Why Able Danger Was Scrapped (And Then Ignored by the 9/11 Commission): The China Connection

At yesterday’s House Armed Services Committee hearing on Able Danger, Congressman Curt Weldon (R-PA) repeatedly asked witnesses if a chart produced by the Land Information Warfare Activity (LIWA) / Information Dominance Center (IDC) on Chinese front companies operating within the United States played a role in the dismantlement of Able Danger. The answer was consistently yes.

What exactly was this document that was developed and what were the implications of it for the Clinton Administration? As you will see, the information raised serious questions for the Democratic Party and the Clinton White House in regards to the transfer of sensitive military technologies to China, and how export controls were relaxed in favor of individuals and companies who gave heavily to the election campaigns of Democratic candidates and President Clinton.

In response, the Clinton Administration set about disbanding LIWA and its sister organization, Able Danger, which was investigating Al Qaeda. They wanted to sweep this information under the rug and were, for the most part, successful. But later, when word began to trickle out that Able Danger had actually uncovered some information that could have prevented the 9/11 attacks, Democrats loyal to the Clinton Administration were shocked. They could not let the truth come out about Able Danger and its successes, or else they would have to answer for why the group was disbanded. The reason, of course, being that Able Danger and LIWA were dismantled to cover up the Clinton Administration’s complicity in transferring technology to China.

In short, Able Danger was a collateral victim of the successes of the data mining efforts being performed by LIWA. 9/11 could have been prevented if the Clinton Administration had not disbanded Able Danger and LIWA, which it did to cover up very embarrassing information that the data mining efforts of LIWA were uncovering in regards to China.

In mid-1999, Congressman Weldon requested that LIWA develop a chart of Chinese front companies operating within the United States. The results were staggering, showing a complex web of organizations within the United States, including major U.S. defense contractors, who were involved in the transfer of sensitive technologies to Communist China. It also showed how Chinese agents had successfully funneled ten of million of dollars in campaign contributions to the DNC and President Clinton’s reelection campaign.

An accompanying timeline developed by LIWA was equally shocking, showing how the Clinton Administration had liberalized exports rules for a number of extremely sensitive dual use technologies that China could utilize for military purposes. These included very advanced encryption technologies that made it harder for our intelligence community to do its job and rocket technology that allowed China to increase the range of its offensive intercontinental ballistic missiles. China in turn, then transferred these technologies to others nations that included Iran, Syria, Libya and Pakistan. (see page 3 of the timeline

Weldon does an excellent job of outlining the revelation showed by the chart and timeline developed by LIWA showed. Briefly, the cumulative impact of the Clinton Administration’s actions – in exchange for campaign contributions, allowed China to:

o Develop reliable Intercontinental Ballistic Missiles with insights into MIRVing that ICBM force.

o Develop an integrated command, control, communications, computer and intelligence encrypted network to enable better military command and control over vast areas, even beyond China itself.

o Improve power projection for its surface fleets, submarines, and long-range cruise missiles capable of hitting not only Taiwan, but also Japan from mainland China.

o Produce more proficient fighter and bomber aircraft capable of greater distances and speeds.

This was impeachable material and it scared the hell out of the Clinton Administration. But ultimately, Weldon was shouting into the wind, as the mainstream media largely ignored these explosive findings and instead relied on the somewhat whitewashed findings of the Cox Report. Weldon, you may recall, was in fact a member of the Cox Commission, but he was unsuccessful in his efforts to have this data included in the report, and was instead relegated to putting this information out independently.

Why did the Cox Commission ignore this data? Because it could have caused embarrassing questions for Republicans as well as Democrats. In fact, attempts were even made by conservatives – perhaps fed by Clintonites within the Department of Defense -- to discredit Weldon by linking him to campaign contributions that he accepted from defense companies that were involved in the transfer of sensitive technologies. Never mind the fact that it was Weldon who had revealed this information to begin with. Interested parties needed to paint him with a broad brush to discredit him with the mainstream media. Weldon’s decision to go independent also seemed to rankle Republican leadership, as he was passed over for a slot of on the coveted House Intelligence committee, presumably because he was not a team player.

But while the information was largely ignored by the media and the powers that be that put together the Cox Report, the Clinton Administration took notice. They promptly undertook efforts to hamstring and ultimately dismantle LIWA and other data mining operations. That included Able Danger.

I believe that when Able Danger began to uncover Al Qaeda links and cells operating within the United states, they had already become known as a “persona non grata,” both within the intelligence community and among other federal agencies. The Clinton Administration had already begun efforts to slowly and quietly dismantle these programs, and word was filtering through the federal bureaucracy. The poor treatment of these data mining operations and the intelligence they were collecting may have may also have been partially due to the fact that other agencies were threatened by the good work being performed by these data mining operations and saw it as encroaching on “their turf.” I believe it was a confluence of both factors, with the Clinton Administration cronies playing on the jurisdictional and turf issues as a way of ensuring that LIWA and Able Danger were ultimately scrapped.

As a result Able Danger and its work were quietly folded -- until the 9/11 Commission began soliciting information from federal employees on the work they were performing on pre 9/11 intelligence and Al Qaeda. They, in effect, had opened a can of worms when they began talking to people about Able Danger. To include information on Able Danger in the 9/11 Commission report would require an explanation of why their work had been halted.

I suspect some of the connections on the charts developed by LIWA included unsavory links to prominent Republicans, as well as democrats, which was why it was not included in the Cox Commission Report (I have heard that Condoleezza Rice was one such person.) There may very well have been no real, credible connection, but simply the inference that there were connections may have been alarming for Republicans.

Rather than revisit an issue that would reap irreparable harm on both parties, Republican and Democratic members of the 9/11 Commission opted to omit any references to Able Danger. Perhaps they justified it in their own minds as something that could not be fixed in hindsight and “for the good of the country” was best not made public. Once that decision was made, it became imperative for the bureaucracy to continue to stick to the line. Otherwise, it would reveal a cover up of monumental proportions.

Former members of the Clinton Administration and DNC clearly have the most to lose in this information being made public. In fact, Weldon is now facing a tough race this cycle from former Vice Admiral Joseph Sestak, a member of President Clinton’s National Security Council during the time frame in question. He represents the highest ranking "Fighting Dem" seeking a seat in Congress. Governor Edward Rendell, former chair of the DNC, also cleared out two of Sestak's primary opponents in the past two weeks to provide him with a clearer shot at Weldon. In a district that voted for Kerry last Presidential election cycle, former members of the Clinton Administration may defeat Weldon and finally be successful in putting Able Danger to rest once and for all.

Here's Gorelick's role. She authored a memo that somewhat blocked an invetigation of the China campaign finance issue. When LIWA came forward with this infromation, it threatened to undo all of the rtoadblocks she had put up. I wouldn't be surprised if she had a role in dismantlin LIWA, Able Danger and otehr data mining operations.

If so, that would be a major reason why she did not want the possibilty that Able Danger could have prevented 9/11, so she squashed it. Her memo also prevented groups like LIWA from sharing the information with the FBI, which was likely why Able Danger was rebuffed when it try to meet with FBI officials.

Its all starting to come together for me...

http://www.newsmax.com/archives/articles/2004/4/26/153933.shtml

Gorelick's Memo Impeded Probe of Clinton's China Scandal
Scott Wheeler, CNSNews.com
Monday, April 26, 2004
A senior U.S. government official has told CNSNews.com that the 1995 memo written by former Assistant Attorney General Jamie Gorelick, an issue in the 9/11 commission's investigation of U.S. intelligence failures, also created "a roadblock" to the probe of the 1996 Clinton re-election campaign's fund-raising scandal.
The memo's relevance in the investigation of the fund-raising scandal has received scant attention in the media, but four sources, including the government official, have explained and corroborated details of the connection for CNSNews.com.

CNSNews.com's sources question whether the guidelines purportedly put in place by Gorelick in 1995 for Justice Department investigations were actually intended to shield President Bill Clinton, Vice President Al Gore and top Democrat campaign fund raisers from the subsequent congressional investigations of the illegal money-raising activities.

However, there appears to be no evidence at this point that the Gorelick memo was written for that express purpose.

Because the memo created a barrier for U.S. intelligence agencies to share information with the FBI, one of its unintended consequences might have been to prevent the FBI from receiving the necessary intelligence to stop the Sept. 11, 2001 terrorist attacks, the worst in American history.

Memo's Link to Money-Raising Scandal

The fund-raising investigation involved the Clinton campaign's alleged acceptance of donations from operatives working for the People's Republic of China as well as other foreign sources. But the Gorelick memo of 1995 prevented intelligence collected by U.S. agents overseas from being used in domestic criminal investigations.

Peter M. Leitner, a longtime employee at the Department of Defense and currently a senior strategic trade adviser at DoD, was responsible at one point for deciding whether to issue a license to a Chinese corporation seeking to buy a McDonnell Douglas machine tools factory.

At the same time, according to congressional investigations of the fund-raising controversy, the Clinton campaign was receiving millions of dollars in donations from Chinese businessmen.

Leitner told CNSNews.com that he repeatedly saw investigations that would have led directly to foreign agents stymied by the wall erected by Gorelick in her 1995 memo.

"The Gorelick memo guidelines created a firewall that protected the [Clinton] administration" from the Justice Department's investigation into foreign campaign donations, Leitner said.

Gorelick's previously classified memo became public when Attorney General John Ashcroft sought to defend the Bush administration in recent testimony before the commission studying the intelligence breakdowns in the months leading up to the Sept. 11, 2001 terrorist attacks. Among those listening to Ashcroft's testimony about the memo he had just released was Gorelick, herself a member of the 9/11 commission.

"The simple fact of September 11th is this," Ashcroft told the commission. "We did not know an attack was coming because for nearly a decade our government had blinded itself to its enemies. Our agents were isolated by government-imposed walls."

Another DoD official, who requested anonymity, explained in an interview with CNSNews.com that the People's Liberation Army "used front companies to buy U.S. defense high technology and influence in the U.S. government." In many cases, the source said, "the operatives were dealing directly with the White House."

That type of intelligence might have been used in the prosecution of high-profile figures such as former Commerce Department official and Democratic National Committee fund raiser John Huang, as well as longtime Clinton associate Charles Yah Lin Trie, and ultimately might have led directly to Clinton and Gore, sources said.

Bill, Al and Hillary Too

According to congressional investigations, Huang and Trie maintained close relationships with Beijing after Clinton was elected in 1992 and especially as they became major fund raisers for Clinton's 1996 re-election campaign and the legal defense trust fund established for the president and first lady Hillary Clinton to fend off charges associated with the Whitewater controversy.

"It was a classic spy network, nothing exotic about it," Leitner told CNSNews.com. "It included compromised public officials paid off with illegal campaign contributions." But Leitner said it was frustrating to see Huang and Trie eventually plea-bargain "for petty offenses instead of being investigated for espionage."

Leitner testified five times before congressional committees attempting to get to the bottom of what ultimately became known as the China/DNC fund-raising scandal. The Clinton administration Justice Department, headed by Attorney General Janet Reno, also conducted an investigation, even though many people accused the department of having a conflict of interest.

Chinese Weapons Development and Smuggling

Leitner said one of the most important investigations hindered by the Gorelick memo involved a Chinese state-owned corporation's activities after it had purchased a McDonnell Douglas high-tech machine tools factory in Columbus, Ohio.

The factory, known as Plant 85, had previously been used to manufacture the bodies of U.S. Air Force C-17 strategic transport planes and MX intercontinental ballistic missiles.

In 1994, the China National Aero-Technology Import and Export Corp. (CATIC) offered to buy Plant 85 from the financially troubled McDonnell Douglass Corporation and relocate it to China where CATIC officials said it would become a civilian aircraft-production facility, according to court documents.

The sale required a government export license, which Leitner was in charge of either approving or denying. Leitner denied the license, arguing that once the machine tools from Plant 85 were exported to the People's Republic of China, they would be used to produce missiles for China's People's Liberation Army as well as nations unfriendly to the United States.

Leitner was eventually overruled, but according to court documents, within months of the plant being exported to China, U.S. officials learned that the sensitive machine tools had been diverted to a Chinese factory manufacturing Silkworm missiles.

Leitner told CNSNews.com that he informed the federal prosecutor in the case that the CATIC license was approved over his objections because of "pressure from Vice President Gore." That testimony, however, was never heard in court.

Reno Again

A criminal investigation was launched in 1995, but Reno resisted calls from congressional Republicans to appoint an independent counsel in the case. Instead, she named career prosecutor Charles LaBella to head up the Justice Department's own task force investigating Clinton and the sources of the foreign contributions.

LaBella acknowledged that the wall established by Gorelick was "cumbersome" to the investigation but that he was ultimately able to work around it.

"Clearly there was a line between the criminal and the counter-intelligence side," he said. LaBella added that one of the Senate committees was frustrated because "briefings from intelligence didn't match up with the criminal investigations."

After LaBella's work was completed, he recommended the appointment of a special prosecutor, an idea Reno again rejected. In the end, indicted suspects in the investigation, including CATIC and McDonnell Douglas, were able to plea bargain for lesser offenses. The plea bargains eliminated the need for Leitner to testify about the alleged "pressure" exercised by Gore.

In another case that spanned the mid 1990s, U.S. Customs ran a sting operation against a Chinese-owned company known as Poly Technologies. The company was attempting to smuggle thousands of AK-47 automatic rifles into the U.S.

Customs agents posed as buyers for the illegal weapons and the undercover operation eventually led to the indictment of five Chinese nationals. Senior Customs Field Agent Michael Goldsmith told CNSNews.com that "there is absolutely no doubt that Gorelick's memo "made things tighter and tighter" in "not having critical data available and not being able to use it."

"Operation Dragonfire," the name of the sting operation, ended with the indicted suspects pleading guilty to less serious weapons charges.

Gorelick's Alleged Conflict of Interest

Gorelick, as a member of the 9/11 commission, is fighting the perception that she has a conflict of interest because the lack of intelligence cooperation between the FBI and the intelligence-gathering agencies has been widely cited as the reason for the U.S. government's inability to stop the attacks of Sept. 11.

In his April 13 testimony before the commission, Ashcroft said the wall was "the single greatest structural cause for Sept. 11. Government erected this wall. Government buttressed this wall. And before September 11th, government was blinded by this wall," Ashcroft told the commission.

Leitner went a step further. "What is disturbing is that that memo served to protect the administration from exposure in its dealings with the PRC and the unfortunate consequence may be the death of 3,000 Americans."

Spokesmen for Gorelick and the commission did not respond to numerous requests from CNSNews.com for comment on this story.

CLINTON: “Can I tell you that there has been no espionage at the labs since I have been president? I can tell you that no one has reported to me that they suspect such a thing has occurred.”

Read THE COX REPORT http://www.gpo.gov/congress/house/hr105851-html/index.html

Liu, who was ostentatiously garbed with the titles Colonel in the People's Liberation Army as well as Vice President of a major missile and space corporation, attended a Clinton fundraiser in California. She gave $300,000 to Johnny Chung to use for Clinton's reelection in order "to better position her in the United States to acquire computer, missile, and satellite technologies."

Listen to the 19 minute press briefing: chairmen of the select committee discuss their findings -- In RealAudio. (5/25/99)

The Select Committee submitted its classified report to President Clinton on January 4, 1999, including 38 recommendations to address issues related to export controls and counterintelligence. (See Clinton’s response at bottom).

http://www.fas.org/spp/starwars/congress/1999_r/cox/appbod.htm

Resolution 463

THE SELECT COMMITTEE
ON U.S. NATIONAL SECURITY
AND MILITARY/COMMERCIAL CONCERNS WITH THE PEOPLE'S REPUBLIC OF CHINA

House of Representatives
June 18, 1998

The Select Committee on U.S. National Security and Military/Commercial Concerns with the People's Republic of China (the Select Committee) was established pursuant to House Resolution 463, adopted on June 18, 1998 (included at Appendix C). The Resolution authorized the Select Committee to investigate a broad range of issues relating to the transfer of U.S. technology to the People's Republic of China. The Select Committee was charged with, among other things, the responsibility to investigate any transfers of technology, information, advice, goods, or services that may have contributed.

The Chinese Response to The Cox Report

State Council on Cox Report Voice of America Beijing Zhongguo Xinwen She -- 31 May 1999 Comparative version of report on State Council Information Office Director Zhao Qizheng criticizing US "Cox Report," originally filed from Beijing Xinhua Domestic in Chinese.

Excerpt from above:

'Cox Report '(25 May 1999) is another adverse current against China among the series of anti-China incidents created by some people in the United States over recent years. The Chinese Government and the people express great indignation at such attack that is marked by fabrication of facts, by turning white into black, by creating something out of nothing, and by speaking and acting on hearsay evidence.

Zhao Qizheng issued a statement on the "Cox Report." Full text of the statement as follows: [Xinhua version reads: Zhao Qizheng, director

of the Information Office of the State Council, today issued a statement on the publication of the "Cox Report" by the US Congress. He

pointed out:  The "Cox Report" is a farce to instigate anti-China feelings and undermine Sino-US relations.]

http://www.access.gpo.gov/congress/house/hr105851-html/ch1bod.html#anchor616339

Excerpt from The Cox Report

Wang Jun is the son of the late PRC President Wang Zhen. Wang simultaneously holds two powerful positions in the PRC. He is Chairman of the China International Trade and Investment Company (CITIC), the most powerful and visible corporate conglomerate in the PRC. He is also the President of Polytechnologies Corporation, an arms-trading company and the largest and most profitable of the corporate structures owned by the PLA. Wang's position gives him considerable clout in the business, political, and military hierarchies in the PRC.34

Wang is publicly known in the United States for his role in the 1996 campaign finance scandal and for Polytechnologies' indictment stemming from its 1996 attempt to smuggle 2,000 Chinese AK-47 assault rifles into the United States. He attended a White House "coffee" with President Clinton in February 1996 and was given a meeting with Commerce Secretary Ronald Brown the following day. He was also connected to over $600,000 in illegal campaign contributions made by Charlie Trie to the U.S. Democratic National Committee (DNC).35

Liu Chaoying is the daughter of former CCP Central Military Commission Vice-Chairman and Politburo Standing Committee member General Liu Huaqing, who has used numerous U.S. companies for sensitive technology acquisitions. General Liu has been described as the PLA's preeminent policymaker on military R&D, technology acquisition, and equipment modernization as well as the most powerful military leader in the PRC. His daughter is a Lieutenant Colonel in the PLA and has held several key and instrumental positions in the PRC's military industry, which is involved in numerous arms transactions and international smuggling operations.36 On two occasions she has entered the United States illegally and under a false identity.

Col. Liu Chaoying is currently a Vice-President of China Aerospace International Holdings, a firm specializing in foreign technology and military sales.37 It is the Hong Kong subsidiary of China Aerospace Corporation, the organization that manages the PRC's missile and space industry. Both organizations benefit from the export of missile or satellite-related technologies and components from the United States, as does China Great Wall Industry Corporation, Col. Liu's former employer and a subsidiary of China Aerospace Corporation, which provides commercial space launch services to American satellite manufacturers.

China Aerospace Corporation is also a substantial shareholder in both the Apstar and APMT projects to import U.S. satellites to the PRC for launch by China Great Wall Industry Corporation.38

A Chinese-American, Johnny Chung, during the course of plea negotiations, disclosed that during a trip to Hong Kong in the summer of 1996, he met with Col. Liu and the head of the MID, Gen. Ji Shengde. According to Chung, he received $300,000 from Col. Liu and Gen. Ji as a result of this meeting. The FBI confirmed the deposit into Chung's account from Hong Kong and that the PLA officials likely served as the conduit for the money.

The Select Committee determined that Col. Liu's payment to Johnny Chung was an attempt to better position her in the United States to acquire computer, missile, and satellite technologies. The purpose of Col. Liu's contacts was apparently to establish reputable ties and financing for her acquisition of technology such as telecommunications and aircraft parts.39

Within one month after meeting with Col. Liu in Hong Kong, Chung formed Marswell Investment, Inc., possibly capitalizing the new company with some of the $300,000 he had received from Col. Liu and Gen. Ji.40 Col. Liu was designated as president of the company, which was based in Torrance, California. The company is located in southern California, in the same city where China Great Wall Industry Corporation also maintains its U.S. subsidiary.

Col. Liu made two trips to the United States, one in July 1996 and one in August 1996, apparently seeking to expand her political and commercial contacts. During Col. Liu's July trip, Chung arranged for her to attend a DNC fundraiser where she met President Clinton and executives involved in the import-export business.41

Shortly afterwards, Chung also arranged for her to meet with the Executive Vice President of the Federal Reserve Bank of New York.42

Liu's August 1996 trip to the United States came at the invitation of Chung, who had told her that he had contacted Boeing and McDonnell Douglas regarding her interest in purchasing aircraft parts.43

That same month, Col. Liu traveled to Washington, D.C., where Chung had contacts arrange for her to meet with representatives of the Securities and Exchange Commission to discuss listing a PRC company on U.S. stock exchanges.44 Soon after the meeting, when Chung and Liu's alleged involvement in the campaign finance scandal became the subject of media reports, Col. Liu left the United States. Marswell remains dormant.45

Princelings such as Wang and Liu present a unique technology transfer threat because their multiple connections enable them to move freely around the world and among the different bureaucracies in the PRC. They are therefore in a position to pull together the many resources necessary to carry out sophisticated and coordinated technology acquisition efforts.46

-----------------------------

The Panama Canal Giveaway http://www.eagleforum.org/psr/1999/july99/psrjuly99.html

-----------------------------

http://usgovinfo.about.com/blcox.htm

President Clinton’s Response to the Cox Report May 25, 1999

RESPONSE TO THE REPORT OF THE

SELECT COMMITTEE ON U.S. NATIONAL SECURITY AND

MILITARY/COMMERCIAL CONCERNS WITH

THE PEOPLE'S REPUBLIC OF CHINA

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