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China Reform Monitor No. 431, February 25, 2002
American Foreign Policy Council, Washington, D.C.
http://www.afpc.org

Editor: Al Santoli

CHINESE OFFICIALS HARASS DISSIDENTS, CENSOR BUSH SPEECH; AIRCRAFT CARRIER "CASINO" HEADED TO CHINESE NAVAL BASE

February 24: The mystery of a Soviet-built aircraft carrier bought by a Macau company to be a "floating casino" took a new twist when it was revealed that its destination was Dalian, the site of one of the mainland's key naval shipyards, the South China Morning Post reports. The 60,000-ton Varyag, was released following a two-year diplomatic tussle after Beijing offered Turkey a US$ 361 million passage fee - despite denials from Beijing it was behind the Varyag purchase from Ukraine. A Turkish source said: "It was quite clear that the Chinese Government was very determined to see that the Varyag reached Chinese waters - there was involvement at the very highest levels." Foreign diplomatic and military observers believe Beijing is footing the bill because it is planning to use the Varyag as a template for future PLA navy carrier designs. Senior naval officers have made no secret of their ambitions to project China's burgeoning military power with the use of large aircraft carriers.

Copyright (c) 2002, American Foreign Policy Council

The article you posted only gives part of the story. This excerpt from the China Reform Monitor provides the rest. Ever since 1997 when Communist China purcased the Varyag, the PRC has floated the blatant disinformation story that the ship was purchased as a floating casino--propaganda so obvious as to be absurd on its face. When I worked at the Center for Security Policy in a few years ago, I challenged the current Executive VP's lame belief in the veracity of this ChiCom propaganda. Since 1999, I have been arguing that the PRC purchased the Russian supercarrier, Varyag, to use as the model to build her own class of 60,000 ton aircraft carriers. Several months after I presented this hypothesis, several articles came out about a new ChiCom plan to build a new class of 60,000 ton aircraft carriers. Now we learn that despite the fact that a ChiCom front company bought Varyag for only $20 million, they were willing to pay the Turks $361 million to let it pass through the Bosporous Straights. Now, its showing up at one of the four main ChiCom shipbuilding yards after having passed through the ChiCom controlled Suez Canal. So much for the 'mystery' of the fate of the Varyag. This so-called 'mystery' has now been completely resolved by the course of events.