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