DOWNSIDE LEGACY AT TWO DEGREES OF PRESIDENT CLINTON
SECTION: RED FLAGS OF TREASON - PEOPLE
SUBSECTION: C. JOSEPH GIROIR, JR.
Revised 1/8/01

C. JOSEPH GIROIR, Jr.

"…His name is on the inscription under the bust of Bill Clinton in the National Portrait Gallery: ''Gift of Mr. and Mrs. C. Joseph Giroir Jr., in honor of Dr. and Mrs. Mochtar Riady'' (1)

"Had a hand in Chinagate, the fund- raising scandal now being probed by the Senate Governmental Affairs Committee….. Giroir's name popped up again yesterday in Senate testimony about the president's legal defense fund and Yah Lin ''Charlie'' Trie's fishy donations to it…. " (1)

"He was once the managing partner at the Rose Law Firm. That's how he came to hire Hillary Clinton there in 1977…" (1)

"He tried to get a $2 million loan from failing FirstSouth Savings & Loan, in which he had a small stake. When the feds took over FirstSouth, they refused to honor the loan request. Giroir sued the government and was countersued for malpractice. As evidence, the government produced an opinion by Giroir on Rose letterhead contending the loan was legal. Rose gave Giroir the boot (replacing him with Webster Hubbell)…" (1)

He was being pushed out of a job " as director of the Riady-controlled Worthen Bank in Little Rock. Worthen's board sued him for shady-looking stock deals. (Giroir got his spot at Worthen after he sold the bank his 91% stake in a Fayetteville, Ark., bank for $18.5 million in Worthen stock.) The Worthen board also eased James Riady out as president. Bank examiners cited the bank for excessive insider lending - the Riadys had built a money pipeline back to Indonesia and China (1)

"When Clinton took office in '93, the Riadys hired Giroir to broker deals in China for U.S. firms and the Lippo Group" (1)

"Kenneth Starr, the special prosecutor investigating Whitewater, has subpoened all records from the White House with Giroir's name on them. Starr's team wants to know more about Giroir's role in the lucrative ''consulting'' work that Clinton pal Hubbell got after being convicted of billing fraud from his days at Rose…." (1)

10/21/96 "The Import-Export Bank has issued letters of credit for $900,000 to James Riady's Lippo Bank. The president of the taxpayer-financed Ex-Im bank is a Clinton appointee, Maria Luisa Haley. James Riady has also pushed Ex-Im Bank for U.S. government financing of a $1 billion project by Lippo to build a power plant in northern China. The plant constructor is a Little Rock unit of Entergy Corp. Maria Luisa Haley is the ex… of John Haley who is a co-defendant of former Arkansas governor Jim Guy Tucker in a case that involves a cable television franchise in Jarkarta set up by Rose Law Firm lawyer Joe Giroir and Lippo Group." (2)

During the period of 1994 through 1996, Warren Christopher, secretary of state, had a vested interest in seeing the Paiton [Indonesian power] project to completion. The connection between Paiton and Moctar Riady, a major figure in the DNC campaign finance scandals, are clearly documented through PT bank Lippo. PT Lippo is a partner of First Union Bank, a major investor in the Paiton project. The leader of the U.S. project in the Paiton power plant, Mission Energy, is also a partner of Indonesia's Lippo Group. The Lippo Group is a consortium, part-owned by billionaire Moctar Riady. PT Lippo also provides financing to "brother-in-law" Hashim for his coal mining company that supplies Paiton. Hashim is himself a key figure. While serving as the minister for mines under Suharto, Hashim also managed to purchase the world's only "low sulfur" coal mine. His financial backers include Moctar Riady's PT Lippo and, his sister-in-law, Prawabo. Hashim and Moctar Riady both found themselves with a global monopoly thanks to Bill Clinton's executive order for the 1.7 million-acre Grand Staircase-Escalante National Monument in Utah, over the only other known "low sulfur" deposit. The connections between Riady and Clinton have a much more sinister theme than coal monopolies and taxpayer backed power plants in the middle of Asia. Testimony before Senator Thompson's committee in 1998 revealed Moctar Riady's involvement in Chinese espionage. Testimony revealed the Lippo Group is in fact a joint venture of China Resources, a trading and holding company "wholly owned" by the Chinese communist government and used as a front for Chinese espionage operations. Thus, behind all the front companies, the communist leaders in Beijing have triumphed again....(41)

10/21/96 "Joe Giroir still represents Lippo and has brokered ventures between Lippo and Tyson Foods to improve sales of Tyson chicken in the Far East. The Clinton administration has provided $21 million in funding for a new, giant airport in a remote, unpopulated area in Northern Arkansas to be used to ship the Tyson-Lippo chicken."(2)

2/16/97 Another recent China deal is a $1-billion venture involving Lippo and Entergy Corp. -- the company that succeeded the largest utility in Arkansas -- to build a nuclear plant for China. The deal was negotiated in part by China's Commission of Science, Technology and Industry for National Defense, which also heads the PLA's strategic missile force. Helping in the power plant deal was Arkansas lawyer Joseph Giroir, former managing partner of the Rose Law Firm in Little Rock, where he once hired Hillary Rodham Clinton. Since 1993, Giroir has donated close to $200,000 to the Democrats. He now is the Riady family's top U.S. lawyer (44)

House of Representatives 4/15/97 Rep Cunningham "...President Clinton attended a September 13, 1995, White House meeting with John Huang, James Riady of Lippo Bank, Bruce Lindsey, and C. Joseph Giroir, the lawyer who hired then-Governor Clinton's wife, Hillary Clinton, to the Rose Law Firm and who is now doing Riady business in China. [TIME: 2300] It was at that meeting that the transfer of Huang from the Department of Commerce to the DNC was arranged.

 

LIPPO GROUP - RIADY FAMILY, JOHN HUANG, WEBSTER HUBBELL

 

Mochtar Riady is an ethnic Chinese banker in Jakarta. He started his financial empire with gun- and drug-running in the East Indies before World War II. (2)

Mochtar Riday later formed the $6 billion Lippo Group, headquartered in Jakarta, Indonesia.(2)

John Huang, a top employee of Lippo Group was named assistant secretary of Commerce for international economic policy by Bill Clinton. John Huang last year left the White House to become vice chairman of the Democratic Finance Committee (2)

10/21/96 "The Clinton administration has just approved the sale of F-16 fighter jets to the Indonesian government" (2)

Between the time that Webster Hubbell resigned as Deputy Attorney General and the time he was sent to jail, he was paid $250,000 by the Lippo Group(2)

10/10/96 "…the Riady family has stirred up consternation among the minority shareholders in the Lippo Group by a planned restructuring that would enable the family to extract cash to invest elsewhere. The new primary ownership vehicle is intended to be a "financial supermarket" named Lippo Securities. Under the plan, the Riady family would increase their ownership of Lippo Securities from 19 percent to 50 percent. Lippo Securities would in turn be the major owner of the insurance company Lippo Life, increasing its ownership share from 4.9 percent to 32 percent. Lippo Life would then buy a 40 percent stake in Lippo Bank. The Riady family would sell their interest in the latter institution. The deputy chairman of Lippo Group is James Riady, a former director of Worthen Bank…" (4)

 

STEPHENS Inc., WORTHEN, BCCI and other banking

Stephens told an interviewer... He'd seen nothing wrong with selling BCCI an American bank-they even named it First American-but he and Riady soon began planning an entirely new kind of Arkansas bank holding company, for which they required the services of Giroir and expertise in securities law



. In his years as Rose's chief Giroir conspicuously chaired a group drawn from the state's so-called Good Suit Club. The club successfully lobbied the legislature to change the state usury law, which made owning an Arkansas commercial bank a much more attractive proposition. It also was active in convincing the state's lawmakers to revise the law restricting the formation of bank holding companies, which enabled Giroir, Riady and Stephens to make a substantial and potentially lucrative investment…. " (3)

"On his own, Giroir had purchased control of four Arkansas banks. He sold all four--including the second largest bank in the city of Pine Bluff--to Worthen Banking Corporation, the new holding company Riady and Stephens had been able to set up after state law, with Giroir's help, had been made more congenial to such things. For his part in the deal, Giroir was compensated with $53,760,294 in cash, stock and assumed debt. He also became a major stockholder of Worthen (named after the venerable and very large Little Rock bank that was the pride of the Stephens commercial banking empire) and a powerful member of its board. He received further income by renting property to the company, and he pocketed an additional $2.1 million when he sold part of his stockholdings to a company affiliated with Riady's son James (who was also Worthen's co-president). More important, he managed to create a whole new client for his firm; Rose became Worthen's principal outside counsel" (3)

"These things are complicated, dull and dry, which is an excellent form of concealment but consider the sequence of events. With the stroke of a pen and without a visible second thought, then-governor Bill Clinton, following his traumatic period as a voter- rejected civilian between 1980 and 1982, gave life to two pieces of legislation inspired by his wife's boss-- revising the usury laws and permitting formation of new banking holding companies. …Last and not incidentally, the governor, by permitting the creation of the Worthen Bank Corporation, had arranged a new payday for the Clinton family through the windfall in legal fees provided to the Rose firm (Hillary Rodham Clinton, partner). When the compensation of the firm's partners was computed, Rodham Clinton has insisted, she specifically exempted herself from receiving a share of Rose's business with the state. But although Worthen could not have been brought to life without the help of her husband's government, it was not a government agency. Rodham Clinton was therefore not excluded from a partner's share of its fees…." (3)

"Mochtar Riady created Lippo Finance & Investment Inc., an SBA-backed lending company in Little Rock with Vernon Weaver as chairman. Weaver is now Clinton's U.S. representative to the European Union"(2)

"The Riadys owned First National Bank in Mena, a bank that was used by drug smugglers to launder money." (2)

"The Los Angeles-based Lippo Bank has twice received cease- and-desist orders from the Federal Deposit Insurance Corp. for violations of money-laundering statutes" (2)

"Moctar's son James Riady was the president of the bank [Worthen]. The bank financed Bill Clintons election campaigns, and bailed out the 1992 Presidential campaign of Bill Clinton with a three million dollar loan at a crucial juncture."(2)

"Worthen Bank invested in the Little Rock-based World Wide Travel that handled Clinton campaign travel, and was selected to take over all White House travel, a scheme that resulted in Travelgate." (2)

10/21/96 "Mack McLarty once worked at Worthen Bank, later worked for Entergy Corp., and now works in the White House, where he has been chief of staff. (2)

Joe Giroir, Hillary Clinton, and Vince Foster defended Stephens Inc. in a case that stemmed from a failed takeover effort involving the BCCI (2)

The Arkansas bankers talked of exporting rice to Asia and predicted that their two-billion-dollar bank would quickly grow to ten billion. Then another disaster struck..As regulators caught on to the sophisticated fraud, they discovered that -- lo and behold -- the same thing was happening at Jack Stephens's Worthen Bank and Trust. A government-securities trading company from Livingston, New Jersey, called Bevill, Bresler & Schulman went bankrupt on Easter Sunday, a month after the ESM collapse and the Home State crisis, leaving Worthen with $52 million in uncollectible loans. (Remarkably, at one point Bevill, Bresler and ESM had overlapping personnel.) Once again, however, Jack Stephens persuaded the government that he was an innocent party. Worthen collected $20 million in insurance on the loss, barely averting insolvency. But the federal regulators went through its books with heightened diligence. By the end of the summer, the comptroller of the currency had cited Worthen Banking Corp. for making "excessive loans at preferential terms" to companies controlled by the Stephens brothers and Mochtar Riady. This practice, charged the comptroller, amounted to a violation of federal law. DSL:BCCI

Lance and Stephens helped BCCI take over Financial General.

A Financial General lawsuit "Bert Lance, Bank of Credit & Commerce International, Agha Hasan Abedi, Eugene J. Metzger, Jackson Stephens, Stephens Inc., Systematics Inc. and John Does numbers 1 through 25. "Systematics was represented by C.J. Giroir, Webster Hubbell, and Hillary Rodham Clinton of the Rose Law Firm of Little Rock …" DSL:BCCI

"Worthen Banking Corp. was sold to Boatmen's Bancshares Inc. of St. Louis in 1995 for $535 million. Members of the Stephens family owned 22 percent of Worthen at the time of the sale, and acquired shares in Boatmen's. In addition, the investment bank Stephens Inc. retained the right to handle the trades (and to collect commissions) for Worthen Investments, which was folded into Boatman's Investment Services, Boatman's securities subsidiary. (All other securities trades at Boatman's Investment Services are handled by Pershing Inc. of New Jersey.) (4)

10/10/96 "Currently, Boatman's Bancshares Inc. is being acquired for around $9 billion by NationsBank Corp. of Charlotte, N.C. This merger will make NationsBank the fourth largest U.S. banking franchise. The investment bank Stephens Inc. was brought in to give a "fairness opinion" on behalf of NationsBank Corp. shareholders, even though the Stephens family, through their Boatmen's stock holdings, stand to make more than $200 million on the acquisition. Also standing to gain on stock holdings is Curt Bradbury, the chief operating officer at Stephens Inc., and also the former chief executive of Worthen Bank. Stephens Inc. represented NationsBank in the merger negotiations, while Goldman Sachs represented Boatmen's. NationsBank has its own discount brokerage service, NationsBank Discount Brokerage Inc., which clears its trades through Stephens Inc. Stephens Inc. is trying to acquire all of NationsBank's brokerage business after the merger of Boatmen's and NationsBank is complete. If so, that would make Stephens Inc. the largest clearing firm for banks in the U.S. (4)

Subsequently, NationsBank was acquired by BankAmerica [Alamo-Girl]

"It turns out that he [John Huang] maintained an office across the street from his Commerce Department office. He used that office to send and receive packages and faxes without the knowledge of his Commerce employers…. That office was maintained by none other than the Arkansas-based Stephens Inc., a partner of Lippo in the Arkansas WorthenBank, where John Huang had once served as a vice president. The secretary testifying about John Huang's clandestine visits to the office was one Paula Green, a former aide to Rep. Beryl Anthony, the brother-in-law of the late Vince Foster. Beryl Anthony, as a member of the Washington law office of Winston Strawn, represented Stephens' software company Systematics, which was also represented by Vince Foster, Hillary Clinton and Joe Giroirin litigation with First American Bank in Washington over an attempted takeover by BCCI. It was revealed last week that none other than John Huang traveled to China to negotiate on behalf of Lippo with the Chinese government over debts owed to Chinese depositors by the failed BCCI…." (5)

One appointment in particular that should be setting off alarm bells right now is that of White House aide Vanessa Weaver, nominated by the White House for the five-member board of the Export-Import Bank. Ms. Weaver's rushed confirmation hearing takes place this afternoon before Senator Phil Gramm's Banking Committee. An article in yesterday's Investor's Business Daily noted that before Ms. Weaver replaced fellow Arkansan Patsy Thomasson as deputy personnel director at the White House in 1997, she was a senior adviser on personnel. The Thompson hearings on the 1996 campaign scandals established that in 1994 and 1995 she made at least 23 White House calls to John Huang while he worked at a sensitive Commerce Department job for 16 months. Incidentally, John Huang, long of the Lippo Group, qualifies as another typically weird appointment..... Mr. Huang has said he and Ms. Weaver are "good friends." That may stem in part from his friendship with her father Vernon, who for 15 years was head of the Washington office of the Arkansas-based Stephens Inc. financial empire. The two men were sufficiently close that Mr. Huang used a Stephens suite at the Willard Hotel as a "satellite office," even though it was only 150 yards from the Commerce Department. Mr. Huang would use the office to pick up overnight packages, make phone calls and fax materials, often shortly after receiving classified briefings. Mr. Weaver's secretary has testified before the Senate that her boss gave her orders to conceal the arrangement with Mr. Huang. Mr. Weaver made at least 27 calls to Mr. Huang during his stint at Commerce. An Arkansas native, Mr. Weaver was later appointed by President Clinton as ambassador to the European Union in Brussels. A congressman well versed in the details of the Huang case told us the timing and pace of the Weaver family's contacts with him were "highly suspicious" and may have involved campaign fundraising.. . (39)

 

American Spectator 2/96 James Ring Adams R Emmett Tyrrell, Jr. "…..The story starts not with the McDougals' Madison Guaranty, but with a small-town bank in Stephens, Arkansas, in the southern tier of the state. On April 3, 1985, the Stephens Security Bank lent $135,000 to James and Susan McDougal for their Flowerwood Farms real estate development in western PuIaski County, some too miles north. It's not clear why this small bank made such a large commitment outside its immediate lending area, but Stephens Security did have connections with the Little Rock elite. Until 1984 more than 90 percent of its stock was owned by First Arkansas Bankstock Corp., the predecessor to the Worthen Banking Corporation. Some corporate matters for Stephens Security were handled by C. Joseph Giroir, Jr, who as chairmam an of th e Rose Law Firm hired Hillary Clinton in 1978. Stephens Security Bank president Richard T. Smith, a former loan officer at Worthen, had his own history of questionable political lending. In 1484 he a pproved $150,000 in loans to the last minute congressional campaign of Little Rock Sheriff Tommy Robinson, even though Robinson never filled out a loan applcation. The Federal Election Commission investigated the loans but deadlocked on wheth er to take action about them.

American Spectator 2/96 James Ring Adams R Emmett Tyrrell, Jr. "…..The Wall Street Journal reported in August 1994 that Denton was telling the staff of the independent counsel that in 1986 he had seen her name, signed "Hillary Rodham," on a loan of between $100,000 and $300,000, but that the usual form for a guarantee was missing. At the time of the WSJ article, Clinton lawyer David Kendall issued the memorable but partial denial, "Any allegation that Mrs. Clinton guaranteed a loan in 1986 with the signature 'Hillary Rodham has the unmistakable and clanging ring of falsity." (The loan would have been signed in 1985, not 1986.) More recently, however, Denton's memory has freshened, and he has reportedly given an affidavit to Independent Counsel Kenneth Stan stating that he was in the room when Hillary signed the loan. Curiously, nothing resembling this note turned up in the thousands of documents produced for the House Banking Committee, partly because Stephens Security fell out of the purview of the investigations of Madison. But there is another possible reason that this note has not surfaced. It would be one of the most damaging bits of evidence yet to emerge against the first family…… This whole sequence of loans, from Stephens Security to Flowerwood Farms and the repayment from David Hale, caught the eye of investigators as soon as the Madison Guaranty case was reopened in 1992. It figured prominently in the first criminal referral from jean Lewis, the RTC criminal investigator from Kansas City who bore the brunt of keeping the Madison case alive. (This referral, number C0004 went to the FBI and U.S. attorney in Little Rock on September 2, 1992, and promptly disappeared into the Washington bureaucracy. ) Then-U.S. Attorney Charles Banks recently told the Senate Whitewater Committee that he rushed the referral out of his office without even reading its 300 a ttached exhibits. He admitted that he shied away from the politically charged case because, among other things, he was a candidate for a federal judgeship….."

 

 

LIPPO/RIADY – ESPIONAGE

 

When Senator Fred Thompson revealed the outlines of what the U.S. intelligence community knew of the "China Plan," he traced the beginning of the Chinese effort to buy political influence in the United States to 1995. But some of the entities listed in Weldon's "China Connection" chart have been financially involved with Bill Clinton since 1984-1985. That was when the Riady family first invested in the Worthen Bank in Little Rock and bailed out an Arkansas state government investment firm whose collapse was hanging like a political millstone around then-Governor Clinton's neck, jeopardizing his re-election. The Riadys became major donors to the first Clinton-Gore campaign, contributing $786,000 to Democratic causes in the closing months of the campaign. The Riadys consolidated their ties to Chinese military intelligence on November 7, 1992, just two days after Clinton's election to the White House, by entering into a partnership with China Resources (Holding) Ltd. to jointly own and control the Hong Kong Chinese Bank. China Resources has long been identified by U.S. intelligence as a vehicle for Chinese military intelligence. U.S. government investigators say the bank was later used to funnel Er Bu money to intermediaries in the U.S. for campaign donations. TAS has learned of a separate joint venture between the Riadys and China Aerospace International (CASIL), known as the Shanghai Commercial Investment Fund. (42)

Until now, U.S. government investigators were not able to tie the Riadys to CASIL [China Aerospace International known as the Shanghai Commercial Investment Fund], a key player in several satellite ventures involving U.S. companies. A CASIL vice president, Liu Chaoying, set up a joint venture with Johnny Chung in California known as Marswell Investment that was financed through a $300,000 wire transfer (some of which Chung donated to the DNC) from the head of Chinese military intelligence. TAS first revealed the Chung- Liu connection two years ago ("While America Sleeps," June 1997). Liu's Hong Kong company, Marswell Investment Ltd., was created in 1995 using subscriber shares from two PLA front companies, Chearfit and Timeway Ltd., which operate out of the same office as a third front company, Silver Faith Holdings, which U.S. government investigators have tied back to the Chinese Triads. Liu Chaoying controls numerous other Hong Kong front companies as well, including Cheung Tai Hong Holdings Ltd., Giant Enterprises, and CASIL Import & Export Company Ltd... . (42)

The Lippo-CASIL connection provides new insight into what the Chinese were hoping to get from the Clinton-Gore White House: waivers of U.S. sanctions to give them access to U.S. missile and satellite technology. In April 1993 Clinton waived the Tiananmen sanctions to allow Motorola to launch up to 12 satellites in China for its Iridium global wireless communications network. As part of that deal, the Chinese got help from U.S. companies in designing a "smart dispenser" that enabled them for the first time to launch multiple satellites from a single rocket. According to a December 1996 report from the Air Force National Air Intelligence Center, first revealed by Washington Times reporter Bill Gertz, the Iridium smart dispenser "could be developed into a credible PBV (post-boost vehicle) with a few relatively minor changes." Post-boost vehicles are used to deliver multiple nuclear warheads to separate orbits, so they can strike different targets independently. Multiple warhead technology was a key priority for the Commission of Science Technology and Industry for National Defense (COSTIND) collectors, and was a capability the Chinese had previously lacked.... . (42)

In October 1997, CASIL acquired a 14.71-percent interest in Asia Pacific Telecommunications Satellite Holdings Ltd., a listed company in Hong Kong and New York. APT was founded in 1992, with investors from Hong Kong and Thailand, to own and operate a network of telecommunications satellites. The company now operates two Hughes HS 376 satellites (Apstar-1 and Apstar-1A), and one Space Systems Loral FS-1300 satellite (Apstar IIR), launched between 1994 and October 1997. "The powerful APT...has the largest synchronous satellite transponder capacity available in the Asia-Pacific region," according to a U. S. government cable from Hong Kong obtained by TAS.... They had no choice but to resort to the use of previously purchased U.S. satellites for their encrypted communications," the report states. Those satellites were owned and operated by APT. "This decision was just a step in the continuing process to integrate Hughes equipment for its military--a decision which goes back to at least 1992. Various munitions license applications during 1995 and 1996 reveal an export pattern of Hughes satellite-related equipment through PLA front companies. They include SCL, CESEC (China Electronic Systems Engineering Company), and Huaying," the DOD memo states. "Ironically, many of these exports did not identify these front companies as being associated with the PLA. From what we now know, Hughes employees in China were knowledgeable that they were PLA-associated entities." None of the licenses were vetted for the PLA association, the memo went on, since a military end-user would have been grounds for denying exports. Hughes's failure to disclose the PLA involvement in APT, and in a related cell-phone venture known as APMT, may have violated U.S. export control laws. "In seeking approval of APMT," the Pentagon report states, "Hughes provided only the Singapore address of the APMT joint venture between China and Singapore.. . (42)

ESPIONAGE AND BANKING - ROOTS

 

The Indo-money affair is cut from the same cloth as the scandal of the Bank of Credit and Commerce International, which earlier this decade led to the bank fraud indictment of former Defense Secretary and presidential adviser Clark Clifford. (The federal and New York State case against Clifford was later dropped because of his advanced age and the acquittal of his associate Robert Altman on similar charges.) The BCCI was trying to buy hidden control of American banks to build its global empire and also to wield influence for its Arab patrons. The Riadys and their allies had in addition the motive of sheer survival. They have been investing in Bill Clinton for twelve years, and one can understand why they would disregard American campaign law in the effort to preserve their stake. Where things get shocking was in the arrogant response of the White House and the Democratic National Committee when the scandal erupted. In quantity and quality the Indo-money case dwarfs any influence-peddling scandal in memory, even for those who recall the worst of the Nixon years. When the slumbering press awoke to the story (about a year after TAS put it on our cover), it discovered that the Riadys had managed to place a former senior employee of their Lippo Group inside the Clinton administration, with extraordinary access both to the Oval Office and to Asian contributors. But John Huang, with his $4 million in DNC fund-raising and fifty visits to the White House, was a relatively small player in a network that included the richest men of South Asia. Even the Riadys were only one of several conduits in a political penetration that may have shaped human rights and trade policy and even diplomatic relations with a number of countries along the Pacific Rim, including the most sensitive one of all, the People's Republic of China...(43)

The first thing to understand about the Indonesian billionaire Mochtar Riady and his three sons James, Andrew, and Stephen is that they belong to the elite but vulnerable Chinese minority. Mochtar's family name was Li or Lie; although he was born in Indonesia in 1929, his ancestral home is in Fujian, China, the southern coastal province where many of the richest overseas Chinese businessmen originated. Mochtar started his career in the 1940's in a Jakarta bicycle shop. His fortunes improved drastically when he went to work in the Bank Central Asia for the godfather of the Indonesian Chinese businessmen, Liem Sioe Liong. In the '60s, with Liem's help, Riady founded his own Lippo family of financial companies, now holding $12 billion in assets. Although Riady barely turned billionaire last year, Liem, 80, has long been one of the richest men in Asia. The background of the publicity-shy Liem remains shrouded. It wasn't known for a long time whether he was born in Java or Fujian, China. (The preferred version now is Java.) His dominant role in the Chinese business clique, however, is undisputed. Known locally as the Chairman, he was a business partner and mentor of five Indonesian families (including the Riadys) who became billionaires in 1995....(43)

The Liem and Riady connections extend well beyond Jakarta. The 55 million overseas Chinese, widely considered the world's hardest working entrepreneurs, are the engine of the "Tiger Economies" of South Asia, transforming Taiwan, Hong Kong, Singapore, and even Thailand and Malaysia. In the bustle of international business deals, says one local financial writer, every key player knows all the others. Lippo is a rising power in Hong Kong, for instance, where it recently sold half of its Hong Kong Chinese Bank to a corporation controlled by the People's Republic of China. (In the mid-80's, Riady owned the bank jointly with Little Rock's Jackson Stephens.) Liem has a partnership in Hong Kong with the Malaysian-Chinese developer Robert Kuok, who was named by Peking to the local committee overseeing the transition of the territory to Chinese control. The business and family connections of the "Bamboo Network" extend from Taiwan to Thailand...But it's not simply ethnic ties and hard work that make figures like Liem so successful. The Chinese word for the secret is guanxi, influence with government officials. Liem's ties with the Indonesian generals began when he smuggled food, medicine, and possibly arms to their troops in the late 1940's war for independence. In the '60's he was quartermaster for a commander in central Java named Suharto, who was temporarily suspended because higher-ups questioned his extensive business dealings. As Suharto's business manager then and now, Liem is careful to make a place in his deals for the general's relatives...(43)

Huang, 51, is a native of Taiwan who came to the United States in 1969 as a graduate student in business administration at the University of Connecticut. Naturalized in 1976, he worked for several American banks before joining the Lippo Group in 1985.... He worked for Lippo in Hong Kong in 1985 as head of its World Banking Unit, a job which included acting as Far Eastern representative for Little Rock's Worthen Bank and director of international banking for the Hong Kong Chinese Bank Ltd., jointly owned by the Riadys and Jackson Stephens. After the collapse of the Riadys' Little Rock venture, Huang returned to the U.S. to manage their California acquisition, The Bank of Trade (later renamed Lippo Bank California). Huang's subsequent career raises the question for whom he really worked. In 1989 he left Los Angeles for New York to become general manager of the Bank Central Asia. Although Mochtar Riady made his name at BCA and still served on its board, it is owned by Liem Sioe Liong's Salim Group. In the same year, Huang switched back to Lippo Bank California, where he stayed until taking a posting to the Commerce Department in 1994. The confusion about Huang's employment shows up in his extensive list of personal political contributions from 1989 on. Through 1989, Huang identified himself as an employee of Bank Central Asia in his heavy schedule of campaign giving. .... From 1990 on, Huang mainly called himself an executive of Lippobank or Bank of Trade. Yet as late as 1993 he appears as an agent for Bank Central Asia. Was Huang still working for both Riady and Liem, or were the empires of the two tycoons as separate as they were telling American bank regulators? ....(43)

If Huang served two masters before joining the government, at Commerce he may have served three or more. He was already a prodigious fundraiser while at Lippo, receiving a seat on the Democratic National Committee even though, as he told reporters, he was registered as an independent. To what extent did he mingle political fundraising with his official duties at Commerce? Was he involved in policy decisions that affected his former employers? These are questions that might also have been asked of the late Ron Brown, who may also have blurred the boundaries in his transition from Democratic National Committee chairman to Commerce Secretary. The Huang trail may lead investigators to the cache of files removed from the Commerce Department after Secretary Brown's death and stored in a safe at the Small Business Administration. Clinton administration spokesmen have been at pains to minimize Huang's duties at Commerce. In spite of his title as Principal Deputy Assistant Secretary for International Economic Policy, they say his job was strictly routine. "His principal duties were administrative, managerial, handling budget, personnel and routine briefing materials," Anne Luzzato of Commerce told the Washington Post. Huang has said that he recused himself from Indonesian issues. Yet during his year and a half at Commerce, from July 1994 to December 1995, he had the clearance to make or monitor policy on a range of issues intensely interesting to Lippo and other potential donors. (43)

But the biggest issues for the Riadys didn't concern Indonesia. Mochtar Riady has personally taken the lead in opening trade with Vietnam. In September 1993, as chairman of the Asian Bankers Association he led a delegation to Vietnam co-hosted by the Vietnam State Bank. Lippo also opened a fashionable business center in Saigon, now called Ho Chi Minh City. In addition to the political sensitivity for Clinton, Commerce Secretary Brown had weathered charges in 1993 that the Vietnam government had paid him $700,000 to help lift the U.S. trade embargo. Nevertheless, the U. S. moved apace in 1995 to exchange ambassadors and end the embargo. ...(43)

The White House blinked at a crackdown on veterans of the Tiananmen Square protests, and more dangerously, it turned a blind eye to Chinese help for Pakistan's attempt to build nuclear bombs and ballistic missiles. If these were major issues for the U.S., they meant billions in business for the Bamboo Network, and even the future of their way of life. Huang had the security clearance to be a strategic listening post well worth millions in campaign contributions. Even the circumstances of his leaving Commerce underscore his importance. ....Whatever Huang may have done for the Bamboo Network, he continued to have support from American politicians. If the overseas Chinese billionaires wanted to buy influence in the U.S., plenty of people around Bill Clinton were more than willing to sell it. Huang went from Commerce to the Democratic National Committee as vice chairman for fundraising. The Lippo scandal broke in October largely as a result of his exploits in raising $4 million. Only later, and as slowly as the White House could manage, did it emerge how closely he worked with Clinton's people. Secret Service logs, leaked by someone hostile to Clinton, showed that Huang visited the Executive Mansion fifty or so times during the first nine months of 1996, sometimes staying for two or three hours. The White House has refused to divulge who had authorized his visits. This level of access by any fundraiser may violate federal election law, but in the case of Huang it suggests that White House aides were his willing abettors. As the scandal broke, the extent of this complicity showed starkly in the attempts to shield Huang from the press....(43)

 

 

BEI ELECTRONICS

Mr. Giroir began serving as a Director in June 1997 prior to the Distribution and spin-off of the Company from Electronics in September 1997. He was a director of Electronics from 1978 until his resignation as a result of the Distribution. He served as the Secretary of Electronics from 1974 to early 1995. He is currently a member of the law firm of Giroir, Gregory, Holmes & Hoover, plc. From 1965 to 1988, Mr. Giroir was a member of Rose Law Firm, a Professional Association. Mr. Giroir holds a B.A. and an L.L.B. from the University of Arkansas and an L.L.M. from Georgetown University.

"The company and its technologies fall under government regulation and export restrictions. Net sales from continuing operations to customers in foreign countries amounted to $17,392,000, $11,998,000 and $10,938,000 in fiscal years 1998, 1997 and 1996, respectively. In fiscal years 1998, 1997 and 1996, foreign sales did not exceed 10% of consolidated net sales in any individual geographic area. ." [Jim Robinson]

"Net sales to the U.S. Government for the Sensors and Systems segments products amounted to $21,046,000, $22,479,000 and $25,986,000 in fiscal years 1998, 1997 and 1996, respectively. Net sales to the U.S. Government for the discontinued Defense Systems segment were $3,153,000, $8,323,000 and $41,219,000 for fiscal years 1998, 1997 and 1996, respectively. ." [Jim Robinson]

DIGITAL MICROWAVE CORP... ANNUAL REPORT… FOR THE FISCAL YEAR ENDED MARCH 31, 1996 …Mr. John O'Neil joined the Company as Vice President, Personnel in May 1993. Mr. O'Neil was Vice President of Personnel and Administration of BEI Electronics, Inc., a defense electronics firm, from January 1989 to April 1993….The Company also has sales and/or service centers in the United Kingdom, Germany, Sweden, Mexico, Colombia, China, Singapore, and the Philippines. In addition, the Company uses independent agents, distributors and international resellers worldwide in concert with its direct sales operation....The Company has also had significant sales in China, Malaysia, India, and the Philippines providing solutions to mobile communications network operators....We also expanded our facility in Manila, and established a Beijing sales office, as well as a joint service and support facility with the Beijing Telecommunication Equipment Factory…." (7)

 

CRYOGENIC SOCIETY OF AMERICA

Website http://www-csa.fnal.gov/ "…The purpose and objectives of the Cryogenic Society of America are to: -encourage the dissemination of information concerning low temperature processes and techniques - bring together those in all disciplines concerned with the applications of low temperature technology - promote research and development of low temperature processes by meetings, professional contacts, papers, reports and publications -increase public awareness of the usefulness of cryogenic technology…"

"…History CSA was formed in 1964 and derived most of its initial members from the aerospace industry. However, the membership is now diversified to include engineers, physicists, other scientists, sales representatives, technicians, all levels of management, systems designers and operators and a host of other occupations... with a wide range of academic degrees and from more than 12 countries. In 1971, the Helium Society was incorporated into CSA…."

"Chairman: J Patrick Kelley, Los Alamos National Laboratory… International Affairs: Stanislaw Augustynowicz …Directors: …Louis Salerno, Chairman, Northern California Chapter, NASA-Ames Ali Kashani, Founding Chairman, Northern California Chapter, Atlas Scientific/NASA Ames Sidney Yuan, Founding Vice-Chair, Northern California Chapter, BEI Electronics …"

 

 

BEI TECHNOLOGIES

"…BEI Technologies, Inc. was created on September 27, 1997 through a spin-off from BEI Electronics, Inc. The principal continuing business within BEI Technologies is that of BEI Sensors & Systems Company, Inc., an established manufacturer (for 20+ years) of sensors, motors and related products for automation. Revenues exceed $100 million; cash flow is positive; the Company addresses very large markets and growth prospects are strong. The Company's core products are highly engineered components and subsystems used by more than 6,000 customers in factory and office automation machinery, medical devices, military and aerospace systems, and automotive and transportation equipment. Commercial sales have grown at a 12% compounded rate since 1992. The Company's brand names are well recognized in their respective markets, and the Company possesses a portfolio of significant technological capabilities that are being renewed and expanded through ongoing research and development….." (6)

BEI Technologies Holds Annual Meeting of Stockholders; Fiscal 1999 Goals are Addressed

3/19/99 PR Newswire "…held its Annual Meeting of Stockholders at its Duncan Electronics Division in Tustin, Calif. ….. BEI Technologies, Inc., through its principal subsidiary BEI Sensors & Systems Company, is an established manufacturer of electronic sensors and motion control products used for factory and office automation, medical and scientific equipment, military, aviation and space systems, and transportation equipment including automobiles, trucks and off-road equipment. BEI has recently expanded its production of micromachined quartz yaw rate sensors used in advanced vehicle stability control systems. BEI also manufactures electronic steering wheel position sensors, seat-memory modules, throttle position and pressure sensors and other devices used in automotive systems. GyroChip(R) is a registered trademark of BEI Sensors & Systems Company…."

SEC Information (37)

ACCESSION NUMBER: 0000950005-97-000992

CONFORMED SUBMISSION TYPE: 10-K

PUBLIC DOCUMENT COUNT: 4

CONFORMED PERIOD OF REPORT: 19970927

Directors:

Mr. Crocker began serving as a Director in June 1997 prior to the Distribution and resulting spin-off of the Company from Electronics in September 1997. He was a founder of Electronics and has served as Chairman of the Board of Directors of Electronics since October 1974 and Chairman of the Board of Directors of Technologies since October 1997. Mr. Crocker assumed the positions of President and Chief Executive Officer of Technologies, effective October 1, 1997, after resigning as President and CEO of Electronics as a result of the Distribution. Mr. Crocker served as President of Crocker Capital Corporation, a Small Business Investment Company, from 1970 to 1985, and as General Partner of Crocker Associates, a venture capital investment partnership, from 1970 to 1990. He currently serves as a director of Fiduciary Trust Company International, Pope & Talbot, Inc. and KeraVision. Mr. Crocker holds a B.S. from Stanford University and a M.B.A. from the University of California, Berkeley

Mr. Wrench began serving as a Director in June 1997 prior to the Distribution and resulting spin-off of the Company from Electronics in September 1997. He was Senior Vice President and Chief Financial Officer of Electronics from July 1993 until his resignation as a result of the Distribution. He currently holds these same positions with Technologies. He served as a Director of Electronics since February 1986, and continues to serve as a director of both Electronics (now named BEI Medical Systems Company, Inc.) and Technologies. From April 1985 to July 1993, he served as Vice President of Electronics and President and Chief Executive Officer of BEI Motion Systems Company, Inc., then a wholly owned subsidiary of Electronics that is now a part of Sensors & Systems. Other experience includes twenty years with Hughes Aircraft Company. Mr. Wrench holds a B.A. from Pomona College and a M.B.A. from the University of California, Los Angeles.

Dr. Madni began serving as a Director and as a Vice President of the Company in June 1997 prior to the Distribution and resulting spin-off of the Company from Electronics in September 1997. Dr. Madni was appointed President of Sensors & Systems in October 1993, which was formed by the consolidation of BEI Motion Systems Company and the BEI Sensors and Controls Group, of which Dr. Madni had been President since October 1992. Prior to joining BEI in 1992, he served for 17 years in various executive and technical management positions with Systron Donner Corporation, a manufacturer of avionics and aerospace sensors and subsystems. He was most recently Chairman, President and CEO of Systron Donner Corporation, a subsidiary of Thorn/EMI. Dr. Madni's degrees include a Bachelor of Science and Master of Science in Engineering from the University of California, Los Angeles and a Ph.D. in Engineering from California Coast University. He is also a graduate of the Program for Senior Executives from the Massachusetts Institute of Technology, Sloan School of Management. He is a fellow of the Institute of Electrical and Electronics Engineers.

Mr. Brooks is currently an independent financial consultant. He began serving as a Director in June 1997 prior to the Distribution and resulting spin-off of the Company from Electronics in September 1997. From 1987 until his resignation as a result of the Distribution, he served as a director of Electronics. From 1987 to 1990 he served as President of SFA Management Corporation, the managing general partner of St. Francis Associates, an investment partnership. He currently serves as a director of Longs Drug Store Corporation, Granite Construction, Incorporated and the Western Farm Credit Bank, a private company. Mr. Brooks holds a B.S. from Yale University and a M.B.A. from the University of California, Berkeley.Mr. Brown began serving as a Director in June 1997 prior to the Distribution and resulting spin-off of the Company from Electronics in September 1997. He served as a director of Electronics from October 1974 until his resignation as a result of the Distribution. Mr. Brown served as President and Chief Executive Officer of Electronics from October 1974 until July 1990. Mr. Brown served from 1971 until 1974 as Executive Vice President and General Manager of Baldwin Electronics, Inc., a subsidiary of D.H. Baldwin Company and the predecessor of Electronics. Mr. Brown holds a B.S.E.E. from the University of Oklahoma.

Mr. Giroir began serving as a Director in June 1997 prior to the Distribution and resulting spin-off of the Company from Electronics in September 1997. He was a director of Electronics from 1978 until his resignation as a result of the Distribution. He served as Secretary of Electronics from 1974 to early 1995. He is currently of counsel of the law firm of Giroir, Gregory, Holmes & Hoover, PLC. Mr. Giroir is also President of Arkansas International Development Corporation II, LLC. Mr. Giroir holds a B.A. and an L.L.B. from the University of Arkansas and an L.L.M. from Georgetown University.

Dr. Howard began serving as a Director in June 1997 prior to the Distribution and resulting spin-off of the Company from Electronics in September 1997. He was a director of Electronics from December 1992 until his resignation as a result of the Distribution. He is currently an independent consulting engineer in microelectronics and technology-based business planning. From 1987 to 1990, Dr. Howard served as Senior Fellow of the National Academy of Engineering and, prior to that time, held various technical and management positions with Motorola, Inc., most recently as Senior Vice President and Director of Research and Development. He currently serves as Chairman of RAMTRON International Corp. and as a director of Credence Systems, Inc., VLSI Technologies, Inc., and Xilinx, Inc. Dr. Howard holds a B.E.E. and a M.S. from Cornell University and a Ph.D. in electrical engineering and computer sciences from the University of California, Berkeley.

Dr. Mehrabian began serving as a Director in June 1997 prior to the Distribution and resulting spin-off of the Company from Electronics in September 1997. He was a director of Electronics from June 1997 until his resignation as a result of the Distribution. He is Executive Vice President and Executive in charge of the Aeronautics, Electronic and Industrial segments of Allegheny Teledyne, Inc. From 1990 through June 1997, he was president of Carnegie Mellon University. He is an internationally recognized materials scientist, with numerous awards including membership in the National Academy of Engineering. He serves on the boards of directors of Allegheny Teledyne, Inc., Mellon Bank Corporation, Mellon Bank, N.A., and PPG Industries. Dr. Mehrabian holds B.S. and Sc.D. degrees from Massachusetts Institute of Technology (MIT). Staggered Board of DirectorsThe Company has a staggered Board of Directors, which may have the effect of deterring hostile takeovers or delaying changes in control of management of the Company.

For purposes of determining their term of office, directors are divided into three classes, with the term of office of the Class II directors to expire at the 1999 annual meeting of stockholders, and the term of office of the Class III directors to expire at the 2000 annual meeting of stockholders and the term of office of the Class I directors to expire at the 2001 annual meeting of stockholders. Class II consists of Mr. Giroir, Dr. Madni and Mr. Wrench; Class III consists of Mr. Brooks, Dr. Howard and Dr. Mehrabian and Class I consists of Mr. Brown and Mr. Crocker. Directors elected to succeed those directors whose terms expire will be elected to a three year term of office.


All directors hold office until the next annual meeting of stockholders at which their terms expire and until their successors have been duly elected and qualified. Executive officers serve at the discretion of the Board. There are no family relationships between any of the officers and directors.

Executive Officers

In addition to Messrs. Crocker and Wrench and Dr. Madni, whose positions with Technologies, experience and educational background are described under Directors above, the following persons are also Executive Officers of Technologies

Dr. Wan is Vice President of Engineering for Sensors & Systems and is President of Sensors & Systems subsidiary, SiTek Inc. Dr. Wan served as Vice President, Corporate Technology for Electronics from April 1991 until the Distribution in September 1997. Dr. Wan resigned from his current position with Electronics immediately prior to the Distribution and is now Vice President, and Chief Technical Officer for Technologies and a director of Electronics (now named BEI Medical Systems Company, Inc.). From 1984 until 1990, Dr. Wan served as Vice President, Engineering for Systron Donner Corporation. Between 1979 and 1984, he held various technical and general management positions with Systron Donner Corporation. From 1968 to 1979, he served as Chief Executive Officer for Sycom, Inc. a commercial electronics company which he founded. From 1964 to 1968, he worked for Hughes Aircraft Company, where he headed the Radar Systems Section of the Hughes Ground Systems Group. In 1962, Dr. Wan and two other professors established an Engineering School at University of California, Santa Barbara, where he also taught Engineering. Dr. Wan holds B.S., M.S. and Ph.D. degrees in Engineering and Applied Sciences from Yale University.

Mr. Corr became Secretary, Treasurer and Controller of Technologies in September 1997 and held these same positions with Electronics prior to the Distribution in September 1997. Mr. Corr resigned from his positions with Electronics immediately prior to the Distribution. Mr. Corr was named Secretary of Electronics in February 1995 and served as Controller from November 1989 and as Treasurer from November 1987 until the Distribution. From 1978 to 1987, he was employed by AMPEX Corporation, an electronics and magnetic media company, in various financial positions. From 1975 to 1978, he was an auditor with Arthur Andersen LLP. Mr. Corr received a B.B.A. from Loyola University and is a Certified Public Accountant in the State of California.

 

 

 

BEI TECHNOLOGIES INC (BEIQ) Quarterly Report (SEC form 10-Q) 5/12/99

…Net sales for the second quarter of fiscal 1999, ended April 3, 1999, increased $8.2 million to $39.0 million or 26.6% from $30.8 million during the same period in fiscal 1998. Sales volume increased primarily in commercial products to domestic and foreign automotive customers. In addition, sales volume benefited from increased international sales of traditional motion control sensors produced by a French company acquired by the Company during the fourth quarter of fiscal 1998. Sales related to government contracts recovered from a lower level in the same period of the prior fiscal year. This sales increase was offset, in part, by declines in domestic commercial sales of traditional motion control products, some of which had achieved historically high levels of sales in the second quarter of fiscal 1998…."

Item 4. Submission of Matters to Vote of Security Holders

(a) The Annual Meeting of Stockholders of the Company (the "Meeting") was held on March 6, 1998. At the Meeting, C. Joseph Giroir, Asad Madni and Gary D. Wrench were re-elected to the Company's Board of Directors for a three- year term expiring at the Company's 2002 Annual Meeting.

Shares voted:

                           	For                	Withheld
                		 ---------------------------------------
              Giroir     	6,735,449              	165,222    
              Madni      	6,739,533              	161,138      
              Wrench     	6,738,449              	162,222       

(b) In addition, the following directors continued in office as directors of the Company following the Meeting: Richard M. Brooks, William G. Howard, Jr. and Robert Mehrabian (until the Company's 2000 Annual Meeting); Charles Crocker and George S. Brown (until the Company's 2001 Annual Meeting).

INSIDER TRADES:

"…C Joseph Giroir Jr 4/30/99 Exercised Option 10,735 shares of common stock at 4.08…"

MAJOR SHAREHOLDERS:

Mr. Charles Crocker(3)............................. 		1,557,904 	22.2%

San Francisco, CA

Brinson Partners, Inc.(4).......................... 614,600 8.8%

Chicago, IL

The UBS Brinson Division is responsible for the institutional asset management businesses of UBS AG and includes two operating business areas - UBS Brinson and Phillips & Drew. UBS Brinson operates as one integrated investment management organization. UBS Brinson is the name used outside North America while Brinson Partners continues as the primary name within North America. Phillips & Drew, the other business area within the Division, remains an independent asset management firm located in London. The UBS Brinson Division manages over USD 390 billion of institutional assets, including over USD 265 billion of discretionary institutional assets on an active basis and mutual fund assets for UBS Private Banking which total over USD 125 billion. In addition, UBS Brinson acts as the investment advisor to UBS Private Banking. UBS Brinson manages investment portfolios for corporations, public funds, endowments, foundations, central banks and other investors located throughout the world. The Division employs over 1500 people in offices worldwide.

Dimensional Fund Advisors, Inc.(5)................. 431,000 6.1%

Santa Monica, CA 90402-1005

Dimensional strives to bring academic research to the world of investing. The firm maintains close ties with leading academics, many of whom design Dimensional's products. The academics often share in the revenue from products, which gives them incentive to create better products and continually update their research. Clients are involved in this process. The firm acts as an intermediary between the academics and the clients, working to research solutions to client investment needs. This creates a "feedback loop" where everyone benefits: The clients have constant access to the latest investment research and the academics focus their research on the relevant concerns of the practicing investor.

 

So Gen International Fund, Inc.(6)................. 427,000 6.1%

New York, NY 10020

August 13, 1998 -- Liberty Financial is gobbling up asset managers, while Societe Generale has decided it doesn't want to be in the retail asset management business anymore. Liberty agreed today to acquire Societe Generale Asset Management Corp. from the French bank for $216 million. SGAM is led by Jean-Marie Eveillard, a long-time member of the elite in the asset management business. Eveillard has overseen the U.S. fund business for SoGen since 1978. The firm now operates four funds, the Overseas Fund, Gold Fund, SoGen Money Fund, and the flagship International Fund. The International fund, which contains both foreign and domestic assets, has struggled somewhat in recent years with low returns and customer losses.

Kennedy Capital Management, Inc.................... 424,100 6.1%

St. Louis, MO

The US equity market is extremely efficient because there are so many smart, motivated investment professionals, all with almost equal access to excellent information. However, many small companies do not understand how investment professionals make their decisions. Often information on these firms is missing or inaccurate. Often they lack coverage by analysts. Furthermore, most institutional small-cap investors screen for investment candidates using the standard databases. If information is wrong or inaccurate good stocks will be overlooked. KCM screens for fast growing investment candidates that lack institutional sponsorship and analyst coverage. In addition, KCM's process is often proactive. After making the investments for our clients, we will work with these firms, when appropriate, to get accurate information into the institutional databases and/or to assist the firms in achieving analyst coverage.

Mr. Richard M. Brooks(7)........................... 10,000 *

Mr. George S. Brown(7)(8).......................... 96,752 1.4%

Mr. Robert R. Corr(7).............................. 28,700 *

Mr. C. Joseph Giroir, Jr.(7)....................... 10,000 *

Dr. William G. Howard, Jr.(7)...................... *

Dr. Asad M. Madni (7).............................. 60,267 *

Dr. Robert Mehrabian( )............................ *

Dr. Lawrence A. Wan(7)............................. 39,250 *

Mr. Gary D. Wrench(7)(9)........................... 120,419 1.7%

All executive officers and directors

as a group (10 persons)(10)....................... 1,923,292 27.5%

*Less than one percent.

( 1) This table is based upon information supplied by officers, directors and principal stockholders of the Company and upon any Schedules 13D or 13G filed with the SEC. Unless otherwise indicated in the footnotes to this table and subject to community property laws where applicable, the Company believes that each of the stockholders named in this table has sole voting and investment power with respect to the shares indicated as beneficially owned.

(2) Applicable percentages are based on 7,002,543 shares outstanding on June 1, 1997, adjusted as required by rules promulgated by the SEC. Outstanding shares do not include 934,424 shares held as Treasury Stock as of June 1, 1997.

(3) Includes 400,000 shares held by Charles Crocker as trustee for his adult children, as to which Mr. Crocker disclaims beneficial ownership. Also includes 54,936 shares held in a trust of which Mr. Crocker is beneficiary and sole trustee. Mr. Crocker, has the power to vote and dispose of the shares in each of these trusts.

(4) Represents shares held by Brinson Partners, Inc. ("Partners") which has the sole power to vote and dispose of the shares held by it and shares held by Brinson Trust Company ("Trust") which has the sole power to vote and dispose of the shares held by it. Trust is a wholly-owned subsidiary of Partners which is a wholly-owned subsidiary of Brinson Holdings, Inc. ("Holdings"). Holdings may be deemed to share the power to vote and dispose of all shares held by Partners and Trust, and Partners may be deemed to share the power to vote and dispose of all shares held by itself or Trust. Therefore, both Holdings and Partners each may be deemed a beneficial owner of all the shares held by Partners and Trust.

(5) Represents shares held by Dimensional Fund Advisors, Inc., DFA Investment Dimensions Group Inc. and The DFA Investment Trust Company. Officers of Dimensional Fund Advisors, Inc. have sole power to vote and dispose of shares beneficially owned by it, including shares held by DFA Investment Dimensions Group Inc. and The DFA Investment Trust Company.

(6) Represents shares held by So Gen International Fund, Inc., Socgen International SICAV and Ohio National Fund, Global Contrarian, each of which shares the power to vote and dispose of such shares with Societe Generale Asset Management Corp.

(7) Includes shares which certain officers and directors have the right to acquire within 60 days after the date of this table pursuant to outstanding options as follows: Mr. Brooks, 10,000 shares; Mr. Brown, 39,624 shares; Mr. Corr, 16,000 shares; Mr. Giroir, 10,000 shares; Dr. Madni, 20,000 shares; Dr. Wan, 20,000 shares; Mr. Wrench, 78,400 shares; and all executive officers and directors as a group, 249,258 shares. See "The Distribution--Other Consequences of the Distribution--Stock Options" for information regarding the conversion of outstanding options to purchase Electronics Common Stock into options to purchase Technologies Common Stock. Also includes shares that certain officers and directors have the right to vote pursuant to unvested portions of restricted stock awards as follows: Mr. Corr, 9,488 shares; Dr. Madni, 28,887 shares; Dr. Wan, 13,902 shares; Mr. Wrench, 16,743 shares; and all executive officers and directors as a group, 85,789 shares.

(8) Includes 57,128 shares held in a revocable trust of which Mr. Brown and his wife, Mildred S. Brown, are beneficiaries and sole trustees. Mr. and Mrs. Brown, acting alone, each has the power to vote and dispose of such shares.

(9) Includes 25,276 shares held in a revocable trust of which Mr. Wrench and his wife, Jacqueline Wrench, are beneficiaries and sole trustees. Mr. and Mrs. Wrench, acting alone, each has the power to vote and dispose of such shares. Also includes 16,743 shares which Mr. Wrench, acting alone, has power to vote and dispose of

(10) Includes the shares described in the Notes above.

 

SUBSIDIARIES OF BEI TECHNOLOGIES

BEI Sensors & Systems Delaware

Company, Inc.

BEI International, Inc. Delaware need info

BEI Export Sales Company, Inc. U.S. Virgin Islands need info

BEI Properties, Inc. Arkansas need info

SiTek, Inc., a BEI Company Delaware

Defense Systems Company, Inc. Delaware

BEI Sensors, S.A.S. France need info

BEI Tactical Defense Systems, Inc. Delaware need info

Micro Polymer Systems, Inc. Delaware need info

BEI Ideacod, S.A.S. France need info

 

BEI Sensors & Systems Company

"…BEI Sensors & Systems Company is comprised of a group of closely affiliated divisions with synergistic sensing, actuating and measurement products and technologies. Encouraged to operate independently, each division is able to remain close to its customers' special current and future requirements. With a lean parent structure, the divisions of BEI are free to address dynamically evolving technology and respond rapidly to new market demands. (10)

"…Extremely advanced tracking, pointing and reporting systems, developed under military aegis, led to ultraprecise rotary position reporting code disks. BEI code disks are still used to calibrate the National standards." (10)

"…Recent technological advances include ASIC chips combining sensors with signal processing and intelligence. These "smart" sensors are one-tenth the size of those available just a few years ago, and some versions house complete microprocessors. BEI has made a substantial investment in developing unique inertial rate sensors utilizing solid state quartz. This new proprietary technology is an example of BEI's leading-edge capabilities." (10)

 

FOR IMMEDIATE RELEASE CIV WEDNESDAY, DECEMBER 6, 1995 (202) 616-2765
TDD (202) 514-1888 CALIFORNIA FIRM PAYS U.S. $1 MILLION TO SETTLE CLAIMS WASHINGTON, D.C. -- BEI Sensors and Systems Inc. has paid the United States $1 million to resolve claims it failed to properly test devices used to measure the gravitational pull on Air Force planes and pilots, the Department of Justice announced today. Assistant Attorney General Frank Hunger of the Civil Division said the agreement resolved part of a suit originally filed May 12, 1993, against the San Francisco, California, company by Chandabot Kim, a former employee, under the qui tam provisions of the False Claims Act in U.S. District Court in San Francisco. The United States intervened in part in the suit in August 1995. The settlement pertains to that portion of the case in which the United States intervened and settles specific claims that were first raised by the United States when it intervened and not raised in the original suit. The Department said BEI failed to conduct proper temperature tests on one model of the devices, called accelerometers, from 1989 through 1992 and also failed to perform a random 10 percent test of another model it manufactured and refurbished from 1987 through 1994. The accelerometers measured the pressure exerted on the body and or equipment when the planes accelerated, banked or made high-speed turns. Among the aircraft that used the devices was the F-15 fighter. Under the qui tam provisions, a private party can file a suit on behalf of the United States and recover a portion of any recovery

 

THE SEVEN DIVISIONS OF BEI Sensors & Systems Company

Encoder Systems Division
Duncan Electronics
Systron Donner Inertial Division
Industrial Encoder Division
Kimco Magnetics
Edcliff Instruments
Precision Systems and Space

PRECISION SYSTEMS AND SPACE DIVISION

The only division of BEI Sensors and Systems located in Little Rock, Arkansas [Alamo-Girl]

Space: Payload Pointing, Payload Instrumentation, Solar Array Pointing, Antenna Pointing, Dual Spin
Attitude Control, Scan Mechanisms

Tactical Military; Sighting Systems, Laser Designators, Battlefield Radar, Satellite Communications, Turret/Gun Position, Shipboard Radar, Airborne Radar, Missile Launchers

Pointing and Tracking: Radar,Optical Tracking, Astronomical Telescope, Lab Instruments

The High Technology Division in optical shaft encoders. Specialties include low power, light-weight, high-reliability encoders, encoded motors and systems for spacecraft; "ultra" high accuracy encoders and servo systems for tracking radar, optical tracking systems and astronomical telescopes; small-size and pancake encoder models for stringent military environments.

The Precision Systems and Space Division provides complete Control Systems, Gimbal Systems and Automated Test Systems where high accuracy or space environments are a requirement.

The Division is in compliance with MIL-I-45208, MIL-Q-9858 and NASA NHB 5300.4(1C) for quality assurance, NASA NHB 5300.4(F) for reliability and MIL-STD-454, MIL-STD-2000 and NASA 5300.4(3A-1) for workmanship.

PRECISION SYSTEMS AND SPACE DIVISION
P.O. Box 3838
Little Rock, AR 72203
Tel: (501) 851-4000
Fax: (501) 851-5476

"…NASA Administrator Dan Goldin examines an optical encoder during a February 19, 1998, visit to BEI Precision Systems and Space Division in Maumelle as (from left) BEI division Vice President Ron Roberts, Rep. Snyder, Astronaut Dr. Steven Hawley and BEI CEO Dr. Asad Madni look on. Optical encoders made by BEI are used in a variety of NASA projects. Snyder invited the NASA representatives to central Arkansas to visit schools and high-tech businesses …" (11)

Field Robotics Center, The Robotics Institute, Carnegie Mellon University David Wettergreen

"…Deepak Bapna, who was a doctoral candidate at Carnegie Mellon University (CMU) during the trek, led the communications system design team. Today, he is a division scientist at BEI-Precision Systems and Space Division in Maumelle, Arkansas. Mark Maimone was the postdoctoral robotics researcher who led the trek's software and navigation teams. He is now a machine vision researcher at NASA's Jet Propulsion Laboratory. A doctoral candidate for robotics at CMU during the project John Murphy led the panospheric system and science center operations. Nomad project manager Eric Rollins led the robot's mechanical design team. He is now heading the configuration and design efforts for CMU's Antarctic meteorite robot. The director of the Field Robotics Center at CMU, William Whittaker was the Nomad project's principle investigator…." (12)

BEI Technologies, Inc. (ticker: BEIQ, exchange: Nasdaq) News Release - Tuesday, August 11, 1998


"…its principal subsidiary, BEI Sensors & Systems Company, Inc., has purchased Ideacod, S.A., a Strasbourg, France manufacturer of electronic sensors for factory automation. Terms of the all-cash purchase, which was made from a group of private investors, were not disclosed…. Madni stated, ``This acquisition provides BEI with a new gateway into Europe. Ideacod's products are well suited to the European market and are well regarded by industrial machine builders and automation systems customers in Western Europe." (6)

BEI Technologies, Inc. (ticker: BEIQ, exchange: Nasdaq) News Release - Monday, November 10, 1997

"…announced a marketing and technology cooperation agreement between its principal subsidiary, BEI Sensors & Systems Company, and the Carl Zeiss Group, a German optics company. The agreement grants BEI Sensors & Systems Company exclusive rights to market the Zeiss line of linear optical encoders and optical components in North America, according to Charles Crocker, president and chief executive officer of BEI Technologies. Crocker stated, "We have been looking for a strong linear product line to complement out rotary encoders and are excited about this alliance with Carl Zeiss. Based on out product strength and combined brand recognition, we are enthusiastic about our ability to establish a prominent position in the marketplace with out offering of linear encoders from BEI, with optics by Carl Zeiss." …" (6)

Carl Zeiss Perwakilan Indonesia
(Indonesia Representativ Office)
Wisma Dharmala Sakti, Annexe Floor 7
Jl. Jenderal Sudirman 32
Jakarta 10220 (13)
Other locations: Hong Kong, Japan, Taiwan, Singapore, Thailand, South Korea [Alamo-Girl

 

"BEI Precision Systems and Space Division designs and manufactures both militarized space versions of optical encoder, scanner and trackball components and subsystems for use in armoured vehicles, spacecraft, tracking radar and avionics. Combining high-tech ingenuity with 50 years of practical engineering experience, BEI Precision Systems and Space Division is an intelligent defense partner. Precision and reliability are fundamental components of every motion sensing and motion control product we build. Our shaft angle encoders, rotary or oscillating scanners and ruggedized trackballs ensure exacting performance of advanced military equipment serving armed forces the world over. Read on for a list of the U.S. military and foreign programs that incorporate BEI’s intelligent product solutions." (18)

ABSOLUTE ENCODER APPLICATIONS BEI’s product range of absolute encoder applications include: Turret, Trunnion and Sight Position in Tanks and Armored Personnel Carriers - Radar Antennae Position - Missile Seeker Head - Ammunition Loading Systems

MAJOR PROGRAM EXPERIENCE FOR ABSOLUTE ENCODERS Absolute Encoders have been used on projects including Bradley, Avenger, Linebacker, M1A2, Korean K1, Canadian Reece, Swedish CV-90, Challenger, Breacher, GKN Warrior, AARM Missile and LAVIII.

INCREMENTAL ENCODER APPLICATIONS BEI’s Incremental Encoder applications include: Radar Antennae Position - Missile Seeker Head - Laser Range Finder for Army Personnel

MAJOR PROGRAM EXPERIENCE FOR INCREMENTAL ENCODERS Incremental Encoders have been used on the Phalanx, Peace Shield, Lantirn, Standard Missile and Stinger Missile.

SCANNER APPLICATIONS BEI’s Scanner applications include: IR Imaging Systems in Tanks and Armored Vehicles -Night Vision Equipment in Airplanes and Helicopters - Light Weight Launchers - Robotics in Hazardous Environments

MAJOR PROGRAM EXPERIENCE FOR SCANNERS BEI Scanners have been used on the F/A 18, M142 Bradley, LAV 105, UAV Flirs and various helicopters.

TRACKBALL APPLICATIONS BEI’s Trackball applications include: Cursor Position in Missile Targeting -Cursor Position in Communications Systems -Cursor Position in Air Reconnaissance

MAJOR PROGRAM EXPERIENCE FOR TRACKBALLS BEI’s Trackballs have been used on the AWACS (U.S., Euro, Indonesia), REACT and various shipboard stations.

BEI Precision Systems and Space Division,
BEI Sensors & Systems Company
1100 Murphy Drive
Maumelle
Arkansas 72113

DUNCAN ELECTRONICS

Duncan Electronics is a division of BEI Sensors & Systems Company, a diversified operating unit of BEI Technologies, Inc. Duncan began more than 30 years ago by designing and manufacturing precision potentiometers to stringent military and commercial requirements and continues now to serve as a major contributor to the capabilities, technologies and marketing strengths of BEI in new emerging markets.

Today, the company develops cost-effective and reliable "contact" and "non-contacting" sensors (position, indicating, resistive or voltage reading devices, including encoders) for a broad range of applications which includes automotive and heavy equipment, marine, industrial machine tool controls, robotics, instrumentation, avionics and consumer products. Duncan's products fill an important niche wherever there is a need for low-cost, accurate position measurements in an unusual or space-conscious location. (19)

Systron Donner Inertial Division

BEI Technologies, Inc. (ticker: BEIQ, exchange: Nasdaq) News Release - Tuesday, November 11, 199


7 "… its micromachined GyroChip sensor has been selected by Honeywell and Boeing for use in a modification of the rudder system of the current model Boeing 737 airplane. This solid state quartz gyroscope is manufactured by Systron Donner Inertial Division (SDID), a division of BEI's principal subsidiary, BEI Sensors and Systems Company, according to Charles Crocker, president and chief executive officer of BEI Technologies.…" (6)

Inertial Sensors for use in: Aircraft Flight Control, Helicopter Flight Control, Missile and Projectile Guidance, Unattended Guided Vehicle Navigation

For over 40 years Systron Donner Inertial Division (SDID) has been a leader in providing motion sensing devices and applications engineering expertise to Commercial and Military markets. SDID takes pride in its innovative designs of Linear Accelerometers and Angular Rotation Sensors which provide guidance and control capability for everything from missiles to commercial light and heavy aircraft. The development of a unique solid state quartz technology for inertial sensors gives SDID a competitive edge.

Recently, SDID has introduced a growing family of proprietary solid state rotation sensors and accelerometers that utilize quartz as the active sensing element. Combined into multi-axis packaged assemblies and as stand-alone components, this new sensor technology is employed in such diverse applications as helping to navigate autonomous industrial robots through automated warehouses, stabilizing communications antennae on ships and for diagnosis and treatment of mobility disorders such as Parkinson's disease. Micromachining techniques have made these inertial sensing products smaller, lighter and more accessible to commercial markets. (20)

 

SiTek, Inc., a subsidiary of BEI Technologies, Inc.

"…SiTek, Inc. a subsidiary of BEI Technologies, Inc., was formed in September 1997. SiTek specializes in silicon micromachined MEMS devices for automotive, industrial, aerospace and biomedical applications. SiTek was formerly known as the Microengineering Technology Center of BEI and was founded in 1992. SiTek's mission is two fold: 1.To explore new and emerging markets with MEMS technology 2.To advance the technical capabilities of BEI and leverage BEI's market position. SiTek Inc., is a subsidiary of BEI Technologies, Inc. Our sister company BEI Sensors and Systems, Inc. is comprised of 7 divisions with various areas of expertise. All divisions are available for collaboration and cooperation with SiTek Inc., bringing a great synergy to the BEI Technologies entity…." (9)

SiTek Laboratories AB was founded in 1976, at the Institute of Solid State Electronics at Chalmers University of Technology in Göteborg, Sweden, for commercial production of PSDs.[Position sensing detectors] During the first years the production was carried out by the founders working part time at the University. …. The beginning of the nineties brought a stabilisation of activities. This stabilisation, together with the fact that the market began to discover the product, forms the basis for the expansion of the company, 30 % increase in 1995 and 1996, and also of the new profile, the most obvious being the change of the name to SiTek Electro Optics AB in 1993, but more important was the continuing introduction of new and improved PSDs. (See below.) The most interesting of these was the patented PSD with build-in stray light eliminatation, the NT-PSD which was introduced in 1995….Applications using SiTek PSD: Non-contact distance measurement system, Optical spectrum analyzer, Position and motion measurement system, Alignment and leveling measurement system, Three-dimensional machine vision (contour mapping), Angle measurement system, Non-contact distance measurement system The system uses the technique of optical triangulation. By projecting a laser or a LED on a surface and then measuring the scattered light position by an optical system and a PSD, it is possible to determine the distance to the object. The distance can be measured with extreme precision and at high speed thanks to the outstanding linearity and resolution of the PSD. The ability of the PSD to operate with various light intensities makes the measurement system insensitive to ambient light. (15)

BEI Medical Systems Company

BEI Medical Systems Company (formerly BEI Electronics) makes medical devices for gynecology and other women's health fields. A device developed by the company to treat excessive uterine bleeding -- the HydroThermAblator -- is undergoing clinical trials in the US, but it is available on a limited scale in Europe. The company's products include catheters, disposable and reusable instruments, electrosurgery units, and endoscopes. BEI spun off its defense unit to focus on commercial markets, adopting the name of its medical products subsidiary in the process. It has also sold its Gynesys catheter infertility system and its HysteroSys products to Johnson & Johnson subsidiary Ethicon. (16) (17)

 

BEI DEFENSE SYSTEMS COMPANY, Inc.

(10K) On June 30, 1997, the Board of Directors of Electronics announced a formal plan to discontinue the operations of the Defense Systems segment. Accordingly, the results of operations of the segment have been presented as discontinued operations for all periods presented and the assets and liabilities of the segment have been segregated in the consolidated balance sheets. Previously, in September 1995, Electronics had reached a decision to exit the HYDRA 70 (H 70) rocket manufacturing line of business which made up a substantial portion of the Defense Systems segment. Additional products of the segment included weapons management systems and sales under a cost-plus fee advanced rocket development contract.

(10K)As result of the decision to exit the rocket line of business, the Company has incurred costs relating to employee severance and the closure and withdrawal from the leased facility in Camden, Arkansas and similar costs related to its owned facility in Euless, Texas. At the end of fiscal year 1996, the balance in the reserve account consisted of $374,000 and $500,000 for employee severance and facility closure costs, respectively. During fiscal year 1997, the Company accrued an additional $33,000 for employee severance costs. Costs incurred during the period for severance and facilities closure of $362,000 and $362,000, respectively, were charged against the reserve. The balance in the reserve at the end of fiscal 1997 consisted of $45,000 for employee severance and $138,000 for facilities closure costs. The remaining reserves were used during fiscal 1998. At the end of fiscal 1998, all inventory and equipment assets of the rocket business had been written off or disposed of and the operations of the Defense Systems segment had been shut down.

(10K) Basis of Presentation: BEI Technologies, Inc. ("Technologies" or the "Company") was incorporated on June 30, 1997 in the State of Delaware, as a wholly owned subsidiary of BEI Electronics, Inc. (Electronics). On September 27, 1997, Electronics distributed to holders of Electronics common stock one share of common stock of the Company for each share of Electronics common stock held on September 24, 1997 (the "Distribution"). In connection with the Distribution, Electronics transferred to Technologies all of the assets, liabilities and operations of its BEI Sensors & Systems Company, Inc. (Sensors & Systems) and Defense Systems Company, Inc. (Defense Systems) business segments. As further described in Note 2, on June 30, 1997, the Board of Directors of Electronics also approved a formal plan to discontinue the operations of its Defense Systems segment. The remaining operations of Defense Systems were discontinued as of July 4, 1998.

(10K)Contingencies and Litigation Claim against U.S. Government The Company believes that its subsidiary, Defense Systems Company (DSC), suffered substantial monetary damages due to actions of the U. S. Government in connection with the parties' H 70 contract in effect during the 1992-1996 timeframe. As a result, DSC filed a substantial claim before the Armed Services Board of Contract Appeals. Due to the uncertainties inherent in the formal claims process, the Company has not recorded any recovery of these claims in the accompanying financial statements.

BEI Defense Systems Company (DSC) has over 40 years experience in electronics manufacturing for industrial, medical and military applications…DSC's commercial division offers Electronics Manufacturing Services (EMS) from consignment to complete turnkey in our secure 72,000 square feet facility which is electrostatic discharge (ESD) protected. DSC manufactures and markets weapons control systems

to the U.S. Government, U.S. Prime Contractors and approved foreign customers through its defense division Euless, Texas [links to BEI Technologies] (14)

BEI Defense Systems Company*, Euless, Texas, is being awarded a $5,693,282 firm fixed price contract for various spare parts for the AH-1 Cobra Helicopter. Work will be performed in Euless, Texas, and is expected to be completed by September 15, 1997. Contract funds will not expire at the end of the current fiscal year. This is a sole source contract initiated on March 20, 1996. The contracting activity is the U.S. Army Tank- Automotive & Armaments Command, Warren, Michigan (DAAE20-96-C- 0309). (8)

 

GIROIR – CHINESE - DEMOCRATS

"Sullivan also testified to the Clinton's personal involvement in the hiring of John Huang at the Democratic National Committee. Beginning in the spring of 1995, Lippo Group agents (and Arkansas Clintonites) Joe Giroir and Mark Middleton began pressuring the DNC to hire their man Huang out of the Commerce Department for a fundraising job. The DNC resisted, likely because they already knew that Huang was a bad apple…." (21)

"In 1985, Maria Haley and another Asian, John Riady arranged a trip to the Far East for governor Clinton. Riady was in Arkansas working for Worthen Bank, which his family's Lippo Group, partly owned. Lippo was a $6 billion conglomerate, that recently gave more than $1 million into president Clinton's election campaigns. In Hong Kong, president Clinton and Hillary Rodham Clinton with a dozen businessmen and officials, were lavishly entertained by the Riady's. The escort on that occasion was John Huang, Riadys' top man in America Later, president Clinton appointed Huang to a top position in the Commerce Department and the DNC. Following that Asia trip and trade mission, Arkansas opened state offices in Tokyo and Taipei. Little Rock attorney Joseph Giroir, a director of Worthen Bank and Hillary Rodham Clinton's boss at the Rose Law Firm, began making deals in Asia for the Arkansas firms of Tyson Foods Inc. and Wal-Mart Stores Inc. At the same time,a close friend of governor Clinton, attorney Mark Grobmyer, the law partner of Maria Haley's husband, opened the Mid-South International Trade Center. Following the 1992 presidential election, many of the Arkansans followed Bill and Hillary Rodham Clinton to Washington. Inside the White House, the Arkansas internationalists had a pipeline to Maria Haley, who worked in the personnel office, and to Mark Middleton, a young Little Rock lawyer who was a deputy to president Clinton's first chief of staff, Mack McLarty. Haley and Middleton were both well known to president Clinton's Arkansas supporters, who donated $4 million to his 1992 campaign…." (22)

"Pennsylvania Four prominent Asian-Americans, at the center of the political money scandal, funneled $895,000 into the Pennsylvania State Democrat Party. At the urging of John Huang, one of the largest donations, $25,000, came from Pauline Kanchanalak. Kanchanalak's sister-in-law, Duagnet Kronenberg also, gave $25,000. Sen Jong Hsui contributed $20,000, and C. Joseph Giroir Jr. from Little Rock Arkansas gave another $25,000. (23)

"The Cox report notes some very interesting parties helped John Huang stay in touch with his boss. According to the Cox report, "Huang maintained contact with representatives of the Lippo Group while he was at the Department of Commerce." "During the 18 months that he was at Commerce," states the report, "Huang called Lippo Bank 232 times, in addition to 29 calls or faxes to Lippo Headquarters in Indonesia. Huang also contacted Lippo consultant Maeley Tom on 61 occasions during the same period. Huang's records show 72 calls to Lippo joint venture partner C. Joseph Giroir....." (24)

"...The Riady relationship extended beyond the Clintons themselves to their friends and to Hillary's associates at Rose, including its head, Joe Giroir, and a White House aide named Mark Middleton, who later invoked the Fifth Amendment when he was called before a congressional committee. It was the Riadys who provided a $100,000 "job" for the indicted Web Hubbell, at the moment when he had indicated to the Starr prosecutors that he might be ready to talk. After the payment from Riady and others, Hubbell changed his mind and chose jail instead. (25)

"...A central figure in the economic track of Chinese activities was the vice president and Far-East area manager for the Worthen Bank, a Chinese-born American named John Huang, who was a friend of Bill from Little Rock days. Triplett and Timperlake make a strong case that it was through the personal intervention of Hillary Clinton that in 1994 Huang was made a top official in the Commerce Department, where he had access to all the information an agent would need to strip America of the supercomputer technologies vital to the development of advanced weapons systems. Huang also inexplicably retained his top security clearance in the Commerce Department when he left the government. The decision to leave the government for a position at the Democratic National Committee was made for Huang at a meeting in the Oval Office attended by the president, Huang, Riady, Riady partner and former Rose law firm head Giroir and presidential aide Bruce Lindsey....." (25)

SYSTEMATICS, Inc.

" Systematics was represented by C.J. Giroir, Webster Hubbell, and Hillary Rodham Clinton of the Rose Law Firm of Little Rock …" [DSL:BCCI]

"…Systematics also came to be represented by Beryl Anthony, a partner at the Washington law office of Winston and Strawn, former chairman of the Democratic Congressional Campaign Committee, and husband of Vince Foster's sister Sheila Foster Anthony. It was Sheila Anthony who, while assistant attorney general for legislative affairs at the Justice Department, effected a $286,000 transfer to Vince Foster from a Democratic National Committee account held at Mellon Bank, just four days before Vince Foster met his death. …." (4)

"….In the 1980's, the war on drugs was being feverishly pitched by the Federal Government. It was during this time that a Senate subcommittee recommended that the Treasury Department set up some means of monitoring currency deposits, both foreign and domestic….The job for this massive undertaking was given to the National Security Agency at their Ft. Mead facility. This defense base houses intelligence gathering (Echelon) and communications security….In an effort to monitor all banking transactions the NSA tapped into Fedwire, CHIPS, and Swift. Most of these banking transfers were encrypted. Even after breaking the code, all that the NSA had left was two account numbers, the amount of the transaction, and when it took place. It was soon realized that all this information was worthless without knowing who owned the accounts…..the NSA came to the conclusion that they themselves would become the software supplier for the banking industry…It didn't take long for the NSA to find a contractor for their bank software needs. None other than Vince Foster would point the way to a small Little Rock, Arkansas bank data processing company known as Systematics, Inc. Systematics was founded in the late 1960's by Jackson Stephens. Vince Foster was one of Jackson Stephens deal makers at the Rose Law firm…. According to intelligence sources, Webster Hubbell also played a key role in over seeing Systematics for the NSA. In the now declassified documents that the Zone has seen, they confirm that both Hubbell and Foster had access to NSA secrets….(26)

"Systematics founder, Jackson Stephens, was also a partner of the Lippo Group. Lippo is owned by Mochtar Riady who jointly purchased the Worthen Bank in Little Rock along with Stephens. Mochtar's son, James Riady, ran the bank with William Cravens serving as President. As we have reported before in other articles, the Riady's are key figures in the Chinese intelligence spy ring in the U.S. The Lippo Group is a joint venture of China resources, a trading and holding company that serves as a front for Chinese espionage operations. William Cravens became good friends of Bill and Hillary Clinton during the 1980's. In the early 1990's, Craven would leave his post at Worthen Bank and become a key figure at Systematics. Craven would later use Hillary's Rose Law firm to develop special legal contracts between the National Security Agency and Systematics….(26)

"The technology behind the Clipper Chip is really quite simple. Vendors of equipment that encrypts the communications will need to include the chip in their products if they want to sell those products to any Federal agency who adopt the new FIPS standard. Every chip will have a back door technology allowing the Government or who ever, the ability to decrypt the communications by using this back door. Each Clipper Chip that is manufactured will have a unique identification code, along with a pair of software decryption keys. The pair of decryption keys will be given to the Federal Government. One key will be kept by the Treasury Department and the other key will be kept by the Commerce Department. Under the same laws that are presently used for legal wiretapping with a Judicial warrant, a law enforcement or intelligence agency would be able to obtain the authority to intercept the communications originating from any Clipper equipped device. An agency would merely show proof of its authority to the key holding agencies to receive both decryption keys. According to former CIA Director John Deutch, the Department of Justice proposed legislation that would outlaw the import and domestic manufacture, sale, or distribution of encryption that did not have this back door key recovery. The Department of Justice has set guidelines for agencies engaged in authorized surveillance to obtain the keys….(26)

"The controversy and leaks surrounding the Clipper Chip project forced the NSA to announce in June 1998, that is was scrapping the five year old project. The National Security Agency released both the Key Exchange algorithm and the Skipjack algorithm to computer security companies that were interested in developing off-the-shelf products that would work with existing federal communications systems. But the damage caused by the project can not be underestimated. Indeed, China now has all the latest encryption technology to unlock almost any communications device. Top this with the crash of the 1996 Chinese rocket that was carrying U.S. satellite technology, a missing encryption chip,
and you have disaster in the making….(26)

"In the early 1990's, Systematics, Inc was sold to Alltel Inc. Alltel has customers in 44 countries around the world and provides information processing management, outsourcing services and application software to the mortgage, financial, healthcare and telecommunications industries. They were were well entrenched in the Clippper Chip project from their Systematics holdings. Charles Wilbourne Miller, 63, was Alltel's executive Vice president and served on the board of directors. Miller was also well established in his own security software company. On November 17, 1998, Miller was found shot to death about 300 yards from his Little Rock ranch. Law enforcement officials found a .410 gauge shot gun near his body. They also found a .357 ruger revolver submerged in water. Miller's death was ruled a suicide and that the ruger was the gun that Miller used to kill himself. It was later determined however, that two rounds in the gun cylinder had been spent. Apparently, only in Arkansas can one kill himself using two bullets and two guns. (26)

How spooky does it get? An odd link to this story is that the NSA chose Arkansas-based Systematics on Sept. 14, 1990, to construct the "Mission: Impossible" room called the Secured Compartmentalized Information Facility, or SCIF, in Fort Gillem, Ga., according to an unclassified NSA memo. At that time Systematics was fun by Jackson Stephens who, along with Mochtar Riady and James Riady controlled Lippo's Worthen bank, which gave Clinton a multimillion-dollar loan to get through the 1992 presidential election. The same Lippo Group, which later dumped Worthen, is linked to China Resources, a front for Chinese military-intelligence operations, say U.S. defense intelligence sources. The concern of the U.S. intelligence community is whether Chinese agents penetrated the SCIF. An NSA staffer notes that the Chinese once managed to bug the Russian Embassy in Beijing, and that if they built the SCIF "they could do a lot of things there." That brings the story back to Huang, who worked with the Riadys at Worthen Bank and appears to have formed another intriguing friendship with PLA arms dealer and White House coffee-klatsch guest Wang Jun. China's Far Eastern Economic Review reported in April that Wang admitted to Beijing's political leaders that he had paid Huang $30,000 for reasons unexplained. One Senate investigator says this could be the "smoking gun" that ties Huang to the PLA. (8)

 

Statement by Terri Swearingen in accepting the Goldman Prize for North America on April 14, 1997. Terri was awarded the prize for her work in fighting the building and operation of Von Roll's hazardous waste incinerator, known as WTI, in East Liverpool, Ohio...... Among the many distinctions afforded Arkansas billionaire tycoon Jackson Stephens is the fact that his firm, Stephens Inc. marshaled the WTI hazardous waste incinerator's march from conception to birth. In our opinion, it was the power of his financial empire that moved a poorly designed monstrosity on the Ohio River from the truly dumb idea that it was (and is) to its current manifestation as an ugly and dangerous reality. In an attempt to understand why the U.S. government, particularly U.S. EPA Region 5, committed so many illegalities and allowed this incinerator to be built, it helps to understand that Jackson Stephens always gets what he wants. In fact, no matter what you think about him, it is hard to deny that he seems to be everywhere, with his hands on everything. Stephens is the chairman of Stephens Inc., the nation's largest investment bank off Wall Street. Its home office is located in little ol' Little Rock, Arkansas. He and his brother, Witt, built the Stephens Inc. empire out of a bible, belt buckle and bond business. In 1994, Stephens Inc. was listed as one of the biggest institutional shareholders in 30 large multinationals including the Arkansas based firms Tyson Food (# 10), Wal-Mart (# 113) and Alltel (# 12). Interestingly, it was Stephens who staked Sam Walton when he started Wal-Mart in 1970, and financed Tyson's takeover of Holly Farms in 1988. (Stephens, Tyson and Walton (1917-1992), all billionaires from Arkansas.) Stephens sold a 275 phone exchange to Alltel when they broke into the phone market, and guaranteed in 1990 that Alltel would get Systematics by refusing to sell his 10% stake in Systematics to anyone but Alltel. In many ways Arkansas is the house that Jack built. Unfortunately, for the folks in East Liverpool, Ohio, and the Tri-State area (WV, PA, OH) who were saddled with Von Roll's hazardous waste incinerator, Arkansas was never big enough for Stephens...... (45)

"....An odd link to this story is that the NSA chose Arkansas-based Systematics on Sept. 14, 1990, to construct the "Mission: Impossible" room called the Secured Compartmentalized Information Facility, or SCIF, in Fort Gillem, Ga., according to an unclassified NSA memo. At that time Systematics was fun by Jackson Stephens who, along with Mochtar Riady and James Riady controlled Lippo's Worthen bank, which gave Clinton a multimillion-dollar loan to get through the 1992 presidential election. The same Lippo Group, which later dumped Worthen, is linked to China Resources, a front for Chinese military-intelligence operations, say U.S. defense intelligence sources. The concern of the U.S. intelligence community is whether Chinese agents penetrated the SCIF. An NSA staffer notes that the Chinese once managed to bug the Russian Embassy in Beijing, and that if they built the SCIF "they could do a lot of things there."..." (46)

 

 

 

ALLTEL

"... We have nearly 30 years experience building information technology solutions for financial services companies, mortgage providers and the telecommunications industry, and almost 15 years in the wireless industry. ALLTEL is a recognized leader in enterprise networks and wireless communications..."

"...1990 Systematics (ALLTEL Information Services) acquired...

1997 Company signs a seven-year agreement with Colonial State Bank, one of Australia's largest banks, to create and operate a comprehensive information and telecommunications system.

ALLTEL purchases PCS licenses for 73 markets in 12 states

ALLTEL's wireless and wireline businesses converge into a single organization capable of delivering a full suite of communications products to customers.

1998 Merged with 360° Communications...."

"...ALLTEL offers a complete portfolio of multicurrency solutions for banks active in the wholesale and commercial banking markets. The Vertex family of products has been designed for financial organizations which are particularly active in the treasury, dealing, and major wholesale banking marketplace; whilst the ALLPROFITS suite of applications is designed for instances where the underlying banking business has a foreign trade related emphasis. As modular applications, the component parts can be used individually or as part of an integrated solution. When used in combination, the applications can combine to form a solution which will support the head office and global branches within the confines of a consistent business and technical architecture spanning different geographic regions and time zones..."

Freeper Trident/Delta adds "....There is a tenuous connection with Alltel the logical successor of Jackson Stephens Systematics. Alltel has as one of its specialties, a service to "run" small and medium sized financial institutions computer systems in an on-prem, outsourced fashion. In simpler terms, Alltel has access to all the assets of many many banks .... I tumbled onto this while doing an analysis for a bank in Ohio and found that Alltel had links from the banks mainframe and cash control systems to their headquarters in, You guessed it, Little Rock.... There is a bank in LA (name withheld for the moment until I can review the contract) that is vetting money for Hong Kong Chinese in Vancouver, Canada, they appear to have no other depositors AND they are courting high-tech firms with promises of low interest R&D loans Care to guess who runs their back office and computer operations????? ALLTEL!!!! ..."

 

ARKANSAS INTERNATIONAL TRADE CO

"…Lawyer C. Joseph Giroir Jr. was not among the high-powered U.S. corporate executives asked to accompany Commerce Secretary Ronald H. Brown to China two years ago. But when the group landed in Beijing, Giroir was there to hear Brown announce a $1 billion deal for his client, Indonesia's Lippo conglomerate….. Arkansas deal-maker whose influence on Clinton in international trade matters dates to the 1980s. …. Following the advice of the Riadys, Giroir formed the Arkansas International Trade Co. to match the Lippo Group with American companies in joint ventures. Giroir, for example, created a multimillion-dollar marriage between Lippo and the Arkansas-based retail giant Wal-Mart Stores Inc. to open a Wal-Mart superstore in Lippo Village, a development in Jakarta, Indonesia ….. Giroir also brought together a Little Rock division of the New Orleans-based Entergy Corp. and the Lippo Group to clinch a $1 billion deal, now shelved, to supply power equipment to China. He also helped chart Asian inroads for Arkansas-based Tyson Foods Inc., the world's largest poultry producer…. Giroir's departure [From Rose Law Firm] led to a huge power shift at the firm, with lawyers Webster L. Hubbell and Vincent Foster gaining control along with Hillary Clinton, who had been hired by Giroir as one of the firm's first female lawyers….One of his original Rose clients was Lippo chairman Mochtar Riady, who had formed a joint venture with Jackson T. Stephens, founder of Stephens Inc. in Little Rock, the nation's largest investment banking firm off Wall Street….. The Stephens-Lippo collaboration used its newly purchased Worthen Bank to finance trade expansion. In 1983 and 1984, the bank extended millions of dollars in credit to Stephens and Lippo-owned ventures. The loans were repaid, but a federal examination found that Worthen extended too much credit to the Stephens-Lippo ventures.…. On Riady's behalf, Giroir drafted a sister city agreement for Jakarta and Little Rock in 1993. He also participated in meetings with trade ministers during the Asian Pacific Economic Cooperation in Seattle…." (27)

ARKANSAS INTERNATIONAL DEVELOPMENT CORPORATION (AIDC)

"…investigators say, Joe Giroir was its back-room brains…. investigators tell TIME that Giroir played a more pivotal role for the Indonesian conglomerate in its quest for influence in Washington: after securing Lippo as a $3 million investor in his company, Giroir contributed a total of $175,000 to the Democrats. ….The Riadys, who control Lippo, formed a partnership with their old friend Giroir to line up U.S. investors for the family's Asian ventures…. Giroir already knew the Riadys and was a board member of Worthen National Bank, which they owned jointly with the investment firm Stephens Inc. The new Riady-Giroir venture--Arkansas Industrial Development Corp., from which Giroir drew a $360,000-a-year salary--was financed by a Lippo subsidiary. Giroir's job included serving as Lippo's unofficial representative to the White House. Investigators tell TIME that Giroir used his Arkansas contacts to set up a meeting there in April 1994 for prospective Chinese partners with Lippo in a huge China power-plant project. But Huang, then head of Lippo's U.S. operations, wanted a regular role for himself in the Clinton Administration. So investigators now want to know if Giroir pulled any strings to get Huang hired in July 1994 as a Commerce Department deputy assistant secretary, a job that gave him access to classified economic data from Asian countries where Lippo has a big stake. At Commerce, Huang stayed in regular contact with Giroir, as well as Lippo, and frequented the Washington office of a company that Giroir represented, using its phones and a fax machine for what investigators suspect were transmissions of secret material to Lippo….. Investigators tell Time that at a May 1996 fund raiser organized by Huang, Giroir wrote a check to the national party for $25,000 and let Huang fill in the names on three other checks of $25,000 each that wound up in state party coffers. And on July 30, at Huang's direction, Giroir contributed a total of an extra $75,000 to three states…." (28)

The House committee is expected to ask Mr. Middleton about $275,000 he received from the Riadys through the Arkansas International Development Corp.; whether he had any role in finding Huang at job in 1995 at the Democratic National Committee; his connections to Chinese financier Ng Lap Seng, who wired $1 million into Trie's bank account; and about meetings he arranged for the president and the first lady with would-be contributors, some of whom have since been indicted. (40)

A year ago, we wrote about the Riadys' 1985 bailout of Little Rock's Worthen Bank, which put then-governor Bill Clinton permanently in their debt. But other conduits are pouring Bamboo Network money into the U.S. and giving the Clinton administration an unprecedented slush fund.......Even after the Worthen deal came undone, the Riadys kept up their American investments, and their contacts with Arkansas businessmen. Through their multi-layered Lippo corporate structure, they bought Southern California's Bank of Trade, renaming it Lippobank and developing clientele among several Asian-American communities. Their Hong Kong bank struck up a partnership with First Union Bank of North Carolina. Arkansas firms like Entergy and Wal-Mart made Asian deals with Lippo, often working through Little Rock lawyer C. Joseph Giroir, Jr., the former lead partner of the Rose Law Firm who helped hire Hillary Rodham Clinton in 1977. (Wal-Mart last year opened its first store in the high potential Indonesian market in a Riady development called Lippo Village.) The Indonesian state of Jakarta made a "sister state" compact with Arkansas, and, according to the files of the Arkansas Industrial Development Commission (AIDC), former Governor Jim Guy Tucker wrote his counterpart to propose using an Arkansas parking-meter company to set up a parking system there. According to the Arkansas Democrat-Gazette, the Riady-Lippo file at the AIDC was more than five inches thick, containing hundreds of letters between James Riady and former Gov. Bill Clinton. ...." (43)

The multi-billionaire Liem took a bath in the Worthen debacle, ultimately paying $3 million to the Federal Savings and Loan Insurance Corporation to settle a suit against his agent Giroir. But Liem/Salim has found other footholds in the U.S. Another of his front companies, Hong Kong-based First Pacific Holdings, in 1982 bought the Hibernia Bank in San Francisco (previously famous for being robbed by Patty Hearst and the Symbionese Liberation Army). Hibernia developed problems and Liem sold it to Security Pacific Corp. in 1988. But in the meantime he brought his own flagship (and Riady's training ground), the Bank Central Asia, into the U.S.; it now does business in New York and Los Angeles. Other outposts of the Bamboo Network show up in surprising places. The 300 members of the Mashantucket Pequot Indian tribe in eastern Connecticut are famous for running the world's most profitable casino, grossing nearly around $600 million last year. Less well known is that their Foxwoods Management Co. is partly owned by the Malaysian Chinese gambling tycoon Lim Goh Tong. Lim put up the $55 million seed money for the Foxwoods casino when no one else would touch the project. He currently is said to have $250 million invested in the rapidly expanding company. A common feature of the Bamboo investors is their generosity in making campaign contributions. The Foxwoods Casino is one of the three largest patrons of the Democratic National Committee, giving around $400,000 in the 1993-94 election cycle and ensuring tribal leaders ready access at the White House. But nothing approaches the operation run by the former Lippo employee and mid-level Commerce Department official John Huang. (43)

 

TIMELINE

1974
Giroir, Secretary of Electronics 1974 to 1995, BEI Electronics

1978
Giroir, Director of Electronics 1978 to 1997, BEI Electronics

1979
Mochtar Riady and Stephens Inc set up Stephens Finance Ltd. In Hong Kong. (29)

1983
Mochtar Riady forms Lippo Finance & Investment in Little Rock. Non-citizen Riady hires Carter's former SBA director, Vernon Weaver, to chair the firm. The launch is accomplished with the aid of a $2 million loan guaranteed by the SBA. Weaver uses Governor Clinton as a character reference to help get the loan guarantee. First loan goes to Little Rock Chinese restaurant owner Charlie Trie. (29)

1984
Mochtar Riady and Stephens Inc buy the Hong Kong Chinese Bank.(29)

Riady buys a stake in the Worthern holding company whose assets include the Stephens-controlled Worthen Bank. Price: $16 million. Deal handled by C. Joseph Giroir II. Giroir was the Rose law firm chair who hired Hillary Clinton. Giroir would continue to be a deal-maker for the Riadys and Liem Sioe Liong (29)

1985
Arkansas state pension funds -- all of which have been deposited in Worthen by Governor Bill Clinton -- suddenly lose 15% of their value because of the failure high risk, short-term loans. The $52 million loss is covered by a Worthen check for $32 million (written by Jack Stephens in the middle of the night), a bank officer misconduct insurance policy, and Mochtar Riady's mass purchase of new common stock issue by the bank. Clinton escapes a major scandal. (29)

Mochtar's son James comes to Arkansas to manage Worthen as president. He bonds with Clinton and Charlie Trie. Riady turns the New York branch of Worthen into a branch of BCA, which is controlled by Liem Sioe Liong. (29)

Lippo executive and Chinese native John Huang assumes vice presidency of the Hong Kong Chinese Bank. He is also active in Lippo's operations in Arkansas.(29)

Worthen is investigated by the Office of the Comptroller of the Currency for improper loans to companies owned by the Riadys and Stephenses. Also targeted: $14 million in loans to businesses owned by Liem Sieo Liong.(29)

Among Mochtar and James Riady's further ventures is the takeover of the First National Bank of Mena in a tiny town better known for its Contra arms supply, drug running and money-laundering operation, then for its other economic development potential.(29)

1990

James Riady takes over operations of a new branch of the Lippo Bank, working with a Hong Kong Lippo executive, John Huang. Warren Stephens raises $50,000 overnight so Clinton can buy TV time in his struggling re-election bid. (29)

1991

With Jackson Stephens, Mochtar Riady buys BCCI's former Hong Kong subsidiary from its liquidators (29).

China Resources Company Ltd begins buying stock in the Hong Kong Chinese Bank at 15% below market value. Intelligence sources later report that the firm is really a front for Chinese military intelligence.(29)

The Arkansas Industrial Development Commission set up deals to further the Indonesian - Arkansas connection. The commission even arranged for James Riady to talk with a New Jersey company about building a diaper manufacturing plant in Jakarta, according to the Arkansas Democrat Gazette. Deals were worked on for Wal-Mart, Tyson's Foods, and JB Hunt and documents uncovered by the paper "make reference to Clinton's ideal position as president . . . in helping to secure Arkansas-Indonesian deals." Said a former US ambassador in Jakarta at the time, "There were lots of people from Arkansas who came through Indonesia."…" (29)

April, 1993

C. Joseph Giroir, a former law partner of First Lady Hillary Rodham Clinton, incorporated the Arkansas International Development Corporation ("AIDC"). AIDC was initially capitalized by funding from the Riady's Lippo Group. The purpose of AIDC was to develop projects or joint ventures for the Lippo Group. In 1995, Giroir and Lippo formed a limited liability company, also referred to as AIDC. Through the corporation, the Riadys paid Giroir a salary of between $350,000 and $600,000 with bonuses. Similar to the Riadys, Giroir was a major contributor to the DNC. In 1996 alone, Giroir contributed close to $200,000 in conjunction with fundraisers organized by John Huang. (30)

February, 1994

Ng Lap Seng, a wealthy Macau businessman with ties to organized crime, became Charlie Trie’s partner in his attempt to purchase the dilapidated Camelot Hotel [see Juanita Broaddrick] in Little Rock. Trie and Ng entered the U.S. in March 1994 to discuss the hotel proposal and inspect the building. Ng brought $80,000 in cash with him on his trip to the United States. Witnesses later saw Ng give Trie thousands of dollars in cash. These seem to be the earliest examples of the receipt by Trie of large amounts of money from Ng Lap Seng. In the coming years, Trie was to receive over $1 million from Ng, over $130,000 of which he would funnel into the DNC. One prominent lawyer who assisted Trie and Ng was C. Joseph Giroir. Giroir was a close friend of Clinton and a major DNC fundraiser. (31)

James Riady hosted a luncheon for Commerce Department officials traveling in Indonesia to promote the U.S.-ASEAN Alliance for Mutual Growth. The luncheon attendees included Commerce Undersecretary Jeffrey Garten and Deputy Undersecretary David Rothkopf, who would later be John Huang’s superiors in the International Trade Administration at Commerce. Rothkopf was unable to recall who at the Commerce Department had organized the luncheon, which was held at James Riady’s home. However, Rothkopf recalled that Melinda Yee, a good friend of John Huang and the Riady family, did attend the luncheon as well. Melinda Yee invoked her Fifth Amendment rights against self-incrimination and is not cooperating in the Committee’s investigation. Ms. Yee had assisted in organizing a Commerce Department contract signing ceremony with the Lippo Group and its American joint venture partner. Along with Melinda Yee, John Huang and Lippo consultant Joe Giroir played a major role in the Lippo contract’s inclusion in the signing ceremony. (32)

April, 1994
Joe Giroir, who helped hire Hillary Clinton at the Rose Law Firm, used his Arkansas contacts to set up a meeting there in April 1994 for prospective Chinese partners with Lippo in a huge China power-plant project. Huang, then head of Lippo's U.S. operations, wanted a regular role for himself in the Clinton Administration, and it is believed that Giroir pulled strings to get Huang hired in July 1994 as a Commerce Department deputy assistant secretary, a job that gave him access to classified economic data from Asian countries where Lippo has a big stake. At Commerce, Huang stayed in regular contact with Giroir, as well as Lippo, and frequented the Washington office of a company that Giroir represented, using its phones and a fax machine for what investigators suspect were transmissions of secret material to Lippo. Giroir knew the Riadys and formerly a board member of Worthen National Bank, which they owned jointly with the investment firm Stephens Inc.

November, 1994

China's Vice Premier Li Lanquing and a delegation visited Arkansas to discuss China's trade and investment policies with Arkansas companies. The delegation, accompanied by Joe Giroir and representatives of Lippo, Tyson and Wal-Mart, toured company sights in northwest Arkansas.

July, 1995

Charlie Trie hired Antonio Pan to assist him in his various enterprises. Pan was a longtime employee of the Lippo Group in Hong Kong and in Arkansas. As a Lippo employee, Pan had a number of contacts with Presidential friend Joe Giroir. In fact, when he departed Lippo to work for Trie, Pan wrote a brief note to Giroir letting him know: "A longtime friend of mine invited me to provide my service to his company’s investment in the Asian region. After I obtained my current superior’s understand [sic] and concurrence, I will resign my current position of Senior Vice President of marketing from this company. Please continue to extend your support to Lippo Group . . . ." (33)

September, 1995

Huang, James Riady and Joseph Giroir, former Rose Law Firm managing partner, met with Clinton and Lindsey in the White House. All agreed that Huang can better serve the president as a fund-raiser.

September 13, 1995
John Huang attends an Oval Office meeting with President Clinton, James Riady, Joseph Giroir, and Bruce Lindsey. At the meeting, Huang or Riady requested of the President a "transfer" for Huang from Commerce to the DNC, and President Clinton obliged the request. Huang's WAVES entry that day does not disclose that he sat in the Oval Office with President Clinton, had a lengthy chat, and succeeded in securing a new job at the DNC. Instead, the record simply recounts that Huang had a 5:15 pm appointment that day in the West Wing. The "visitee" is listed as Nancy Hernreich; the requestoris Rebecca Cameron, Hernreich's assistant. Commerce Dept. officials claim that they had no knowledge that Huang had this sort of access – (34)

POTUS met in Oval Office with Bruce Lindsey, John Huang, Joe Giroir, and James Riady, a Lippo executive. It is a 20 minute meeting described by the White House as a "social visit." But Lindsey testified to Senate that during the meeting Huang told POTUS he wanted to raise $ for Democrats. – (35)

September 26, 1995

In a bar in the lobby of the Willard Hotel, Middleton introduces DNC finance chairman, Marvin Rosen to Huang and Giroir - a meeting Giroir asked Middleton to set up once he learned Rosen would be new DNC Finance Chair. –(35)

October 23, 1995
Middleton phoned Rosen, he said he would like to set up a meeting with Rosen, Joe Giroir and John Huang. (35)

March 20, 1996

BEI Defense Systems Company*, Euless, Texas, is being awarded a $5,693,282 firm fixed price contract for various spare parts for the AH-1 Cobra Helicopter. Work will be performed in Euless, Texas, and is expected to be completed by September 15, 1997. Contract funds will not expire at the end of the current fiscal year. This is a sole source contract initiated on March 20, 1996. The contracting activity is the U.S. Army Tank- Automotive & Armaments Command, Warren, Michigan (DAAE20-96-C- 0309). (8)

May 13, 1996

At a fundraiser arranged by Huang and Charlie Trie, President Clinton addressed the large number of foreign nationals attending the event at the Sheraton Carlton: "I say to the Asian American community here and to those who come from other countries to be with us here tonight the United States is very grateful for the people who have come from the Asian Pacific region, who have made our country their home." Among the group of foreign nationals was a high ranking executive at the Lippo Group, Roy Tirtadji. Giroir had contributed $100,000 towards the event so that he and approximately 20 others, including Tirtadji, could attend. However, Tirtadji, and not Joe Giroir, sat at the head table with the President. Half of the guests seated with President at this event were foreign citizens. The President only sat at the head table for about 15 minutes. According to one witness who sat at the head table at this event, during the time the President sat at the table, either no one wanted to speak, or could not speak English. Therefore, this witness, Jitu Somaya, then struck up small talk with the President to fill the time. In fact, the event contained so many foreign nationals that it provoked concern among one Democratic official who said, "’. . . I hope people are checking this one out. It was peculiar. There were a lot of people who didn’t speak English or spoke very, very poor English.’" President Clinton again singled out Huang and Charlie Trie for praise in front of the donors they solicited. The event was slated to raise $500,000, but documents provided to the House Committee show that $577,000 was raised from only 23 different donors.

June 1997

Giror becomes director of BEI Electronics

September 1997

BEI Electronics spin-off BEI Technologies, etc.

 

SOURCE REFERENCES:
(1)
Clinton's Mystery Man 8/1/97 Editorial Investors Business Daily
(2)
http://www.federal.com/oct21-96/Lippo . 10/21/96 The Washington Weekly
(3)
http://209.67.114.212/forum/a1000395.htm

The Name Of The Rose The New Republic 4/4/94 By L J Davis
(4)
http://www.aci.net/kalliste/lippo.htm Tenacious Tentacles by J. Orlin Grabbe 10/10/96
(5)
http://dolphin.gulf.net/jul21-97/Spy 7/21/97 Washington Weekly
(6)
http://www.bei-tech.com/media_files/nsd/beiq/index.html
(7)
SEC Reports
(8)
http://www.DefenseLINK.mil/news/Jul1996/c072596_ct444-96.html
(9)
http://www.beii.com/02.html
(10)
http://www.beisensors.com/
(11)
http://www.house.gov/snyder/services/issue_forums.htm
(12)
http://www.gpsworld.com/1098/1098feat.html
(13)
http://www.zeiss.de/zeiss/english/home.nsf/txt/special_contacts_asia.html
(14)
http://www.beiel.com/
(15)
http://www.sitek.se/
(16)
http://www.primenet.com/~shemano1/marketing/bei.pdf
(17)
http://www.hoovers.com/capsules/11644.html
(18)
http://www.army-technology.com/contractors/fire/bei/index.html
(19)
http://www.beiduncan.com/html/body_about_us.html
(20)
http://www.beisensors.com/about/seven/systron/systron.htm
(21)
http://www.opinioninc.com/current/july/071497.html The Current Opinion from Opinion, Inc. 7/14/97
(22)
http://www.dailyrepublican.com/clintonasiaties.html 11/20/96 President Clinton's Asia Business Questioned! by William Heartstone, Staff Journalist, Daily Republican
(23) RNC.org 4/99 (Source: Philadelphia Daily News, 1/29/97) ..."
(24) WorldNetDaily 6/1/99 Charles Smith
(25) Salon 6/21/99 David Horowitz
(26)
http://etherzone.com/spy.html THE CLIPPER CHIP PROJECT By: Bob Momenteller
(27)
Arkansas Deal-Maker Draws Heat 3/7/97 Anne Farris, Special to the Washington Post
(28)
LIPPO'S MAN IN THE BACK ROOM 7/21/97 BY MICHAEL WEISSKOPF

(29) http://emporium.turnpike.net/P/ProRev/whtwtrh.htm
(30) American Spectator 12/96 James Ring;
http://www.tullahoma.net/burton/4a_riadyhuang.htm…
(31)
http://www.house.gov/reform/reports/fundraising/4b_trie.htm
(32)
http://www.tullahoma.net/burton/4a_riadyhuang.htm
(33)
http://www.house.gov/reform/reports/fundraising/4b_trie.htm
(34) Wall Street Journal 4/14/98
http://www.tullahoma.net/burton/4a_riadyhuang.htm
(35)
http://www.pbs.org/wgbh/pages/frontline/shows/scandal/inside/cron.html
(36)
http://www.tullahoma.net/burton/4a_riadyhuang.htm
(37)
http://www.sec.gov/Archives/edgar/data/1041866/0000950005-97-000992.txt

(38) Insight Magazine 5/26/97

(39) Wall Street Journal 8/5/99

(40) Washington Times 8/5/99

(41) WorldNetDaily 8/3/99 Charles Smith

(42) American Spectator 8/99 Kenneth Timmerman

(43) American Spectator 12/96 James Ring Adams
(44)
http://www.detroitnews.com/1997/nation/9702/16/02160128.htm 2/16/97 John Hanchette / Gannett News Service
(45) Waste Not July 1997 Brian Lipset Ellen Connett
(46) Insight Magazine 5/26/97 Timothy W. Maier

 

 

CURRENT EVENTS

Wall Street Journal 1/26/200 David Cloud Jay Solomon "...Former Arkansas Gov. Jim Guy Tucker, who was pressured by Whitewater prosecutors into cooperating in their investigation of President Clinton, was hired last year by an Indonesian cable-television company controlled by a friend of Mr. Clinton. ....... Mr. Tucker's dealings with Mr. Riady began in 1996, the year after he was first indicted. Mr. Tucker's wife, Betty, invested $6.5 million in cable equipment that was turned over to a Riady-affiliated Indonesian cable company, said Joe Giroir, a Little Rock investor in the company and a former Hillary Clinton law partner. Mrs. Tucker received a guaranteed minimum 5% annual return. Mr. Tucker also did consulting for the company. Mr. Riady, whose family controls Lippo Group, of Jakarta, Indonesia, has since taken control of the business through a company called Tanjung Bangun Semesta. In March 1999, two months before Mr. Tucker was sentenced in the second Whitewater case, he was hired to help run TBS. In addition to hiring Mr. Tucker, who once owned a U.S. cable company, TBS bought Mrs. Tucker's cable equipment, paying her with a minority stake in TBS, Mr. Giroir said. <b>Mr. Giroir said he arranged for Mr. Tucker's hiring. "It was a strictly merit situation," Mr. Giroir said......"

Wall Street Journal 1/26/200 David Cloud Jay Solomon "...Messrs. Riady and Giroir are longtime business associates and have turned up in other Clinton controversies. Both were mentioned in a 1998 House committee report about the Hubbell payments for paying $12,000 for Mr. Hubbell's daughter's college tuition. The two men also played roles in the controversy surrounding fund-raising abuses during Mr. Clinton's 1996 re-election. They participated in a meeting with the president that resulted in the transfer of John Huang, a former Lippo executive, from the Commerce Department to the Democratic Party, where he oversaw aggressive Asian-American fund raising and helped spark the foreign-money scandal......The charges against Mr. Tucker related to his 1987 purchase and sale of interests in cable-TV systems. The indictment charged him and a partner with fraudulently obtaining loans to finance the deals from the Small Business Administration and with conspiring to avoid taxes. Mr. Tucker resigned as governor in July 1996, after a jury convicted him of some of the charges, for which he was sentenced to 18 months home detention. In 1998, he pleaded guilty to other charges and began cooperating with prosecutors who wanted to question him about Mr. Clinton's role in allegedly fraudulent transactions related to his Whitewater land investment....."

Freeper Hillary’sMoralVoid 1/26/2000 "…. Now it all starts to fit together!!!! One of the other "contibutors" to Webb Hubbell's silence was none other than TIME WARNER!!!!! Giroir provides that connection through his links with TBS through Suzy Hubbell….."

New York Post 2/1/00 Dick Morris "..... COINCIDENCE? The Wall Street Journal reported last week that shortly after former Arkansas Gov. Jim Guy Tucker was convicted in the Whitewater scandal, he was hired by James Riady, head of the Indonesian Lippo Group....... According to published reports, Riady's lawyers are currently negotiating with the Justice Department for a plea bargain. For years, Riady has eluded American investigators and stayed out of the United States. But that was no problem for Clinton. Clinton greeted him warmly in New Zealand, where he was invited to a private reception last September -- even though he knew that the Justice Department was after Riady. A friend is a friend. In addition to hiring Tucker in 1999 (without waiting to see if he would begin serving a long jail sentence in a few months), Riady and former Hillary Clinton law partner Joe Giroir stepped in right after Tucker was indicted by Kenneth Starr in 1996 and arranged an unusual and lucrative deal for Tucker's wife, Betty. The deal meant a minimum of $325,000 per year for the Tuckers, no doubt helping tide them over during his difficult time. According to Giroir, Tucker's hiring was "a strictly merit situation." ...."

New York Post 2/1/00 Dick Morris "..... What's the coincidence? Well, Riady and Giroir have also helped out other Clinton confidants in trouble with the law. When former Assistant Attorney General Webb Hubbell was under investigation by the independent counsel, Riady hired him and paid him $100,000. When this was revealed, Riady and Hubbell claimed that it was just a favor for a friend, although it was later disclosed that Riady barely knew Hubbell. The payment was arranged by John Huang, a longtime Riady employee and the Democratic Party fund-raiser who pleaded guilty to collecting more than $1.6 million in illegal foreign campaign contributions to the 1996 Clinton-Gore campaign. And guess what? When Huang was under investigation, Riady provided him with $38,000 -- again, just out of friendship. He's some good friend, isn't he? By further coincidence, Giroir and Riady were in the Oval Office at the fateful meeting that led to the transfer of John Huang from the Commerce Department to the Democratic National Committee as a fund-raiser. It was only a day or two later that Riady decided he wanted to help out Webb Hubbell. Coincidence? At Commerce, Huang had access to classified documents that investigators believe may have been improperly transferred to Riady. ....."

New York Post 2/1/00 Dick Morris "..... The timing of the Tucker-Riady dealings stinks to high heaven. If, as reported, the Tuckers concealed the deal, the independent counsel should reopen the Tucker case, find out all of the details surrounding the Riady "hiring" and re-examine what Tucker has revealed about Whitewater. Why is it that every corrupt Clinton official who might implicate the president and first lady ends up on the Riady payroll? Any suspicions that the Riady-Hubbell deal (where Riady paid Hubbell large consulting fees for no work) was an effort to buy his silence should be heightened by the revelation of the subsequent Riady-Tucker partnership, and the Huang payoff. Now we face the real issue: Is Robert Ray, Starr's successor as independent counsel, going to roll over and play dead or is he really going to prosecute? According to the Journal, Ray's office was apparently unaware of the Riady-Tucker relationship. Based on his bad health, Tucker never faced jail time, which reduced the leverage Starr presumably had over him during the plea and cooperation negotiations. But now Tucker has received a liver transplant and may be fit to go to prison..... "

 

World Net Daily 2/10/00 Joseph Farah "….You tell me if I'm just being paranoid. An Arkansas company with ties to Mochtar Riady, the billionaire Indonesian and Chinese intelligence agent, has amassed 135 million consumer telephone numbers -- including about 20 million unlisted numbers -- to help identify and profile people who call toll-free lines to shop or make an inquiry. The company is called Acxiom Corp. of Conway, Ark. Formerly it was called Alltel, and before that Systematics. You might remember hearing about Systematics. The company was owned by Jackson Stephens, the billionaire Arkansas partner of Riady and a strong financial backer of President Clinton. Hillary Clinton, Webster Hubbell and Vincent Foster all worked on a secret National Security Agency project for Systematics while at the Rose Law Firm…… Well, darn, if the Rose Law Firm connection doesn't still exist with the company under a new name. The general counsel for Acxiom is Catherine L. Hughes, 48, a former public defender and assistant state attorney general who worked at Rose from 1983 through 1988. Hughes describes herself as something of a civil libertarian, but her company is a walking, talking, 3,000-man, privacy-invading monster if ever I have seen one……"

World Net Daily 2/10/00 Joseph Farah "….Systematics is a name wrapped up in so many Clinton scandals it would make your head spin. The company, for instance, obtained clearance to accompany Ron Brown on foreign trade trips. In 1996, according to records from the Federal Election Commission, William Cravens, an old Clinton pal, contributed to both Republican and Democrat campaigns. In late May 1996, Cravens wrote a check to a Republican candidate for Congress using Alltel, the renamed Systematics, as his employer. Three days later, Cravens, the former CEO of Systematics, wrote a second check for a Democratic senatorial candidate, this time listing his employer as "Entergy Corp." Have you ever seen a company with so many aliases? …."

World Net Daily 2/10/00 Joseph Farah "….The connections to Entergy Corp. again lead back to Indonesia and Mochtar Riady. …… The Entergy deal was also worth hundreds of millions of dollars to Entergy's partner, Riady. In fact, the North China Power Group renamed the entire project the "Lippo Entergy Datong Power Plant," giving top billing to the largest investor and financier from Indonesia. But wait. This story gets even more bizarre. In January of last year, I told you how an Arkansas medical examiner had once again concluded "suicide" in a case where common sense might determine otherwise. On Nov. 17, 1998, Charles Wilbourne Miller, 63, was found dead of a gunshot wound to the head in a shallow pit about 300 yards from his ranch house near Little Rock. Police found a .410 shotgun near Miller's body and a Ruger .357-caliber revolver submerged in water. Investigators concluded the Ruger was the weapon used by Miller to kill himself. Yet, two rounds in the handgun's cylinder had been spent. Only in Arkansas, I noted, does a suicide victim use two shots -- not to mention two weapons -- to kill himself….."

World Net Daily 2/10/00 Joseph Farah "….Worse yet, Miller was no ordinary citizen of Arkansas. He had long served as executive vice president and member of the board of directors for a company called -- are you ready? -- Alltel. Only recently have Arkansas officials investigating Miller's death decided -- whoops! -- maybe it wasn't a suicide after all, just as I had deduced from 2,000 miles away reading news accounts. It's now being investigated as a homicide. ……."

World Net Daily 2/10/00 Joseph Farah "….Alltel, as I mentioned, was the former name of Systematics and the predecessor to Acxiom. Alltel was the incarnation of the company that provided the software for the White House's "Big Brother" data base system, and Systematics was the incarnation of the company when it was behind the administration's plan to develop the secret computer "Clipper" chip to bug every phone, fax and email transmission in America. There has been at least one other high-profile "suicide" among the inner circle involved with the "Clipper" chip project -- Foster, who, we now know attended critical NSA planning meetings on the Clipper chip project, along with then-Associate Attorney General Hubbell, Attorney General Janet Reno and then-White House Counsel Bernard Nussbaum……"

World Net Daily 2/10/00 Joseph Farah "….It was Stephens' effort to get Systematics the job of handling the data processing for the Washington, D.C., First American Bank that led to the BCCI takeover of the institution. Hillary Clinton and Foster represented Systematics in that endeavor. Later Foster became an overseer of NSA's relationship with Systematics. And later still, he got dead. No matter what Independent Counsel Kenneth Starr says, his death has never been explained adequately as a suicide. Foster's deep connections to the Whitewater scandal, the Travelgate scandal, the Filegate scandal and this spying scandal have never been examined by any of the official probes into his death….."

 

The Business Times/Singapore 2/14/00 Shoeb Kagda "….INDONESIA'S Lippo group is forging ahead after having formed a strategic alliance with Hongkong's Hutchison Whampoa group for its push to create the largest Internet empire in the country. It has secured an additional US$100 million (S$166 million) commitment from Taiwan's China Development and Investment Bank group (CDIB) for its drive, sources in Jakarta told BT…….. The deal was concluded by Lippo's founder and patriarch Mochtar Riady, who is also in negotiations with two other Taiwanese IT powerhouses -- the Hwashin Group and Acer. …… Separately, BT understands that US-based financial giant American Insurance Group (AIG) is looking to increase its 5 per cent stake in Lippo e-Net, formerly known as Lippo Life. …… Lippo e-Net will act as the umbrella company coordinating not only the investments and strategic alliances, but also the dovetailing of the group's existing businesses with its new empire. As part of its efforts to speed up the laying of the broad band cable infrastructure in the greater Jakarta area, for example, Lippo has tied up with Hutchison Whampoa and is in negotiations to sell as much as 20 per cent of Multipolar. The Hongkong-based telecommunications giant is also said to be helping the group develop its wireless calling card facility. The Riadys have also brought in American Jim Guy Tucker, a specialist in broadband cable TV, to spearhead the group's entry into this field. The former Arkansas governor, who used to own cable companies in the US, is a technical adviser in the group's subsidiary KableVision, which will offer Internet access through television sets. ….."

1975 National Bank of Georgia president Bert Lance, whom former Georgia Governor Jimmy Carter described as being like a brother and was Carter's chosen but defeated successor, meets with Jackson Stephens, a Naval Academy classmate of Carter. Stephens Inc. arranges public offering of NBG stock. Stephens would later be described by the New York Post as the man who was to "Clinton what Bert Lance was to candidate Jimmy Carter." - The Progressive Review 10/11/00 Sam Smith

1976 Both Stephens and Lance help Carter in his race for the White House. Carter uses the NBG corporate plane without disclosing it. Campaign is later fined. Two Indonesian billionaires come to Arkansas. Mochtar Riady and Liem Sioe Liong are close to Suharto. Riady is looking for an American bank to buy. Riady's agent is Jackson Stephens. The Progressive Review 10/11/00 Sam Smith

1977 Lance comes to Washington as director of the Office of Management and Budget. He quickly comes under investigation for his past financial dealings and in September resigns. His lawyer is Clark Clifford, later embroiled in the BCCI case. The Progressive Review 10/11/00 Sam Smith

1978 Hillary Clinton, the Arkansas governor's wife, is getting considerable business from Stephens Inc. George W. Bush begins operations of his oil firm, Arbusto Energy. He assembles several dozen investors in a limited partnership including Dorothy Bush (a friend of BCCI figure Robert Altman), Lewis Lehrman, William Draper, and James Bath, a Houston aircraft broker who bought several planes from Air America, a CIA front. Bath's firm appears to be owned by Saudi investors. He also was a part-owner of a Houston's Main Bank, along with a couple of BCCI figures. Stephens brokers the arrival of BCCI to this country, and steers BCCI's founder, Hassan Abedi to Bert Lance. Stephens Inc tries to sell Riady stock in the National Bank of Georgia. The Washington Post quotes a US banker suggesting that Riady is working for Suharto, who is trying to butter up Carter: "They think of this country like a 'regime' similar to their own and they just don't realize that such a ploy wouldn't work." There's no deal. Lance's bank will eventually be taken over by a BCCI front man -- Ghaith Pharaon. Pharaon later sells his bank to First American. Pharaon will be fined $37 million by the Federal Reserve Board and become a fugitive. Abedi moves to secretly take over First American Bankshares -- later the subject of the only BCCI-connected scandal to be prosecuted in the US. The Progressive Review 10/11/00 Sam Smith

1979 Mochtar Riady and Stephens Inc set up Stephens Finance Ltd. In Hong Kong. Lance is indicted on charges of violating federal banking laws. Clifford's partner, Robert Altman, represents Lance who eventually achieves a hung jury. During this same period, Stephens is, according to Peter Truell and Larry Gurwin in "False Profits," playing "a crucial role in BCCI's penetration of the US market." The Progressive Review 10/11/00 Sam Smith

1984 Mochtar Riady buys a stake in the Worthen holding company whose assets include the Stephens-controlled Worthen Bank. Price: $16 million. Other Worthen co-owners will eventually include BCCI investor Abdullah Taha Bakhish. Deal handled by C. Joseph Giroir II. Giroir is the Rose law firm chair who hired Hillary Clinton. Giroir will continue to be a deal-maker for the Riadys. The Progressive Review 10/11/00 Sam Smith

1985 Arkansas state pension funds -- deposited in Worthen by Governor Bill Clinton -- suddenly lose 15% of their value because of the failure of high risk, short-term investments and the brokerage firm that bought them. The $52 million loss is covered by a Worthen check written by Jack Stephens in the middle of the night, an insurance policy, and the subsequent purchase over the next few months of 40% of the bank by Mochtar Riady. Clinton and Worthen escape a major scandal. Mochtar's son James comes back to Arkansas to manage Worthen as president. Worthen is investigated by the Office of the Comptroller of the Currency for improper loans to companies owned by the Riadys and Stephenses. The Progressive Review 10/11/00 Sam Smith

1986 George W. Bush and partners receive more than $2 million of Harken Energy stock in exchange for a failing oil well operation, which has lost $400,000 in the prior six months. After Bush joins Harken, the largest stock position and a seat on its board is acquired by Harvard Management Company. The Harken board gives Bush $600,000 worth of the company's publicly traded stock, plus a seat on the board plus a consultancy that pays him up to $120,000 a year. When Harken runs short of cash it hooks up with Jackson Stephens, who arranges a $25 million stock purchase by Union Bank of Switzerland. Sheik Abdullah Bakhsh, who joins the board as a part of the deal, is connected to BCCI. The Progressive Review 10/11/00 Sam Smith

1988 Stephens' wife Mary Ann runs George Bush's campaign in Arkansas. He is a member of Team 100 -- individuals who have given $100,000 to the Republican party. A few days before the supposedly surprise arrest of five BCCI officials, some of the world's most powerful drug dealers quietly withdraw millions of dollars from the bank. Some government investigators believe the dealers were tipped off by sources within the Bush administration. The Progressive Review 10/11/00 Sam Smith

1989 Bahrain officials suddenly break off offshore drilling negotiations with Amoco and decide to deal with Harken Energy, George W. Bush's firm. Harken has had a series of failed ventures and no cash, so the Bass brothers are brought in to finance Harken's efforts at a cost of $50 million. Harken's investment banker is the same firm that helped in BCCI's acquisition of First American. Among the other BCCI-connected figures that help the deal: Bahrain's prime minister. The Progressive Review 10/11/00 Sam Smith

1990 Bush's attorney general, Richard Thornberg, is warned about BCCI but does nothing. The Progressive Review 10/11/00 Sam Smith

1991 Stephens Inc gives $100,000 to a Bush dinner committee. With Stephens, Mochtar Riady buys BCCI's former Hong Kong subsidiary from its liquidators. A former top aide to White House Chief of Staff John Sununu goes to work for a prominent figure in the BCCI scandal less than a month after leaving the Bush administration. Edward Rogers Jr. signs a $600,000 contract to give legal advice to Sheik Kamal Adham, an ex-Saudi intelligence officer who is being investigated for his role in BCCI's takeover of First American Bankshares. The Miami acting US Attorney is reportedly rebuffed by the Justice Department in his efforts to indict BCCI and some of its principal officers on tax fraud charges. Justice Department later denies this occurred. The Progressive Review 10/11/00 Sam Smith

1992 Ronald Reagan is introduced at the GOP convention by former senator Paul Laxalt, whose law firm represented BCCI in a drug money case. The chair of the convention, Craig Fuller, has been the number two official of Hill & Knowlton which was involved in the BCCI-First American case. Bush's campaign press representatives has done PR for a Saudi sheik accused of involvement in the BCCI affair, earning $200,000 in fees in just two months. Employees of Stephens Inc. give more money to the Clinton campaign than those of any other firm except Goldman, Sachs and the NY law firm of Wilke, Farr & Gallagher. Stephens' Worthen Bank gives Clinton a $3.5 million line of credit allowing the cash-strapped candidate to finish the primaries. Little Rock Worldwide Travel provides Clinton with $1 million in deferred billing for his campaign trips. Without the Worthen and Worldwide largess, it is unlikely that the cash-strapped candidate could have survived through the later primaries. The Progressive Review 10/11/00 Sam Smith

1995 Webster Hubbell, a former Rose law firm partner -- although not known for skill in Asian trade matters -- goes to work for a Lippo Group affiliate after being forced out of the Clinton administration and before going to jail. Hubbell represented both Worthen and James Riady during the 1980s. The Progressive Review 10/11/00 Sam Smith

1998 With the settlement of civil fraud charges against Clark Clifford and Robert Altman, the puny and often diverted investigation into the American branch of the BCCI scandal effectively comes to an end. Under the deal, the pair will have to surrender $5 million in stock in First American Bankshares, which had been illegally controlled by BCCI. They will, however, get to keep $10-15 million in proceeds obtained during their tenure as First American attorneys. The Progressive Review 10/11/00 Sam Smith