 Drudge **Exclusive** "... The Justice Department has considered prosecuting WASHINGTON TIMES reporter Bill Gertz for unlawful possession of classified material, the DRUDGE REPORT has learned -- material that is set to be published in a new blockbuster book! Coming next week from every spooks' favorite reporter, BETRAYAL. The project Bill Gertz has been working on in secret for over a year lands in bookstores on Monday. -- The First exclusive interview with Navy Lt. Jack Daly, the officer who was lazed by a Russian merchant ship in 1997 off of Washington State's Puget Sound. Gertz, for the first time, has the officer's whole story of how he was hung out to dry. The State Department tipped off the Russians in advance of a search of the ship. -- Gertz offers highlights of the upcoming Cox Report, including this nugget: China tested a neutron warhead seven times. (The U.S., which designed it, never tested it.) -- A top-secret CIA memo exposes how China and Pakistan collaborated secretly to fool the United States about illicit nuclear sales. The document is included in the appendix. -- The secret Executive Order signed by Clinton on missile defense. That and another document (both reprinted) show that the administration has no plans to deploy a national missile defense outside the ABM treaty.... -- The North Korea chapter reveals how Madeleine Albright lied to Congress about Pyongyang's continuing development of nuclear weapons in order to protect its much-vaunted Agreed Framework, that was supposed to have halted the program back in the early 1990s. -- Secret documents reveal how Russia's nuclear weapons control is weakening.

Fox News 5/13/99 "...Chairman of the Senate Intelligence Committee Richard Shelby blasted Attorney General Janet Reno Wednesday for turning down an FBI request to search the home and computer of Wen Ho Lee, a suspected Chinese spy. The Republican senator from Alabama only smiled when asked if she should be fired. "The nation was not well-served," Shelby said. "It's indefensible on the part of the attorney general. She's accountable for what happens." Reno responded to the assault by calling the refusal of the Justice Department to allow the FBI search of Lee in 1997 a "close call." Reno said a lack of evidence justified the refusal. Sen. Pete Domenici, R-N.M., said Congress should make it clear there are certain times when national security is at issue that such a search of a government computer will not taint evidence.... Sen. Bob Kerrey, D-Neb., said he wasn't sure if Reno goofed or whether she was a victim of a flawed process, but he singled out her agency for failing to take nuclear spying seriously...."I'm still sort of surprised that we may have been briefed on this prior the president's knowing about it," said Kerrey, noting that Congress has been more aggressive than the White House in unearthing details of spying.....Sen. Frank Murkowski, R-Alaska, called the two-year delay in searching Lee's computer "a classic case of bureaucratic bungling." Even if such a search jeopardized possible prosecution, it should have been conducted to help prevent additional losses of secrets, he said... "

Washington Post Vernon Loeb and Walter Pincus 5/13/99 Page A25 "...Sen. Richard C. Shelby (R-Ala.), chairman of the Senate Select Committee on Intelligence, charged yesterday that Attorney General Janet Reno committed an "indefensible" error in failing to approve an FBI request for a warrant to search the desktop computer of an espionage suspect at Los Alamos National Laboratory. "The diligence of the FBI and the Justice Department just wasn't there," Shelby told reporters after he and other intelligence committee members grilled Reno and her aides at a closed-door hearing for more than two hours. Leading Democrats did not hold Reno personally accountable but agreed that the Justice Department should have approved the FBI's request and sought a secret warrant from the Foreign Intelligence Surveillance Court to search physicist Wen Ho Lee's unclassified office computer two years ago. "Most of us on the committee see this as something that should have been granted and we don't understand still why the surveillance opportunity wasn't presented," said Sen. Bob Kerrey (D-Neb.), the committee's vice chairman. Asked after the hearing where the FBI made mistakes, Sen. John F. Kerry (D-Mass.) replied: "In the beginning, in the middle, and in the end."..."

FoxNews 5/13/99 Fox News reported that classified intelligence data about a North Korean nuclear reactor may have been ignored by the Clinton administration in 1998. According to sources familiar with the situation, the administration pushed forward funding for a new, cleaner reactor for North Korea, even though there was evidence that the North Koreans were using the old reactor's plutonium fuel rods for weapons development instead of sending the material to the new facility for energy development. Sources said there was a fierce debate over withholding funds for the reactor project, but the White House insisted on going ahead anyway, despite the evidence of North Korea's misuse of the fuel rods.

Special to World Tribune.com 5/14/99 "…North Korea continues to strengthen its military and has deployed most of its troops near the border to prepare for a war against South Korea, the U.S. military chief of staff says. In a statement to the Senate Appropriations subcommittee on defense on Tuesday, General Henry Shelton, chairman of the Joint Chiefs of Staff, said Pyongyang has deployed the majority of its more than 1 million North Korean soldiers near the demilitarized zone and Seoul. He said the tensions from this deployment has been exacerbated by Pyongyang's nuclear and missile program. "Despite its collapsed economy and struggle to feed its own population," Shelton said, "the North Korean government continues to pour resources into its military and to pursue a policy of confrontation with South Korea and its neighbors in the region."More than one million North Korean soldiers serve on active duty, the vast majority deployed within hours of the DMZ and South Korea's capital city, Seoul."…"

NY Times 5/13/99 JAMES RISEN and JEFF GERTH "...For the first time, China is close to deploying a nuclear missile with a warhead whose design draws on stolen American secrets, according to United States intelligence officials. A long-range Chinese missile, known as the Dong Feng-31, is being equipped with a small nuclear warhead whose design uses secret American technology, according to the American intelligence assessments. The technology is believed to have been stolen from a Government weapons laboratory, although there is some debate over precisely what technical information officials believe is being used. The missile is expected to be deployed within three or four years, according to the estimates.....Since suspicions of Chinese nuclear espionage became public, the Clinton Administration has said that there is no evidence that Beijing has actually deployed nuclear weapons that rely on stolen American secrets....."

NY Times 5/13/99 JAMES RISEN and JEFF GERTH "..."The DF-31 ICBM will give China a major strike capability that will be difficult to counterattack at any stage of its operation," a 1996 Air Force intelligence report on the DF-31 stated. "It will be a significant threat not only to U.S. forces deployed in the Pacific theater, but to portions of the continental United States and to many of our allies." Some United States officials say the new Chinese weapon will use design technology from the American W-70 warhead, a small bomb designed at Lawrence Livermore National Laboratory in California in the 1970's. China stole secret design information about the W-70 from Lawrence Livermore in the late 1970's or early 1980's, Government investigators believe. A scientist was fired from Lawrence Livermore in 1981 in connection with the investigation into the suspected theft, but no one has ever been arrested in the case. The F.B.I. said it did not have evidence to bring charges in the case....The W-70 warhead is also known as the neutron bomb, a weapon that kills people with enhanced radiation while leaving buildings intact. But its "primary" can be used in other, conventional nuclear weapons as well...... Despite the debate, the broad conclusion that the DF-31 will come equipped with a warhead that uses stolen American technology is included in two new secret Government reports, officials said. Part of one report from a select House committee is soon to be made public. The other report is the result of a Government-wide intelligence assessment of the damage done to United States national security by Chinese nuclear espionage, according to officials. That Government-wide assessment, however, acknowledges the uncertainty..... Once the DF-31 and other advanced missiles are deployed, China is expected to begin to phase out its older and less accurate ballistic missiles. "The DF-31 ICBM will give China a major strike capability that will be difficult to counterattack at any stage of its operation, from preflight mobile operations through the terminal flight phase," the 1996 Air Force intelligence report predicted. The "road mobility" of the DF-31, the report adds, "will greatly improve Chinese nuclear ballistic missile survivability and will complicate the task of defeating the Chinese threat."

Casey Institute of the Center for Security Policy 5/13/99 "...While efforts in Congress and the press to uncover and comprehend the full magnitude of China's financial penetration of the American political and economic systems have revealed operations involving troubling infusions of hundreds of thousands and even tens of millions of dollars from the PRC, to date, they have not addressed a potentially more serious problem: The People's Liberation Army's successful initiative that is taking hundreds of millions, even billions, of dollars out of the United States, thanks to Chinese fund-raising in the U.S. bond market.(1) As the attached article by William J. Casey Chair Roger W. Robinson, Jr. makes clear, there has been an estimated $10.5 billion in dollar-denominated bonds issued by China in the U.S. market since the early 1980s. Even a cursory review of this rapidly growing portfolio demonstrates that nearly 60% of this amount was raised by just three Chinese entities -- all of which should be viewed with concern: China International Trade and Investment Corporation (CITIC), chaired by China's most notorious arms dealer, Wang Jun (about $800 million); the Bank of China (over $2 billion); and the People's Republic of China, borrowing under its own name (an estimated $3.2 billion). It is entirely plausible, if not likely, that at least a portion of these funds raised from U.S. securities firms, pension and mutual funds, insurance companies and other newly recruited lenders were diverted to finance activities harmful to U.S. security interests -- a point that may be addressed in the long-awaited Cox Committee's report that will reportedly be released next week in an unclassified form. No less worrisome is the fact that these funds are creating financial vested interests on the part of these new politically-powerful U.S. constituencies to oppose economic sanctions and other penalties almost irrespective of the gravity of China's misdeeds (e.g., proliferation, human rights abuses, etc.)....

Insight Magazine Vol. 13, No. 17 5/12/97 By Timothy W. Maier ". . . . China analysts and national-security officials say the operating officer at the heart of Beijing's master plan to seize hegemony over Taiwan, Japan, Okinawa, Iwo Jima, Saipan, Guam and the Philippines is Wang Jun - Clinton's Feb. 6, 1996, coffee-klatsch guest who has taken advantage of corporate greed by persuading American investors to pour billions of dollars into joint-venture projects that allow Wang to tap into the U.S. bond market, borrowing millions from American mutual funds, pension funds and insurance companies to support the war chest. . . . . Wang chairs both PolyTechnologies, or Poly, the arms-trading company of the PLA, and China International Trust and Investment Corp., or CITIC, a $23 billion financial conglomerate that Wang says is run by China's government, or State Council. His dual control of CITIC and Poly (the PLA company caught last year allegedly smuggling 2,000 AK-47 assault rifles to U.S. street gangs) makes it difficult for American firms to know whose hand they are shaking. "He's a master of muddying the waters," says James Mulvenon, a China researcher at California-based Rand Corp. "American companies are playing a shell game.". . . . Not surprisingly, CITIC officially has controlled Poly. The relationship dates back to 1984 when the PLA created Poly for arms trading and structured it under the ownership of CITIC in part to conceal Poly's link to the PLA, according to Western analysts. Wang is the son of Red China's late vice president and Long March veteran Wang Zhen. The president of Poly is Maj. Gen. He Ping, son-in-law of the late Deng Xiaoping. A former defense expert for the Chinese Embassy in Washington, He Ping is director of PLA arms procurement and chairs CITIC-Shanghai. A second major subsidiary of CITIC is CITIC-Pacific in Hong Kong, chaired by Rong Yung, son of China's vice president, Rong Yiren, who founded CITIC. In short, this is a high-level operation of the Beijing government directly connected to the men in charge...."

Insight Magazine Vol. 13, No. 17 5/12/97 By Timothy W. Maier " . . With the help of CITIC-Beijing, He Ping engineered the billion-dollar sale of Chinese arms that included missiles to Saudi Arabia and short-range cruise missiles to Iran during the mid-1980s. That deal was assisted by the government-controlled China Northern Industrial Corp., or Norinco, which now is under investigation in the West for selling chemical-weapons materials to Iran for weapons of mass destruction, according to April testimony before a Senate Governmental subpanel. China's sale of nuclear and chemical weapons to the Middle East all are part of a strategic plan to spread out deployment of the U.S. Navy so the PLA can concentrate on the South China Sea, according to intelligence and diplomatic officials.....Wang's ability to mask Poly by showcasing CITIC has paid off handsomely for his other enterprises on behalf of Beijing's war plans. In particular, the U.S. bond market already has been an attractive target for CITIC to the tune of $800 million in borrowing. That, of course, begs the question: Why is the high-level Beijing operative Wang Jun allowed to borrow huge sums from Americans when President Clinton says it is "clearly inappropriate" even to meet with this PLA arms dealer?...... Yet, there is no national-security screening of foreign borrowers in U.S. securities markets from which huge sums are being allowed to float into China's war chest...."

South China Morning Post 5/13/99 Willy Wo-Lap Lam "...Beijing is to abandon Deng Xiaoping's low-profile foreign policy to beat back the challenges of a fast-expanding Washington-led Nato..... "The Politburo Standing Committee has decided that if the Washington-led Nato has its way in Europe, it will next target China," a diplomatic source in Beijing said. "The elite body has endorsed a number of measures to seize the initiative through asserting itself in foreign policy." Among the recommendations given preliminary approval are: Playing a more aggressive role in the United Nations..... Developing a world-class arsenal, particularly missiles, to counter the "Nato military machine". Beijing has served notice on the US that unless Nato reins in its aggressive tendencies, it will delay ratification of the Comprehensive Test Ban Treaty. Diplomats said Chinese strategists had engaged in vague talk about the resumption of an active nuclear development programme. Forming a potential anti-Nato alliance. Beijing is working with Moscow to ensure the "multi-polar nature" of the new world order...... Western diplomat said Beijing had made veiled threats about resuming or upgrading "nuclear co-operation" with Iran and Pakistan....."

San Jose Mercury 5/13/99 Pat Buchanan "...WHETHER Wen Ho Lee should have kept his top-secret clearance at Los Alamos years after being fingered as a suspected spy misses the point. It is not Lee; it is this White House that has become an unacceptable national security risk for the United States. Not even during the Red Decade and World War II, when Josef Stalin's spies and traitors looted the Roosevelt administration at will, were U.S. security secrets under less competent stewardship. But there is this difference: Half a century ago, America was a serious nation. When Julius and Ethel Rosenberg were unmasked as atomic spies, they were marched to the electric chair. Now, yawns greet the news that Beijing has stolen every atomic weapons secret America has and acquired, through our Fortune 500 companies, the ability to rain down multiple warheads on the United States. In the Reagan era, when we learned Toshiba had transferred silent-propeller technology to Moscow, America was enraged. Yet, the report that China in 1997 stole U.S. radar satellite technology, enabling it to track and kill U.S. subs underwater, was buried in a New York Times story whose front page told of the president's latest apology for mistakenly hitting China's embassy in Belgrade..... Clinton's White House has fed this Asian tiger $250 billion in trade surpluses, with World Bank loans for dessert, in the belief that money can buy you love. Yet, yearly, China grows more brutal toward its own and more belligerent toward us...."

***Media Research Center CyberAlert*** 5/13/99 Vol Four No 82 "..." 3) Only FNC cared that a top Democrat criticized Justice for turning down the FBI's warrant request for Wen Ho Lee. FNC's Carl Cameron exclusively revealed how the Clinton team ignored evidence about misuse of plutonium by North Korea. 4) No Chung on Wednesday's morning shows, but they had time for a story about a beach party for a furniture store's staff and a discussion about Star Wars toys. CNS picked up how Chung's sentencing judge said if the DNC didn't know then they were dumb. .... Cameron began his May 12 story over video of a nuclear plant in North Korea: "Classified intelligence data about this North Korean nuclear energy reactor, Fox News has learned, was ignored by the Clinton administration just last year. The administration pushed forward with funding for a new cleaner reactor for North Korea even though there was evidence that the North Koreans were using the old reactor's plutonium fuel rods for weapons development instead of sending the material to the new facility for energy production. Sources say there was a huge debate about withholding funds for the new project, but the White House insisted on going ahead anyway." Jumping to Chinese espionage, Cameron showed how at a Senate hearing ignored by the other networks Energy official Mary Ann Sullivan said her department followed proper procedure in deferring the espionage investigation to the FBI. Cameron picked up: "But the FBI says it was denied wiretaps and search warrants by Justice Department brass. That had Attorney General Janet Reno called on the congressional carpet and blasted by members of both parties." .....Cameron concluded with this intriguing development: "Senators were supposed to receive a top secret briefing from House lawmakers who conducted an in depth investigation of China's nuclear espionage, but at the last minute sources say Democratic Senators urged House Democrats not to show up to brief them and the meeting was canceled."...."

Houston Chronicle 5/14/99 "...Bill Clinton and Al Gore have chosen spin over straight talk concerning their share of the responsibility for the success of China's spies in stealing secret weapons technology. So far the only public statements Clinton and Gore have made about China's espionage activities against the United States are that the spying took place during the administrations of Ronald Reagan and George Bush. They would have us believe that it was the Clinton/Gore administration that discovered the spying, rooted it out and took the necessary security measures to make sure it can never happen again. Such statements are false, of course. Incredibly false...."

http://www.senate.gov 5/14/99 U.S. Sen. James M. Inhofe (R-Okla.) "...U.S. Sen. James M. Inhofe (R-Okla.) said today that he believes the Clinton Administration deliberately withheld vital information about China's theft of nuclear secrets from members of Congress for political reasons. "The compromise of secrets about U.S. nuclear-related technology is perhaps the biggest breach of national security in American history," Inhofe said. "The fact that the Clinton Administration, for political reasons, deliberately kept vital information about it from Congress for more than three years is a scandal of gigantic proportions." Inhofe said he reached this conclusion in part as a result of the conflicting responses of two former Energy Department officials who Inhofe asked to voluntarily take polygraph tests concerning their recent testimony before the Senate Armed Services Committee..... Both officials agreed under oath at the April 12 hearing to take a polygraph test to assist in the effort to get to the truth. On April 26, Inhofe wrote to each requesting that they fulfill their commitment to take the test. Trulock responded by agreeing to voluntarily take the test. Moler responded without agreeing to voluntarily take the test. "Absent any credible countervailing evidence, I draw the obvious common sense conclusion," Inhofe said. "I believe Mr. Trulock is telling the truth and Ms. Moler is lying. I believe Ms. Moler was not being truthful when she denied instructing Mr. Trulock not to brief Congress because of political considerations. I believe she had a motive to lie and that she likely acted in accord with the proven tactics of a President and an administration that has so often employed deceit as a means to achieve what they believe are higher ends." Inhofe said he would not try to compel either official to take a polygraph test even if he had any power to do so, which he does not. He also said he will not ask one official to take the test when the other declines. He pointed out that both officials agreed on April 12 to voluntarily take such a test and that he has given both the opportunity to fulfill that..."

AP 5/14/99 "...While much of China's gains of U.S. nuclear secrets were in the 1980s when Republicans controlled the White House, the [Cox] report cites evidence that Beijing gained U.S. neutron bomb technology as early as the 1970s and continued aggressive spying throughout the 1990s.....[China] Obtained some sensitive nuclear weapons information in 1995, according to an intelligence report that could not determine the source of the leak. The official declined to further describe this breach because of ongoing investigation...."

AP 5/14/99 "...According to the U.S. officials, the Cox report discloses that the Chinese: --Acquired in the mid-1990s U.S. secrets about a high-tech weapon developed during the Star Wars missile defense program that uses electromagnetic waves to propel objects like missiles or shells. U.S intelligence ascertained that China had obtained the technology about the so-called rail gun, but they could not tell from where in the United States it was obtained...."

AP 5/14/99 "...According to the U.S. officials, the Cox report discloses that the Chinese: --Obtained in 1980 part of a missile guidance system called the accelerometer. U.S. intelligence ascertained that the Chinese did reverse engineering to develop their own version of the part...."

AP 5/14/99 "...Before Friday, U.S. officials had disclosed only that they suspected China had obtained secret information about the submarine-based W-88 Trident warhead, the neutron bomb and some re-entry vehicles for multiple warhead weapons. The Cox report discloses that U.S. intelligence indicates Beijing has obtained secrets about seven U.S. nuclear weapons, including the W-56, W-62, W-76, W-78 and W-87 nuclear warheads, the officials said. The W-87 warhead sits atop the MX Peacekeeper missile that is among America's most sophisticated current weapons. The W-62 and W-78 warheads sit atop the Minuteman III long-range missiles that also are a key component of the current U.S. nuclear arsenal. The W-56, like the W-88, sits atop the sub-based Trident missiles that are still widely deployed. ..."

Insight James P. Lucier "....But with the appointment of O'Leary by Clinton in 1993, the whole idea of security became distasteful. One of her first steps was to decree that the DOE Protective Service no longer should carry pistols at the Washington headquarters office. Security officers quietly saw to it that the pistols were put in storage and not disposed of as O'Leary had requested; but even the sidearms one might expect on the hips of meter maids have not returned. O'Leary also initiated a wholesale declassification of older materials pertaining to nuclear programs that did not allow time to evaluate the released data for sensitivity -- a program that Richardson just called to a halt..... In fact, the O'Leary regime seemed filled with individuals who disdained the very idea of nuclear security. A DOE employee who sat in on many high-level meetings says: "I heard [an O'Leary appointee] say, 'We need intellectual freedom to communicate.' But you can communicate and still use passwords. I heard a favored environmental activist say, 'We ought to just give it all to everybody.'".....As a result of this attitude, the number of protective forces which also guard nuclear materials at sites scattered around the country and stood at 5,640 in 1992 now has declined to 3,500 -- even though the assets they must guard have increased 30 percent. The main reason for this decline is that the Clinton administration cut the budget for the Protective Force by 40 percent...."

Washington Times (Book Review- Regnery) 5/12/99 John R Bolton "....... Mr. [Bill] Gertz provides a series of case studies of Clinton administration failures in defense and intelligence, based largely on his own reporting for The Washington Times, that create a cumulative impact both devastating and depressing. ...Mr. Gertz demonstrates tellingly that there is a pattern to Clinton administration decision making, the result of well-thought-out and deeply held national-security philosophies. Although the author also has much to say on individual incompetence and duplicity, his central point is how completely witting and united the administration's policy leadership actually is in its wrongheaded view of America's place in the world. .....Indeed, although Mr. Gertz's emphasis is on defense matters, he does not overlook the hollowing out of America's intelligence and counterintelligence capabilities. As with declines in military spending on research and development, the cutbacks in the U.S. intelligence capability are neither easily nor quickly corrected, and form a significant obstacle to effectively reasserting U.S. interests internationally....In Mr. Gertz's analysis, spin and intelligence also intersect in the administration's repeated distortions of what it actually knows. For example, he quotes one anonymous official saying that "Madeleine Albright lied to the Senate" about North Korea's nuclear weapons program, and Mr. Gertz alleges that this incident is not a one-time occurrence..... This is not an academic book intended for defense intellectuals (although they would be remiss if they did not read it), but rather straightforward reporting covering about six years of a dangerously flawed presidency. It is troubling that so much of the book depends on government sources leaking classified information, but this unfortunate fact only underlines just how corrosive the Clinton administration's approach has been. Certainly, Mr. Gertz has given us more than ample notice of the damage caused by "the feel-good approach to national security." The remedy is obviously in our hands...."

The New Australian No. 119, 5/17-23/99 Peter Zhang "...On 4 June 1989 thousands of students flooded into Tiananmen Square to demand liberty and democracy. Inspired by America's example, they carried large models of the Statue of Liberty; the American embassy, which had given asylum to the dissident Feng Lizhi, was treated as if it was sacred ground. This was the moment when the Soviet Empire was crumbling and, thanks to Ronald Reagan, America's power and moral standing had no equal. China's leadership was unnerved and confused. Ten years later thousands of students are once again flooding into Tiananmen Square, not to demand liberty or justice but to damn the United States and desecrate its flag. Where once the police had to prevent students from paying homage to the US embassy they now have to stop them from burning it down. A leadership that was uncertain of its future and authority has now reasserted itself and is as politically confident as ever, treating with contempt US objections to human rights abuses while sneering at calls for greater political liberalisation. What brought about this radical and dangerous change in perceptions? The answer is President William Jefferson Clinton. Within a matter of years this depraved and cowardly man has virtually destroyed the moral authority of the United States among China's emerging intelligentsia and ignited a very dangerous brand of nationalism. Even the Chinese leadership cannot believe its luck. Not only did this man sell his country's secrets to Beijing, he even destroyed its moral credibility among the Chinese people....The ramifications are far reaching and dangerous. Far from impressing China, as did Desert Storm, the Serbian war has convinced many in the leadership that the US is truly a paper tiger. Sure it has the military means but it does not have the will, or so it is thought. If Americans, as one official told me, had the strength of character and moral fortitude they believe themselves to possess they would have thrown Clinton out of the Oval Office....."

Robert Manning 5/16/99 "...Amid the fallout over NATO's accidental bombing of the Chinese Embassy in Belgrade came more revelations of Chinese spying, illegal campaign contributions and thefts of U.S. technology and nuclear secrets. In Beijing, students protested and vandalized U.S. property. In Washington, politicians seethed and planned congressional investigations of Chinese agents and their activities. Where will it all lead? ...."

Fox News (http://www.foxnews.com/stage08.sml) 5/14/99 Carl Cameron "...Fox News has learned that sources within the intelligence community believe that the Chinese military could by 2002 integrate secrets stolen from U.S. weapons labs into its arsenal, including the information required to construct a W-88 miniaturized nuclear warhead. The latest information contradicts CIA assurances last month that the Chinese were 10 years away from employing any of the stolen technologies. That CIA timetable had allowed politicians on capitol hill to play down the growing scandal which centers around allegations that classified military secrets have been leaking from the United States for more than 15 years. U.S. military intelligence sources say China's long range Dong Feng-31 missile is currently being armed with miniaturized nuclear warheads alarmingly similar to the American W-88. The Dong Feng has a range of 5,000 miles, meaning it could hit targets in the United States. Secrets for the W-88 were stolen from U.S. weapons labs like Los Alamos between 1984 and 1997. The W-88 is used by the U.S. on the Trident missile which is mostly launched from submarines. Up to eight warheads can be deployed and aimed at separate targets from a single missile. Reports suggest the Chinese plan to launch their Dong Feng-31 missiles from trucks, a dramatic improvement in their missile mobility made possible by the miniaturization of warheads. Chairman of the Senate Intelligence Committee Richard Shelby blasted Attorney General Janet Reno Wednesday for turning down an FBI request to search the home and computer of Wen Ho Lee, a suspected Chinese spy. The Republican senator from Alabama only smiled when asked if she should be fired. "The nation was not well-served," Shelby said. "It's indefensible on the part of the attorney general. She's accountable for what happens."

Fox News (http://www.foxnews.com/stage08.sml) 5/14/99 Carl Cameron "...Meanwhile, Fox News reported that classified intelligence data about a North Korean nuclear reactor may have been ignored by the Clinton administration in 1998. According to sources familiar with the situation, the administration pushed forward funding for a new, cleaner reactor for North Korea, even though there was evidence that the North Koreans were using the old reactor's plutonium fuel rods for weapons development instead of sending the material to the new facility for energy development. Sources said there was a fierce debate over withholding funds for the reactor project, but the White House insisted on going ahead anyway, despite the evidence of North Korea's misuse of the fuel rods...."

Washington Times 5/17/99 Bill Gertz Excerpts from Betrayal "...North Korea fired its first Taepo Dong missile Aug. 31 from a remote facility. The missile, accelerating quickly, traveled over northern Japan. Despite monitoring by U.S. and Japanese ships, surveillance aircraft and space sensors, initial reaction from the Clinton administration was that the missile was a two-stage rocket, nothing more....."They have gone some way down toward developing a missile with a much longer-range capability," Pentagon spokesman Kenneth Bacon told reporters two weeks later, on Sept. 15. "We're talking something that could be approaching intercontinental ballistic missile range." In short, North Korea had taken a quantum leap in its relatively primitive missile program, which had been based on 1950s Scud missile technology. Mr. Bacon called it "worrisome." Inside the Pentagon, the news was explosive. Though the satellite failed, U.S. intelligence agencies analyzing the trajectory of debris concluded that the Taepo Dong missile's range was roughly between 2,500 miles and 3,700 miles. At the high end, a North Korean missile could hit almost all of Alaska and reach the northernmost Hawaiian islands, according to a Pentagon chart....The Communist regime in Pyongyang had achieved a major breakthrough. With a huge arsenal of chemical weapons and a secret nuclear program, could a warhead containing a weapon of mass destruction be far behind? Many analysts feared that a Taepo Dong missile with a third stage perhaps could lob chemical or biological weapons not just on Alaska and Hawaii, but on some of the western United States. Other Pentagon officials confessed to this reporter that with just one more test, the North Koreans could achieve something few other nations had done: develop an ICBM -- an intercontinental ballistic missile. The White House added its own spin. North Korea still had to "master the unique and fairly daunting challenges of returning a re-entry vehicle back to land, re-entering the Earth's atmosphere to hit a target without burning up," White House Press Secretary Michael McCurry said..... "

Washington Post 5/16/99 Walter Pincus and Vernon Loeb "...The Cox report opens with a detailed description of China's strategy for obtaining sensitive U.S. military technology through espionage, scientific exchange and the commercial activities of nearly 1,000 Chinese companies operating in the United States, congressional sources said. The report also contains a chapter on how U.S. computer makers have exported 600 high-performance computers to China that could be used, if networked together, to simulate nuclear weapons detonations and for other military uses. Other chapters describe: The use of U.S. technology in the development of China's military and civilian missiles and space launch vehicles. Security at China's launch sites during every instance since the late 1980s when U.S. satellite makers have used Chinese rockets to put their spacecraft in orbit. The role the space insurance industry has played in sharing technical information and convening scientific panels to study China rocket failures. The acquisition by China of U.S. military manufacturing capabilities, using the sale of sophisticated McDonnell Douglas Corp. machine tools and Garrett Co. jet engines as case studies. ..."

Washington Post 5/16/99 Walter Pincus and Vernon Loeb "... In a key finding, the committee concludes that an advanced nuclear warhead design for China's new DF-31 intercontinental mobile missile is based on stolen U.S. design secrets from two warheads, administration sources said. In reaching that conclusion, the committee apparently accepted the analysis of Notra Trulock, an Energy Department intelligence official, over the intelligence community's recent assessment that the source of China's warhead design cannot be determined. Trulock believes the Chinese warhead's primary explosive charge is based on design secrets of the U.S. W-70 neutron warhead obtained in the late 1970s from a U.S. scientist at Lawrence Livermore Laboratory who ultimately was allowed to resign his post and has never been charged with espionage, the sources said. Trulock believes the warhead's secondary, or thermonuclear explosion, is based on design secrets of the W-88 warhead obtained from physicist Wen Ho Lee, an espionage suspect at Los Alamos National Laboratory who was fired for security violations in March, the sources said. Lee's attorney said Lee has never passed classified information to China, and U.S. law enforcement officials concede they have no evidence of espionage...."

Washington Post 5/17/99 "...CHINESE PRESIDENT Jiang Zemin finally agreed to accept a phone call from President Clinton Friday. ...But it's worth noting that, also on Friday, China's flagship newspaper made clear that the regime wasn't finished milking the bombing for propaganda value.... Chinese officials may hope to deflect attention from China-related scandals in the United States, including alleged nuclear espionage and influence-peddling.... As reports have mounted of Chinese theft of U.S. nuclear secrets, the knowing response here has been: Get over it. Everybody spies. If the United States can't guard its secrets, don't blame the Chinese. But allegations that a foreign power sought to influence a presidential election with sizable financial contributions and then sought to interfere in the investigation thereof would seem to warrant a less jaded response. What did the Chinese think they were buying, and were any of the goods delivered? Mr. Chung's story at the least raises questions about the U.S.-China relationship that Mr. Clinton now is struggling to revive...."

San Diego Union-Tribune 5/16/99 Gary Milhollin Jordan Richie "...*The state-owned China Precision Machinery Import-Export Corporation, which manufactures China's newest anti-ship cruise missiles, was allowed to buy a computer system that is useful for simulating wind effects. Not only did these missiles strengthen the Chinese military, but the company has also exported some to Iran, where, according to the United States naval commander in the Persian Gulf, they threaten our personnel...."

San Diego Union-Tribune 5/16/99 Gary Milhollin Jordan Richie "...*The Chinese Academy of Sciences was allowed to buy equipment from the Convex Computer Corp. (which has since been bought by Hewlett-Packard) for processing data from an experimental fusion reactor. The academy then exported the reactor to Iran, where it is used for training nuclear scientists...."

 

San Diego Union-Tribune 5/16/99 Gary Milhollin Jordan Richie "...Even after stealing the plan for an advanced warhead, one would need high-performance equipment to manufacture and test its precision parts. Sadly, China is getting those machines from the United States -- and it doesn't even have to steal them. A study we recently completed shows that the Commerce Department approved more than $15 billion worth of strategically sensitive exports to China in the last decade. Although supposedly intended for civilian purposes, the department's records show that much of this "dual-use" equipment went directly to nuclear missile and military sites, the vertebrae of China's strategic backbone. And unbeknownst to the American suppliers, several of these Chinese companies later sold nuclear and other military equipment to Iran and Pakistan, according to American intelligence reports and news accounts. More than half of the $15 billion in exports consisted of computers. China had been denied access to high-performance computers until President Clinton loosened computer controls in 1996, after strenuous lobbying by his political supporters in Silicon Valley. Then a flood of computer exports began. By now China has imported about 400 high-performance machines, just what would be needed to process the American nuclear codes and simulate the workings of our arsenal. Although China has insisted that these computers were imported for civilian uses, it has refused virtually all requests to let United States officials see what the machines are really doing. In all, the military and strategic value of what China got from the Commerce Department was at least as great as what it may have gotten from spies....."

San Diego Union-Tribune 5/16/99 Gary Milhollin Jordan Richie "...*American equipment was approved for export to the National University of Defense Technology, which helps the People's Liberation Army design advanced weapons; the University of Electronic Science and Technology, which helps develop stealth aircraft and advanced military radar, and the Beijing University of Aeronautics and Astronautics, which helps develop missiles and specializes in guidance, navigation and flight dynamics. (The licensing records do not reveal whether all the items approved were actually shipped, but there is no reason to think they weren't.)..."

San Diego Union-Tribune 5/16/99 Gary Milhollin Jordan Richie "...In the decade we studied, American companies also were licensed to sell China a great deal of noncomputer equipment that could be used for weaponry. This included $241 million worth of machinery for making special semiconductors that can go into missiles, torpedoes, smart munitions, fuses and secure communications equipment; $131 million worth of high-speed oscilloscopes, which can record data from nuclear weapon tests, help design nuclear weapon firing circuits and develop missile guidance systems; $111 million worth of high-accuracy machine tools that can produce the precision parts needed for nuclear weapons and long-range missiles, and $5.4 million worth of vibration-testing equipment, which can enable nuclear weapons and missiles to withstand shock, impact and rapid acceleration..."

Washington Times 5/17/99 Bill Gertz BETRAYAL: Part 2 of 3 "...It was 3:30 a.m. April 4, 1997. The mission would change Lt. Daly's life -- and his opinion of the U.S. government and the Navy he loved.... Chief Tabor handed him a photo. It showed a red dot of light on the bridge of the Kapitan Man. "I think you may have caught a laser beam in this picture," Chief Tabor said. "I know this is supposed to be the running-light area, but the signature of the light in this picture just doesn't look right to me." ..... The next morning, he awoke with a sharp pain in his right eye. Looking in a bathroom mirror, he saw a large blob of blood in the white of the eye. An eye doctor in Victoria found the eyeball was swollen. ..... the public knew nothing about it for more than a month. Until a top-secret Joint Staff report was leaked to this reporter and The Washington Times published a Page One story on May 14, 1997...... "A total of 30 frames were taken with frame number 16 showing definitive evidence of an emanation coming from the bridge area of the merchant vessel," the Joint Staff report said of Lt. Daly's photos. "Initial medical exams indicated some eye damage to both the pilot and the U.S. lieutenant, but none that is considered permanent." (Lt. Daly would wonder later where that medical assessment came from. More than two years later, he suffers from severe eye pain and headaches. And Capt. Barnes not only has eye pain but had his flying career cut short.) ....Lt. Daly and Capt. Barnes were examined and tested for several days at the Army Medical Detachment in San Antonio. Bruce Stuck, head of the medical group, told Lt. Daly there was interest in his case "at the highest levels" and that Mr. Clinton was briefed daily on his health. Doctors discovered four or five faint lesions on the retina of Lt. Daly's right eye; they believed the cause was a "repetitive pulsed laser." ...... After lunch, Cmdr. Joseph Hoeing, an analyst, confided: "You do not know the pressure I am under to sweep this under the rug." "As soon as I heard those words," Lt. Daly recalled, "I knew I was in trouble. The first thought that came to my mind was that this was a cover-up." .....The formal Pentagon report issued to the public concluded: "The Department believes that the eye injury suffered by the American naval officer is consistent with injuries that would result from exposure to a repetitive pulsed laser. Available evidence does not indicate, however, what the source of such an exposure might have been. Specifically, there is no physical evidence tying the eye injury of the American officer to a laser located on the Russian merchant vessel." The cover-up was complete....... Why the cover-up? "I firmly believe it was seen as jeopardizing our relations with Russia," he said. "Bill Clinton has said he doesn't want to be the guy who blew the opportunity for everlasting peace with Russia." A real threat to national security -- Russian spying -- is ongoing and ignored, Lt. Daly said. "Why should the government lie to its own people when our national security has been compromised?" he asked...."Secretary of Defense William Cohen not long ago stated to the press, during the Monica Lewinsky debacle, that he didn't believe that President Clinton would ever take risks with our national security. However, I am living proof that he has." ..."

NationalPost (Canada) 5/18/99 David Frum "....The Chinese steal American nuclear secrets, corruptly interfere in an American election, orchestrate mob attacks on the U.S. embassy -- and it's the Americans who are apologizing? How can that be? It gets worse. When President Bill Clinton attempted to apologize to China for the accidental bombing of their Belgrade embassy, the Chinese refused to take his call, and then told the newspapers about the snub. An insult followed by a public humiliation. Why is the U.S. swallowing such maltreatment? In 1971, after Britain caught a much less serious Soviet spy ring operating out of the London embassy, it expelled 105 diplomats. Why aren't Chinese diplomats being sent home? Why hasn't the U.S. announced, for instance, restrictions on visas for Chinese nuclear physics students? Those questions are inextricably connected to a second set. Why has Janet Reno's Justice Department failed to file a single charge against the Clinton-Gore campaign for violating campaign laws? Why have nearly 100 people associated with the Clinton-Gore campaign been permitted to flee the country or plead the Fifth Amendment? Why did the Justice Department thwart the investigation of espionage at the Los Alamos laboratories? ...He's at their mercy on the campaign corruption, too. The people who know best exactly how much money the Chinese government gave the Clinton campaign -- and how much Mr. Clinton personally knew about it -- are in hiding in China..... It's a wise caution. So let's just say that throughout the investigation of Chinese espionage, Mr. Clinton has acted like a man who would very much prefer the truth not be known. On March 19, Clinton declared, "Can I tell you there has been no espionage at the labs since I've been president? I can tell you that no one has reported to me that they suspect such a thing has occurred." He repeated his words later that day: "To the best of my knowledge, no one has said anything to me about any espionage which occurred by the Chinese against the labs, during my presidency." In fact, the Energy Department presented the cabinet with a report on Chinese espionage in November, 1998. The Clinton administration suppressed the report for fear of embarrassing the president during his impeachment trial. The president's account of when he learned of the spying, in other words, is a lie. But then, he sort of has to lie, doesn't he? For the truth is simply too horrible. The truth is that Mr. Clinton accepted millions of dollars from people he knew for a fact to be connected to the Chinese government. Wittingly or unwittingly, he accepted at least $300,000 (US) in gifts from the Chinese military itself. He took this money at the very same time that China was engaged in stealing America's most valuable secrets. And then, when the espionage was on the verge of being exposed, his attorney-general sabotaged the investigation to protect the president from political embarrassment. In the annals of presidential disgrace, it would be hard to identify anything worse...'

Koenig's International News 5/18/99 Charles Smith "...According to a 1997 report forced from the U.S. Commerce Dept. by a Federal lawsuit, "The most troubling potential transfer to China is Rockwell's proposed joint venture deal with the Shanghai Broadcast Equipment Factory and the Shanghai Avionics Corporation, the latter of which is a key enterprise of the Aviation Industries of China." "Rockwell Collins Navigation and Communications Equipment Company, Ltd.," states the 1997 report. "Will design, develop, and build Global Positioning System (GPS) navigation receivers systems for the Chinese market." "These components have serious dual-use applications, since the acquisition of reliable GPS data can enhance, to varying degrees, the capacity of militaries to field highly accurate cruise and ballistic missiles, such as those used to intimidate Taiwan during March 1996." Clearly, Clinton officials were aware of the military affects of the Rockwell/Shanghai venture. Furthermore, the Clinton administration also knew the geo-political impact of the GPS military sale to the Chinese Air Force. For example, the report noted the diplomatic effects on Taiwan of the GPS sale. "More accurate GPS systems would enhance the PLA's ability to carry out attacks against Taiwan's military and industrial facilities," states the report. "Potentially reducing the ability of the Taiwanese military to defend itself against PRC coercive diplomacy." However, the most chilling conclusion was reserved for the effects on U.S. military forces, especially U.S. Naval Forces. "The use of GPS to enhance the accuracy of long-range Chinese cruise missiles, coupled with long-range sensors, would raise serious concerns for the U.S. Seventh Fleet in the Pacific, and possibly circumscribe their ability to provide an effective deterrent in a crisis over Taiwan." Furthermore, the Chinese may have obtained the "long-range sensors" from the Clinton administration as well...."

Koenig's International News 5/18/99 Charles Smith "...Another Commerce Dept. document shows that in 1996, Loral Defense Systems (then an arm of Loral Aerospace) actively solicited Commerce Secretary Brown to intervene in getting approval from the White House to sell advanced radar technology to China. Loral wanted very badly to sell Synthetic Aperture Radar (SAR) to China. SAR is a sophisticated ground-looking radar essential to the newly deployed Joint Surveillance Target Attack Radar System (JSTARS) used by the U.S. military to track ground-based vehicular movement on the battlefield. SAR radars also equip the USAF F-15 Strike Eagle and the Predator unmanned aerial reconnaissance vehicle. A letter discovered in the previously unreleased files of Ron Brown shows that Loral Defense Systems President, Jerald A. Lindfelt, wrote Brown in March of 1996. Lindfelt sought Brown's help in the export of SAR technology to the Beijing Institute of Remote Sensing. According to the Defense Department, the Chinese "Institute of Remote Sensing" is actually a front for the Chinese Army missile guidance design laboratories. The Institute of Remote Sensing is "a developer of precision guidance systems for surface-to-air missiles." Loral's 1996 appeal also included a direct request for Ron Brown to over rule the Department of Defense, the State Department and even Brown's own Commerce Department, which had all previously denied SAR radar exports to China. "We've worked hard trying to resolve these problems with the Department of State, the Department of Commerce and the Defense Technology Security Administration (DTSA)," Loral's Lindfelt wrote to Brown. "But someone in these organizations always manages to block our participation... Over the years we have found that this type of obstacle often comes from lower levels of management rather than by people willing to look at the bigger picture. Could you help us by identifying someone in the Commerce Department high enough in the organization to help us resolve these issues and open this marketplace..."

Washington Times 5/18/99 Bill Gertz "...[December 1995] This time, NSA listeners got the immediate attention of Vice Adm. J. Michael McConnell, who, as the agency's director, was the nation's premier electronic spymaster. The intercept that crossed his desk revealed that a year earlier, in December 1994, China completed a $70,000 deal to sell Pakistan 5,000 custom-made "ring magnets" produced by an arm of the Chinese government's China National Nuclear Corp. The intelligence report noted that the devices -- ring-shaped, high-technology magnetic bearings -- are key components in making fuel for nuclear weapons. The technology transfer remained secret until this reporter broke the story on the front page of The Washington Times on Feb. 5, 1996....NSA immediately had sent a top-secret cable under Adm. McConnell's title to the head of the CIA's Non-Proliferation Center and to senior officials at the Pentagon, White House and State Department, notifying them of China's shipment of ring magnets to Pakistan. The intelligence report created a furor within the Clinton administration over whether China had helped Pakistan make fuel for its nuclear-weapons arsenal, estimated at 10 to 15 unassembled nuclear devices. At the State Department, Robert Einhorn, deputy assistant secretary for political-military affairs, quickly recognized the problem. He had been assigned the task of looking into the application of complex laws enacted by Congress to put teeth into policies designed to halt the spread of weapons of mass destruction. Made of a special alloy called samarium-cobalt, ring magnets must be precision-manufactured to withstand the high speeds of gas centrifuges that are part of the process for making nuclear-bomb fuel. China is the world leader in producing the components. The sale triggered a provision of law on business loans requiring the secretary of state to notify the Export-Import Bank when any nation is caught helping another nation develop nuclear weapons. Mr. Einhorn called the bank and told officials the intelligence reports meant that, under the 1994 Nuclear Proliferation Prevention Act, the bank could be required to hold up all new loan guarantees for projects sought by American businesses in China. But the Commerce Department, headed by Mr. Brown, former Democratic National Committee chairman, soon was leading the charge to block economic sanctions against Beijing and Islamabad. The Clinton administration ignored the violations...."

Washington Times 5/18/99 Bill Gertz "...Two years before the ring-magnets deal, in March 1992, China signed the Nuclear Non-Proliferation Treaty. The 1970 agreement recognized five nations -- the United States, the Soviet Union, Britain, France, and China -- as the only nuclear powers and sought to prevent others from becoming nuclear powers. The treaty was extended indefinitely in 1995 in what the Clinton administration hailed as a major arms-control victory. The treaty forbids signatories from providing components of nuclear weapons to non-nuclear states. The State Department's Bureau of Political-Military Affairs was in a quandary. China had failed its first test as a signatory. Selling ring magnets to Pakistan undermined years of work to keep such states from building nuclear bombs. In January 1996, the State Department quietly approached China National Nuclear Corp. about the sale it learned of in December. The Chinese said there was "no information" about it. They lied. And the State Department and the White House's National Security Council knew it. The intelligence was solid: NSA had the intercept detailing the transfer..... He said the matter had been raised at senior levels of the Chinese and Pakistani governments. But the exact "concerns" and how they were raised did not become public. They were secret, and the Clinton administration was not pressured to explain, either by Congress or the news media. Ten days later, Chinese Foreign Ministry spokesman Shen Guofang denied the sale took place..... He warned that U.S. economic sanctions against China would cause "serious harm" to relations. "China hopes the U.S. side will not use rumors as the basis for making decisions," he said...... The CIA, however, did produce an unclassified report to Congress covering the period from July to December 1996. "During the last half of 1996, China was the most significant supplier of weapons of mass-destruction goods and technology to foreign countries," the report said. "The Chinese provided a tremendous variety of assistance to both Iran's and Pakistan's ballistic-missile programs. China also was the primary source of nuclear-related equipment and technology to Pakistan and a key supplier to Iran during this reporting period."

Washington Times 5/18/99 Bill Gertz "...In a move aimed at keeping the ring-magnets dispute quiet, Mr. Christopher wrote to the Export-Import Bank later in February 1996, asking it to defer loan approvals for American businessmen operating in China. The cutoff would have been worth about $10 billion in new loans if it had been kept in place. But the measure lasted only 30 days and did not affect already-approved loans..... National security interests, Mr. Brown asserted, should not be a higher priority than trade. "I happened to think the best chance for us to have an impact in those other areas is through being engaged with China," he said..... After months of secret U.S.-Chinese talks, State Department spokesman Nicholas Burns issued a carefully worded statement May 10, 1996, saying the secretary of state had cleared China of any culpability. "Of particular significance, the Chinese assured us that China will not provide assistance to unsafeguarded nuclear facilities, and the Chinese will now confirm this in a public statement," Mr. Burns said. Unsafeguarded facilities are nuclear plants and support facilities that are not subject to inspection by the International Atomic Energy Agency, which monitors nuclear facilities around the world under the treaty. "In addition," Mr. Burns declared, "senior Chinese officials have informed us that the government of China was unaware of any transfers of ring magnets by a Chinese entity, and they have confirmed our understanding that China's policy of not assisting unsafeguarded nuclear programs will preclude future transfers of ring magnets to unsafeguarded facilities." There was "not a sufficient basis" to impose sanctions as required by the Nuclear Proliferation Prevention Act of 1994..... China's public announcement of the accord said only that "China will not provide assistance to unsafeguarded nuclear facilities." The Clinton administration claimed this was a "significant public commitment." ..."It is outrageous that the administration has now freed the Export-Import Bank to use taxpayer funds for loans to assist the China National Nuclear Corp. -- the very company that sold the ring magnets to Pakistan," said Rep. Nancy Pelosi, California Democrat. "When all is said and done," she added, "the Chinese proliferated nuclear-weapons technology and got away with it, and Pakistan received essential nuclear-weapons technology and was rewarded."..."

Fox Newswire/AP 5/19/99 "....Rep. Christopher Cox said a report on the investigation will be publicly released "within days,'' after a few remaining issues are worked out with the administration. "There have been some who have said that everybody spies. But I think you will see that not everybody does what the PRC (China) has done,'' Cox said after briefing senators. "First of all no nation has succeeded in stealing so much. Second, nations that spy have not used this information in order to build weapons to target the United States as the PRC (China) has done,'' said the California Republican. ...Sen. Conrad Burns, a Montana Republican, left the China briefing saying "it's scary...... "

USA Today 5/19/99 "...With applications from China pending, the Clinton Administration approved the commercial sale of super-accurate measurements from the Global Positioning System (GPS), which uses satellites to identify precise locations on the ground. GPS was a key U.S. advantage in Desert Storm, according to former Defense Secretary James Schlesinger. Previously, commercial users could get only rough measurements from GPS - not good enough for precise targeting of a missile, for example..."

USA Today 5/19/99 "...In 1996, the Administration transferred the licensing authority for exporting satellite technology from the State Department, which had opposed giving new technology to China, to the Commerce Department, which immediately approved the transfer. Given the green light by the Commerce Department, Loral Corporation provided China with missile technology to improve its satellite launch and guidance systems. This same technology can be used to improve the performance of missiles aimed at the United States. Loral is headed by Bernard Schwartz, one of the largest Democratic donors in the '96 election cycle...."

USA Today 5/19/99 "...And what are the new weapons China is developing with our technology? One is the neutron bomb, developed but never deployed by the U.S. military. A neutron bomb kills people but leaves buildings and infrastructure unharmed. This is the one that China has been most aggressive in building and testing. Now why would anyone want a bomb that could not destroy an adversary's weapons or power plants, but could wipe out all the people around a given target? "It's the ultimate ethnic cleansing weapon," says Bryen. "Suppose they wanted to use it on Tibet. This is a very sinister thing."..."

Investor's Business Daily 5/19/99 John Berlau "...The road from Beijing to the White House appears to take many detours through Arkansas. It was there, as attorney general and governor, that Bill Clinton met Indonesian businessmen Mochtar and James Riady and restaurant owner Charlie Trie, key figures linked to the Chinagate scandals. But more recently, another possible connection has emerged - through the $7.5 billion Arkansas Teacher Retirement System. In the past few years, the ATRS has invested in companies linked to Chinese intelligence.... At least four companies the ATRS has invested in - the China Ocean Shipping Co. (Cosco), China North Industries (Norinco), China Resources Enterprises and China Travel - ''historically and currently have been used by Chinese military intelligence,'' Timperlake said..... A year earlier, a Cosco ship was caught smuggling 2,000 automatic weapons destined for Los Angeles gang members into the port of Oakland, Calif. Even so, according to the American Spectator, ATRS added $500,000 in Cosco shares after the ship's capture. The Washington Times has reported that Cosco also delivered nuclear weapons components to Pakistan and Iran..... Norinco. The ATRS has also invested at least $334,000 in Norinco, the company that made the automatic weapons that were seized in Oakland. One month after Norinco officials were arrested, one of Norinco's partners attended a coffee at the White House..... Pension fund documents obtained by Investor's Business Daily show that in 1997, the ATRS invested at least $748,000 in China Resources and held shares in China Travel. Both companies are used as cover for spying operations, China experts say. In his book ''Chinese Intelligence Operations'' (Newcomb Publishing, 1998), Defense Intelligence Agency analyst Nicholas Eftimiades wrote that at least one vice president of China Resources is typically a military officer who ''coordinates the collection activities of other intelligence personnel under (the company's) cover.'' Former Arkansas State Auditor Julia Hughes Jones recalls that in 1993, Charlie Trie gave her the card of a woman who headed China Travel in Beijing. Jones says she found it odd that Trie wanted her to use China Travel for official Arkansas business inside the U.S. Jones said she now believes Trie -whose trial started this week - was promoting China Travel because he was ''trying to get in good with the (Chinese) military.' Both companies are also partners of the Riadys in various China ventures...."

UPI via Drudge 5/20/99 Freeper committed "...Senate Republican Leader Trent Lott says (Thursday) a House committee's report on possible spying by China on U. S. government and industry details what could be "the biggest breach of national security in our lifetimes." Lott and other senators were briefed on the report in a bipartisan meeting Wednesday, and Lott said, "The hair stood up on the back of my neck, because it's scary."..."

Drudge Exclusive 5/20/99 "...Members of a House committee now believe that President Clinton's national security adviser Sandy Berger was deliberately misleading during testimony on just when the president was told of suspected China spying and theft of U.S. military technology..... According to the soon-to-be-released Cox Report, Berger was briefed on the China activity in 1996. Berger testified that he did not brief President Clinton until early 1998, more 18 months later. But the committee obtained evidence, via testimony and documents, according to sources, that Berger's testimony had major timeline problems. "We have learned that Sandy Berger told the president in July 1997, not in early 1998," one committee member said. Vice President Al Gore was alerted to China's spying in March 1998 by his national security adviser Leon Fuerth, according to testimony. But Fuerth was fully briefed in April 1996, the Cox Report determined. "Administration officials would have us believe that Mr. Fuerth waited to tell the vice president about the China situation until after it appeared in the NEW YORK TIMES?" a committee member questioned.....'

Investor's Business Daily 5/21/99 Daniel J. Murphy "....Berger - President Clinton's current national security adviser - has been a political operative who's spent most of his professional life working in politics and lobbying. As one foreign policy fiasco after another hounds the White House, critics keep pointing to Berger...... In their 1998 book ''Year of the Rat'' (Regnery Publishing), national security specialists Edward Timperlake and William Triplett state, ''Berger seems to be around whenever Clinton administration decisions are made that, in our opinion, favor (China) trade ties over American national security interests. ...... Even before Clinton decided to run for president in 1992, Berger helped set up a national security briefing in Washington for the then-governor of Arkansas...... Upon entering the White House, Clinton tapped Berger to serve as deputy to National Security Adviser Anthony Lake. The Connecticut native was picked to head the National Security Council at the start of Clinton's second term. Prior to the McGovern campaign, Berger worked in a couple of congressional offices and then spent a short stint with New York City Mayor John Lindsay. From 1977 to 1980, Berger served on the State Department's policy planning staff for President Carter. Berger has spent much of his private-sector life as a partner in the powerful lawyer-lobbyist firm Hogan & Hartson. While there, Berger was the firm's key contact on international trade matters. Caterpillar Inc., a well-known backer of increased ties with China, was one of Berger's longtime clients...."

Investor's Business Daily 5/21/99 Daniel J. Murphy "....Berger's influence on foreign policy and intelligence issues shows on several levels. Some of the appointments to positions that would typically be vetted by Berger's NSC have raised some eyebrows. Take Anthony Harrington, a member of the President's Foreign Intelligence Advisory Board, the panel Clinton assigned in mid-March to assess the damage from national security compromises involving China. Harrington, like Berger, isn't a foreign policy veteran. Harrington was a partner at Hogan & Hartson, Berger's old firm. He was also outside general counsel to the Democratic National Committee in the 1980s and general counsel to the 1992 Clinton-Gore campaign. ..... The White House is reportedly also considering former Rep. Jane Harman, D-Calif., for the intelligence board. During the mid-1980s, Harman was registered and active as a foreign agent for the Chinese government. That background led to a mild dust-up with some Republicans when, as a lawmaker, she was picked for both the national security and intelligence committees.

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The Marshfield Mail 5/12/99 Jack Anderson/Jan Moller "....Between 1989 and 1995, nearly 10,000 pieces of equipment-including computers, printers, sophisticated lab instruments, a copier, a boat and a semi-trailer-simply disappeared from the Department of Energy's Rocky Flats facility in Colorado. Access to the database was loosely controlled, and employees had arbitrarily deleted or altered records for hundreds of items. The database was the cornerstone of a property management system that officials say was a disaster. But more disturbing than the missing equipment was the DOE's attitude when these breaches were discovered. In 1994, the General Accounting Office, which had written several reports on Rocky Flats, found that the agency hadn't even bothered to investigate and instead allowed the facility to write off nearly $25 million of the loss...."

The Associated Press 5/24/99 "...Excerpts from the congressional report on Chinese espionage aimed at U.S. nuclear secrets and satellite technology:... ``The stolen information includes classified information on seven U.S. thermonuclear warheads, including every currently deployed thermonuclear warhead in the U.S. ballistic missile arsenal. ``The stolen information also includes classified design information for an enhanced radiation weapon (commonly known as the `neutron bomb'), which neither the United States, nor any other nation, has yet deployed.'' ------ ``In addition, in the mid-1990s the PRC stole, possibly from a U.S. national weapons laboratory, classified thermonuclear weapons information that cannot be identified in this unclassified report. Because this recent espionage case is currently under investigation and involves sensitive intelligence sources and methods, the Clinton administration has determined that further information cannot be made public without affecting national security or ongoing criminal investigations.'' ..."

New York Post 5/24/99 STEVE DUNLEAVY "...On March 19 of this year, Clinton told a press conference, "There has been no espionage at [nuclear] labs since I have been president and nobody has reported to me that such a thing occurred." Either that statement was the mother of all whoppers or Clinton has been sniffing glue...."....Notra Trulock, the then-director of intelligence at the Department of Energy, three years ago raised a red flag big enough to send the entire population of bulls in Spain into a frenzy. In September of 1995, Trulock's investigations convinced him that nuclear secrets at Los Alamos laboratories in New Mexico had been seriously compromised. In April 1996, after confirming his worst suspicions, he briefed Clinton's national security adviser, Sandy Berger, on just how China had learned to make a bigger and better firecracker by stealing our nuclear secrets. If Sandy Berger forgot about it or didn't tell Clinton about this, he should be hung by his ankles like a bat. "I was explicit and to the point," Trulock said. Then in June of 1997, Trulock made the same trek. Berger must have been sharing the same pot of glue as Clinton. Nothing was done. Again, in early 1998, Trulock was wearing out his shoes going to the White House telling anyone who wanted to listen that Chinese espionage inside our Los Alamos lab was taking us like Grant took Richmond. In fact, he had briefed 60 officials. Even a draft of the Cox Report, which would make any 007 agent nervous, was sent to the White House on Jan. 3 of this year. And yet, Clinton says on March 19 that there was no espionage and nobody told him a thing about anything. When will this guy stop believing that we all have an IQ as low as the minimum wage in the South Pole? ...After the Cox Report, in this season, Bill Clinton is going to have to give a heavyweight reason why someone, somehow, somewhere did not commit treason.

Washington Post 5/25/99 Juliet Eilperin and Vernon Loeb Page A01 "...As for stolen U.S. military technology, the committee reports that China has stolen guidance technology now being used in U.S. missiles and fighter aircraft, including the F-14, F-15, F-16 and F-117 fighter jets. The committee concludes that this guidance technology is of enormous value to China in its development of intercontinental ballistic missiles and short-range CSS-6 missiles, which China test-fired over Taiwan's main ports in 1996. The committee, which began its probe last July by focusing on missile and satellite technology transfers, concludes that U.S. satellite manufacturers gave China missile design information without obtaining required U.S. government licenses that enabled Chinese engineers to improve the reliability of Chinese rockets used for commercial and military purposes.. ...."

Reuters 5/21/99 Tabassum Zakaria "....Senate Majority Leader Trent Lott Thursday lashed out at the White House for the delay in making public a report detailing alleged efforts by China to acquire U.S. nuclear weapons secrets. ``Why has it taken six months to declassify this report?'' Lott said. ``Obviously it's because the administration has been trying to get portions taken out and they have been delaying that report from being released.'' ....Cox, a California Republican, said stolen U.S. secrets could show up in Chinese weaponry by year-end. ``We can look forward for example to the testing later this year of a new intercontinental ballistic missile and we can look forward to that missile being mated with a warhead that built upon United States nuclear weapons secrets,'' Cox said in a Fox News Channel interview...Lott called it the ``biggest breach of national security of our lifetime.''..."

AP 5/24/99 H. Josef Hebert "....In a blurring of commerce and intelligence-gathering, China clandestinely controls several thousand U.S. ``front companies'' to obtain American technology for military purposes, a congressional report says.... The report, about a third of which remains classified, will characterize a voracious appetite by China for American technology -- from nuclear secrets at U.S. weapons labs to satellite and computer technology it obtained through business and academic contacts....The report contends that the espionage threat from China is much broader than the infiltration of the weapons labs, encompassing a broad array of technology-related businesses and academia. There is evidence, the report concludes, that China has been using -- and continues to use -- an extensive network of both small and large businesses operated by Chinese nationals in the United States to penetrate civilian technology centers. There may be more than 3,000 such American ``front companies'' -- many concentrated in high-tech centers in California and New England -- with connections to the Chinese intelligence apparatus, the report says. In addition, the congressional panel concluded, China requires as a normal practice that many of the thousands of students, tourists and other Chinese visitors to the United States to seek out bits of information that might be used for military purposes.....In October, according to committee members, the focus shifted dramatically when the panel learned of a major loss of nuclear secrets at the Los Alamos National Laboratory in New Mexico to the problems of espionage at the weapons labs. At the same time, the committee heard complaints from a senior Energy Department intelligence officer, Notra Trulock, that he had been stymied in his attempts to bring the espionage loss and security problems at the labs to the attention of senior Clinton administration officials...."

Times of London 5/22/99 Ian Brodie "...Others said the report showed how China was able to shave 20 years off the development of short and medium range nuclear weapons, neutron bombs and a high-tech rail gun that uses electromagnetic waves to propel missiles and shells over vast distances. The stolen technology reportedly enabled China to go from a 1950s-era nuclear capability to possessing the most modern technical information. Beijing denies the allegations...... In the eventual compromise, about a third of the report will remain classified to protect methods of intelligence collection....."

Washington Post 5/21/99 Walter Pincus Page A21 "...The Energy Department's intelligence chief said yesterday he warned the White House and others in 1997 that China might be trying to acquire nuclear weapons simulations codes similar to those discovered this year in the unclassified computer of a former Los Alamos National Laboratory physicist suspected of spying. Notra Trulock, the department's controversial whistleblower in allegations of Chinese spying, said for the first time at a Senate hearing that concern the Chinese were seeking the so-called legacy codes from Los Alamos led him to recommend that employee computer files should be searched. "I could only recommend to my supervisors that such a search be conducted," Trulock told the Senate Energy and Natural Resources Committee, "but to no avail." Administration officials confirmed that Trulock identified computer codes as one of several potential targets for Chinese espionage in a July 1997 briefing at the White House. The previous year, Beijing had signed the comprehensive test ban treaty and Trulock, according to one senior administration official, correctly estimated that Chinese intelligence would turn its focus on gaining information on techniques that would allow them to maintain their stockpile without testing. ..."

Washington Times 5/21/99 Greg Pierce / Inside Politics "...Brent Bozell, whose Media Research Center tracks liberal bias in the media, says ABC, CBS and NBC "are simply refusing to report" charges of Chinese nuclear espionage on their evening news broadcasts. "It's not that they don't have the story," Mr. Bozell told Fox News, which he said has reported the scandal well, as has CNN. But the "Big Three" broadcast networks are suppressing the story, Mr. Bozell said, while charges of Chinese theft of nuclear secrets from Los Alamos are "being investigated for the networks by the L.A. Times, the New York Times, USA Today, The Washington Post, The Washington Times, all of whom are splattering this on the front pages on a daily basis." Mr. Bozell suggested news networks are reluctant to report on espionage by China's communist regime because of the media's "almost violent anti-conservatism." ..."

MSNBC 5/24/99 Mike Brunker and Craig Staats "...THE SOURCES, who spoke on condition of anonymity, said the eight-member House select committee that investigated the alleged spying concluded that the stolen technology - including classified information on the Trident, Peacekeeper and Minuteman III warheads - will be incorporated into a new generation of Chinese ICBMs as early as 2002....."The report says the United States first detected the theft of vast amounts of weapons design information in 1995, but notes that National Security Adviser Sandy Berger testified that President Bill Clinton was not briefed on the matter until 1998."..."

The New Australian 5/24/99 Peter Zhang No 120 ".... No president could be so venal in his actions and contemptuous of the American people's security. This is wishful thinking.....There was no misunderstanding. I can assure readers that Chinese officials understood the nature of the arrangements. After all, it was they who laid down the conditions which, in plain language, amounted to walking away with America's military secrets. It matters not who was first to initiate contact as no move would have been made unless both parties were sure that there was common ground.....This brings us to the bombing of China's Belgrade embassy. Regardless of what some Washington 'insiders' evidently think, Beijing does not believe it was deliberate or some kind of payback by the CIA. ..... The extent to which Beijing still pulls Clinton's strings can be gauged somewhat from his grovelling apologies. That an apology was in order is beyond dispute. But for any leader, especially the leader of the world's only super power, to virtually prostrate himself before these arrogant mandarins should give many Americans serious pause for thought. This was not a case of cowardice ....there is much, much more to it than that. Let me remind you that Clinton made four abject apologies to Beijing in addition to those made by Albright and Cohen when one was sufficient. This was a humiliating display of Beijing's influence over Clinton and has been remarked upon in other Asian capitals.......So, as you Americans say, what gives? This raises the very ugly word blackmail. A couple of months ago I made a reference to audio and video tapes in Beijing safes. This was not a figure of speech nor was it idle gossip. There are those in Beijing who strongly suspected that the regime holds incriminating evidence on Clinton. His kow towing only served to transform those suspicions into a conviction. I must confess that the information that was passed on to me (without supporting evidence) emphatically states that the threat of blackmail has been applied. Furthermore, it is not just Clinton...."

Los Angeles Times 5/24/99 Bob Drogin "...The portion of the Cox committee's report that is likely to draw the most interest and concern focuses on espionage at the nation's nuclear weapon labs. And for that, the panel relied heavily on its star witness, Notra Trulock, now acting deputy director of intelligence at the Energy Department. In his testimony Thursday before the Senate Energy and Natural Resources Committee, Trulock called the current Los Alamos case among the worst in U.S. history. China's theft of nuclear secrets, the 25-year intelligence veteran said, "is on a parallel with the Manhattan Project compromises," referring to the Soviet spy ring that stole blueprints from Los Alamos in the 1940s and helped Moscow build its first atomic bomb..... For his part, Trulock complained that, although he briefed more than 60 members of the administration, his warnings and assessments were generally ignored until mid-1997. "There was a predisposition not to accept the findings of our work," he said on NBC's "Meet the Press." Trulock, a self-described "whistle-blower" who is a controversial and contentious figure, was more direct in his Senate testimony last week. He complained then that he and his colleagues were "labeled Cold Warriors, knuckle-draggers and even McCarthyites." ....A key finding accuses the Clinton administration of not complying with the National Security Act, which requires regular reporting to the intelligence committees and the leadership of the House and Senate...."

ABC This Week 5/23/99 "...BILL RICHARDSON ....We have 6,000 strategic warheads. The Chinese have close to 23. Now, this doesn't mean that we're overlooking the damage that may have been caused. But to say right now that this is enormously damaging, we don't know. It is bad.... GEORGE WILL How can the sale of 600 high-performance computers enhance our security? BILL RICHARDSON We believe very strongly that to deal with China, we have to engage them. We have to find ways to talk to them about arms control, about nonproliferation, about export controls. The Chinese have stopped many of their nuclear technology sales to Pakistan, to India, to Iran. I think we've made a lost progress, George, in restraining China's nuclear exports...... "

NY Times 5/21/99 Jeff Gerth "...Thursday, at a Senate hearing, Energy Department documents were released showing that Gore's office was told by Energy Department officials early on, at least in 1996 and possibly in 1995, about the first indications of Chinese espionage at United States weapons laboratories. Gore's national security adviser, Leon S. Fuerth, was briefed in April 1996, according to testimony by Notra Trulock, an Energy Department intelligence official, before the Senate Energy and Natural Resources Committee. This came about the same time the President's deputy national security adviser, Samuel R. Berger, was first told about China's spying. Tom Rosshirt, a foreign affairs spokesman for Gore, said Thursday that Fuerth had no recollection or record of a 1995 briefing. He confirmed the 1996 briefing but said that Fuerth waited until last March, shortly after news accounts of the spying appeared, to tell the Vice President about the alleged espionage. Berger told the Cox committee that he did not speak with the President about Chinese spying for at least a year, saying that it was in early 1998. Berger's aides now say he remembers informing Clinton in July 1997..... In 1996, Clinton relaxed controls on sales of advanced computers to countries like China. The next year his Administration resisted Congressional efforts to retighten those controls. The Cox committee concluded that some of the American computers sold to China went to organizations involved in military activities and that ineffective verification requirements meant that American computers might have been used for military purposes like upgrading nuclear weapons or developing more accurate missiles, officials said. In 1996, China pledged to stop physically testing nuclear weapons, increasing its reliance on advanced computers for simulations. Also in 1996, the American intelligence community reported that China had stolen secret design information about the neutron bomb. That same year President Clinton shifted licensing responsibility for some commercial satellite sales from the security-oriented State Department to the business-friendly Commerce Department. The Cox committee, officials said, concluded that the shift was a mistake. The technology used to launch a satellite into space is similar to the technology used to deliver a missile armed with nuclear warheads.....

Fox News 5/25/99 Freeper Wil H reports "...Fox just ran a sound bite of Cox talking about Chinese spying today say that if the spies are caught they should be executed.... "

5/25/99 Laurence McQuillan Reuters "..."I think Sandy Berger should resign," said powerful Texas Republican Rep. Dick Armey of the White House national security adviser faulted for failing to act when the allegations first reached him in 1996. "I just think Sandy Berger needs to stand up and accept his responsibility," said Armey. U.S. Attorney General Janet Reno also drew the ire of critics outraged that she rejected FBI requests to wiretap one of the prime suspects in the spy case. "Janet Reno has always said that she's accountable, and she certainly is," said Sen. Richard Shelby, an Alabama Republican who is chairman of the Senate Intelligence Committee. "She's accountable to the people ... for her actions or inactions, and there are a lot of inactions there," he told CNN. "And I believe it's time for her to go, and now." White House officials said Clinton has "full confidence" in both Berger and Reno..... Republican critics have accused the Clinton White House of trying to downplay the significance of the spying because it interfered with its policy of engagement with Beijing. "The report shows the total lack of coordination with the administration and a complete failure to effectively bring these breaches of security to a halt," said Sen. John McCain of Arizona, a contender for the Republican presidential nomination next year. Another Republican White House aspirant, Texas Gov. George Bush, complained that "this administration apparently did not take seriously, did not react properly and it is still trying to minimize the scope and extent of the damage." ...."

 

Hotline 5/25/99 Fox - Carl Cameron Special Report 5/24/99 "....FNC's Carl Cameron: "Johnny Chung, the man who funneled campaign money from the Chinese government to Democratic campaigns, including the presidents, told Congress last week that he was under orders from the Chinese to keep the whole thing quiet. His orders, he said, came from a suspected Chinese intelligence operative named Robert Luu who worked [for a] Los Angeles law firm. In a telephone conversation tapped by the FBI, Chung was told by Luu to say the campaign money came from the so-called princelings, relatives living in the West of top Chinese leaders." More Cameron: "A transcript of the wire tap obtained by Fox News contains the following: Luu: 'Shove the blame on the shoulders of the princelings.' Chung: 'So blame it on the princelings, do not implicate the Chinese government?' Luu: 'Yes, Chairman Jiang agreed to handle it like this. The president over here also agreed.'" Cameron continues: "Since both men were in the U.S. when the call occurred, those words, 'the president over here also agreed,' indicate that President Clinton and China's President Jiang Zemin, had agreed on how to spin the story if it got out. The White House strongly denies that any such thing occurred."..."

5/25/99 Bill Gertz Washington Times "...The release of the report this morning comes nearly six months after the committee finished its investigation. Mr. Cox said at least 30 percent has been censored by the White House, citing national security......"Some of the most significant thefts have occurred in the last four years" -- after the Clinton administration was informed of serious security lapses, Mr. Cox said. "It does make one wonder how it is that others who possess this information could so readily have dismissed it or not acted upon it," he said.

5/25/99 Bill Gertz Washington Times "...The report says China: Stole design information on the United States' most advanced thermonuclear weapons that could be incorporated in the next generation of Chinese ICBMs. Transferred ballistic missile technology to Iran, Pakistan, North Korea, Saudi Arabia, Libya and other countries. Acquired some 600 supercomputers, some of which are being used in violation of U.S. export laws to develop nuclear arms. Stole U.S. missile guidance technology with direct applications for China's ballistic missiles, including short-range missiles and ICBMs. Has more than 3,000 corporations in the United States, some with links to the Chinese military, its intelligence service, or with technology targeting and acquisition roles. Stole U.S. missile guidance technology that has direct applicability to its ballistic missiles and rockets. The stolen guidance technology is used on a variety of U.S. missiles and military aircraft....."

WallSt. Journal 5/25/99 Henry Sokolski, director of the Nonproliferation Policy Education Center in Washington "...Far more important, neither response even begins to address the threat the U.S. and its Asian allies will face if only half the Cox report's findings are true: a China that in 10 years could wield sufficient strategic clout to marginalize U.S. forces in Asia, intimidate our allies there, and propel Japan, Taiwan and South Korea into an arms rivalry with Beijing that would be sure to go nuclear and ballistic. Why is this likely? Right now China has no more than 20 nuclear warheads that can reach the U.S. and no more than 400 that can threaten Beijing's neighbors. Those that target the U.S. are on highly inaccurate intercontinental-range missiles, missiles that are so large and slow they make ideal ground targets and easy pickings for planned U.S. national missile defenses. A large portion of the remaining warheads can only be delivered by bombers, all of which are sitting targets on the ground and in the air. Because these forces have not grown much in the past decade, some have insisted that China has no interest in amassing an offensive force, only a retaliatory one against Russia, the U.S. and, lately, India. What the Cox report makes clear is that it would be a mistake to bank on this in the next century...... The bottom line: By 2009 the Chinese threat against the U.S. may no longer consist of a few slow-flying, vulnerable missiles. Instead we may have to face hundreds of accurate, fast-flying, and hard-to-intercept warheads and China's neighbors may face thousands. This is not a threat that firing an attorney general or national security adviser will avert. Nor will tightening security at the national laboratories or monitoring U.S. exports of sensitive technology to China have any significant effect. As the Cox report has made clear, most of the technology China needs to deploy the forces noted above it has already acquired...."

Softwar.com 5/25/99 "...On February 6, 1996, Bill Clinton met in the White House with the CEO of a major gun manufacturing company. The same gun maker flooded the U.S. market with over four hundred thousand assault rifles in 1994. Only a few months after the meeting with Clinton in 1996, the same gun dealers tried to smuggle over 2,000 machine guns to U.S. drug gangs...... Bill Clinton's close relationship with POLY TECHNOLOGIES Corp. (Poly Tech), an arms company wholly owned by Chinese Generals, brought great profits to the People's Liberation Army (PLA) and large contributions into Democrat coffers. Poly Tech also exports the most popular gun in the world. Poly Tech manufactures and sells the infamous AK-47. The AK-47, and its familiar banana shaped magazine of bullets, has adorned the shoulders of terrorists who hijack planes, and graced the flags of radical nations. Many an American has died from the AK-47 7.62 x 39 bullet. According to documents forced from the U.S. Dept. of Commerce by a Federal lawsuit, Poly Tech made great profits in America thanks to Bill Clinton. "Poly Tech," states the 1997 report, "sold hundreds of millions of dollars of largely surplus arms around the world, exporting to customers in Thailand, Burma, Iran, Pakistan, and the United States... These sales peaked in 1987, when Poly sold more than US$500 million in weapons." Poly Tech's prime U.S. subsidiary, PTK International of Atlanta, Georgia, was run by Chinese princeling Baoping "Robert" Ma. Robert Ma's family business included "importation and distribution of semi-automatic rifles for the U.S. domestic market... Between 1987 and 1993 PTK sold more than US$200 million worth of these guns in the United States." ..."

Softwar.com 5/25/99 "...Poly Tech was founded in 1985 as a subsidiary of China's powerful central bank, CITIC (China International Trust and Investment Corporation). In 1996, the Chinese HQ of Poly Technologies was run by Wang Jun and his "princeling" friend, the powerful He Ping, son-in-law of Deng Xiaoping. Wang was not only Poly Tech CEO but also a Director of CITIC. Thus, the PLA "commercial" arms outlet Poly Tech also provided CITIC credit to customers. The curious mix of communism, capitalism and corruption ended in August, 1996, when Poly Tech's U.S. operations were closed by a U.S. Customs sting operation. Allegedly, Poly Tech's man in America, Robert Ma, conspired with China North Industries (NORINCO) representative, Richard Chen, to import 2,000 fully automatic AK-47s into the United States to Customs Agents posing as Miami drug smugglers...."

Capitol Hill Blue DOUG THOMPSON 5/25/99 "..."The Congressman is not prepared to publicly indict the President for treason. That is a very serious charge," said one aide. "The report that the public will see is, without a doubt, a pointed example of how the White House put political considerations above national security, but it does not attempt to assess blame on any single source." For example, while the report says the Clinton administration relaxed restrictions on high-end computer sales to China in 1996, and 600 have since been sold, it also argues that US officials have no effective way to determine whether computers sold for commercial purposes are diverted to military uses. However, high-performance computers legally purchased from US companies have been secretly used by Chinese military institutes and organizations involved in research and development of nuclear weapons, missiles, satellites, spacecraft, submarines, aircraft, military systems, command and control, communications and microwave and laser sensors....."

Capitol Hill Blue 5/25/99 "...Among the losses: Nuclear bomb technology for the seven most sophisticated U.S. nuclear weapons: The W56, W57 and W72, which were taken out of production and service in 70's; The W87, which is the MX "Peace Keeper" payload. Up to 10 can be carried and deployed (MIRVed) from a single missile; The W88, the weapon for the submarine-launchable Trident; up to eight can be launched at a time; The W78, used to arm the Minuteman III; three can be MIRVed at once; W-70 neutron bomb technology, which leaves buildings intact but kills with enhanced radiation; Electromagnetic pulse technology for killing opposing electronics or space-based weapons; Other space-based weapons technology to attack satellites and missiles; Satellite technology and research for detecting submarines; Guidance technology used in missiles; Guidance technology used in warplanes, including in the F-14, F-15, F-16 and F-117; Stealth technology; Machine tools and jet engine technologies that can be used for warplanes and silk worm cruise missiles.

The Washington Times 5/26/99 August Gribbin "....But it [Cox Report] conceals the extent of espionage during the Clinton years...... For example, the first section of the report states: "In the mid-1990s the PRC [People's Republic of China] stole, possibly from a U.S. national weapons laboratory, classified thermonuclear weapons information that cannot be identified in this unclassified report. Because this recent espionage case is currently under investigation and involves sensitive intelligence sources and methods, the Clinton administration has determined that further information cannot be made public without affecting national security or ongoing criminal investigations." On 24 different occasions, the report declares: "The Clinton administration has determined further information cannot be made public." Nonetheless, the report makes clear that information losses in the last seven years have been massive. The special House investigating committee that prepared the report found that "in the late 1990s" the People's Republic of China illegally obtained research and development "technology" that if properly deployed "could be used to attack" U.S. submarines and satellites. Also in the "late 1990s" China obtained basic research material and data on development regarding "electromagnetic weapons," a phrase that refers to neutron bombs and other atomic weapons. The enormously effective neutron bomb destroys mainly by radiation instead of blast. A one kilatron neutron warhead can, for instance, penetrate armor and kill tank crews while causing slight damage to the tanks. It will kill all within 1,310 yards in all directions of the explosion point. The committee concludes, "Such technology, once developed, can be used for space-based weapons to attack satellites and missiles." In 1997, China reportedly stole data telling how to develop "sensitive detection techniques that could be used to threaten U.S. submarines." ....Carefully avoiding specifics, the report explains that in 1994, a company directly controlled by China's People's Liberation Army was unhindered in buying sophisticated "advanced machine tools" from McDonnell-Douglas. Presumably these tools were used for weapons production. But additionally the committee obtained evidence that "during the 1990s," China stole "technology data from U.S. industry valued at millions of dollars." The committee found that "the PRC used Chinese nationals hired by U.S. firms for that purpose." However, the report adds, "The Clinton administration has determined that no details of this evidence may be made public." In just one 1996-97 operation, the U.S. Customs Service seized $36 million in "excess military property" that was being shipped to China illegally. Included were: Thirty-seven inertial navigation systems for the U.S. F-117 and FB-111 aircraft. Thousands of computers and computer disks containing classified "top secret" information. Patriot missile parts. Five hundred electron tubes used in the U.S. F-14 fighter. Tank and howitzer parts. Twenty-six thousand encryption devices..... Often this equipment was purchased as 'scrap,' for which the buyers paid pennies on the dollar." As an example, the report mentions that the Chinese obtained a "multi-axis machine tool profiler." The device is used for designing wing spans for the F-14 fighter. The original cost was $3 million. China got the device for $25,000. The select committee found that in the "mid-1990s" a Chinese company obtained U.S. defense manufacturing technology for jet aircraft. It didn't bother to try for the necessary export license and lied about the contents of the shipping containers that passed customs and reached the PRC. However, the committee noted again, "The Clinton administration has determined that further information on this case cannot be made public." ..."

5/27/99 Curt Weldon (R-PA) "...That the Clinton-Gore Administration certified China in January 1998 to receive nuclear technology for being in compliance with non-proliferation regimes, even though there was strong evidence that the Chinese government was continuing its proliferation activities with Iran, North Korea, Syria, Pakistan, and Libya. Such proliferation activities, which were contrary to U.S.-Chinese understandings, continue unabated to this day.

5/27/99 Curt Weldon (R-PA) "...That the administration as early as 1994 systematically dismantled its system of monitoring the influx of Chinese and other foreign nationals visiting U.S. high technology companies, including our nuclear weapons labs. As a result, there are many tens of thousands of Chinese in the United States and we don't know where they are or what they are doing. In fact, it wasn't until this year just prior to public revelations of alleged Chinese espionage in our nation's nuclear weapons labs that the Energy Department decided to seek export licenses from the Commerce Department for foreign national visits. Yet, the requirement had always been law...."

5/25/99 U.S. Sen. James M. Inhofe "....U.S. Sen. James M. Inhofe (R-Okla.) said today that the Cox Report's most important revelations about China's theft of nuclear secrets were known within the Clinton administration at least three years ago and were deliberately withheld from Congress and the American people. "With today's release of the Cox Report, the American people are learning about China's enormously damaging theft of our nuclear secrets which was discovered by the Clinton administration as early as 1995," Inhofe said. "Yet this information was deliberately withheld from members of Congress for the better part of three years. "The President willfully sat on this explosive information for political reasons. His political appointees prevented the Energy Department's Director of Intelligence from briefing the Congress about these matters as late as July of 1998. The President has shown a gross indifference to national security and an utter contempt for the Congress. This is a coverup and a scandal. "The President cannot escape responsibility by saying he has fixed the problem, because he hasn't. "He signed the waivers that allowed our missile guidance technology to improve China's ballistic missiles. "He approved the transfer of export control licensing from the Commerce Department to the State Department, over the objections of his Secretaries of State and Defense. "He appointed the national security advisor, the attorney general, and the previous Energy secretaries whose competence in dealing with the nuclear secrets scandal has been called into question. "He misled the American people over 130 times saying no nuclear missiles were targeted at America's children when he knew there were. "He presided over a campaign fundraising scandal in which over 100 witnesses have fled the country or refused to testify. "He told the American people two months ago there was no evidence of Chinese espionage during his presidency when he knew there was. "His defense and foreign policies have harmed national security, from cutting military budgets to squandering our resources in an ill-conceived war in Kosovo, to blocking national missile defense. "This is an administration whose competence in understanding and protecting our national security is constantly shown to be lacking. ...."

Gary Aldrich, President, The Patrick Henry Center 5/27/99 "... "While the FBI's webpage makes it a point to highlight the urgent threat that so-called domestic terrorists of the "Far Right" represent, a real enemy (Communist China) steals us blind, right under the FBI's noses, and in some cases, with their knowledge. "Thanks a lot for guarding your nation, FBI. "Thanks a lot for putting my kids and yours right back into a new cold war by being too afraid to face off with Bill Clinton and his lefty friends! You ignored me and my FBI partner when we warned you the Clinton White House was dangerous to our national security. "You even tried to punish us for doing our jobs - to protect national security! "Mr. Freeh: You tried to prosecute me for telling the people what I knew, and you forced my partner Dennis Sculimbrene into an early retirement. "Mr. Director, today your silence is deafening - and very damning! Why don't you tell the nation what you really know about the corrupt Clinton Administration? But the FBI is not the only agency that stands accused of failing to come to America's rescue. You can hang your heads in shame right along with all the other spineless bureaucrats who take up space and collect large salaries and cushy benefits! What is emerging from the wreckage of our once highly vaunted research and development labs is the obvious fact that this nation has been compromised beyond the imagination of any citizen - regardless of the level of his or her cynicism. Mr. Aldrich: "What is much more troubling to me is that the very people and institutions we created to prevent this unprecedented espionage - may have actually aided and abetted our enemies by standing by and watching it happen, while punishing and threatening those brave whistle blowers who tried to prevent it."..."

Labella on NightLine Freeper kristinn reports 5/26/99 "... LaBella says his instructions were to leave no stone unturned, follow every lead, resources will be provided. In response to Cox report, he says that his leads were followed to "foreign countries," took investigation as far as he could. Says portions of the report cannot be released because of 6e rules, release is up to Justice Dept. Says he doubts his 94 page report will ever be released. Says he will not break his oath to talk about the details. As a professional, he does not favor it's release, because of the free discussion by prosecutors. Personally, as a point of pride, he would like to see it released. Says plea deals by Huang, Trie, etc. are good developments for the task-force. Says he would encourage his daughter to come work in Washington and speak her mind and let the chips fall where they may...."

Labella on NightLine Freeper debo21 reports 5/26/99 "...This "Nightline" was EXTRAORDINARILY harsh on Janet Reno. This is especially significant, given that it was "Nightline" that bailed her copious butt out of the wringer, in the aftermath of Waco, when the nation wavered on the very edge of decency for some hours, while Clinton hid out (probably in that antechamber off the Oval Office, seeking relief of one sort or another), before we were all vigorously herded back into an appalling state of denial by the press establishment....Tonight, then, marked a sea-change: a radical departure from the usual, cooing and oohing, sycophantic treatment of Reno. It presented her almost as she really is--as we on the right have known her to be since 1993. It stopped just short of charging her with incompetence and corruption: and despite the mandatory shot at the GOP (Dole's campaign got illegal money, too!), it was incredibly hard on the president and the Veep, all but saying that if La Bella COULD talk, what he'd tell us would be that Yes, the Clinton administration WAS bought by Chinese money. Now, this will probably drop out of sight by morning, like all Koppel's sudden, quirky shots at the Clinton Regime always do--but brother, it was a break with tradition....."

5/27/99 Curt Weldon (R-PA) "..."Contrary to the Clinton-Gore spin, the China espionage scandal is not just about the nuclear labs. That is what the Administration wants people to think, because the issue of the labs has the most direct connection to previous Administrations. The broader (and more damaging) issue is the wholesale auctioning of sensitive American technology to the highest bidder. The facts show conclusively that this damage occurred under the Clinton-Gore Administration, and was a direct result of specific Clinton-Gore policies. It was the Clinton-Gore Administration that ended the Department of Energy internal controls that governed who had access to certain facilities. It was the Clinton-Gore Administration that disbanded COCOM (Coordinating Committee on Multinational Export Control). It was the Clinton-Gore Administration, specifically the President himself, that sent a letter to the CEO of Silicon Graphics in 1993 outlining how the Administration planned to relax controls over our most sensitive technologies. It was the Clinton-Gore Administration that decimated DTSA (the Defense Technology Security Agency), the one group that was responsible for DOD's input into technology export policy and licensing. This agency has been downgraded and minimized. It was the Clinton-Gore Administration that transferred final approval for all sensitive technology transfers from State and Defense to Commerce. ...."

5/27/99 Curt Weldon (R-PA) "...The two charts together reveal, among other things: A systematic, well planned effort by the Chinese military at the highest levels to target and acquire technology for military modernization. That the targeting effort and financing to acquire the technology and buy influence at the highest levels of US Government were planned and implemented by Chinese military Intelligence through the second department under the General Staff Department (GSD). That the Chinese military acquired many of the technologies over the past seven years, although many of them had been targeted for acquisition for more than a quarter century. That the Chinese military set up a series of front companies and cut-outs to mask its technology targeting efforts and to launder money to hide its origin. Chinese military intelligence even resorted to the use of companies and bank accounts of the infamous Macau and Hong Kong Chinese Triad for this purpose. ..."

5/27/99 Curt Weldon (R-PA) "...That even after the US Government learned of the diversion of the W-88 nuclear warhead design in late 1995 into 1996, the Clinton Administration continued to liberalize export controls on such sensitive technologies as computers, encryption, machine tools, telecommunications, stealth technologies, space launch technologies, satellites, the array of hot section technologies to improve the performance and life of Jet engines, and high temperature furnaces essential for the production of components for missiles and nuclear weapons. Despite knowledge of the U.S. designs for nuclear warheads, for example, the Clinton Administration still undertook a serious effort to redefine supercomputers to allow for increased exports of high performance computers to China. Rationale was not based on strategic criteria. Instead, it was governed by economic considerations of a few companies whose executives had supported President Clinton in 1992 and again in 1996..."

5/27/99 Curt Weldon (R-PA) "...That the cumulative impact of these targeted technologies now permit China to: Develop reliable Intercontinental Ballistic Missiles with insights into MIRVing that ICBM force. Miniaturize nuclear warheads. Implement a command and control structure for its growing ICBM force. Develop an integrated command, control, communications, computer and intelligence encrypted network to enable better military command and control over vast areas, even beyond China itself. Improve power projection for its surface fleets, submarines, and long-range cruise missiles capable of hitting not only Taiwan, but also Japan from mainland China. Produce more proficient fighter and bomber aircraft capable of greater distances and speeds..."

WorldNetDaily 5/27/99 Joseph Farah "....Let me try to say something nice about Bill Clinton. Here goes nothing. If Bill Clinton were to leave office today, and if our foreign enemies did not take advantage of all the nuclear and other military secrets he has showered them in to destroy us, then America might recover from his unparalleled treachery in the next 20 to 25 years. How's that? That's about as much as I can offer. It will have to do. You know, nobody in Congress wants to mention the "I" word again for obvious reasons. The last time the House of Representatives impeached the president, members were humiliated by their colleagues in the Senate. But with the release of the heavily redacted version of the Cox Committee report, it's certainly long past time to be bringing up the "T" word -- for treason. There's no question treason is an impeachable offense. It's clearly mentioned in the Constitution. It's simply a matter of whether the evidence supports the charge. You decide...."

Los Angeles Times 5/28/99 DOYLE MCMANUS, BOB DROGIN "..."This is a report whose credibility is being questioned unfairly," said Cox, who chaired the bipartisan committee that released its report Tuesday. "The lion's share of the information comes from the Clinton administration." In particular, Cox said the report has been unfairly criticized for implying that as many as 3,000 Chinese firms may be operating in the United States as "front companies" for intelligence gathering. "We didn't state that," he said. "What we stated is that there are more than 3,000 [Chinese] corporations in the United States . . . [and] there are significantly more front companies than was previously disclosed in public." The report concludes that there are "more than 3,000 [Chinese] corporations in the United States, some with links to the [Chinese military], a state intelligence service, or with technology targeting and acquisition roles." Cox took exception to a story in Thursday's Times that characterized the report as saying "as many as 3,000" of the Chinese companies operating in the United States are fronts to "acquire military technology." ..."We have always seen politics as the greatest threat to solving this problem," he said. "If for political reasons the gravity of the problem is diminished, we won't be able to take the steps to fix it."..... "

The Center For Security Policy 5/28/99 "...One of the most potentially momentous -- yet little-noted -- conclusions of the report by the House select committee chaired by Rep. Chris Cox (R-CA) read as follows: "Increasingly, the PRC is using U.S. capital markets both as a source of central government funding for military and commercial development and as a means of cloaking U.S. technological acquisition efforts by its front companies with a patina of regularity and respectability." (Emphasis added.) In fact, the latest data suggest that "wholly owned" Chinese entities have raised roughly $13.5 billion in dollar-denominated bonds world-wide since 1980, the bulk of it in the U.S. bond market. These undisciplined, "general purpose" funds can be easily diverted to finance activities inimical to U.S. security interests (e.g., proliferation, espionage, technology-theft, nuclear force modernization, etc.) According to the Center's William J. Casey Chair, Roger W. Robinson, Jr., of the 195 Chinese bonds issued since 1980, 24 have been offered by PLA-affiliated giant, China International Trust & Investment Company (CITIC), chaired by Beijing's most notorious arms dealer, Wang Jun. The total amount raised by CITIC alone on global markets is roughly $3.5 billion, some $800 million of which was offered in the U.S. Even China Resources (Holdings) Co. Ltd. -- a reported conduit for Chinese intelligence -- is now in the bond market. The grave implications for American national security of this multi-billion dollar penetration of the U.S. capital markets by foreign bad actors will oblige congressional committees and executive branch agencies following up on the historic work of Rep. Cox's panel to grapple with measures to remedy this situation. Wall Street would be well-advised to consider ways in which it may be able to avoid some of the more draconian responses by voluntarily playing a constructive problem-solving role....."

The Center For Security Policy 5/28/99 "...On Tuesday, June 1st Rep. Roscoe Bartlett, chairman of the Subcommittee on Government Programs & Oversight of the House Committee on Small Business, will take testimony at the Applied Physics Lab in Baltimore on a critically important subject -- "Electro-Magnetic Pulse: Should this be a problem of national concern to private enterprise, businesses small and large, as well as government?"..... It is to be hoped that their testimony will help Rep. Bartlett in his valiant, if largely unsung, effort to alert his colleagues in government and the American people to a looming danger, namely that the electronic systems upon which both the U.S. civilian economy and military sector depend could be devastated by even one, relatively crude EMP weapon detonated high over the continental United States.

National Security Archives 5/27/99 Jeffery Richelson, Michael Evans "....This April 1984 Defense Estimative Brief, released to the Archive on April 15, 1994 through the Freedom of Information Act, describes the then ongoing efforts of China to make "qualitative improvements" in its nuclear arsenal "from both overt contact with U.S. scientists and technology, and the covert acquisition of U.S. technology." The document, released by the Defense Intelligence Agency in response to a Freedom of Information Act request submitted by the Archive in June 1993, makes predictions about several specific kinds of warhead improvements that the Chinese were likely to realize in the 1980s and early 1990s, and cites evidence "that the Chinese have been successful in assimilating into their nuclear weapons program United States technology." ...."

Investor's Business Daily 5/28/99 "....While most of the debate surrounding the Cox report focuses on the past, the real issue is what to do about the future. The report makes it very clear that America needs a ballistic missile defense system. The Clinton White House counterattack never takes long. The administration has been working for months preparing for the release of the congressional probe of Chinese espionage. The first line of defense noted that Chinese espionage began as far back as the Carter administration. But the difference between the Carter, Reagan and Bush presidencies is the fact that these presidents didn't know what was going on. Some members of their intelligence forces suspected Chinese espionage. In March, President Clinton claimed he didn't know anything about foreign spionage - despite kaffee klatsches at the White House with Chinese agents and Russian gangsters. We now know this is a lie..... But even if the Clinton administration were as ignorant of Chinese espionage as earlier White Houses, Clinton is guilty in this regard: He has opposed the Strategic Defense Initiative since he took office. Rather, he has opted for meaningless treaties such as Start II, a pact between the U.S. and the defunct Soviet Union that sets limits on nuclear weapons. The even more unrealistic Comprehensive Test Ban Treaty risks the effective testing of our weapons...."

Freeper The Kid 5/29/99 observes "...El Reño's testimony before the Senate Judiciary Committee on April 30, 1997, specifically her arguments against appointing an independent counsel to investigate the president's fundraising abuses leading up to the 1996 election, form the heart of the article. But page 36 of the print edition (www.spectoator.org archives unfortunately offers only an excerpt of the article) contains this nugget: "During the April 30 [1997] hearing, in a line of questioning from Senator Spector, Reno acknowledged that the FBI withheld national security information from President Clinton because he and Vice President Gore are 'potential subjects in a pending investigation.'" Eastland recounts the sparring between the AG and senators that followed. And in a footnote he writes: "Here is a remote but tantalizing possibility: That the Justice Department is keeping the investigation in-house because the fundraising case mainly involves foreign threats and the President of the United States, though a subject of the investigation, has a constitutional duty higher than his own criminal investigations - that of ensuring the nation's security. This would be a remarkable situation - the suspect or even the criminal who must investigate his own case because it is part of a larger matter that he is duty-bound, as president, to handle. This would be a situation no president, much less the attorney general, likely would speak to until events compelled him to do so." Compelling events seem to be at hand. After months of delay by the administration, the unclassified version of the so-called Cox Report nears publication....."

CNS 5/26/99 Lawrence Morahan "...."The notion that Chinese master spies sneaked in and stole our stuff" is false, Dr. Alan Keyes, conservative presidential candidate - who is running ahead of Dan Quayle and Gary Bauer in a CNS presidential poll. "People who were on watch here opened the door, laid the documents out on the desk and then went to get coffee. That's what happened. We were betrayed. This was not a theft, it was a surrender of our national technology," Keyes said..... "While it is certain that the United States was victimized by an aggressive Chinese campaign to steal or otherwise acquire restricted technology and our most important secrets, what should not be lost is the fact that we allowed ourselves to be victimized," said Rep. Porter Goss (R-FL), chairman of the House Permanent Select Committee on Intelligence. Goss pledged that in addition to examining Chinese espionage against the United States, his committee would also investigate covert political action on the part of Beijing, such as efforts to subvert or manipulate the U.S. political process. The Cox Report confirms "the devastation to national security" was wrought on Bill Clinton's watch, Keyes said. "And when you put that together with other indications that the Chinese made strenuous efforts to influence this administration by using agents who were intimate with the president, the picture suggests the possibility of treason with deeply damaging consequences," Keyes said...."

Insight 6/21/99 J. Michael Waller ".... Two years of congressional probes, special prosecutors and federal indictments, all sparked by Capitol Hill Republicans, seized the national spotlight in late May when key Clinton-Gore fund-raisers who illegally funneled large sums of money from Communist China into the Democrats' 1996 campaigns either agreed to turn state's evidence or pleaded guilty. This badly shook key figures at the White House and the Democratic National Committee. But the biggest bonanza was from a bipartisan, Republican-led select committee that unanimously found Beijing systematically had penetrated the United States' nuclear-weapons program, just as Insight has been reporting for more than a year.. . While President Clinton, Vice President Gore and others wooed Chinese illegal money, the evidence shows the administration ignored and downplayed intelligence reports, obstructed an FBI investigation and allowed a suspected Chinese spy continued access to nuclear-weapons secrets at the Los Alamos National Laboratory. Officials even ordered an intelligence professional at the Energy Department not to reveal the thefts to Congress and, when ultimately he did, the intelligence specialist was instructed to mislead lawmakers about the danger.......The Cox committee uncovered two principal scandals at the nuclear-weapons laboratories run by the Department of Energy. First, "There was a national-security breakdown in the Energy Department labs ... that became nearly total beginning in 1993 under an administration that never has taken national security seriously," says Rep. Tom Tancredo of Colorado, a freshman Republican member of the House International Relations Committee. "And -- this is the bigger scandal -- the efforts to downplay, cover up and thwart investigations into the first scandal when it became known in 1995.". It is this second scandal, separating the security breakdowns from the active cover-ups and obstructions, on which Republicans risk losing the battle to hold perpetrators accountable, say Capitol Hill conservatives. Even before the Cox report came out, the administration and its allies tried to confuse the issue by saying that the worst spying occurred under the Reagan and Bush administrations and that it wasn't until Clinton personally took action that the breaches were closed. What they avoided saying, critics note, is that Clinton is the only president ever to take large campaign contributions from Communist China, that his is the only administration ever to block an FBI investigation of a prime nuclear-spy suspect and that only the Clinton administration ever tried to prevent Congress and the public from learning about massive theft of designs for virtually the entire U.S. nuclear arsenal. To date, no light has been shed on what the president knew and when he knew it, or whether any part of the cover-up was connected to the sophisticated Chinese bribery attempts. The issue won't go away. So far it has produced a Pulitzer Prize for New York Times investigative reporter Jeff Gerth, and two best-selling books, Year of the Rat: How Bill Clinton Compromised U.S. Security for Chinese Cash, by congressional investigators Edward Timperlake and William C. Triplett III, and Betrayed: How the Clinton Administration Undermined American Security, by Washington Times national-security correspondent Bill Gertz....."

Salon 5/28/99 David Horowitz "....On many occasions over the past few years, including innumerable campaign appearances and three State of the Union addresses, the president of the United States has looked the American people in the eye and assured them that because of his policies, "There are no more nuclear missiles pointed at any children in the United States." For President Clinton, the truth of this statement probably depends on what the meaning of "are" is. But for the rest of us, it is imperative that we recognize the president's statement for the dangerous lie that it is. The tiny shred of truth out of which Clinton has woven this politically useful lie is a meaningless, post-Cold War agreement between Russia and the United States to stop targeting one another's cities. But even if Russia's government were not in a state of near dissolution, the stark military reality is that U.S. intelligence services simply have no way of telling what targets Russia's leaders have actually chosen for their nuclear warheads. In any event, it would take only 15 seconds for Russian commanders to retarget any of their hundreds of strategic missiles tipped with multiple nuclear warheads our way once again. More importantly, by every military index available, the Russians are in fact energetically planning for the possibility of future nuclear war with the United States. And they are not alone. Thanks to technology transfers courtesy of the Clinton administration, China and North Korea are also armed with long-range missiles capable of reaching the American mainland, and neither of those countries are parties to our non-targeting agreement with Russia. According to a recent CIA report, 13 of China's 18 nuclear warheads are known to be aimed at American cities. Nevertheless, after six years of tenacious, dedicated opposition by the Clinton administration to the Strategic Defense Initiative, America has almost no protection against incoming missiles and no prospect of deploying a new system for many years to come....."

Salon 5/28/99 David Horowitz "....Rep. Curt Weldon, R-Pa., chairman of the national security subcommittee on military research and development, has characterized the six years of Clinton's administration as "the worst period in our history in terms of undermining our national security." In May, Weldon traveled to Russia, in company with 10 other congressmen. On that trip, in his presence, a Russian general threatened the assembled congressman, warning that if the United States put ground troops in Kosovo, Russia "could" detonate a nuclear device in the lower atmosphere off the eastern United States. The resulting magnetic pulses would "fry" every computer chip in the country, shutting down phones, airplanes, electrical grids and so on until the country was thrown into absolute chaos. This threat was not made during the Cold War by a ruler of the former Soviet Union, but by a Russian general within the last month...."

Salon 5/28/99 David Horowitz "....If these revelations were not disturbing enough, the Clinton team's initial reaction to the Cox Report gives even more cause for alarm. Before the report was issued, the Clinton cover-up squad had already scrambled its famous spin control into action. We have been told by the Clinton team, for example, that the damage resulting from all this spying is not very great because China has only 18 missiles and we have 6,000. Well, that's this year. The theft has given China a 20-year jump in its nuclear weapons development -- an eternity in terms of modern technologies. What happens five or 10 years from now when the Beijing dictatorship has hundreds of missiles aimed at American cities and decides that it wants Taiwan? What consolation would it be to people in Los Angeles, for example, who have already been threatened with a nuclear attack over the Taiwan issue, should Beijing decide to launch even one missile in their direction, given the fact that their president has denied them a missile defense? In the event of such an attack, would Washington be willing to trade 17 American cities (and that's just this year) in a retaliatory nuclear exchange to defend Taiwan? On the other hand, if historical experience is any guide, the communists just might. In Vietnam, the communists were willing to sacrifice 2 million of their own citizens, while 58,000 proved to be too great a sacrifice for Americans in pursuit of the opposite result. The Chinese communists have already killed an estimated 50 million of their own population in the pursuit of a revolutionary future. Is the risk of China's willingness to pay another awful price to achieve what its leaders consider a worthy objective one that we can just brush off? ..."

WorldNetDaily 6/1/99 Charles Smith "...The Cox report also details for the first time the long ignored sea leg of China's strategic arsenal. "The JL-2 (Julang 2, or Great Wave 2) is a submarine-launched version of the (Dong Feng, or East Wind) DF-31. It is believed to have an even longer range, and will be carried on the PLA Navy's Type 094-class submarine. Sixteen JL-2 missiles will be carried on each submarine." What does the Great Wave 2 mean to the U.S. homeland? The Cox report noted "The JL-2's 7,500 mile range will allow it to be launched from the PRC's territorial waters and to strike targets throughout the United States." On May 27, 1999, the South China Morning Post reported that the People's Liberation Navy (PLN) had begun preparations to test the Great Wave 2 (JL-2). PLN officials reported that the JL-2 is scheduled to be deployed on the nuclear submarine Xia by 2000. The sub-launched missile is slated to carry a single 2.5-Megaton, thermonuclear warhead, or three 90-Kiloton warheads. "If the JL-2 were to employ a shroud to protect its warhead as do the majority of submarine-launched ballistic missiles today," states the Cox report. "This would be the first use of a shroud or fairing on a PRC missile."

Jewish World Review 6/1/99 Mona Charen "...It was Clinton's decision, overruling the recommendation of then-Secretary of State Warren Christopher, to permit American companies to help China modernize its missiles. Very soon thereafter, The Washington Times reported that China was assisting Iran and Libya to develop missile programs. The Clinton administration continues to claim that China is abiding by its non-proliferation agreement...."

Jewish World Review 6/1/99 Mona Charen "...It was also Clinton's decision to transfer authority over technology transfers from the somewhat vigilant Department of State to the anything-goes Department of Commerce. Bernard Schwartz, chairman of Loral Corporation, donated $100,000 to the DNC and was then provided with a technology-transfer waiver, according to the Cox report. The Loral technology has helped China dramatically improve the accuracy of its missiles. And as the Cox report documents, the Chinese government has been able to steal pretty much all of our nuclear secrets, thanks to docility of the Clinton administration...."

The New Australian 5/31/99-6/6/99 Peter Zhang "...As I said more than once: "The Americans gave Clinton the key to the candy store and he sold it to Beijing." And this, readers, is basically what the Cox Committee discovered. My old English teacher used to say that "the devil is in the details". But I believe, in accordance with my previous assessment, that it is these very details that will be withheld from the American public. No matter what kind of spin Clinton and his media friends try to put on this terrible situation, it still boils down to treason. The Rosenbergs were executed for no less a crime. And they didn't even do it for money...."

The New Australian 5/31/99-6/6/99 Peter Zhang "...The third defence that any damage to US security is only marginal is worthless. Marginal or not it would still have unnecessarily put at risk the lives of a great many Americans. Moreover, this too is a hollow defence. By selling this technology to the PLA Clinton strengthened the hand of China's crude nationalists at the expense of more liberal forces. The longer it took the PLA to develop these technologies the more time Chinese liberals would have had to consolidate their influence. Clinton has also saved Beijing an enormous amount of time and resources, which can now be put to other military uses. Even if the damage has been greatly over-stated, it should not be used to conceal the fact that treason is treason. An American who did far less by giving secrets to Israel is now serving a very long prison term. Clinton should do no less. Unfortunately this will never happen. I fear the American people could not live with the disgrace of knowing that a president had betrayed them, even though the networks apparently can...."

Garrison Expose 6/1/99 reports Freeper madmomma "...Johnson has list of countries China sold technology to and nature of technology sold. North Korea - planning to deploy in less than 1 yr capable of hitting our west coast Triplett - NK tested their latest missile last summer Johnson feels next test will be before fall - one of technologies aken is one that changes the heat trail of anything launched (like a fingerprint). Chinese can now change the footprint to look like benign launch - next thing you know Good bye Los Angeles.Garrison has called CBS to try to get this on the air.... Triplett - Cox beginning to put the pieces together for Congress, theft of tech, then sale of means to use that technology..." Freeper david paul "...Yep...China gave North Korea the W-88 warhead and they will have an ICBM which can hit San Diego with it by fall...." Freeper AniGrrl "...Let's emphasis that PHIL JONES at CBS is the guy that Bruce has been contacting with his information...." Freeper madmomma again "...Caller from reno pointing out how many people in Clinton administration DOJ are from New York - judging from his accent, I'd say he knows. Watched Burton hearings - Janet Reno demanded confidential info from FBI (Freeh) on Chinese connections. Freeh denied it, note proves it did happen. Reno brow beating FBI and Freeh denying. Eric Holder involved in wiretap, gave legally convicted chinese com murder repieve Paul Lie (when Holder was NYC City Attorney) WOW! Triplett - Justice a real interesting place. Mrs. Clinton Johnson - some countries withheld Kazakstan(sp), Lybia, Iran, Pakistan, Kazakstan does weapons for Russia. China sold to some countries, gave to others. More Chinese agents in Pakistan over the past 6 months than ever. Triplett - Lybia - if Chinese are passing to Lybia, look at your map. Severly changes the security situation in southern Europe...." Freeper bvw "...china tech was 30 years behind, new tech given over in 28 months by this admin admin didnt care, would have taken money from space aliens... host? says worst than that... early 1992 declaration by demos -- uncomfortable with sole super power status .. admin deliberate in weakening us. triplet -- need look at Sec of Defence bill perry 94 trip to china & nuke sim codes --- did perry give ot to them then as well as the guy at los aloamos ..."

Washington Post 5/31/99 Page A22 - CHRISTOPHER COX, NORM DICKS "...The Post's May 28 news story concerning this "walk-in" information, which included highly classified U.S. design data on the W-88 nuclear warhead, cites unnamed "professionals" who "voiced concern" that the select committee "placed so much stock" in this "suspect document." While there is mystery in the motives of the PRC in providing this document to the United States (intimidation? accident? disinformation about the date of the theft?), there is no question about the authenticity of the U.S. nuclear weapons design data it contains. Just how much U.S. design information the PRC obtained is clear from other classified sources, of which this much is now declassified: The People's Liberation Army has successfully tested its knock-off version of the world's most sophisticated nuclear design. And it got it right virtually immediately. The debate over whether the PRC stole design information for the W-88 is over: it did. CHRISTOPHER COX (R-Calif.) U.S. Representative NORM DICKS (D-Wash.) U.S. Representative..."

Freeper Jolly observations 6/02/99 "...What The Admistration Was Saying "...Adm. Joseph W. Prueher: (Nominated to be the next Ambassador to China) he said that the us and china have common interests, and it is important for the two sides to understand and respect each other. the us does not view china as a threat, prueher said. he added that china's prosperity is also in the interests of the us, thus the two countries should solve any problem peacefully. he noted that the us adheres to the "one china" policy, and the taiwan issue is up to the chinese themselves to resolve. cmc vice-chairman meets us pacific commander, Xinhua, 09/05/96

Freeper Jolly observations 6/02/99 "...What The Chinese Were Doing "...The National Security Agency unwittingly dashed any remaining hope the administration had that China was following the agreement. In August 1996-less than three months after Beijing's May 11 pledge-National Security Agency electronic eavesdropping picked up what could only be called a smoking gun: CNEIC, the arm of the Chinese government that had sold the ring magnets, agreed to sell additional illegal nuclear weapons equipment to Pakistan. This time the Chinese were supplying diagnostic equipment and a special furnace to unsafeguarded facilities in Pakistan.... The intercept showed conclusively how the Chinese and Pakistani governments conspired to deceive the United States about their collaboration on nuclear weapons and technology transfers. Betrayal, Regnery Publishing, Bill Gertz, 05/99; pp. 151-152

Investor's Business Daily 6/3/99 Paul Sperry, John Berlau and Scott Wheeler "...In the mid-1990s, an obscure shop within Los Alamos National Laboratory in New Mexico contracted with the U.S. Navy, and possibly the U.S. Air Force, to transfer blueprints and other technical data for arms-related exports onto compact disks for computers, Investor's Business Daily has learned. An IBD exclusive The shop, which is run by Steve K. Hue, was set up in 1995. It was from Los Alamos that China in recent years stole much of America's most vital nuclear-weapons secrets. Pentagon officials fear the lab's CD-ROM operation exposes conventional U.S. forces to wholesale Chinese espionage, which would pose a more immediate threat to national security..... Around that period, Los Alamos officials approached the export controls offices of the Air Force and Navy and made a bid to store on CD-ROM the thousands of license applications they get from defense contractors each year. The applications include hard copies of blueprints and technical specs and manuals for export equipment and technology used in fighter jets and battleships, among other arms. If leaked to China, the data ''could be more devastating than the nuclear stuff, which is less likely to be used,'' a senior Pentagon official said. China, which lacks a blue-water navy and long-range air power, is eager to grab such technology to help it project power in Asia, defense experts agree.....The Navy and Air Force were looking for better ways to store and access the documents as part of Vice President Al Gore's ''Reinventing Government'' goal. Then-Defense Secretary William Perry also encouraged ''outsourcing.'' And Los Alamos, with its state- of-the-art computers and reputation for vault-like secrecy at the time, was a compelling option..... But at the time, the Energy Department, which owns Los Alamos, did not tell the Pentagon - nor the Commerce or State Departments, which also handle licensing of sensitive exports -about the Chinese spying it uncovered at Los Alamos...... But a manager in Hue's group, Jim McDonald, says the Navy hasn't killed the project. It's merely transferring its contract to a private firm in Washington. And Hue is following the project to Washington, the manager says. In other words, Hue isn't really retiring. Nor is the project ''dead.'' The data Hue is handling are so classified that the Navy locks the CD copies it gets from Hue in a safe. Masters are kept at Los Alamos, the Pentagon source says..... The technical specs Hue has scanned include exports OK'd for allies - as well as exports denied. ''Even things we've said 'no' to the British on are in those CD-ROMs,'' the source said. More than two years of Air Force data and more than four years of Navy data are stored on the CDs, he says. ''They (Navy and Air Force) were shipping data to him (Hue) by the box load,'' he said..... ''There's a lot more detail (in the cases) than in anything we lost that's in the Cox report,'' the Pentagon official said. ..... The Pentagon official said he knew about the data storage contract ''for a few years.'' But he didn't think much of it until news broke this year of massive spying at Los Alamos.....Los Alamos' classified archive project with the Navy started around the same time a spy was suspected of stealing data on nuclear weapons technology at the lab. ''(Energy) didn't warn any other agency about the security leaks,'' the source said. So the Navy and Air Force ''walked into a goddamn trap.'' The source called Hue's archiving operation an ''oddball . . . cockeyed little shop in Los Alamos.'' ....In a 1996 letter to President Clinton, former Defense Secretary Perry laid out ''outsourcing'' goals for the department. In it, he also vowed: ''The department will not pursue outsourcing activities that compromise our core war-fighting missions.'' Citing Los Alamos leaks, the Pentagon official worries the CD project might have led to such compromises. ''We need to do a damage assessment,'' he said....... Intelligence sources say Chinese spies are still in the labs..."

Investors Business Daily 6/4/99 Brian Mitchell "...The Clinton administration had sought a ''strategic partnership'' with China. But after revelations of Chinese espionage and NATO's bombing of the Chinese embassy in Belgrade, that partnership may be kaput. Officials now on both sides of the Pacific are wondering whether the U.S. and China are headed for trouble. Some fear a new cold war. ''We are headed toward fundamental conflict with China. That doesn't mean a war, but a fundamental conflict of interests,'' said Ross Munro, director of Asian studies at the Center for Security Studies and co-author with Richard Bernstein of ''The Coming Conflict with China'' (Vintage Books, 1998)...... The Clinton administration has downplayed revelations of Chinese espionage. Thursday, President Clinton asked Congress to renew China's Normal Trade Relation status, formerly called Most Favored Nation status. ...Thursday, Investor's Business Daily reported that China may have obtained classified Navy and possibly Air Force blueprints and technical specifications through an office at Los Alamos National Laboratory. The Navy contracted with Los Alamos to store technical data from applications for arms export licenses. The responsible office at Los Alamos was headed by Steve K. Hue, a native of China....China's publicly announced military spending has more than quadrupled since 1986. The CIA believes the actual increase may be even greater. Exports to the U.S. have also nearly quadrupled. China's U.S. imports, however, have lagged far behind, barely doubling. In 1998, China enjoyed a $57 billion trade surplus with the U.S. ''Fast- growing countries pull in imports, but in China that's not happening,'' said Alan Tonelson of the U.S. Business and Industrial Council..... Analysts say much of China's trade surplus is being used to modernize its military..... 'There's a consensus (among Chinese leaders) that America in the long run is China's number one rival,'' Munro said. Munro says China also sees the U.S. as its leading source of technology and capital. The debate among leaders in China is about how to counter U.S. influence in Asia while still benefiting from U.S. contact, he says. The debate in the U.S. is more fundamental. On one hand, many policy-makers and business leaders still favor friendly relations with China. On the other hand, activists complain about China's human rights abuses and analysts warn of China's threat to U.S. friends in Asia....."

Washington Times 6/3/99 Tina Silverman "...During the Reagan-era defense build up, the Defense Department focused on redressing a severely underfunded and hollow military force structure - the legacy of the Carter administration in the aftermath of the Vietnam War...Sadly, our military is again becoming a hollow force, brought on by post Cold War reductions in defense spending and the demands being placed on the military in the Balkans and Iraq. Combine current shortfalls with the stunning revelations outlined in the recently released Cox Report with the unfolding story of espionage at the nation's nuclear laboratories and the implications for national security are deeply disturbing. The Chinese have stolen information critical to the design, test and evaluation of nuclear weapons, enabling them to shave years off their weapons development program. The kind of technology that provided the United States with the comfortable ability to maintain the technological edge over our adversaries during the Cold War is now in the hands of the Chinese government. According to the Cox Report, The stolen U.S. nuclear secrets give the PRC design information on thermonuclear weapons on a par with our own....This is a serious national security problem requiring an immediate reassessment of our current nuclear deterrence posture and even greater investment in defensive countermeasures. Indeed, the peace dividend we thought possible from the end of the Cold War appears to have been squandered....."

Fox News Channel 6/2/99 Carl Cameron and some questions by Brit Hume Freeper Jack Black "...China is set to test two new Julang 2 sub launched missle. The tactical equivelent of the US Trident, our top missle. Chinese will annouce plans for the test in the next few days. Despite the uncanny similiarities China denies that there is any connection with US technology. Frustrated FBI agents say that a grand jury should already have indited Wen Ho Lee... others warn that scientests still with connections to China are working in the lab. CD-ROMS with all info on them are stored at a private company. "no longer secure at the labs" Bottom line the spin of last week, "thats a worse case scenario, there is no proof they used or stole anything, it's only hypotetically useful, it will take them 10 years to build it even if they have the plans" is now out the door...."

6/7/99 David Horowitz "....In fact, the current national security crisis may be said to have begun when President Clinton appointed anti-military environmental leftist Hazel O'Leary to be secretary of energy, and therefore in charge of the nation's nuclear weapons labs. O'Leary promptly surrounded herself with other political leftists (including a "Marxist-Feminist") and anti-nuclear activists, appointing them as assistant secretaries with responsibility for the nuclear labs. In one of her first acts, O'Leary declassified 11 million pages of reports, including information on 204 nuclear tests, a move she described as an action to safeguard the environment and as a protest against a "bomb-building" culture. Having made America's nuclear weapons secrets available to adversary powers, O'Leary then took steps to relax security precautions at the labs under her control. She appointed Rose Gottemoeller, a former Clinton National Security Council staffer with extreme anti-nuclear views, to be director in charge of national security issues. Gottemoeller had been previously nominated to fill the post -- long-vacant in the Clinton administration -- of assistant secretary of defense for international security policy. But her appointment was successfully blocked by congressional Republicans because of her radical disarmament views. The Clinton response to her rejection on security grounds was to appoint her to be in charge of security for the nation's nuclear weapons labs...."

6/7/99 David Horowitz "....The architect of America's China policy over the course of the current disaster has been Clinton's national security advisor, Sandy Berger. Berger began his political life as a Vietnam War protestor and member of the radical "Peace Now" movement, which regards Israel as the aggressor in the Middle East. Berger first met Clinton as an activist in the McGovern for president camp, the most left-wing Democratic presidential campaign in American history. Berger's law practice, prior to his appointment, was lobbying for the business arm of China's communist dictatorship. (The other root cause of the present security crisis is, of course, greed -- a major factor in all its aspects, and on both sides of the political aisle.) It is hardly surprising that a political leftist and business lobbyist for China's rulers should take steps to lift the security controls that previously protected U.S. military technology. Or that, under his tenure, invitations to the White House should be extended to agents of Chinese intelligence and China's military. Or, for that matter, that appointments like that of John Huang to posts with top security clearance should be considered perfectly reasonable. Nor is it surprising, given the politics of the Clinton managers, that the administration should place its faith in arms control agreements that depend on trustworthy partners, while strenuously opposing measures to develop anti-ballistic missile defenses that do not. (Even now, after the revelations of China's thefts, Berger and the Clinton administration continue to oppose the implementation of anti-ballistic missile defense programs, while pressing to keep China's most-favored-nation trading status secure.) ...."

Freeper harpu 6/7/99 Cspan reporting "...Weldon just gave Carl Cameron the credit for getting him copies of the FBI Wiretap transcripts of Chung & Lu. Weldon is asking for House printing costs (to put transcripts in the House Record) before getting them put into House records....."

6/7/99 David Horowitz "....To say, as the Senate minority leader has, that there is nothing really new in these revelations is patently absurd. Which previous administrations dismantled vital security procedures; accepted illegal monies from foreign intelligence services and then blocked investigations when the illegalities were revealed; presided over the wholesale evaporation of the nation's nuclear weapons advantage; abetted the transfer of missile technologies that can strike American cities; and opposed the development of weapons systems that could defend against such attacks? The honest answer is none...."

From the COX Report: Freeper Rhammm 6/7/99 "...The key organizations in the PRC's drive to acquire dual-use technology include: COSTIND, which acquires dual-use technology for PRC institutes and manufacturers by assuring foreign suppliers that the technology will be used for civil production. COSTIND uses overseas companies to target U.S. firms for acquisition of dual-use technology for the military. The Ministry of Electronics Industry...The Ministry of Post and Communications...PLA-operated import-export companies, which also import dual-use technologies for military modernization...Polytechnologies...The Aviation Industries Corporation of China (AVIC), and its subsidiary, China National Aero-Technology Import-Export Corporation (CATIC), which have sent visitors to U.S. firms to discuss manufacturing agreements for commercial systems that could be used to produce military aircraft for the PLA. AVIC is one of five PRC state-owned conglomerates that operate as "commercial businesses" under the direct control of the State Council and COSTIND. Several incidents highlight CATIC's direct role in the acquisition of controlled U.S. technology. One clear example was CATIC's role as the lead PRC representative in the 1994 purchase of advanced machine tools from McDonnell-Douglas, discussed more fully later in this Report. Another possible example of the PRC's exploitation of civilian end-use as a means of obtaining controlled technology was CATIC's 1983 purchase of two U.S.-origin CFM-56 jet engines on the pretext that they would be used to re-engine commercial aircraft. Although the CFM-56 is a commercial engine, its core section is the same as the core of the General Electric F-101 engine that is used in the U.S. B-1 bomber. Because of this, restrictions were placed on the export license. However, the PRC may have exploited the technology of the CFM-56. When the U.S. Government subsequently requested access to the engines, the PRC claimed they had been destroyed in a fire. CATIC has, on several occasions reviewed by the Select Committee, misrepresented the proposed uses of militarily useful U.S. technology. The Clinton administration has determined that the specific facts in these cases may not be publicly disclosed...."

Reuters 6/8/99 "...Pressure is building on U.S. Energy Secretary Bill Richardson to deliver on a promise to fire Department of Energy staff following the leak of secrets to China from the country's nuclear weapons laboratories. In late May, Richardson said in a television interview that firings and demotions were in order after allegations in a special congressional report of massive Chinese spying at national labs over the past 20 years. But whom Richardson should fire is the subject of rancorous debate on Capitol Hill...... "The administration is deplorable in that they are trying to find scapegoats. We are going to come down with a sledgehammer if they try to do this,'' said Rep. Curt Weldon, a Pennsylvania Republican and member of the House Select Committee on National Security, which issued the spy report. Lower level career employees were some of the so-called ''whistle blowers'' who warned higher level officials of security lapses, and should not be held accountable for decisions out of their control, Weldon said. The DOE said expectations for an announcement this week on the firings may be premature since Richardson has not yet made decisions on the issue........ "The DOE continues to promote and reward officials who have been responsible for safeguards and security problems, including the misleading of the president and Congress, while holding back the careers of those employees who have tried to improve safeguards and security ...'' according to the Jan. 28, 1986, Dingell letter to Reagan....."

Curt Weldon Website 6/8/99 "... CHINESE ESPIONAGE AND NATIONAL SECURITY (from the Congressional Record, Proceedings of the U.S. House of Representatives) Monday, June 7, 1999 The SPEAKER pro tempore (Mr. Green of Wisconsin)..... Mr. Speaker, it is my contention that when the administration got a preliminary view of the Cox Committee report in early January, in fact we gave it to the administration sometime around January 2nd or 3rd, they got a chance to see a document that nine of us, Democrats and Republicans, had worked on together for 7 months in a very nonpartisan way.... We gave it to the White House the first week of January and we asked for a very quick response to assist us in making that report available in a declassified version so the American people and our colleagues could read it and talk about it. As we all know, that took 5 months. But what gave me the first indication that this report was going to be spun politically was about a month later, in February. In fact it was February the 1st. Sandy Berger, the National Security Adviser to the White House, issued a statement that I have a copy of to selective members of the Washington media, responding to the 38 recommendations that we made in our Cox Committee report that were still classified. Without asking any member of the Cox Commission, Sandy Berger released the White House's spin in response to those recommendations. Two days after he released that spin, I had the occasion of asking the Director of Central Intelligence, George Tenet, in a closed National Security Committee hearing in front of 40 Members from both parties if he agreed as the head of the CIA with our findings that our security had been harmed. Now, Mr. Speaker, this was 2 days after Sandy Berger released public information about our still classified report. George Tenet said, `Congressman, we at the CIA haven't finished reading the document yet.' Which meant, Mr. Speaker, that the White House, before the CIA had even completed reading our report, was spinning it publicly to try to deflect attention away from the White House and any responsibility of this administration. That is not what the nine members of the Cox Committee did and that is not the approach we used. We did not spin anything....."

Curt Weldon Website 6/8/99 "...if you listen to Secretary Bill Richardson traveling around the country, he would have us believe that the only problems with the labs were problems that started under previous administrations which he has now cleaned up. That is hogwash, Mr. Speaker. Let us look at the facts. Mr. Speaker, it was in 1993 and 1994 when Hazel O'Leary was appointed to be the Secretary of Energy by President Bill Clinton that she decided that the color-coded ID system used in our Department of Energy labs which said based upon the color of the chain and the ID that you wore around your neck, you would only be allowed access to certain parts of our laboratories. It was the way that we kept people out of illegally accessing information that they did not have the proper clearance for. When Hazel O'Leary came into office, this long established practice that had been under previous administrations, Republican and Democrat, was overturned because she thought that color-coding was discriminatory. So what happened, Mr. Speaker, was in 1993 and 1994, the Clinton administration did away with that identification process which made it almost impossible for the lab directors and others to know whether or not a person was in a correct area of a lab gathering information and access to data that they should not have had. Now, Mr. Speaker, if that was a good decision back in 1993 and 1994 which maybe the President would say was the case, why then did this administration 2 weeks ago move to reinstate the policy that Hazel O'Leary did away with in 1993 and 1994? If it was good back in 1993 and 1994 and if the color-coded ID system was not necessary, why did they all of a sudden 2 weeks ago tell the labs, `You're now going to put back into place a color-coded ID system' at a tremendous cost to taxpayers. That was under this administration, Mr. Speaker...."

Curt Weldon Website 6/8/99 "... Number two, it was this administration and Hazel O'Leary who decided that FBI background checks, which had been the case under previous administrations, before people could gain access to our labs, that FBI background checks had to be done so that we could determine whether or not those people were spies or whether or not they were appropriately entitled to have access to classified information. Again it was Secretary O'Leary, Bill Clinton's appointee, who in 1993 and 1994 put a hold in at least two of our labs on FBI background checks, allowing scores of people to get access to our labs, not just Chinese or Asian nationals but a whole host of people because they were not being required to have FBI background checks...."

Curt Weldon Website 6/8/99 "... Number three, Mr. Speaker. It was in the 1993-1994 time frame when an employee of the Lawrence Livermore Laboratory who had retired was accused of releasing sensitive and classified information in a public setting. The Oakland office of the Department of Energy did an investigation of that employee and they found out, and in fact accused him of violating the requirements of security at our labs. What did they do? They penalized that retiree by removing the access he had to classified information even as a retiree. They took the appropriate steps. What did Hazel O'Leary do, Mr. Speaker? When that removal of that retiree's classified status was undertaken and when he appealed it, all the way up to the Secretary's office, Secretary O'Leary overruled the Oakland office of the Department of Energy and reinstated the employee's classification status. Every employee in every laboratory in America saw the signal being sent by this administration, `We don't need color-coded IDs, we don't need to have FBI background checks, and when employees give out classified information, we're not going to consider that a major issue.' ..."

Curt Weldon Website 6/8/99 "... One more point, Mr. Speaker. And you do not hear Bill Richardson talking about these facts, but I am offering to debate him here tonight, anytime, anyplace. Mr. Richardson says that when this administration found out, in 1995, that the Chinese had stolen the designs to one of our most sophisticated warheads, the W-88 and the W-87, that they immediately took action, they began a process of closing in on the security, and he said that began in 1995. Mr. Speaker, I want to call particular attention to my colleagues and to the American people this two-page spread that was in the July 31st, 1995 issue of U.S. News and World Report entitled `Shockwave' documenting the annihilation and destruction that would be caused by a nuclear attack or a nuclear bomb going off. In this document, Mr. Speaker, is an illustration of the W-87 warhead. Mr. Speaker, in 1995, this was classified. Mr. Speaker, this administration, in 1995, leaked this document to U.S. News and World Report, giving the entire populace of the world, through U.S. News and World Report, access to the design of the W-87 nuclear warhead, the same year that Bill Richardson is saying they were putting the clamps on the control of our technology.

Curt Weldon Website 6/8/99 "...But it does not stop there, Mr. Speaker. Because when this occurred, the Department of Energy began an internal investigation as to who would have leaked this design of this W-87 nuclear warhead, who would have given this information out to a national magazine. Mr. Speaker, I have the name of the person that was conducting that investigation, and I have been told that he was told to stop the investigation because they knew where it was going to lead to, that it was Hazel O'Leary herself who gave U.S. News and World Report the actual diagram of the W-87 nuclear warhead in 1995. Yet Secretary Richardson, on the Sunday morning news shows, is saying, `We have taken the steps to close these gaps.' Mr. Speaker, I am today asking for a full investigation as to whether or not the Department of Energy did such an internal investigation and I want to know whether or not the individual who was overseeing this was told by his superiors not to pursue finding out who leaked this information in 1995. And, Mr. Speaker, if this administration was so intent on controlling access to these kinds of secrets, then they would surely be able to give us the answers to the questions I am posing tonight. Who did the investigation, and who did they find out leaked this particular diagram to U.S. News and World Report in 1995? It was not the Reagan administration, Mr. Speaker, and it was not the Bush administration. It was this administration....."

Curt Weldon Website 6/8/99 "... Secondarily, Mr. Speaker, we have just learned that later on this year China will be testing the newest version of their long-range ICBM missile with a range of 13,000 kilometers that can be launched from a submarine that has the potential for a MIRV or a multiple reentry capability. This rocket, this long-range ICBM, the JL-2, is beyond anything they have had in the past, and it is almost a replica of the trident class ICBMs that we have used in this Nation. We did not think China would have this capability until several years down the road. We now have word they will test that missile, that ICBM, this year. Mr. Speaker, this is a very serious issue. The American people need to understand what is happening to their country. They need to understand the blame game cannot stop by firing lower level employees who are only following directions. The blame game cannot stop by saying it was industries' fault...."

INVESTOR'S BUSINESS DAILY 6/9/99 Paul Sperry "...Yet the scandal is anything but seamless. In fact, it bunches up hard around the Clinton administration..... The declassified version of the House report identifies 11 cases of Chinese espionage since the late 1970s. Eight took place during President Clinton's years in office. Two of the three prior cases were first learned in 1995 and 1997. In other words, the vast majority of the leaks over the past 20 years have sprung on Clinton's watch and nearly all the old leaks have shown up then. That's not all. The House report doesn't disclose the full extent of Chinese espionage in the Clinton years. Citing ''national security'' reasons, the White House censored roughly 375 pages, including several recent cases. At least 24 times, the declassified version of the report states: ''The Clinton administration has determined further information cannot be made public.'' Left out are details about Chinese espionage that took place in the ''mid-1990s'' or ''late 1990s.'' ''Some of the most significant thefts occurred in the last four years,'' said Rep. Chris Cox, R-Calif., who headed the House panel...."

INVESTOR'S BUSINESS DAILY 6/9/99 Paul Sperry "...Former Reagan Defense Secretary Caspar Weinberger says he's not surprised. ''Every existing roadblock inhibiting (China's) nuclear progress has been removed over the past six years,'' he said in a foreword to an abridged book version of the Cox report. He also cited the administration's ''apparent reluctance to block or punish espionage.'' It's now plain that the administration, which still sees China as a ''strategic partner,'' departed from long-standing national security policies. It relaxed security at the labs, particularly when it came to Chinese visitors and workers. It balked at prosecuting suspected Chinese spies. And it removed controls on dual-use exports to China...."

INVESTOR'S BUSINESS DAILY 6/9/99 Paul Sperry "...Around 1994, Energy's Oakland, Calif., office stripped another Livermore scientist of his security clearance after he divulged classified information at a public setting. Energy Secretary Hazel O'Leary overturned the Oakland office and ''gave this guy back his classified status,'' Weldon said. In 1992, by contrast, U.S. Customs arrested Chinese spy Bin Wu for smuggling night-vision equipment used by U.S. tank crews to China. He's serving a 10-year prison term...."

Cox Report 5/99 Freeper Favish http://www.house.gov/coxreport/chapfs/ch3.html "...In June 1998, the PRC agreed with the United States to cooperate and allow post-shipment verifications for all exports, including HPCs.[149] PRC conditions on the implementation of post-shipment verifications for HPCs, however, render the agreement useless.[150] Specifically: · The PRC considers requests from the U.S. Commerce Department to verify the actual end-use of a U.S. HPC to be non-binding · The PRC insists that any end-use verification, if it agrees to one, be conducted by one of its own ministries, not by U.S. representatives · The PRC takes the view that U.S. Embassy and Consulate commercial service personnel may not attend an end-use verification, unless they are invited by the PRC · The PRC argues scheduling of any end-use verification - or indeed, whether to permit it at all - is at the PRC's discretion · The PRC will not permit any end-use verification of a U.S. HPC at any time after the first six months of the computer's arrival in the PRC The Select Committee has reviewed the terms of the U.S.-PRC agreement and found them wholly inadequate. The Clinton administration has, however, advised the Select Committee that the PRC would object to making the terms of the agreement public. As a result, the Clinton administration has determined that no further description of the agreement may be included in this report....."

Fox News 6/9/99 Reuters "...The White House Wednesday rejected Republican calls for National Security Adviser Sandy Berger to testify to Congress on the investigation into allegations China stole U.S. nuclear weapons secrets. "As far as I know, there are no plans now for any formal testimony,'' White House spokesman Joe Lockhart told reporters. Senate Intelligence Committee Chairman Richard Shelby, a Republican of Alabama, has said he intends to ask Berger to testify on his awareness of the investigation and what he told Clinton about it. Tuesday, Shelby said, "I believe it's important for Mr. Berger to come before the intelligence committee. I hope he will not assert executive privilege because these questions are too important...I would be really disappointed if he refused.''...But he cited issues of executive privilege in saying cabinet-agency executives should testify rather than members of Clinton's executive staff such as Berger. "There is a traditional and constitutional argument that many administrations have taken about White House staff testifying versus other members of the administration that are confirmable (by the Senate),'' Lockhart said. ...."

Associated Press 6/9/99 H Josef Hebert "...Energy Secretary Bill Richardson said Wednesday he has turned over an internal investigation into mishandling of the China espionage case to the department's inspector general, delaying its release for at least 30 days. The long-awaited review of the Energy Department's response to the alleged theft of nuclear secrets from the Los Alamos nuclear weapons laboratory in New Mexico had been expected to be released this week. ``More questions need to be asked. ... I want to do this right. Careers are at stake,'' Richardson said. Richardson has said the mishandling of the case involving a three-year espionage investigation of a Los Alamos scientist would result in firings and demotions. ``There will be disciplining. There will be terminations,'' Richardson reiterated Wednesday, speaking to reporters after a three-hour appearance before the Senate Intelligence Committee. But Richardson said a draft of the internal report given to him on Monday ``did not effectively or adequately deal'' with the actions of personnel at the agency's headquarters in Washington. He said he had accepted findings involving Los Alamos employees, but would not elaborate....."

WALL STREET JOURNAL, Michael Ledeen, 6/10/99 "...Shortly before Chinese President Jiang Zemin's arrival in Washington in the fall of 1997, the White House was pushing the State, Defense and Energy departments to support a presidential certification of China as a nuclear nonproliferator and to sign off on the creation of an "information exchange and technical cooperative reciprocal arrangement" on ostensibly civilian nuclear technology. This arrangement would give the Chinese easy access to American civil reactor sites, provide them with detailed information on how the U.S. handles fissionable materials, and give them access to operational data on U.S. nuclear sites. Jonathan Fox, an attorney on the arms-control staff of the Defense Special Weapons Agency, wrote a memo stating with certainty that China was a nuclear proliferator and that the proposed arrangement was "a technology transfer agreement swaddled in the comforting yet misleading terminology of a confidence-building measure. On Oct. 24, 1997, Mr. Fox was called out of an interagency meeting to receive an urgent telephone call. According to three people to whom he gave a contemporaneous account of the phone conversation, he was given an ultimatum from superiors in the Office of Non-Proliferation Policy in the Department of Defense: either revise the memo and recommend in favor of the agreement, or look elsewhere for employment. (Mr. Fox himself declined to comment on the matter.) Within an hour, all the critical language had been deleted, and the memo now simply concluded that the agreement "is not inimical to the common defense or the security of the United States." Worried that his earlier draft might fall into unfriendly hands, Mr. Fox's superiors insisted that somebody else sign the new memo. ...."

WALL STREET JOURNAL, Michael Ledeen, 6/10/99 "...Mr. Fox is not the only weapons expert in the government to have been instructed to lie or remain silent about the true consequences of sending military technology to China. Notra Trulock and his colleagues were told by their superiors at the Department of Energy hat they should stop annoying people with accounts of Chinese espionage at Los Alamos. Similarly, professionals in the Pentagon such as Michael Maloof and Peter Leitner were told to keep quiet about the approval of high-tech licenses that would strengthen Chinese military power. Both of them spoke out; others remain silent. But even when the professionals stick by their principles, their superiors have chosen to substitute facts with politically expedient disinformation. On at least two occasions, military experts who argued against high-tech exports to China later discovered that their recommendations had been altered in the Pentagon's computerized data base...."

Investor's Business Daily 6/10/99 Daniel J. Murphy "...The careless loss of U.S. nuclear secrets to China could go down as America's biggest waste of tax dollars ever. And the costs keep mounting. Extra defense spending needed to counter threats posed by espionage will trim the wish lists of people of every political leaning. Think of tax cuts promised for tomorrow postponed indefinitely - or at least until next week. Funding for pet causes vanishing. A government that works better and costs less giving way to one that simply works. Or the U.S. pulling back from its presence as a global force. Even if elected officials make that unlikely choice, the costs to the U.S. would remain high. The special House committee report on Chinese spying issued May 25 noted it has cost ''hundreds of millions of dollars'' to build and test the modern nuclear weapons technology lost to China. Billions is more like it. And the cost of protecting U.S. citizens from having those weapons used against us will be higher still. Policy-makers face a host of questions about the country's future defense posture. How do we tighten lax security? How fast can (or should) we bring missile defense on line? How do we prevent the spread of stolen nuke technology? Nukes aren't cheap. Since the Manhattan Project, only non-nuclear national defense and Social Security have cost taxpayers more than the country's nuclear weapons programs - some $5.5 trillion in constant 1996 dollars, according to ''Atomic Audit'' (Brookings Institution Press, 1998). The book is the first close look at the total costs of the U.S. nuclear arsenal, according to its editor Stephen Schwartz, publisher of the Bulletin of the Atomic Scientist. ..."

David Limbaugh/newsmax.com 6/12/99 "...First, Weldon confirmed what we suspected all along: While the administration was purportedly reviewing the report for security reasons (for the benefit of the nation), it was actually engaging in damage control by preparing a rebuttal to the report (for the benefit of Bill Clinton)..... The administration purposefully leaked and spun details from the report months before it was released to the public. On Feb. 1, four months before responding to Congress with its security concerns, National Security Adviser Sandy Berger issued a detailed statement to select members of the Washington media specifically responding to the 38 recommendations of the committee that were still classified. Secretary of Energy and White House flack Bill Richardson has continued the spin operation, apparently not content to rely solely on the Kosovo campaign as a decoy. He brazenly contended that "these problems didn't happen under the Clinton administration. They happened under previous administrations." -- Despite Richardson's assurances that the security problems have been remedied, to this day there are no controls on e-mails that are being sent out of our labs. -- The public has been made aware of less than 1 percent of what the FBI and CIA know about the linkages between PLA front organizations, front companies and financing mechanisms....."

yahoo! News 6/11/99 Tom Dogget Reuters "... Energy Secretary Bill Richardson has ordered a new investigation into lax security at the nation's nuclear weapons laboratories, delaying for at least a month punishing government workers responsible for wrongdoing, a spokesman said Thursday..... " Freeper cornelis reports Rep. Curt Weldon's reply: ``The administration is deplorable in that they are trying to find scapegoats. We are going to come down with a sledgehammer if they try to do this,'' said Rep. Curt Weldon, a Pennsylvania Republican and member of the House Select Committee on National Security, which issued the spy report...."

Koenig's International News 6/10/99 Charles Smith "...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 General 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." ..."

Koenig's International News 6/10/99 Charles Smith "...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."..... 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"......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...."

6/11/99 Linda A. Prussen-Razzano RightMagazine "...The Navy's primary concern is Fleet readiness. Fleet readiness is typically measured in the amount of fully equipped, fully trained Battle Groups (BG) available in a specific part of the world, in direct proportion to a perceived threat.....In 1993, the Navy's BA (Basic Allowance) for manning a BG was 95%; it was subsequently reduced to 93%. By 1997, it was reduced again to 90%. Despite the forced decline in mandated Status of Readiness and Training System (SORTS) standards, the actual manpower afloat "among junior enlisted (E-1 to E-3) general detail (GENDET) personnel" averages 86%. "Navy wide we are short approximately 6,000 GENDETS." (Statement of Vice Admiral Herbert A. Browne, Jr, II Commander, Third Fleet, Before the Readiness, Personnel, and Milcon Subcommittee of the House National Security Committee on Fleet Readiness, September 25, 1998)....."Onboard USS SHILOH (CG-67) (a LINCOLN BG Cruiser) during the 1995 deployment, there were ten Aegis fire control technicians with job specialty designators 1119, now there are six. E-3 and below manning on the SHILOH is at 61%." (Vice Admiral Herbert A. Browne, Jr., II Commander, September 25, 1998).....Let us remember, in 1996 the President gave COSCO a $137 million "nonrecourse" loan to build 5 new ships, but our Navy has to maintain aging or obsolesced equipment because it's "better than nothing." ....."

6/11/99 Linda A. Prussen-Razzano RightMagazine "...Weapons stations funding constraints are impacting the operational forces. Our limited Receipt, Segregation, Storage and Issue (RSS&I) funds require us to crossdeck ammunition from ship to ship. The USS TARAWA had to get underway to onload ammunition from USS PELELIU as she returned from deployment. USS CARL VINSON had to have additional underway days added to her schedule in order to receive ammunition from USS MOUNT HOOD, who had to get underway to offload USS JOHN C STENNIS enroute to San Diego from deployment. "Another aircraft funding issue is the loss of the S-3B's Anti-Submarine Warfare (ASW) capability. The pipeline for the enlisted aircrew needed in the S-3B Viking to conduct this essential mission has already shut down... meaning the Viking will be unable to conduct this primary mission. ASW is critical in providing a zone of protection around sea lines of communication against enemy submarines" (Vice Admiral Herbert A. Browne, Jr., II Commander, September 25, 1998)...."

6/11/99 Linda A. Prussen-Razzano RightMagazine "...Ready for the clincher? On November 26, 1997, President Clinton signed HR2159 (Public Law 105-188), Foreign Operations Appropriation Act for Fiscal Year 1998." In it, we gave away the following: $3.3 billion in Foreign Military Financing (FMF). We lent foreign countries the money to buy American military equipment. $2.4 billion for the Economic Support Fund (ESF). These funds went to Israel, Egypt, Jordan, and Turkey. $230 million for the international drug control programs run by the State Department. The administration requested and received $50 million for the training of nearly 7,400 members of 120 foreign militaries, a significant increase from FY 1997 levels......In total, this Administration, along with a complacent Congress, shelled out over $6 billion in foreign military aid; meanwhile, our brave military personnel are overworked and our Fleet is understaffed...."

The New Australian No. 123, 14-20 6/99 Peter Zhang "...What has struck Beijing is not the fact that it was social democrats who ordered the attack on Serbia (the same people who never condemned a communist regime) but their lack of will revealed by their fear of suffering casualties. Many people have been deceived into thinking that because Clinton and Blair forced NATO into attacking Serbia this exhibited courage and determination on their part. Beijing sees it differently. Moreover, it was not impressed with the aerial bombardment. To be able to plaster from a short distance a small target like Serbia does nothing to intimidate Beijing. And as far as she is concerned, these are weapons she will soon command herself, including counter-measures.....I doubt if Americans will ever fully learn the dreadful role Clinton has played in fuelling and strengthening the PLA's ambitions. By selling it the key to America's military secrets and aiding the PLA in modernising it military it has brought closer the time when it can intimidate its neighbours. This is what most American observers have overlooked. To drive America out of most of the Pacific China does not have to threaten the nuclear destruction of American cities; she only has to apply subtle, and perhaps not so-subtle, threats against the rest of Asia. This is not so far fetched as many might think once one realises that Beijing seeks domination and not occupation....."

6/14/99 AP H Josef Hebert "...But the [Rudman] report provided hints of a number of previously undisclosed espionage tidbits. Among them: --Sometime in 1995 or later, ``an illegal telephone wiretap was discovered'' at an unnamed weapons lab. ``The employee who installed it confessed, but was not prosecuted by the government.'' --In the early 1980s, evidence was discovered that conversations at an unnamed weapons lab were being monitored. No further details were provided. --A DOE report in 1994 compared some computer systems at the labs to ``automatic teller machines (that allow) unauthorized withdrawals at our nation's expense.''..."

Washington Times 3/9/97 William Triplett "....In June 5, 1995, John Dickerson had a 3 p.m. appointment in Room 3858A of the Commerce Department. As the head of the CIA's Office of Intelligence Liaison at Commerce, Mr. Dickerson was required to brief Commerce officials with top secret security clearances on sensitive economic matters of interest to the American government. That afternoon the appointment was with John Huang. Although as principal deputy assistant secretary, and often as acting-assistant secretary, of Commerce's International Economic Policy Bureau, Mr. Huang had responsibility for U.S. trade with the entire world, Mr. Dickerson evidently found Mr. Huang's prime interest: What the American intelligence community knew about the People's Republic of China. According to a letter from former Commerce Secretary Mickey Kantor to House Rules Committee Chairman Gerald Solomon, New York Republican, Mr. Huang was receiving a weekly one-on-one PRC briefing from the CIA...."

Washington Times 3/9/97 William Triplett "....In June 5, 1995, John Dickerson had a 3 p.m. appointment in Room 3858A of the Commerce Department. As the head of the CIA's Office of Intelligence Liaison at Commerce, Mr. Dickerson was required to brief Commerce officials with top secret security clearances on sensitive economic matters of interest to the American government. That afternoon the appointment was with John Huang. Although as principal deputy assistant secretary, and often as acting-assistant secretary, of Commerce's International Economic Policy Bureau, Mr. Huang had responsibility for U.S. trade with the entire world, Mr. Dickerson evidently found Mr. Huang's prime interest: What the American intelligence community knew about the People's Republic of China. According to a letter from former Commerce Secretary Mickey Kantor to House Rules Committee Chairman Gerald Solomon, New York Republican, Mr. Huang was receiving a weekly one-on-one PRC briefing from the CIA...."

Washington Times 3/9/97 William Triplett "....* Technology transfers to the PLA: President Bush used his powers to forbid a Chinese takeover of an American aerospace firm in Seattle. High technology exports to China were strictly controlled by an international arrangement of the Western powers called "COCOM ' " Although the British and French privately complained to Capitol Hill about this, the Clinton administration scrapped COCOM as a first order of business. Not only has the Clinton administration drastically raised the levels of militarily critical goods and technology that can be exported to China, Kenneth Tiananmen reveals in this month's American Spectator that a secret committee headed by Ira Magaziner hopes to lift the export ban American nuclear technology to China...."

Washington Times 3/9/97 William Triplett "....* Enhancing the PLA's military build-up: After Tiananmen President Bush canceled all sales to the PLA. Under President Clinton, there has been a very quiet effort to enhance positively the PLA's military build-up in other ways. ...."

Washington Times 3/9/97 William Triplett "....* Making Chinese missiles more accurate: In the Bush administration, Defense Department official Henry Sokolski worried about the Chinese missile build-up. But, as he notes in a recent issue of the Weekly Standard, the export of American space satellites to China makes an unintended contribution to China's strategic weapons programs. Under President Clinton, he says, America is continuing "to help with Chinese development of long-range military rockets. How? The very motors and guidance sets that are used to position satellites in space can also be used to target warheads against Tel Aviv, Riyadh, Los Angeles, or Taiwan." ...."

 

CLINTON’S SPECIAL RELATIONSHIP WITH CHINA

7/3/98 The Times of India Harvey Stockwin ".Meanwhile, as Clinton lurches from one superlative to another about Sino-American relations, elsewhere in Asia there are already signs of unease as to where Clinton's China policy is headed. Taiwan is upset as Clinton, despite the protestations of his spokesmen, redefines US policy towards Taiwan. Japan is anxious, and has reason to be. When one of Clinton's Chinese interlocutors talks of China replacing Japan as the ally of the US, Clinton did not make the obligatory correction. South Korean President Kim Dae Jung on Wednesday wondered out loud whether the US and China were forging a ``special relationship'."'

7/7/98 Wall Street Journal ".China wants to enter the trade organization as an emerging economy, a status that would allow a longer grace period for lowering barriers to free trade and investment. Developing economies, for example, have a whole decade to cut the value of their export subsidies by 24% and the volume of subsidized exports by 14%. For developed economies the figures are 36% and 21%, and the time frame is six years. The WTO, backed by the U.S., has so far refused to grant China such a provision.Bill Clinton is far too casual toward important legal principles. He seemed to accept China's position when, during his Shanghai radio call-in he conceded that "China is still an emerging economy" that deserved a longer period of adjustment than richer countries. ."

7/6/98 BBC News "China says it is planning joint military exercises with the United States in an effort to reverse years of mistrust between the two countries. A report in the official China Daily newspaper said there could also be exchanges of military officers at junior and senior levels, as well as possible small-scale joint exercises in areas such as sea rescue and anti-piracy.."

7/13/98 China Daily Bian Hongwei "Despite some disputes back home, US President Bill Clinton's China visit was successful and can point to concrete achievements, said Chinese Ambassador to the United States Li Zhaoxing. "It was more substantive than symbolic in this very sense," the ambassador said during an exclusive interview with China Daily. The constructive strategic partnership between China and the United States has been greatly advanced by Clinton's recent China visit, Li said."

7/14/98 Hong Kong Standard ".After a warm welcome on Tiananmen Square, which was identical to that given to President Bill Clinton when he visited Beijing last month, Mr Arafat and his host entered the Great Hall of the People for formal talks. Both Chinese and Palestinian officials said the Middle East peace process would top the list of topics for discussion. Mr Arafat told the official Xinhua News Agency on Sunday that he was looking to his visit to China to force Israel to agree to a troop withdrawal from the West Bank and avoid an ``explosion'' in the Middle East.."

US Information Agency 1/2/99 William Clinton ".Today, as we celebrate our achievements over the past twenty years, we should reflect on ways to strengthen our ties for future generations. We must work together to meet the common challenges of the 21st century while frankly addressing differences. In this way, we will be able to build the kind of partnership that will serve the interests and hopes of the American and Chinese peoples.."

New York Times 3/16/99 Eric Schmitt "…Jesse Helms, R-N.C., and Ernest Hollings, D-S.C., said they would move to block any effort by the White House to help China become a member of the World Trade Organization this year, threatening the administration's leading diplomatic effort to improve fast-deteriorating relations with Beijing….But even as the administration stepped up its defense of its response to the spy case, the White House took a blow on its trade policy with China. The warning from Helms, chairman of the Foreign Relations Committee, and Hollings, the ranking Democrat on the Commerce Committee, was issued in a letter sent to all senators. "The continuing problems with Chinese human rights violations, espionage and possible technology transfers," they wrote, "suggest that this is not the appropriate time for China to enter the WTO." Only two weeks ago, in Beijing, Secretary of State Madeleine Albright assured China's leaders that the question of whether China was ready to enter the WTO -- a decade-long aspiration for China and a move that could prove enormously beneficial to the country's economy -- would be decided solely on commercial grounds…"I no longer have any sense of security that we're doing the right thing," Kerrey told reporters after meeting with Tenet. "What I have right now is a considerable amount of nervousness over our counterintelligence efforts and their effectiveness." …"

Wall Street Journal 3/17/99 "… The information that China had about White House relationships with various Chinese operatives alone had great potential to embarrass Mr. Clinton. Indeed, Elizabeth Drew in her book quotes Mr. Clinton as saying that news of the John Huang scandal allowed Republicans to keep the House in 1996. A number of those Congress sought for questioning in the donorgate scandal found sanctuary in China. That would seem to have given Chinese leaders a pretty good foreign-policy trump were they inclined to play it. In the months since those Congressional hearings we have had even more damaging news about Mr. Clinton's recklessness, the consequences of which will doubtless be paid for in renewed efforts to "punish" China through trade. Bad enough that the Chinese have stolen the technology for a nuclear warhead that will make their own missiles more threatening to U.S. national security. Far worse is the casualness with which the White House greeted the news. Mr. Berger says that he was briefed on this in April 1996, which happens to be the same month Al Gore traveled to California for his infamous Buddhist fund-raiser. To Americans the dates may not hold much significance. But Taiwanese will immediately recognize that, by Mr. Berger's own account, he was told of China's new capabilities just a month after Beijing had lobbed its missiles off Taiwan's coast. Yet the White House coffees-for-cash continued. By now the damage to Mr. Clinton's credibility has become something of a cliché…."

Reuters 3/17/99 "… The Clinton administration on Wednesday stoutly defended its engagement with Beijing despite a furore over spying allegations, saying one aim was to ensure China did not expand its very limited nuclear arsenal. Gary Samore, President Bill Clinton's top adviser on weapons proliferation, said China had the capacity to expand its ageing nuclear force, now less than two dozen single-warhead missiles, but had decided for strategic reasons not to. ``I think an engagement strategy toward China which emphasises areas of cooperation and tries to resolve areas of tension and dispute, decreases the chances that the Chinese will feel compelled to pursue ... nuclear expansion,'' he said. …."

China Times; Ming Pao 3/31/99 Freeper summary "…The China Times of Taiwan and Ming Pao of Hong Kong both report in their 3-31 editions that commerce secretary Daley who has been in Beijing meeing with Zhu Rongji, the Red Chinese Premier, and other ChiCom officials has said he expects WTO entry for Communist China in the fall…."

Salt Lake Tribune 4/14/99 "...-- The most interesting -- not to say the most repellent and most frightening -- aspect of the press conference held on April 8 by President Bill Clinton and Chinese Premier Zhu Rongji was not instantly obvious... It was awful to see the president respond to a profound insult to a predecessor in office by joking, "I think I have to just say one thing, if I might, since I got zapped by Abraham Lincoln" -- and then blandly answering Zhu's direct threat of war by reassuring him that "the United States has a one-China policy." It was awful as well to see how the president responded to Zhu's sneering dismissals of charges that his government had stolen America's nuclear secrets and had attempted to corrupt the American political system. "You know," said Clinton, in his cracker-barrel thoughtful voice, "China is a big country with a big government, and occasionally things happen in this government that I don't know about." Roll that answer around in your mind. Does Bill Clinton think that the number two boss in the People's Republic of China might not know if his government had engaged in nuclear espionage that allowed China to build multiple-warhead missiles and an effective neutron bomb? Does he believe that Zhu might not know if the director of his government's military intelligence had ordered that $300,000 be contributed to Clinton's re-election campaign? Or does Clinton believe that his own government's investigators are leveling false charges? Clinton said he had asked Zhu for "his cooperation" in pursuing these matters. Zhu said he would cooperate as long as the United States "can provide some clues." Does Clinton believe that the ongoing investigation by his own Justice Department into the campaign finance illegalities has not yet provided any clues? Does he believe the investigation by his own Energy Department into China's spying has likewise failed to provide any clues? Given that Zhu's government has blocked Justice and congressional investigators from obtaining financial records from China, has refused to grant visas to investigators and is refusing to extradite subpoenaed witnesses, does he believe that Zhu is serious about cooperation? ..."

Pittsburgh Tribune-Review 7/1/99 "...But, in trying to salvage previous denials of any intimate knowledge of the spying, Camp Clinton maintains it didn't have any details until the spring of 1996. National Security Adviser Sandy Berger previously claimed he didn't brief the president in any detail until July 1997. The newly admitted knowledge time frame would place the deed right smack in the middle of the bevy of illegal Chinese campaign donations to Democrats in the 1996 campaign. Indeed, it is, as Utah Sen. Orrin Hatch said, ``the kind of crap that shouldn't go on.'' And the kind of detritus that, with good reason, should invite intensified inquiries into a possible coverup and misconduct and, yes, even treason. The Clinton White House repeatedly had downplayed the significance of China's theft of our nuclear missile secrets as problematic but certainly of no immediate threat. At the same time, however, the president's own intelligence-gathering apparatus is saying exactly the opposite. China is making final preparations to test-fire a new, mobile, and intercontinental nuclear ballistic missile capable of hitting the western half of the United States. The strike zone includes a line running southwest from Wisconsin through California, Bill Gertz reported in Monday's Washington Times. The CIA believes the DF-31 incorporates ``stolen U.S. missile and warhead secrets,'' and could be tested as early as next week, Mr. Gertz reports, citing classified U.S. intelligence reports. A 1996 report by the Air Force's National Air Intelligence Center concluded thusly: ``The DF-31 ICBM will give China a major strike capability that will be difficult to counterattack at any stage of its operation. It will be a significant threat not only to U.S. forces deployed in the Pacific theater, but to portions of the continental United States and to many of our allies.'' The Chinese threat that Clintonites have repeatedly assured is in no way ``imminent'' is, in reality, but days away. And what the Clinton administration knew and when it knew it is becoming troubling and obvious...."

Pittsburgh Tribune-Review 6/18/99 Editorial "…The Clinton administration and most Democrats continue to characterize the Chinese filching of some of our most sensitive nuclear missile technology (detailed in the Cox Report) as the unfortunate result of well-intentioned but inadequate security measures. That's the spin. The reality, however, suggests that if what transpired wasn't treasonous, it was incredibly close…..

The latest shoe to drop hit the ground with an uncomforting thud this week. A high-level White House panel has concluded that America's nuclear laboratories still are vulnerable to foreign espionage. Efforts by Camp Clinton and its Department of Energy (which oversees the labs) to secure the labs have been tardy, inadequate, and impeded by a ``culture of arrogance,'' the panel headed by former New Hampshire U.S. Sen. Warren Rudman concluded. In addition to the continuing lapses, this inconceivable revelation: An illegal telephone wiretap was discovered in one of the labs sometime in the past four years. A lab employee confessed to placing the tap but was not prosecuted, the White House panel found. But the Rudman rota also took a shot at the Cox Report for casting ``possible damage'' as ``probable disaster'' and ``workaday delay and bureaucratic confusion'' as ``diabolical conspiracies.'' Begging your pardon, Sen. Rudman, we refer you to some choice excerpts from the bipartisan Cox Report's forward. The writer is former Defense Secretary Caspar W. Weinberger: ``Seeking trade with the PRC (People's Republic of China) that compromises America's strategic technology - technology that allows the PRC to target nuclear missiles on Los Angeles, among other cities - is nothing less than suicidal.''…"

 

The Washington Times 6/20/99 James Inhofe "...Too many commentators are missing the point about the national security significance of the Cox Report and its revelation of China's theft of U.S. nuclear secrets. It is time to face the truth: This president and this administration are singularly culpable for orchestrating a politically inspired coverup to advance policies they knew were causing harm to U.S. national security. Let's not be distracted by the self-serving Clinton spin: everybody does it; that it all happened during previous administrations; that there is equal blame to go around on all sides, that Bill Clinton acted quickly and properly when he found out. All of this is wrong, a dishonest smokescreen designed to divert attention from the real issues. It is also an attempt to dissuade people from actually reading the Cox Report and discovering for themselves that the Clinton spin is a delusion...."

The Washington Times 6/20/99 James Inhofe "...Sixteen of the 17 most significant major technology breaches revealed in the Cox Report were discovered after 1994. The notion that Presidents Carter, Reagan and Bush knew the extent to which China's efforts to steal U.S. nuclear and military technology were successful is fantasy...."

The Washington Times 6/20/99 James Inhofe "...At least eight (and maybe more) of these breaches actually occurred after 1994 and after it was well-known to the Clinton administration that China had been illegally proliferating arms technology to rogue countries around the world. Among these breaches--occurring on the Clinton watch--are many of those that go the farthest in advancing China's potential as a direct nuclear threat to the United States. These include:

(1) The transfer of the so-called Legacy Codes containing data on 50 years of U.S. nuclear weapons development including more than 1,000 nuclear tests.

(2) The sale and diversion to military purposes of more than 600 high-performance computers enabling China to enhance its development of nuclear weapons, ballistic missiles, and advanced military aviation equipment.

(3) The compromise of nuclear warhead simulation technology enhancing China's ability to perfect miniature nuclear warheads without actual testing.

(4) The compromise of advanced electromagnetic weapons technology useful in the development of anti-satellite and anti-missile systems.

(5) The transfer of missile nose cone technology enabling China to substantially improve the reliability of its intercontinental ballistic missiles.

(6) The transfer of missile guidance technology enabling China to substantially improve the accuracy of its ballistic missiles.

(7) The compromise of super-secret space-based radar technology giving China the ability to detect our previously undetectable submerged submarines.

(8) The compromise of some other "classified thermonuclear weapons information" which "the Clinton administration" (not the Cox committee) "has determined...cannot be made public."

The Washington Times 6/20/99 James Inhofe "...President Clinton, who was given a copy of the Cox Report on Jan. 3, lied to the American people on March 19 when he conveyed the message he was unaware that anyone suspected there were breaches of nuclear-related secrets during his presidency. ..."

 

The Washington Times 6/20/99 James Inhofe "...The breach of the design of the W-88 miniaturized nuclear warhead--which happened in the 1980s and was discovered in 1995--is enormously significant to America's national security. According to Paul Redmond, the CIA's former counterintelligence chief who caught Soviet spy Aldrich Ames, it is "far more damaging to the national security than Aldrich Ames," and "as bad as the Rosenbergs." The Rosenbergs were executed for compromising atomic bomb secrets to the Soviets. The idea Sandy Berger of the White House National Security Council--who was fully briefed about the W-88 technology breach in April 1996--did not immediately communicate this information to the president is preposterous. Mr. Berger now claims he did not tell the president until early 1998, or perhaps July 1997, depending on which of his two stories you want to believe. I don't believe either one because neither makes sense. Mr. Berger is a political operative, a longtime Clinton friend and confidant--not to mention, a pretty smart guy. He attended all the major 1996 Clinton campaign strategy meetings. When he learned China had stolen the W-88--the crown jewel of the U.S. nuclear arsenal--is it plausible he did not immediately tell the president ? No, not unless you want to assume a level of incompetence at the White House that even this administration's harshest critics do not believe for a minute...."

The Washington Times 6/20/99 James Inhofe "...The president had to have known about the W-88 breach no later than April 1996, well before the 1996 election. The president deliberately withheld this vital national security information from key members of Congress for obvious political reasons. He withheld it for almost three years--a coverup that is nothing less than a scandal of gigantic proportions. If it were not for the Cox committee--formed by House Speaker Newt Gingrich, not by Mr. Clinton--Congress and the American people would still be in the dark..."

The Washington Times 6/20/99 James Inhofe "...The Clinton administration coverup was recently exposed in testimony before the Senate Armed Services Committee. Notra Trulock, the Energy Department's former director of intelligence, who had first briefed Mr. Berger in April 1996, testified he was prepared to brief members of the House and Senate Intelligence Committees as late as July 1998, but was denied permission to do so by Acting Energy Secretary Elizabeth Moler, a political appointee. Miss Moler reportedly ordered Mr. Trulock not to conduct the briefing because she said the information would be used to hurt Mr. Clinton's China policy. When Miss Moler refuted this testimony and claimed she did not recall gagging Mr. Trulock in this way, I asked both officials if they would voluntarily submit to a polygraph test. Both agreed at the hearing, but when pressed several weeks later, only Mr. Trulock was readily willing to cooperate and go through with taking the test. As a result, it is obvious to me Mr. Trulock was telling the truth and Miss Moler was not, confirming rather conclusively that there was indeed a politically inspired coverup...."

Salon 6/21/99 David Horowitz "...Why is Clinton furiously covering up for the communist Chinese and protecting its leaders and their spies from the wrath that should surely follow their rape of America's most guarded secrets? Certainly not, as Clinton and his complicit Democrat defenders now claim, because "everyone does it." Unlike China, for example, the state of Israel is a democracy and a proven ally of the United States. Yet when an Israeli agent named Jonathan Pollard was discovered stealing secrets whose dimensions did not even approach the seriousness of these thefts (no technologies, for example, were involved), he was given a life sentence amid the most solemn anathemas from the officials of the government he betrayed The evidence suggests only one conclusion. The reason Clinton is protecting China's spies and their communist masters is because in protecting them he is protecting himself. The China strategy is fully intelligible in the frame of Clinton's strategy on other matters: The president has triangulated with China's communist government in pursuit of his own political interest at the expense of the United States....."

Nation 6/12/99 Christopher Hitchens "....The White House "line of the day" says that Chinese espionage is nothing new and was known to occur under previous, Republican administrations. In that case, they had every reason to be vigilant, when all the evidence shows they were not...."

Nation 6/12/99 Christopher Hitchens "....The President says that he was not told of any espionage until March 19 this year. Not only does this tell against the smug claim of previous awareness of the problem, but it flatly contradicts Sandy Berger's claim to have been briefed by Energy Department intelligence as far back as July 1997 and to have passed on the briefing to Clinton "within a day or two." ...."

Nation 6/12/99 Christopher Hitchens "....The Clinton Administration, through legal measures such as the Anti-Terrorism and Intelligence Authorization acts, has been treating the Fourth Amendment as an inconvenience since at least 1996. The chief exhibit in this contempt for the Constitution is the "roving wiretap," whereby any phone to which a suspect is "reasonably proximate" can be invigilated by the FBI. Yet when the FBI asked Justice for permission to tap the phone of Wen Ho Lee, a scientist at the Los Alamos labs, Janet Reno's amazing subordinates three times turned down the application. We now know that in 1996 her judicial review panel authorized all 839 wiretap warrants that it received.

 

Worldnetdaily 6/22/99 Charles Smith "...According to documents forced from the Clinton administration by a federal lawsuit, the Commerce Department directly engaged Chinese army and air force generals in an effort to upgrade PLA military air defenses. One example of "military" commerce involved is in a letter to PLA Gen. Huai Guomo, from Commerce Deputy Undersecretary Barry Carter. "In our opinion, the key to rapid involvement of U.S. industry in China is the development of a national civil/military strategy for modernization of Chinese airspace control," wrote Dr. Carter in his November 1994 letter to Gen. Huai (emphasis added). "Without a broad plan for harmonizing civil and military requirements," Carter wrote to Huai, "any equipment acquisitions and installations run the risk of resulting in incompatible systems that will not satisfy your national objectives." "We would like to help you develop your ATC plan," wrote Carter in his letter to Huai. "As a follow-up to the October Commission meetings, the U.S. Federal Aviation Administration (FAA) Administrator will lead a delegation of senior aviation policy experts on a visit to Beijing. ... I ask your support to ensure they have the opportunity to meet with the key Chinese players -- both military and civil -- while in China." ..."

Worldnetdaily 6/22/99 Charles Smith "...During the first four years of the Clinton administration, People's Liberation Army Gen. Ding Henggao, along with his top two PLA assistants, Lt. Gen. Huai Guomo and Lt. Gen. Shen Rougjun, raided U.S. technology on a scale never before imagined..... Some of these fantastic exploits against the Clinton administration are documented in the Cox report, dealing with the theft of nose cone technology from Hughes -- largely Shen's handiwork. Likewise, some of Huai's handiwork can be found in a 1996 General Accounting Office report on the transfer of an advanced AT&T fiber-optic network to a PLA-owned company called Galaxy New Technology. However, few details on the direct relationship between their commander, Gen. Ding and top Clinton officials are covered in the Western press. Some of these lesser-publicized facts include the fact that in 1994 Bill Clinton began a program to transfer American military technology directly to the PLA. One such documented transfer began in an August 1994 meeting between the PLA warlords and Clinton administration officials in Beijing. The Chinese army side of the August 1994 meeting included top PLA officers such as Ding and Huai, who were accompanied by Gen. Deng Yousheng and Maj. Gen. Hou Gang, the deputy director of the Intelligence Department, Headquarters of General Staff of the PLA. The August 1994 PLA meeting also included an exclusive club of U.S. academia, selected by the Clinton administration to join a "U.S./Chinese Defense Conversion Commission," then run by Defense Secretary Dr. William Perry and Gen. Ding. Some of the other U.S. invitees included Commerce Deputy Undersecretary Dr. Barry Carter, a former law professor from Georgetown University, Dr. Eden Woon, the Executive Secretary for DOD Secretary Perry, and Dr. John Lewis, listed as a "Stanford University Civilian Consultant to SecDef."

Worldnetdaily 6/22/99 Charles Smith "... Woon left America in May 1997 to become the Director of the Hong Kong Chamber of Commerce, a position in which he currently represents over 2,000 businesses located in China and Hong Kong. Eden Woon is an American citizen, a former officer in the U.S. military, former advisor to Secretary of Defense Perry and former Chairman of Washington State China Relations Council...."

Worldnetdaily 6/22/99 Charles Smith "...According to Woon, "there was a lot of criticism back in the states about how this was helping the PLA. All the controversy started and some, frankly, dishonest reporting came up, which was not true, linking Dr. Lewis or Dr. Perry in ways that are, frankly, not correct." John Lewis, said Woon, "was invited to come because he was interested in defense conversion. He (Lewis) got Dr. Perry started on this. When we went to China to sign the first agreement for the first cooperation, Dr. Lewis was invited." Of course, by August 1994, Lewis had teamed with Ding's wife, Madam Nie Li in a very profitable joint "business" venture called "Hua Mei." (Interestingly, Madam Nie Li is, like her husband, also a PLA general.) Lewis ran the U.S.-China venture that led to the transfer of an advanced, encrypted, fiber-optic communications system being sold directly to a company owned by the PLA. Lewis was a paid consultant to the U.S. Defense Department, while also being executive director of the U.S. side of the "Hua Mei" joint venture. Thus, Lewis earned income from both the Chinese and U.S. Army -- at the same time. Yet, Dr. Woon also noted that there were several others in the U.S. delegation not listed on the official attendance. "Also invited on the same trip and same status was Chas Freeman," said Woon. "(Former) Assistant Secretary of Defense, one of the first or perhaps the first to revive the military relationship after Tiananmen. He left government before October 1994. He was also invited to come back as an observer." ...."

Worldnetdaily 6/22/99 Charles Smith "...Interestingly, according to a letter sent to Defense Intelligence Agency Lt. Col. Blasko, Carter noted that Woon had suggested the letter to Huai. Woon, according to Carter's fax to Blasko, reviewed the letter and approved its content....The 1994 letter to 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." By June 1995, Dr. Woon would leave Dr. Perry and the Defense Dept. However, he remained in direct contact with PLA generals and Dr. Barry Carter. In June 1995, Carter would officially provide a list of PLA companies and contacts to Dr. Eden Woon, 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. By December 1995, Woon and the WSCRC would host 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 Maj. Feng Hui of the Chinese army. 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..... In 1997, Woon and WSCRC sponsored a conference that included U.S. Senator Patty Murray, D-Wash. On October 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." ..."

San Francisco Examiner 6/24/99 Paul Burgess "...At a news conference months ago, the chairman of the Joint Chiefs of Staff, Army Gen. Henry Shelton, was forced to acknowledge that the timing of last year's two U.S. military operations was "absolutely incredible." His incredulity is understandable. On Aug. 20, 1998, American cruise missiles struck Sudan and Afghanistan three days after President Clinton's televised "mea sorta culpa" regarding his deposition earlier that day. Though the administration initially charged the Sudanese pharmaceutical factory with being a chemical-weapons plant, it recently unfroze $24 million worth of the owner's American assets, quietly conceding that the plant had no military value whatsoever. Operation Desert Fox (Dec. 16, 1998) commenced with air and cruise-missile strikes against Iraq mere hours before the House was to begin its impeachment debate, delaying those proceedings by a day. The president ended the operation three days later, on the same day as the impeachment vote (ostensibly out of respect for the Islamic holiday of Ramadan, though he seemed to agonize very little about bombing Yugoslavia during Easter). Gen. Shelton's amazement can only be compounded by the timing of the current Kosovo operation. Though there are many foreign-policy experts who contend there was much more negotiating to be done, the air war commenced at the same time the White House was fighting to block the recently released Cox report revealing the staggering losses of American military technology to the Chinese...."

San Francisco Examiner 6/24/99 Paul Burgess "...For those convinced that "Wag the Dog" is just a Hollywood invention, I offer a hard-to-find report titled "An Investigation into the Magnitude of Foreign Contacts." This document, penned, not by any Hollywood producer, but by Federal Reserve economists (document No. RWP97-14), is essentially a scientific quantification of the "Wag the Dog" theory. The researchers employ a lengthy and complex mathematical model to illustrate the potential advantages of small-scale wars to presidents in distress. They offer the kind of sterile, arithmetical logic that thrills academics and terrifies soldiers. Some of their conclusions: "If the information content (about the leader, and for the consumption of the electorate) of small conflicts is substantial and their costs sufficiently small, our model points to the possibility of diversionary actions being welfare-enhancing (for the leader); only when (a diversionary war) can provide information favorable to an incumbent leader can the action be successful in its purpose; even though a diversionary war may have been avoidable and may force an unwarranted cost upon the electorate, it also reveals new information about the leader's abilities which the electorate may find beneficial." ...."

San Francisco Examiner 6/24/99 Paul Burgess "...The administration's military adventures have been starkly consistent with the report's findings since its release in late 1997 (at the same time Clinton's fortunes turned south with his Paula Jones deposition). The authors hold that the benefit a leader can receive from starting a war is directly related to the perceptions that war affects in the electorate - thus, Clinton's seeming tendency to profile his wars against his scandals. Further, the president has been meticulous about keeping American casualties low and conflicts confined, possibly to keep the risks-vs.-benefits equation in balance. Finally, and most disturbingly, he seems to wage war only when it stands to benefit him personally. War has been waged neither in Rwanda nor North Korea, and we cut and ran from Somalia - humanitarian and credibility concerns notwithstanding...."

THE WASHINGTON TIMES 6/24/99 Audrey Hudson "...Several government whistleblowers will testify today before a House committee that they were fired, demoted or harassed for reporting the "systematic pillaging" of U.S. military and nuclear secrets to their superiors and Congress. According to documents and advance testimony obtained by The Washington Times, the federal employees say the retaliation and harassment was directly linked to their internal criticism and testimony before Congress. ..."These witnesses have important information, and it is extremely troubling that they perceived threats to their jobs for telling the truth," said Indiana Rep. Dan Burton, the committee chairman. "We will not stand for government employees suffering retaliation simply because they told the truth about national security." ..."

THE WASHINGTON TIMES 6/24/99 Audrey Hudson "...Los Alamos physicist Robert Henson, who first uncovered Chinese spying at the laboratory, was fired twice for bringing it to the attention of the Energy Department. He will testify that his firing was in retaliation for delivering a message nobody wanted to hear. He has since been reinstated at the lab after initiating a lawsuit...."

THE WASHINGTON TIMES 6/24/99 Audrey Hudson "...Lt. Col. Edward McCallum, director of the office of safeguards and security at the Energy Department, says he was put on administrative leave in retaliation for criticizing security at DOE nuclear facilities...."

THE WASHINGTON TIMES 6/24/99 Audrey Hudson "...Peter M. Leitner, a senior strategic trade adviser for the Defense Department and a witness in congressional investigations, says retaliation against him prompted letters from Tennessee Republican Sen. Fred Thompson to the Pentagon expressing his concern for his witness. As a result, the Office of Special Counsel is investigating political reprisals and illegal retaliation against Mr. Leitner. "Ever since these testimonies, I have been subjected to, in staccato fashion, one adverse harassing act after another," Mr. Leitner states in his testimony. He says his performance ratings were lowered and he was isolated from meetings on nuclear exports, particularly when the inspectors general were visiting the interagency meetings in response to a Senate inspection request. Mr. Leitner says he was harassed over sick leave, was given a "trumped-up" letter of reprimand, charged with a security violation and threatened with charges of insubordination. "To be victimized by my own government -- particularly the Defense Department -- for consistently putting the near- and long-term national security of the United States ahead of all other considerations is something that I still find astounding to this day," he said. In 1997, Mr. Leitner issued denials for many export-license applications from DOE laboratories, including Los Alamos, Sandia, Livermore and Oak Ridge. The licenses would have facilitated the transfer of high-technology equipment with direct application to nuclear-weapons development and testing "to the most dangerous entities within the Russian nuclear weapons" design and manufacturing complex. "I objected then and continue to object today to these so-called lab-to-lab transfers because there was no evidence of a security plan to protect U.S. technologies from being used against us," Mr. Leitner said...."

THE WASHINGTON TIMES 6/24/99 Audrey Hudson "...Jonathan Fox, an arms control specialist for the Defense Department, will tell how he was ordered to rewrite a critical memo on the eve of a state visit by Chinese President Jiang Zemin in October 1997. Mr. Fox's first memo said one deal with China presented "real and substantial risk" to the United States and allied countries." He was directed to change the memo so that it stated the agreement was "not inimical" to U.S. interests. He will testify that he has also suffered retaliatory actions...."

New York Times 6/27/99 James Risen Jeff Gerth "...The White House was told about China's apparent theft of American nuclear weapons technology in July 1995, soon after it was detected by the Energy Department and the Central Intelligence Agency, several officials said. Until now, the Administration has left the impression that the White House first learned about the matter in April 1996, when Samuel R. Berger, then President Clinton's deputy national security adviser, was briefed on the case by Energy Department officials. But interviews with current and former officials show that warnings about possible Chinese nuclear espionage received high-level attention within the Clinton Administration early in the Government's investigation of the matter...."

New York Times 6/27/99 James Risen Jeff Gerth "...Evidence that China may have stolen nuclear secrets first came to the attention of the White House during a meeting in July 1995, when the White House Chief of Staff, Leon Panetta, was informed of the problem by Energy Secretary Hazel O'Leary, Panetta and other officials said. She added that Energy Department officials had also been told that the C.I.A. had gathered intelligence about the possible theft, they said. Panetta then called the C.I.A. Director, John Deutch, to find out what the agency was doing about the case, Panetta said. Deutch, who had also just received a call about the same matter from Deputy Energy Secretary Charles Curtis, told Panetta he would investigate. Panetta then told Deutch to work with the National Security Council at the White House on the case. Upset that he had not heard about the case first from officials in his own agency, Deutch called Panetta back a day or two later and told him what the C.I.A. knew about the spy case, officials said. A brief reference to such meetings between Energy Department, C.I.A. and White House officials in the summer of 1995 is also included in a new report on the case issued by the President's Foreign Intelligence Advisory Board...."

New York Times 6/27/99 James Risen Jeff Gerth "...Deutch finally briefed the national security adviser, Anthony Lake, on the case in November 1995. Lake said he did not recall the briefing, but he and White House officials said there was a record of it. Before meeting with Lake, Deutch received a full briefing from the C.I.A. analysts, who convinced him that design information on the nuclear weapon -- known as the W-88 -- had been stolen by Beijing, officials said. President Clinton was not told of the evidence in 1995 by Panetta, Lake, or any of the other officials who had been briefed, according to the National Security Council spokesman, David C. Leavy. Berger also did not tell President Clinton about the case following his briefing in 1996...."

New York Times 6/27/99 James Risen Jeff Gerth "...Berger, now the national security adviser, has said that it was not until after he received a second, more specific briefing in July 1997 that he told Clinton about security problems at the nuclear weapons laboratories. Berger did take some action after his 1996 briefing, Leavy said, including directing that Congress be secretly informed. In that meeting, he also agreed with Energy Department officials on the need to strengthen security at the weapons laboratories. Working along two separate tracks initially unknown to each other, C.I.A. and Energy Department officials first began to unravel the case in the spring of 1995, when weapons designers from the Los Alamos laboratory told Energy Department intelligence officials that they were convinced China had stolen design information on the W-88, based on their analysis of a series of Chinese nuclear tests. At about the same time, American officials received a package filled with Chinese government documents, which arrived by DHL express service, officials say. Officials refused to say where the package was received or how they determined the identity of the sender...."

New York Times 6/27/99 James Risen Jeff Gerth "...C.I.A. officials analyzing the documents quickly focused on one that included what appeared to be classified design information about American nuclear weapons, including the W-88. Dated 1988, the document also included a hand drawing of a United States nuclear warhead re-entry vehicle. But initially, the C.I.A. did not tell the Energy Department -- or anyone else in the Government -- that it had obtained the W-88 document, officials say. A former senior C.I.A. official said that soon after the agency realized the significance of the W-88 document, Deutch ordered him not to disseminate it to other United States intelligence agencies. But other current United States officials familiar with the matter said that Deutch did not try to suppress the document. Instead, they said the document was not distributed immediately because it took time for the C.I.A. to translate and analyze it. Deutch refused to comment on the matter. Nevertheless, by August 1995 Energy Department's analysts had obtained a copy, even though it would not be officially distributed throughout American intelligence agencies until that December. By then, analysts had concluded that the document indeed included American nuclear secrets, officials say..."

New York Times 6/27/99 James Risen Jeff Gerth "...After the analysts reported to Deutch in November, a broader review, dominated by the Energy Department, reported similar conclusions in April 1996. Berger was then briefed that same month, and the F.B.I. opened its criminal investigation on May 30, 1996. But in late June or July 1996, the F.B.I. dropped its investigation, a senior United States official said. The C.I.A. had just re-issued the W-88 document with a warning that the agency now believed that the source of the document was a double agent. The C.I.A.'s new assessment, coming a year after it had first received the document, led the F.B.I. to "stand down," or suspend, its investigation, the senior American official said. The suspension of the investigation lasted for about six weeks in the summer of 1996, according to the official. It resumed after the Energy Department assured the F.B.I. that even if the source was a double agent, the document nonetheless contained accurate, classified data about the W-88 warhead, and so represented a security breach.

New York Times 6/27/99 James Risen Jeff Gerth "...The C.I.A. agreed that the information in the document was accurate, and also continued its own analysis. But while the F.B.I. re-started its investigation, it remained a low priority, F.B.I. officials now concede. Only one or two agents were assigned to the investigation in 1996, officials say. By 1997, when the Justice Department denied the F.B.I.'s request to seek court authorization to wiretap and electronically monitor Lee, a move that has since become the subject of congressional inquiry, the F.B.I. still had only three or four agents on the case...."

Human Events interview of Schippers 5/28/99 Terence Jeffrey "... HE: Did they let you see an unredacted version of the LaBella memo? Did you get to see the whole thing? S: Yes. I'm one of the few people who got to see it. HE: Did you see FBI Director Louis Freeh's memo? S: I saw both of them, every word of them. HE: Can you say that having read those memos you would have still wanted to go on and investigate the China connection as an impeachable offense? S: Oh, absolutely. I mean I wanted to see the memos just to see if there was something in there that I had anticipated and that I had expected all along. HE: Can you say what that is? S: No, I can't. It goes to the China aspect. HE: When Louis Freeh testified August 4, 1998, in the House Government Reform and Oversight Committee, he was asked by Chairman Dan Burton [R.-Ind.], in effect, "Are you investigating the President and the Vice President? Freeh leaned back in his chair, leaned forward to the microphone, and said: "Yes." You have no reason to disbelieve that Louis Freeh was investigating the President and Vice President of the United States? S: No. I believe every word Louis Freeh says. Louis Freeh, in my opinion, is one of the honorable people up there. HE: Another thing that Louis Freeh said on August 4 was that he and the attorney general had worked out a procedure by which they reviewed whether national security information developed in the Chinagate task force would be briefed to the National Security Council at the White House -- in other words, to the President. He said that there were some instances in which they decided not to brief the President. You have no reason to disbelieve that? S: I have no reason to disbelieve anything that Louis Freeh says. Let's leave it at that. I'm definitely gagged on anything that I read in that report. HE: I understand. I don't want you to violate any confidence or security agreement. The implication for people who watched closely is that the FBI is investigating the President of the United States for knowingly accepting Chinese money and perhaps there may be a quid pro quo at the bottom of that, and that Janet Reno and some political appointees in the Justice Department are not naming an independent counsel because that would trigger an unfettered investigation. And that they are therefore covering up for the President. Is that a question that you would have pursued in an impeachment inquiry? S: Oh yes. Absolutely. I would have pursued that, I would have pursued the China aspect of it, I would have pursued John Huang and Charlie Trie. I would have gone into Filegate and tried to find out what went on there. HE: You would have investigated whether the attorney general of the United States is actively covering up for the President of the United States in the commission of impeachable offenses? S: Yes. Whether I had read that report or not, we would have investigated that....."

Human Events interview of Schippers 5/28/99 Terence Jeffrey "... S: About anything. We tried to get into the immigration and naturalization problems that we saw and we were told that they weren't going to allow us to see the immigration records. The FBI at every stage of the investigation -- at every stage of oversight, impeachment, or anything else -- gave us nothing but 100% full cooperation from the bureau. The problems always came between the bureau and us because interposed between us was the Justice Department, and they were not about to give up anything that might embarrass the President or the Administration. HE: Your feeling is they were covering up for the President? S: I feel they were covering up for the President. HE: That the FBI, under the directorship of Louis Freeh, and the House Judiciary Committee under Chairman Henry Hyde -- in other words, the Congress -- have been cut out of the investigation of what might be the most significant corruption taking place in government today. S: Absolutely. There is not a person in the Congress who has even been able to read Mr. LaBella's report or Mr. Freeh's report. HE: You're the only person? S: No. One of the Democrat staffers was able to read it with me. And, of course, we were totally gagged. I could only report to Mr. Hyde, personally. ..."

Human Events interview of Schippers 5/28/99 Terence Jeffrey "... HE: What would be the most important direction of investigation? S: If you're talking in terms of obstruction of justice and things like that, that's one thing. But if you're talking about national security, I think there's two keys. I'll let you put them together. One's Chinagate, the other is Filegate. I think they are interrelated and I think they are very important. HE: Getting the FBI files of former Republican officials, in your view, is related to President Clinton's, the Democratic National Committee's, reception of money from China? S: I think getting the files on the Republicans, the raw FBI files, was at the foundation. That was necessary for the big move. HE: And you would aggressively go after the possibility that they willfully took the FBI files of Republican officials for the purpose of intimidating those officials? S: I think they were to be used for whatever purpose they could be used. Some of it might have been intimidation, some of it might have been blackmail, some of it might have been for other purposes. HE: And you would play hardball? S: I would play hardball like nobody's ever played hardball. I already have and got nowhere...."

AFP 6/28/99 "...The Clinton administration was first told China may have stolen US nuclear secrets nine months earlier than it originally admitted, a newspaper said. Throughout the uproar over allegations that China stole secrets to every key US nuclear warhead made since the 1970s, Republicans have claimed the White House failed to react quickly or strongly enough to the charges. The White House says it learned of the possible spying in April 1996. But unnamed current and former US officials told the New York Times the administration was informed of the apparent theft in July 1995....."

The New Australian No. 125, 28 7/4/99 Peter Zhang "... Obviously a member of Chinese intelligence who has just returned from America has far more interesting things to say than a lowly local Party official who spends all day stamping forms...... Something that the American public has not been told, though it is no secret, is that when Clinton, aka "nanren men zai hua sheng dun"1, abolished COCOM (Coordinating Committee for Multilateral Export Controls) in 1993 he outraged the British who warned Clinton that his decision to permit the export to China of high-tech material with military applications would allow Beijing's military machine to leapfrog years of military research and spending and put the West at risk. I cannot say whether 10 Downing Street was really surprised by Clinton's decision but I can say with a considerable degree of certainty that British intelligence was not. It should go without saying that British intelligence gave Blair a complete assessment of Clinton's actions and apparent motives. I suspect this assessment had more to do with London's outrage rather than Clinton's action. But this, I admit, is pure speculation on my part. Nevertheless, that British intelligence has taken a keen interest in Clinton's behaviour, an interest that goes back to his student days, is something that would, in my opinion, have helped alert thinking Americans to the true nature of Clinton's character. What the vast amount of Americans wouldn't know (and might even be appalled by it) is that Special Branch2 supplies British intelligence with dossiers detailing the activities of every foreign student's political activities and has done so for a number of decades. (No wonder the CIA envies the latitude granted to its British counterparts.) .....The irony is that not only did the British know well before the American public that Clinton's action would enable China to buy American supercomputers that would be used to build sophisticated nuclear-guidance systems they also knew the details of those agreements....."

New York Post 6/28/99 Deborah Orin "...The latest revelation by The New York Times that the first tipoff came in 1995 also raised new doubts about the truthfulness of Clinton's claim earlier this year that no one told him of any suspicions of such spying. "A scandal is there, the revelations of Chinese spying, and then starts the cover-up and obfuscation, and that makes it 10 times worse," Sen. John McCain (R-Ariz.) told Fox News. "Clearly, the White House has not been forthcoming about what the president knew, when he knew it ... There's no doubt that there [were] tremendous lapses or even, frankly, misconduct." McCain's criticism was echoed not just by other Republicans but also by Sen. Joseph Lieberman (D-Conn.), who said news reports showed that the administration "either knew about it or should have known about it." ..."

The Associated Press 6/27/99 William Mann "...- Senators reacted bitterly Sunday to a report the Clinton White House knew of Chinese nuclear espionage earlier than it has acknowledged. "That really shouldn't go on," said GOP Sen. Orrin Hatch of Utah, who plans to run for president. "I'm sick of it." ...."Looking back at it, this is critical enough...that the president should have been informed. There's no question about it," said Lieberman, D-Conn. The White House acknowledged Sunday it was alerted to suspicions of Chinese espionage in 1995 but did not learn about details until 1996, as the administration has maintained. ....The New York Times reported Sunday that in July 1995, Hazel O'Leary, then energy secretary, told then-White House Chief of Staff Leon Panetta and other officials about evidence that China may have stolen nuclear secrets. Word filtered out to other officials in ensuing months, the newspaper said, citing interviews with current and former officials. It said a new report on the case issued by the president's Foreign Intelligence Advisory Board refers to meetings among Energy Department, CIA and White House officials in the second half of 1995. Sandy Berger, deputy national security adviser in 1995 who now holds the top job, has said he did not tell Clinton of the matter until Berger was briefed thoroughly in July 1997. On Sunday, the White House denied any formal interagency contack over the issue before April 1996, when the Energy Department first briefed Berger. Counsel Jim Kennedy said prior discussions of the matter - such as the July 1995 contact - constituted preliminary and informal notification. O'Leary's talk with Panetta, Kennedy said, was "simply an informal heads-up to the White House." ...."

Section of Appendix of Presidents Foreign Intelligence Advisory Board Report 6/99 Sen Rudman, Chairman of PFIAB "...China obtained by espionage classified U.S. nuclear weapons information that probably accelerated its program to develop future nuclear weapons. This collection program allowed China to focus successfully down critical paths and avoid less promising approaches to nuclear weapons designs. China obtained at least basic design information on several modern U.S. nuclear reentry vehicles, including the Trident II (W-88). China also obtained information on a variety of U.S. weapon design concepts and weaponization features, including those of a neutron bomb. We cannot determine the full extent of weapon information obtained. For example, we do not know whether any weapon design documentation or blueprints were acquired. We believe it is more likely that the Chinese used U.S. design information to inform their own program than to replicate U.S. weapon designs. China's technical advances have been made on the basis of classified and unclassified information derived from espionage, contact with U.S. and other countries' scientists, conferences and publications, unauthorized media enclosures, declassified U.S. weapons information, and Chinese indigenous development. The relative contribution of each cannot be determined....We do not know if U.S. classified nuclear information acquired by the Chinese has been passed to other countries. Having obtained more modern U.S. nuclear technology, the Chinese might be less concerned about haring their older technology...."

Media Research Center CyberAlert 6/28/99 Brent Baker "....At Clinton's late afternoon press conference on June 25 FNC's Wendell Goler, who asked him back on March 19 about spying during his term, pressed: "Let me ask you once again do you still maintain that you were not told anything about these Chinese efforts to spy at the nation's nuclear labs during your administration?" Clinton answered by stressing how spying by China has been ongoing for twenty years, but then he got to commenting how his March 19 reply: "What I said was that I didn't suspect any actual breaches of security had occurred during my tenure. Since then we have learned of the off-loading of the computer by Mr. Lee, from the secured computers into his personal computer. That's something we know now that I didn't know then. But I think my choice of wording was poor. What I should have said was I did not know of any specific instance of espionage because I think we've been suspicious all along. And I have to acknowledge I think I used a poor word there. We have been suspicious all along generally. We did not have any specific instance as we now do of the off-loading of the computer..." Actually, on March 19 Clinton did not say "that I didn't suspect any actual breaches of national security." He answered: "Can I tell you there has been no espionage at the labs since I've been President? I can tell you that no one has reported to me that they suspect such a thing has occurred." And in response to another question he maintained: "To the best of my knowledge, no one has said anything to me about any espionage which occurred by the Chinese against the labs, during my presidency." ....Now to last Friday. Clinton's grudging admission that he misled the American people as "my choice of wording was poor." In fact, he was again misleading people by suggesting that the "off- loading of the computer" is the only specific instance during his watch. But as Paul Sperry pointed out in the June 9 Investor's Business Daily: "The declassified version of the House [Cox] report identifies 11 cases of Chinese espionage since the late 1970s. Eight took place during President Clinton's years in office....In other words, the vast majority of the leaks over the past 20 years have sprung on Clinton's watch....The House report doesn't disclose the full extent of Chinese espionage in the Clinton years. Citing 'national security' reasons, the White House censored roughly 375 pages, including several recent cases." So, the networks had plenty of angles to pursue Friday night, but they bunted: ABC's John Cochran, CBS's Scott Pelley and CNN's John King all ignored China. FNC's Wendell Goler included Clinton's answer in his Fox Report story and NBC's Claire Shipman gave it 24 seconds in a piece about how "Bill Clinton laid out a bold and ambitious agenda for just 18 months left in office today."

WorldNetDaily 6/28/99 Charles Smith "...On June 1, 1999, the acting chief of the FBI's Litigation Unit, Scott A. Hodes, released sections of a still-secret report on Chinese espionage in written testimony submitted in a federal lawsuit by this reporter.... "This document is described as an FBI report dated April 1995, and designated by the Department of Commerce as document #98-02018-OSY1-001, originated and classified 'Secret' by the FBI. Portions of the document contain information responsive to plaintiff's request for Department of Commerce records on the subject, China's Commission of Science, Technology, and Industry for National Defense or COSTIND." .... According to the FBI report, "COSTIND generally oversees a whole host of weapons production corporations with their own needs to collect S&T. It is the primary coordinating control over these corporations and also tasks a wide range of Chinese commercial and research institutes to collect high-tech military and industrial items." In addition, the report shows that known commercial espionage by the People's Liberation Army is directly linked to military and diplomatic espionage. According to the report, "The State Science and Technology Commission (SSTC) is the non-military counterpart of the COSTIND, and like COSTIND it is involved in China's S&T modernization effort. The SSTC largely oversees civilian S&T collection, using the S&T diplomats in the United States as a key collection tool." The secret report was generated as part of the standard counter-intelligence task assigned to the FBI. The report was given to U.S. Commerce officials at a classified level. The report describes both PLA "collection" operations and tools such as "diplomats in the United States." ..."

WorldNetDaily 6/28/99 Charles Smith "...The FBI has come under fire recently for providing poor counter-intelligence to the Department of Energy, concerning PLA espionage involving nuclear weapons. Yet, counter to prevailing opinions, as the report shows, the FBI counter-intelligence team was busy warning the Clinton administration about COSTIND and the PLA back in 1995....Much of the equipment included U.S. manufacturing equipment and U.S. training; thus, not only was the technology exported, but so were the American jobs. Some of the documented transfers include: Rockwell Collins GPS navigation to Shanghai Aviation, a company owned by the PLAAF, for missiles and bombers. Radiation-hardened chips for nuclear warheads, including training for Chinese technicians inside America. Blade cutters and molds for a NORINCO artillery-fuse production facility owned by the PLA. McDonnell Douglas machine tools to PLAAF-owned China National Aero-Technology Import Export Corporation for fighter/bomber production. SUN super-computer to COSTIND-owned Yuanwang Corp. for nuclear weapons development. $100 million of Tandem (now Digital) computers to Great Wall Industries, a company owned by the PLA, for long range missiles and satellites. AT&T fiber-optic communications systems to New Galaxy Technology, a PLA company, for the Chinese Army General Logistics Division. Hughes secure Air Traffic Control systems directly to the PLAAF for "military" air defense. $200 million of Motorola secure radios for the People's Armed Police, the Chinese "Gestapo" that executes dissidents and runs the "Lao Gai" prison camps. Advanced Synthetic Aperture Radar from Loral Defense to National Remote Sensing Center, State Sciences & Technology Commission of China, identified by the FBI and the Defense Department as a PLA missile guidance lab. RSA/Security Dynamics computer security encryption technology to the Laboratory of Information Security, a PLA information warfare lab, under the control of China's Ministry of Trade and Economic Co-operation (MOFTEC) and COSTIND..."

***Media Research Center CyberAlert*** 6/30/99 Vol Four No 116 "...Maybe the Energy Department should hire FNC's Carl Cameron. Tuesday night he showed how he knew about testimony from a counter-intelligence agent that the agent's boss, the Energy Department's counter-intelligence chief, wasn't even aware of. And Cameron added unique TV play for a story on the wires Tuesday and in the Washington Times Wednesday about how a Defense official was transferred pending the outcome of a probe about how the supervisor improperly tried to access the computer files of a whistleblower testifying at that moment on Capitol Hill. In a piece featured on both Special Report with Brit Hume and the Fox Report, Cameron revealed what went on behind the scenes at a House Government Reform Committee hearing last week: "Inadvertently on Capitol Hill last week several lawmakers at a closed door meeting found themselves hearing new allegations of security breaches at Energy Department nuclear labs. Democrats and Republicans say the secret testimony of Energy Department counter-intelligence agent Bob Hensen (sp?) caught them completely off-guard. Lawmakers are mum on the classified details which sources say involve weapons labs, like Los Alamos, over the last five years and may have been part of China's nuclear espionage. "The Energy Department's top spy catcher, who admits security cannot be guaranteed, said he was unaware of his agent's testimony until Fox News told him." Ed Curran: "I'm surprised at your comment. As director of counter-intelligence I think I have a responsibility to know what was said in closed hearings. I have not been informed of Mr. Hensen's comments to anybody concerning security breaches in the past. I would certainly be more than interested in finding out though." Cameron went on to explain that when House members realized what Hansen would disclose he was removed from a panel of officials testifying about reprisals for their efforts to expose security shortcomings and stop dangerous technology transfers. This was the June 24 hearing that all but FNC ignored...."