HUNTER CALLS ON ROMNEY TO OPPOSE BAIN PARTNERSHIP WITH CHINESE COMPANY

San Diego, CA - - - Presidential candidate and current Ranking Member of the House Armed Services Committee, Congressman Duncan Hunter, today called on former Governor Mitt Romney to send a "clear statement" to the leadership of the company he founded, Bain Capital, to terminate a proposed business deal with a controversial Chinese corporation seeking to acquire U.S. defense contractor 3COM. Bain Capital is attempting to form a business arrangement with Huawei Corporation, a Chinese corporation founded by an officer of the Peoples Liberation Army of Communist China, which faces allegations of assisting Saddam Hussein in the targeting of U.S. aircraft and in helping the Taliban develop surveillance equipment.

"I am extremely concerned that Governor Romney's company would tout a highly suspect Chinese corporation as a strategic partner," stated Hunter. "Forming a business partnership with a corporation known to have direct ties with terrorists and dictators while, at the same time, openly seeking to acquire a major U.S. corporation that performs vital cyber security work for the Department of Defense, can only be characterized as irresponsible."

A resolution has been introduced in Congress, H.Res. 730, which states; "The preponderance of publicly available evidence clearly suggests that as currently structured, the proposed transaction involving Huawei threatens the national security of the United States and should not be approved by the Committee on Foreign Investment in the United States ." A copy of this resolution is provided.

Hunter stated in his letter to Governor Romney, "…while it is true that you no longer control Bain Capital, the contributions you have received from its principals as its founding member indicate that your influence within the company remains strong.

"Further, while the Committee on Foreign Investment has yet to rule on the Huawei transaction, this corporation's connection to Saddam Hussein, the Taliban and the Army of Communist China should clearly disqualify them from becoming, in the words of your former company, "a strategic partner" in acquiring a U.S. firm such as 3COM, which performs vital cyber-security work for the U.S. Department of Defense.

"This letter is a request that you immediately issue a statement of policy that this transaction should be terminated on the grounds of national security. Please let me know what you intend to do."

A copy of Congressman Hunter's letter, as well as two articles regarding Huawei acquisition efforts are provided. Media are encouraged to contact Gary Becks at (619) 334-1655 for additional information or to arrange an interview with Hunter.

Hunter for President, Inc. 9340 Fuerte Drive La Mesa, California 91941 United States

"Peace Through Strength" The need for military, economic and diplomatic strength.

Sean Cole Midwest Regional Director IA, MO, IL, IN, KY, OH, and WV Hunter for President 08 Cell Number - 317-414-3424 Office Number 317-565-1392 Yahoo Instant Messenger: dhfundraiser

This is unreal:

http://www.freerepublic.com/focus/f-news/1916444/posts
China Angles to Buy 3Com

Excerpt:

According to the CIA, Huawei was responsible for the installation of an advanced fiber-optic air defense network in Iraq during Saddam’s brutal rule. The Huawei network, NATO code-named “Tiger Song,” was used to shoot down allied aircraft flying patrol over the Iraqi skies.

The network was installed in violation of an U.N. embargo. Worse still, the air defense network was paid for by the corrupt oil-for-food program which send cash to Huawei that was intended to feed starving Iraqi children.

Despite its history of killing American soldiers — it is Huawei’s teaming with Bain and Goldman Sachs that has enabled the Chinese company to arrange the buyout of 3Com. The Bain/Goldman/Huawei team has influence inside the highest political circles.

For example, current Republican candidate Mitt Romney has links to Bain. Gov. Romney enjoyed a successful career at Bain, helping to amass over a quarter of a billion dollars in his own personal fortune. Romney may have left the company in 2001, but he and his family still own a significant stake in the firm through his blind trust, which according to the Washington Post earned him $7 million to $15 million during the last year.

Bain associates, employees and friends have also been very generous to Gov. Romney’s campaign for the White House. Bain employees have donated over $190,000 to Romney, making the firm one of his largest sources of political cash. This amount does not include the efforts of former and current Bain partners and executives of companies Romney bought who are also raising hundreds of thousands of dollars.

All these financial ties to Bain bring into question the possible conflict of interest that Romney faces. So far, Gov. Romney has refused to comment on the Bain deal. Repeated calls to the Romney campaign were not returned.

Emphasis from below:

>>>The May 2004 report noted that a principle supplier of Iraqi communications hardware for the current cellular contract is “Huawei, a Chinese company that operated in Iraq under Saddam Hussein.”

Huawei supplied Saddam with a secure air defense network. The Chinese-built air defense system, NATO code-named “Tiger Song,” was sold to Iraq in violation of a U.N. embargo on arms exports.

The U.S. bombed the Chinese fiber optic network prior to and during Operation Iraqi Freedom. Huawei also supplied a sophisticated fiber optic command and control network to the Taliban in Afghanistan prior to the U.S. invasion.<<<

Pentagon Document: U.S. Paid Pro-Saddam Figures, Chinese and French
Charles R. Smith
Monday, Feb 28, 2005

Millions Missing – French, Chinese Companies Involved

Newly released Pentagon documents show that a former member of Saddam Hussein’s inner circle has resurfaced inside the new Iraqi government, bringing charges of corruption, bribery and bid-rigging.

The documents also indicate that many firms – including French and Chinese ones that had cozy relationship’s with Saddam’s regime – continue to reap millions in contracts from Iraq’s new governing authorities.

As a result, millions of U.S. aid dollars and billions in Iraqi government funds have disappeared in an ongoing scandal that is poised to engulf Baghdad and Washington.

Worse still, a leading candidate for the top elected post in Iraq has also been implicated in the report as having taken “payoffs” in order to rig a major government cell phone contract.

According to a May 2004 U.S. Defense Department report to the inspector general and obtained under the Freedom of Information Act, a former financier and close associate of Saddam Hussein, Nadhmi Auchi, has “engaged in unlawful activities” such as bribing “foreign governments and individuals prior to Operation Iraqi Freedom to turn opinion against the American-led mission to remove Saddam Hussein.”

In addition, the report noted that Auchi arranged “for significant theft from the UN Oil-for-Food Program to smuggle weapons and dual-use technology into Iraq in violation of UN and other International Export Control Regimes.”

But the U.S. liberation of Iraq has done little to put Auchi out of business. According to the official DoD report, during the U.S. occupation Auchi has organized “an elaborate scheme to take over and control the post-war cellular phone system in Iraq.”

BNP Paribas

According to John A. Shaw, the former deputy undersecretary for international technology security, Auchi not only helped Saddam prior to the war but also worked closely with the French bank BNP Paribas after combat ended, in order to acquire contracts inside Iraq.

“Auchi is the single largest principle shareholder in BNP Paribas,” stated Shaw during an exclusive interview.

BNP Parabas has been linked to the U.N. Oil-for-Food scandal, with potentially billions of dollars missing, or misused by Saddam though the French bank.

Shaw was very clear that Auchi, a kingmaker in present-day Iraq, used his powers against the U.S.

“From the outset Auchi kept out U.S. companies and U.S. technology,” said Shaw of the bidding process for the Iraqi cell contracts.

“There is a gold rush out there [Iraq]. The opportunity is there. There is so much money floating around that the Iraqi minister of communications went to London, passed $20 million to Auchi to have him start the process.”

Millions in Bribes

Shaw was not the only official to notice millions of dollars being passed out like so much candy at a party. The May 2004 Defense report supports Shaw’s allegations of corruption.

“Bribes amounting to between $18 and $21 million were allegedly allocated among six people,” noted the May 2004 report.

“It was reported by the CPA [Coalition Provisional Authority] Baghdad in late April [2004] that financial controls in the MOC [Ministry of Communications] were ‘few to non-existent.’ In that context, all the records of the cellular tender appear to have disappeared.”

The May 2004 report also implicated leading Iraqi Governing Council member Ibrahim al-Jafferi. According to the report, “there remain numerous allegations of payoffs and kickbacks from the winning consortia to a variety of decision makers” including Ibrahim al-Jafferi.

The report noted, “a second source reported a payment of $3 million made to al-Jafferi, and a matching amount to Haider al-Abadi [the Iraqi minister of communications].”

Ibrahim al-Jafferi is currently the leading spokesman for the Islamic Daawa Party and a potential candidate for the Iraqi prime minister job. He is the preferred candidate on the Shia list that won the election.

The implication of al-Jafferi’s involvement in the rigged cellular bidding may put a quick end to his rapid rise to power and dash hopes inside Washington for a smooth change inside Iraq to self-governance.

Chinese Arms for Saddam

The May 2004 report was followed more recently by a January 2005 audit report released by the office of the Special Inspector General for Iraqi Reconstruction.

The January 2005 report noted that hundreds of millions of U.S. aid dollars were missing and “the CPA provided less than adequate controls for approximately $8.8 billion” in U.S. funds provided for Iraq.

The May 2004 DOD report also noted that Iraqi communications contracts have been awarded to French and Chinese companies that either were implicated in the ongoing Oil-for-Food scandal or provided Saddam’s Iraq with weapons in violation of the U.N. sanctions imposed by the world body.

The May 2004 report noted that a principle supplier of Iraqi communications hardware for the current cellular contract is “Huawei, a Chinese company that operated in Iraq under Saddam Hussein.”

Huawei supplied Saddam with a secure air defense network. The Chinese-built air defense system, NATO code-named “Tiger Song,” was sold to Iraq in violation of a U.N. embargo on arms exports.

French Factor

Another major supplier of equipment for the Iraqi cellular system is French-based Alcatel. The French communications company has already been linked to BNP Paribas. Alcatel profited from U.S. and Iraqi money supplied to rebuild the war-torn country.

“The winners in the Iraqi cellular license tender were Saddam’s most senior financiers, their Egyptian and Iraqi supporters, the bank BNP Paribas, European cellular corporations – particularly Alcatel and Chinese telecom interests such as Huawei,” states the May 2004 Defense Department report.

“If the French had provided a couple of divisions to take Baghdad they could not have gotten more,” concluded John Shaw with disgust.

http://blogs.wsj.com/deals/2007/10/08/will-3com-deal-funnel-us-defence-secrets-to-the-chinese/
WSJ.Com

Would a private-equity firm founded by the Republican presidential contender Mitt Romney fork over sensitive secrets to the Chinese?

(snip)

It seems Bain’s decision to allow China’s Huawei Technologies to take a minority stake in 3Com has prompted some politicians to wonder whether Huawei will gain access to the Marlborough, Mass., telecommunications-equipment maker’s technology, which happens to be used by none other than the U.S. Defense Department. (According to this WSJ article, Huawei was founded in 1988 by Ren Zhengfei, a former Chinese army officer and the company’s current chief executive, and says its sales rose 45% last year to 65.6 billion yuan, or $8.73 billion, from 45.3 billion yuan in 2005.)

“This goes right to the heart of cyber security,” said Republican congressman Duncan Hunter during a recent appearance on “Lou Dobbs Tonight.” Readers may recall that CNN’s aspiring star sailor led much of the opposition in 2006 to Dubai Ports World’s bid to operate a few big U.S. ports.

Bain, hoping to head off serious problems, has voluntarily submitted the deal for review by the Committee on Foreign Investment in the U.S., comprising officials from several different White House agencies and last week said “the deal presents no risks to national security.”

Looming over this brouhaha is the role played by Romney, who founded Bain Capital and now is campaigning to become the 2008 Republican presidential nominee. He has had no operational involvement in Bain since 1999, though he
holds a financial interest through a blind trust. Romney has stayed mute on the issue (perhaps wisely so).

(snip)

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