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FOREIGN INFLUENCES
When it comes to technology and national defense, there are several areas of critical, non-weapon specific importance, including: the communication of voice transmissions, the communication of data, and the processing of sensitive information. Enter ATM (Asynchronous Transfer Method) and SDH (Synchronous Digital Hierarchy), two more "items" that fell under the auspicious GLX category created by the Commerce Department in 1994.1 ATM and SDH equipment is commonly used in broadband networks, which allow for the transmission of data, video, and audio at very high rates of speed.2 As noted in Section I (China, Overview), one of COSTIND’s primary functions is the acquisition of communications technology for China’s military. CONSTIND surreptitiously controlled a company called Galaxy New Technology.3 In 1993, Galaxy New Technology merged with SCM Brooks Telecommunications, forming Guangzhou HuaMei Communications Limited.4 In 1993, HuaMei contracted AT&T to provide them with a broadband telecommunications network.5 Unless one knew the history of HuaMei, one might not know that the Chinese Military had indirectly engaged in a business deal with AT&T to secure some very desirable, advanced communications technology.6 Under earlier COCOM guidelines, this type of transfer license would face two potential obstacles; the "end-user’s" ties to the military, and assurances that the technology did not exceed certain levels of capability.7 In 1994, when the installation took place, GLX was already in existence. Under GLX, AT&T did not need a special license.8 Under GLX, China could purchase this technology, regardless of capability.9 Further, during a subsequent investigation into this matter, AT&T advised that the Commerce Department never asked them to determine if HuaMei was somehow connected to the military; the GLX license didn’t require it.10 Had these controls been in place, AT&T undoubtedly would have followed them accordingly…but they weren’t. Simply put, in 1994 we legally sold China the technology they needed to significantly enhance their military communications operations. Ironically, one of the largest sources of illegal campaign contributions came from Mrs. Kanchanalak of the Thai conglomerate, the Ban Chang Group.11 White House security records show that since 1993, "she…visited the White House 26 to 33 times, attending a variety of dinners and kaffeeklatsches sponsored by the Democratic committee as well as meetings with officials from the National Security Council. The records also show that she had met with Vice President Al Gore at least twice. At least once, she was part of a delegation that went to the White House with the deputy prime minister of Thailand. During her visits, Mrs. Kanchanalak alternated between using her married name and her maiden name, Pornpimol Parichattkul."12 "Most of the money from Mrs. Kanchanalak was solicited by Huang…While at the Commerce Department, Huang recommended that Clinton take part in a ceremony for the establishment of a U.S.-Thai business council. Both Clinton and the prime minister of Thailand dropped in on the inauguration of the council at an Oct. 6, 1994, meeting at the White House."13 "Mrs. Kanchanalak, who met with officials at the White House to discuss the business council, was in contact with Huang at the time."14 "Among her donations was one for $32,500 to the Democratic committee on Oct. 20, 1994."15 "Mrs. Kanchanalak, a citizen of Thailand, arranged the White House meeting for executives from the Charoen Pokaphand Group, a Thailand-based conglomerate that is one of Asia's largest and most successful business empires. In some two dozen countries, the group controls more than 250 companies that produce everything from chickens and shrimp to petrochemicals, motorcycles and telecommunications equipment."16 "Barely known in the United States, the group is believed to be the largest foreign investor in China. A recent article in The Financial Times estimated that Dhanin Chearavanont, the chairman of the C.P. [Charoen Pokaphand] Group, as the conglomerate is known, is the 12th richest man in Asia. "17 "Dhanin, joined by two other company executives, appeared with Mrs. Kanchanalak at the meeting June 18. The White House would not say what was discussed at the meeting, which was attended by five other guests, as well as by Clinton, and three Democratic committee officials -- national chairman Donald Fowler, finance chairman Marvin Rosen, and finance vice-chairman John Huang."18
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