In November, the State Department released a detailed 1996 report on U.S. high-tech exports to China as a result of a Freedom of Information Act (FOIA) request. But it refused to release another document on Clinton-sponsored exports to China, claiming to do so would threaten the “national defense.”

The report was written by James Sasser, ambassador to China and former Tennessee senator. Sasser sent his report to the White House, the State Department and the Commerce Department. Sasser, by the way, is the target of an (as yet) unrelated Department of Justice investigation that resulted in 47 indictments against a million-dollar Democratic donor and Sasser associate, Franklin Haney.

The Sasser report contradicts Clinton administration claims that advanced communications exports to China were for “civilian” projects. The report states that the Chinese Army was keenly interested in obtaining U.S. communications technology and the purchases were being financed by Far East billionaire, Li Ka-Shing.

In April 1994, the Clinton administration announced a new license policy for U.S. telecommunications exports. Exports sales for “commercial” applications would, according to a Commerce Department document, “use a General License, GLX which does not require prior U.S. government approval for export.”

In 1995, Congress requested the Government Accounting Office do a report on a “civilian” GLX license for a Chinese project called “Hua Mei.” The result was a report that reads more like a high-tech thriller than a bland audit report.

According to the GAO, Hua Mei, a joint U.S.-China hotel venture, was no ordinary Chinese “Red Roof” inn. The GAO noted the Chinese partner, Galaxy New Technology, was also owned and operated by the Chinese Army.

“In 1993, SCM Brooks Telecommunications entered into a joint venture with Galaxy New Technology, a Chinese company controlled by the Commission of Science, Technology, and Industry for National Defense (COSTIND), an agency of the Chinese military,” the report said.

COSTIND, according to the GAO, “oversees development of China’s weapons systems and is responsible for identifying and acquiring telecommunications technology applicable for military use.”

The recently released 1996 report written by Sasser states that the People’s Liberation Army (PLA) was also directly involved in the so-called “civilian” Chinese fiber optic communication systems. Sasser’s report noted that the PLA actively worked on an MPT fiber optic network that the Clinton administration stated was “civil” for the House National Security Committee.

“For example,” wrote Sasser, “in laying long-distance fiber optic lines for the MPT’s telephones and digital data network, the PLA has provided soldiers to do much of the work. The PLA cadres are considered disciplined and hard working. Once the cable has been laid, the MPT typically allocates some of the bandwidth to the PLA.”

“The PLA is already involved in telecommunications in a number of other areas,” stated Sasser in his report. “The PLA is probably involved in operation of some networks, particularly in southern China.”

Yet, according to a 1996 Department of Defense document written to Rep. Floyd Spence, chairman of the House National Security Committee, the Hua Mei fiber-optic system was a “civilian” enterprise.

“Hua Mei Telecommunications is a civil end user,” states the 1996 Defense Department report for Spence. “And that the equipment will be used for a civil end use. We are aware that the Commission on Science, Technology and Industry for National Defense (COSTIND) is a part owner of Hua Mei.”

According to the Clinton Defense Department, the COSTIND Hua Mei network was just another PLA money-making enterprise. “We have no information to indicate that the PLA expects to use or benefit from the system directly, other than by deriving profit from the investment. Indeed, the Chinese military C4I infrastructure is largely separate from the civil system, the
latter of which is managed by the Ministry of Posts and Telecommunications (MPT).”

In comparison, the 1996 State Department report alleges that the Ministry of Posts and Telecommunications (MPT) and Chinese billionaire Li Ka-shing were both directly involved with the PLA in financing U.S. communications exports to China.

According to the report written by Sasser, “Already, foreign companies are interested in the new PLA-backed entity that is likely to emerge over the next year. Recent press reports indicate that Hutchinson Whampoa may be involved with the PLA about possible funding options.”

Hutchinson Whampoa Ltd. is owned by the Chinese billionaire Li Ka-Shing. Ka-Shing is the sixth richest man in the world, owner of the giant Far East investment firm Cheong Kong Holdings.

Bill Clinton personally tasked two special Democratic National Committee million-dollar donors to travel on the “Presidential Business Development Mission” to Red China in 1994. Li Ka-Shing met with Loral CEO Bernard Schwartz, millionaire-investor Sanford Robertson and Commerce Secretary Ron Brown in August of 1994, during the Hong Kong leg of the far east trade mission.

DNC donors Bernard Schwartz and Sanford Robertson were supplied the dossier of Li Ka-Shing prior to the trade trip to Beijing in August 1994. Li Ka-Shing, according to the White House-supplied dossier, was also a “member of the board of directors of the China International Trust and Investment Corporation (CITIC).”

CITIC is the bank of the People’s Liberation Army, providing financing for Chinese Army weapons sales and western technology purchases. CITIC serves as the chief investment arm of China’s central government and holds ministry status on the Chinese State Council.

Ka-Shing is well known in Chinese military circles. Li Ka-shing played a significant role in the attempted purchase of the Long Beach Naval station for the China Ocean Shipping Company (COSCO). COSCO is owned by the Chinese government and carries PLA weapons exports to the middle east.

Li Ka-Shing also owns most of the dock space in Hong Kong. Li Ka-Shing and COSCO co-own the ports at both ends of the Panama Canal (Atlantic and Pacific). In 1997, Ka-Shing obtained Clinton administration financing for four huge container vessels to be built for COSCO in Alabama. The ship deal fell apart when it became public in December 1997.

In 1997, Rep. Henry Hyde wrote Attorney General Reno a letter outlining his concerns about Galaxy New Technology. According to Hyde, “In 1994, sophisticated telecommunications technology was transferred to a U.S.-Chinese joint venture called HUA MEI, in which the Chinese partner is an entity controlled by the Chinese military. This particular transfer included fiber-optic communications equipment which is used for high-speed, secure communications over long distances. Also included in the package was advanced encryption software.”

However, in 1996, Defense Department officials were adamant that there was no need to check the Chinese firm, Galaxy New Technology, since it was led by a civilian, Madam Nie Lie. Still, DoD officials did admit that Galaxy New Technology head Madam Nie Lie was also the wife of Chinese Army General Ding Henggao, commander of the Chinese unit COSTIND.

Galaxy New Technology staff wear green, have little red stars and they kill for a living. In fact, the so called “civilian” firm was heavily laced with Chinese Army officers and experts.

One member of Galaxy New Technology management, according to the 1996 Defense Department report, was Director and President “Mr. Deng Changru”. Mr. Deng Changru is better known as Lt. Colonel Deng Changru of the People’s Liberation Army, head of the PLA communications corps. Another interesting staff member from Galaxy New Technology was co-General Manager “Mr. Xie Zhichao.” Lt. Colonel Xie Zhichao, is also the Director of the COSTIND Electronics Design Bureau.

The report by Ambassador Sasser blows the lies away and reveals the truth about the PLA and Clinton. The claim by the Clinton administration that Hua Mei was a “civilian” project was a cover up of the military export of a secure — nuclear-hardened — communications system for the PLA.

President Clinton knew exactly who he was dealing with and what they wanted. He personally approved the meetings with Chinese Army officials.

Clinton personally benefited from Chinese Army donations laundered through American hands. In return, the Hua Mei fiber-optic network is currently being used by the PLA General Logistics Division to provide reliable communications during nuclear warfare.

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