FOR IMMEDIATE RELEASE: November 2, 2007
CONTACT: Gary Becks (619) 334-1655, dlhunter08@yahoo.com
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.
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Excerpt:
Secretary of Defense Robert Gates revealed that he was completely in the dark about the deal. The admission by Gates echoed similar confessions by the Pentagon top brass that they also were unaware of the buyout.
The Defense Department and the U.S. intelligence agencies were surprised by the proposed deal and had to scramble in order to get it reviewed for national security reasons.
The failure at the Defense Department is attributed to the Defense Technology Security Agency or DTSA. During the Clinton years, DTSA was a strong advocate of checking all export deals with China. In fact, aggressive DTSA efforts were documented by the Loral Corporation for holding up the sale of advanced radars to the Chinese military. Today, DTSA is a headless giant unable to do its job.
The Pentagon has not appointed an active director to run DTSA and the length of time the position has been vacant suggests little sense of urgency to do so. Leaderless, DTSA was caught unaware of the deal and was unable to provide warning to senior Defense Department officials.
The current "acting" head of DTSA, Mrs. Beth M. McCormick, actually served during the Clinton administration under Defense Secretary William Perry. This fact alone should raise alarm bells.
BUMP