Posted on 01/27/2003 8:12:59 PM PST by NonValueAdded
One of Bill Clinton’s China scandals may finally be coming to closure. In 1998, the New York Times’ Jeff Gerth broke a story about the Clinton administration’s willingness to permit two U.S. aerospace corporations to transfer sensitive missile technology to the Chinese. The CEO of one of the corporations, Loral, had pumped hundreds of thousands of dollars of campaign contributions into the Democratic National Committee. In return, the Clinton administration waived controls on Loral’s export of these technologies to the Chinese aerospace industry.
Hughes Space and Communications committed similar offenses, but it was shielded from investigation by CIA Director George J. Tenet. Hughes was a key supplier of U.S. intelligence collection satellites, so when suspicions first emerged about its illicit activities, CIA employees tipped off Hughes about the impending federal investigation. Loral admitted its transgressions last year and paid $14 million in fines, but Hughes has continued to insist on its innocence. "We don’t believe we’ve done anything wrong," Hughes spokesmen told reporters.
But internal Hughes documents show that from 1995 on, the satellite maker gave China sensitive missile technology in order to win contracts in the emerging Chinese space market. The Chinese had demanded such assistance as the price of doing business and especially after they had suffered several catastrophic launch failures. Hughes promised the Chinese "whatever data and resources are required" to improve the reliability of their space launch vehicles. This included technical analyses of launch failures and information on guidance and telemetry systems. Much of the technology and expertise the Chinese gained was also applicable to their strategic nuclear missiles.
Now the U.S. State Department has proposed fines totaling over $60 million and bans on future exports, which could cost the company millions more in lost business. Just before Christmas, the Department charged Hughes, and its parent company Boeing Satellite Systems, with 123 violations of export control and arms transfer regulations. The charges also indicate that Hughes hired the son of a top Chinese aerospace general, who provided insider information on contract bids by one of Hughes’ major U.S. competitors.
The announcement also represents vindication for Gerth. He got a Pulitzer for his stories, but he was harshly attacked by the Clinton administration and its allies for reporting on the export control violations. Working through sympathetic journalists at the competing Washington Post, Clinton officials sought to downplay Gerth’s revelations and dismiss their significance.
One of Clinton’s favorite reporters was Walter Pincus of the Washington Post. His son was then the General Counsel at the Commerce Department, which had authorized the illegal transfers. Despite the obvious conflict of interest, Pincus repeatedly wrote or contributed to Post stories parroting the Clinton line. Pincus did not write the recent story about the Hughes’ fines.
Stop by www.aim.org and wish Reed Irvine a speedy recovery from his recent heart attack.
More Gerth, less Pincus!
***WASHINGTON TIMES.com: "CHINA ENACTS LAW EXTENDING ITS CONTROL" by Bill Gertz (ARTICLE SNIPPET: "China has enacted a new decree extending its control over a 200-mile economic zone from its coast that Bush administration officials say could lead to another clash with the United States over freedom of navigation.") (012703)
DefenseLINK.mil: "Remarks by Deputy Secretary of Defense Paul Wolfowitz , Frontiers of Freedom, Dirksen Senate Office Building, Washington, DC, Thursday, October 24, 2002." (SPEECH Question & Answer Session SNIPPET: "DepSec Wolfowitz: I think what it points out, and I think it should be a reminder to people on every side -- I was about to say both sides of this debate, but I find it a multi-sided debate. Whatever position one holds, one I think should recognize the potential for things to develop in ways that we don't anticipate, and the fact that if you stop and think about it, that concern that I mentioned which is a real one -- As I said, we demonstrated it in 1947 and we aren't the only ones who have thought about it, is something that requires thinking about missile defense in yet another difficult way. One could build the best possible defenses against intercontinental ballistic missiles and miss that possibility. I think as long as there are countries out there -- and there are -- who are as clearly determined as they are and they evidence it among other things, I mentioned the amount of resources they devote to being able to attack us. We need to be thinking ahead of them. We need to be thinking out of the box. We need to remember that there was a time when we said, I believe it was March of 1962, that it was inconceivable the Soviet Union would put missiles in Cuba. I believe in the 1980s when Saudi Arabia acquired long-range ballistic missiles from the Peoples Republic of China it took us completely by surprise. We think a relatively harmless surprise, but nonetheless a surprise.")
stepping back in time...NYI.edu - GLOBAL BEAT: "U.S.-CHINA TECHNOLOGY TRANSFER: ANNOTATED TIMELINE 1980- JANUARY 1998" by Bates Gill (ARTICLE SNIPPET: "1988 March - Reports reveal that China has transferred approximately 36 CSS-2 intermediate-range ballistic missiles to Saudi Arabia. This is first transfer of missiles of this range and capability within the developing world; the missiles were originally part of China's strategic arsenal, but Saudi and Chinese officials assure that the missiles will not be nuclear-armed. July - In Beijing, U.S. Secretary of State George Shultz expresses his concern over Chinese missile and weapons exports to Iran, Iraq, and Saudi Arabia.") (June 22, 1998)
I can't help but wonder if he was here on an H-1B visa.
I continue to say that this is the only President who deserves to be put up against a wall and shot.
You are kidding, right, Mom?
What appears to be happening here is the company is fined and restricted...which means the shareholders ultimately. Meanwhile the individuals who committed arguably treasonous acts walk free.
Sadly, Bush/Ashcroft have demonstrated absolutely no interest in seeing justice done in this matter or any other involving government corruption.
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