Posted on 03/23/2006 2:49:54 PM PST by My Favorite Headache
U.S. Hiring Chinese Co. to Scan Nukes By TED BRIDIS and JOHN SOLOMON, Associated Press Writers 27 minutes ago
WASHINGTON - In the aftermath of the Dubai ports dispute, the Bush administration is hiring a Hong Kong conglomerate to help detect nuclear materials inside cargo passing through the Bahamas to the United States and elsewhere.
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The administration acknowledges the no-bid contract with Hutchison Whampoa Ltd. represents the first time a foreign company will be involved in running a sophisticated U.S. radiation detector at an overseas port without American customs agents present.
Freeport in the Bahamas is 65 miles from the U.S. coast, where cargo would be likely to be inspected again. The contract is currently being finalized.
The administration is negotiating a second no-bid contract for a Philippine company to install radiation detectors in its home country, according to documents obtained by The Associated Press. At dozens of other overseas ports, foreign governments are primarily responsible for scanning cargo.
While President Bush recently reassured Congress that foreigners would not manage security at U.S. ports, the Hutchison deal in the Bahamas illustrates how the administration is relying on foreign companies at overseas ports to safeguard cargo headed to the United States.
Hutchison Whampoa is the world's largest ports operator and among the industry's most-respected companies. It was an early adopter of U.S. anti-terror measures. But its billionaire chairman, Li Ka-Shing, also has substantial business ties to China's government that have raised U.S. concerns over the years.
"Li Ka-Shing is pretty close to a lot of senior leaders of the Chinese government and the Chinese Communist Party," said Larry M. Wortzel, head of a U.S. government commission that studies China security and economic issues. But Wortzel said Hutchison operates independently from Beijing, and he described Li as "a very legitimate international businessman."
"One can conceive legitimate security concerns and would hope either the Homeland Security Department or the intelligence services of the United States work very hard to satisfy those concerns," Wortzel said.
Three years ago, the Bush administration effectively blocked a Hutchison subsidiary from buying part of a bankrupt U.S. telecommunications company, Global Crossing Ltd., on national security grounds.
And a U.S. military intelligence report, once marked "secret," cited Hutchison in 1999 as a potential risk for smuggling arms and other prohibited materials into the United States from the Bahamas.
Hutchison's port operations in the Bahamas and Panama "could provide a conduit for illegal shipments of technology or prohibited items from the West to the PRC (People's Republic of China), or facilitate the movement of arms and other prohibited items into the Americas," the now-declassified assessment said.
The CIA currently has no security concerns about Hutchison's port operations, and the administration believes the pending deal with the foreign company would be safe, officials said.
Supervised by Bahamian customs officials, Hutchison employees will drive the towering, truck-like radiation scanner that moves slowly over large cargo containers and scans them for radiation that might be emitted by plutonium or a radiological weapon.
Any positive reading would set off alarms monitored simultaneously by Bahamian customs inspectors at Freeport and by U.S. Customs and Border Protection officials working at an anti-terrorism center 800 miles away in northern Virginia. Any alarm would prompt a closer inspection of the cargo, and there are multiple layers of security to prevent tampering, officials said.
"The equipment operates itself," said Bryan Wilkes, a spokesman for the U.S. National Nuclear Security Administration, the agency negotiating the contract. "It's not going to be someone standing at the controls pressing buttons and flipping switches."
A lawmaker who helped lead the opposition to the Dubai ports deal isn't so confident. Neither are some security experts. They question whether the U.S. should pay a foreign company with ties to China to keep radioactive material out of the United States.
"Giving a no-bid contract to a foreign company to carry out the most sensitive security screening for radioactive materials at ports abroad raises many questions," said Sen. Charles Schumer (news, bio, voting record), D-N.Y.
A low-paid employee with access to the screening equipment could frustrate international security by studying how the equipment works and which materials set off its alarms, warned a retired U.S. Customs investigator who specialized in smuggling cases.
"Money buys a lot of things," Robert Sheridan said. "The fact that foreign workers would have access to how the United States screens various containers for nuclear material and how this technology scrutinizes the containers all those things allow someone with a nefarious intention to thwart the screening."
Other experts discounted concerns. They cited Hutchison's reputation as a leading ports company and said the United States inevitably must rely for some security on large commercial operators in the global maritime industry.
"We must not allow an unwarranted fear of foreign ownership or involvement in offshore operations to impair our ability to protect against nuclear weapons being smuggled into this country," said Sen. Norm Coleman (news, bio, voting record), R-Minn., a member of the Senate Committee on Homeland Security and Governmental Affairs. "We must work with these foreign companies."
A former Coast Guard commander, Stephen Flynn, said foreign companies sometimes prove more trustworthy and susceptible to U.S. influence than governments.
"It's a very fragile system," Flynn said. Foreign companies "recognize the U.S. has the capacity and willingness to exercise a kill switch if something goes wrong."
A spokesman for Hutchison's ports subsidiary, Anthony Tam, said the company "is a strong supporter in port security initiatives."
"In the case of the Bahamas, our local personnel are working alongside with U.S. customs officials to identify and inspect U.S.-bound containers that could be carrying radioactive materials," Tam said.
However, there are no U.S. customs agents checking any cargo containers at the Hutchison port in Freeport. Under the contract, no U.S. officials would be stationed permanently in the Bahamas with the radiation scanner.
The administration is finalizing the contract amid a national debate over maritime security sparked by the furor over now-abandoned plans by Dubai-owned DP World to take over significant operations at major U.S. ports.
Hutchison operates the sprawling Freeport Container Port on Grand Bahama Island. Its subsidiary, Hutchison Port Holdings, has operations in more than 20 countries but none in the United States.
Contract documents, obtained by The Associated Press, indicate Hutchison will be paid roughly $6 million. The contract is for one year with options for three years.
The Energy Department's National Nuclear Security Administration is negotiating the Bahamas contract under a $121 million security program it calls the "second line of defense." Wilkes, the NNSA spokesman, said the Bahamian government dictated that the U.S. give the contract to Hutchison.
"It's their country, their port. The driver of the mobile carrier is the contractor selected by their government. We had no say or no choice," he said. "We are fortunate to have allies who are signing these agreements with us."
Some security experts said that is a weak explanation in the Bahamas, with its close reliance on the United States. The administration could insist that the Bahamas permit U.S. Customs agents to operate at the port, said Albert Santoli, an expert on national security issues in Asia and the Pacific.
"Why would they not accept that?" said Santoli, a former national security aide to Rep. Dana Rohrabacher (news, bio, voting record), R-Calif. "There is an interest in the Bahamas and every other country in the region to make sure the U.S. stays safe and strong. That's how this should be negotiated."
Flynn, the former Coast Guard commander, agreed the Bahamas would readily accept such a proposal but said the U.S. is short of trained customs agents to send overseas.
Contract documents obtained by the AP show at least one other foreign company is involved in the U.S. radiation-detection program.
A separate, no-bid $4 million contract the Bush administration is negotiating would pay a Manila-based company, International Container Terminal Services Inc., to install radiation detectors at the Philippines' largest port.
The U.S. says the Manila company is not being paid to operate the radiation monitors once they are installed. But two International Container executives and a senior official at the government's Philippine Nuclear Research Institute said the company will run the detectors on behalf of the institute and the country's customs bureau. U.S. officials said they will investigate further how the Filipinos plan to use the equipment.
___
Associated Press writers Bill Foreman in Hong Kong and Jim Gomez in Manila contributed to this story.
As you say, they just have to have people in place to see if goods reach their final end destination. That destination could be in the American heartland far from any ports, and if goods don't show up there they could assume the container was seized because of radiation at the port. But the location of the scanners makes no difference in this kind of intelligence operation. And that was the whole point of this AP article--that there's something dangerous about locating the scanners offshore.
Very true. History has shown that we are in a kind of partnership with God and we have to fight our fight on earth against evil or else evil can triumph. But I believe God gives us some help at critical times. Just look at the way Israel always defeats enemies who have far more soldiers and tanks. The Israelis fight hard, but they seem to get a little help too.
You are a very smart dude (dudette?). I'm glad you're on our side in the WOT.
Foreign countries scan containers at their own ports. If the Bahamas government wants to hire professionals more capable than its own government employees, it should be applauded.
If they let a nuke through they might just lose the contract! Wow, that should make 'em think!
That radiation detector is not a US invention. It is new of the US. It allows 140 container scans a hr. US port scanners allow only 20. DPW would have been the first to put these scanners in US ports. DPW has them in all their port operations. The union opposes the new scanners. Most all European ports already have the scanners.
First it is not communist china scanning, its the largest port operator in the world and is a Hong Cong company. Second who is suppose to bid. Hutchinson owns 50% of that port. The cargo shipping 50%. The US contracted a service. There is no one else that can perform that service in Hutchinson's port. Dell opened a plant in India because the market for both India and China are 4 times larger than the US market and sales in the US are restricted by the size of the US market. If we made them here and tried to ship them how would we do it. 50% of the leased terminals in India's largest port is to DPW. Congress has just said they cannot do business in the US. Business just said we will build the plant there. The US stockholders that own Dell are happy.
This technology is already used by most of the port operators in the world the US is the exception. The union doesn't want these scanners in US ports, They scan 140 containers a hr. US equipment can only scan 20 a hr. Its the prime reason the union didn't want DPW in our port terminals. They install the new scanners in all their terminals.
Who is their to bid. Hutchinson owns 50% of that port. The 50% that is for cargo shipping and where the scanners are located. They contracted a service to Hutchinson. Hutchinson is not going to sell their port to please the US.
Bush already has that agreement with 43 countries but congress has to provide the money for new agents. Hutchinson has no problem with a agent there. they are in other foreign Hutchinson ports and were in DPW. We don't have any trained nor is there money to do so.
How would that affect Hutchinson of Hong Cong.
Like What? How about the Dubai Ports deal that would have placed this countries National Security in the Hands of a nation that does not have our best interest in mind and that still deal with Known International Terrorist Groups.
foreign company. tell me what we make anymore
foreign company. tell me what we make anymore
Find United States products and suppliers, or post a lead and let suppliers find you!
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You're clueless.
I recommend searching the FR archives for a few of the Dubai threads that ran a couple of weeks ago. It's a great way to educate yourself about current events. Good luck.
Shhhhhhh, keep this quiet. Don't let those diabolical nuclear terrorists know what we're doing.
Look what I found in my files!
Li Ka-Shing Seeks U.S. Contract
Charles R. Smith
Tuesday, Aug. 6, 2002
Hutchison Whampoa Teams With U.S. Defense Firm for Port Security
Hutchison Whampoa, the firm that currently runs both ends of the Panama Canal, is teaming up with an American technology company in a bid to win tens of millions of dollars in U.S. port security funding.
Three companies Hutchison Whampoa Ltd., PSA Corp. Ltd. of Singapore, and London-based P&O Ports will test an advanced electronic system manufactured by California-based Savi Technology to ensure the security of cargo entering U.S. ports. Hutchison Whampoa's effort to obtain a U.S. government contract has been confirmed by Savi Technology, the American partner in the joint venture.
"We are working with Hutchison and the port of Seattle on a pilot project," stated Savi's Senior Vice President for the Public Sector Ken Wykle.
"The pilot with Hutchison is intended to track cargo from Hong Kong to Seattle. Once the pilot project is complete, we will seek federal funding.
"We also have two other pilot projects one with PSA, which will track cargo from Singapore to Seattle, and a follow-on with P&O, which will track cargo from Rotterdam to the New York and New Jersey ports," stated Wykle.
The three shipping companies are putting up seed money for the pilot phase of the project. However, there is a great potential for U.S. government contract funding, including $28 million in emergency funds already appropriated by Congress for port security and an additional $83 million in annual port security grants being considered in Congress.
RFID Tracking Technology
Savi already produces an electronic system called RFID, or "radio frequency ID," that transmits the exact location of any tagged cargo. The RFID system has been purchased by the U.S. Defense Department to track critical cargo shipments around the world.
Yet intelligence sources have confirmed that the Chinese army is also very interested in the RFID technology. The sources confirmed that the same technology has been examined by the PLA for use as a "poor man's smart bomb." The tracking devices can be rigged to detonate a hidden explosive device or release chemical weapons only when they have arrived at their intended destination.
Li Ka-Shing & Communist Chinese in Business
The bid by Hutchison Whampoa to acquire U.S. government funding is also expected to run into heavy opposition inside Congress. The owner of Hutchison Whampoa, Hong Kong tycoon Li Ka-Shing, is well known to be very close to the Chinese communist government. Li is reportedly in business with Chinese President Jiang Zemin's son, developing properties in Tiananmen Square.
For example, Li Ka-Shing is so close to the Chinese government that the Clinton White House gave his bio, along with the bio of the entire top communist Chinese leadership, to the CEO of Loral Aerospace, Bernard Schwartz, just prior to the 1994 Ron Brown trade trip to Beijing. Li was the only civilian in the bios given to the million-dollar DNC donor.
Li apparently did have a great deal of interest in U.S. space technology. He has served as a middleman for PLA satellite purchases. For example, Li financed several satellite deals between the U.S. Hughes Corporation and China Hong Kong Satellite (CHINASAT), a company owned by the People's Liberation Army unit COSTIND.
Besides buying satellites for the PLA, in 1997 Li Ka-Shing and the Chinese navy nearly obtained four huge roll-on/roll-off container ships from America. These ships were intended to transport PLA military cargo. The ships were part of a multimillion-dollar deal that would have been financed by U.S. taxpayers.
In an exclusive deal with the People's Republic of China's communist government, Li has the right of first refusal over all PRC ports south of the Yangtze River. Li Ka-Shing has invested more than a billion dollars in China and owns most of the dock space in Hong Kong.
Red Chinese Panama Canal Deal
Li Ka-Shing currently owns both the Pacific and Atlantic ports on the Panama Canal. A Senate Committee on Foreign Relations staff report on the privatization of the Panamanian ports dated May 14, 1997, identified Hutchison's subsidiary HIT, or Panama Ports Company, as being 10 percent owned by China Resources Enterprise (CRE), which is the commercial arm of China's "Ministry of Trade and Economic Co-operation."
During the Senate Governmental Affairs Committee hearings, the South China Morning Post on July 16, 1997, quoted Sen. Fred Thompson as saying China Resources was "an agent of espionage economic, military, and political for China."
COSCO and Li Ka-Shing
Li Ka-Shing's official business partner is the national flag carrier of Beijing, the Chinese Ocean Shipping Company, also known as COSCO. According to a 1998 congressional report on Chinese espionage, there is "information" that then-President Clinton did not allow to be made public on COSCO.
"Although presented as a commercial entity, COSCO is actually an arm of the Chinese military establishment. The Clinton administration has determined that additional information concerning COSCO that appears in the Select Committee's classified Final Report cannot be made public," stated the report that was written by the House Task Force on Terrorism and Unconventional Warfare.
Li Ka-Shing attempted to purchase the military port of Long Beach, Calif., for COSCO but failed after the U.S. Department of Defense raised national security concerns over the proposed sale.
A June 1997 Rand report, "Chinese Military Commerce and U.S. National Security," stated, "Hutchison Whampoa of Hong Kong, controlled by Hong Kong billionaire Li Ka Shing, is also negotiating for PLA wireless system contracts, which would build upon his equity interest in PLA arms company Poly Tech-owned Yangpu Land Development Company, which is building infrastructure on China's Hainan Island."
$35 Million Into U.S. Firm From Offshore
It is not known if the U.S. partner of Li Ka-Shing, Savi Technology, is aware of the billionaire's close working relationship with the Chinese government or the joint ventures that Hutchison Whampoa has with the Chinese army.
However, Savi received a $35 million investment in June 2002 from a Singapore-based firm just prior to announcing the joint effort with Hutchison. How the sudden influx of offshore monies will affect Savi's U.S. Defense contract status is also not known.
Li Ka-Shing Testifies Before Congress
According to the former prosecutor and executive director of the Canadian Police Association, Li Ka-Shing's Hutchison Whampoa seeking U.S. government funding for port security raises serious national security and law enforcement questions.
"I'd like to suggest that the appropriate congressional committee hold hearings into this important issue and that they call Li Ka-Shing as the first witness," stated Scott Newark, who is currently a special security adviser to the government of Ontario.
"I volunteer to be second, but frankly, there are people far more knowledgeable than me in this regard, including, for example, the International Association of Airport and Seaport Police, which just held their conference in NYC. As a speaker at that conference, I urged ridding ports of such crime and rogue government-connected companies not making them the local constabulary.
"There is no question that Hutchison Whampoa is a commercial maritime interest with great experience in port operations matters. Given the seriousness of what's at stake, it is obvious that this request should be considered seriously and result in full scrutiny of the current holdings and business relationships of Hutchison Whampoa and any history of activity that would raise concerns in relation to any or all of the above issues," said Newark.
According to Newark, there are five critical issues at stake: preventing smuggling of drugs, guns and people; preventing export of stolen products; providing site security as a result of 9-11; preventing terrorism-related smuggling; and preventing terrorist attacks on ships leaving ports.
Full Scrutiny of Hutchison Whampoa
"We need full scrutiny of the principals of Hutchison Whampoa and all of their business- or government-related associations and any history of any activity of them or their associates including links to organized crime and terrorist groups, activities or states supporting the same that would raise concerns to any of the above," stated Newark.
"We should give full scrutiny to any relationship of Hutchison Whampoa, its partners, directors or officers with any foreign government that would raise concerns to any or all of the above issues," noted Newark.
"Further, our Parliament is currently considering a bill that, among other things, provides a framework for port security requirements. I have already been approached to testify, and in light of this alarming development I will now specifically raise this issue and urge our government to ensure the same careful and public scrutiny of this company, its principals and their murky connections as I have here," concluded Newark.
And remember the huge facility COSCO has at the Port of
Long Beach!
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