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 Blackhawks for Chinese army
PLA pressed Chung for
military exports from Clinton

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By Charles Smith
© 2000 WorldNetDaily.com

In a WorldNetDaily exclusive interview, Chinagate figure Johnny Chung
revealed for the first time that the Chinese army sought his help to obtain
parts for Blackhawk helicopters.
"It is like throwing a stone to open the gate," commented Chung during an
interview in Los Angeles. "The Chinese army knew I had access. They wanted me
to throw the stone."

"At one point in 1995, one of the (Chinese) businessmen approached me and
asked, 'Would you ask your government to allow us to buy helicopter parts?'"
said Chung.
Johnny Chung: "It was like throwing a stone to open the gate." Photo by
Brenda Smith.

"Now, I am a facsimile broadcasting service businessman. I told him that I
was not in the helicopter business. I told him that I was not interested in
helicopters. Why should I help?"

"He said, 'It's important,'" noted Chung. "'We bought these helicopters from
your country years ago. Blackhawk helicopters. The helicopters are not
military. They are used as rescue equipment. Now out of the 20 or 30
helicopters, we can only use two or three because of a lack of spare parts.'"

"I told him I am not an arms dealer, but he persisted. He asked again, 'Can
you ask your government to do that?' I told him again, no. That is not my
specialty. I know nothing about military equipment. I am in the fax
business."

"That was 1995 or early 1996," said Chung.

A former Democratic fund-raiser who became involved with funneling Chinese
military money to the Clinton administration, Chung subsequently pleaded
guilty and cooperated fully with the FBI in its Chinagate investigation.

Chung's personal account is not the only data available on the
China/Blackhawk dealings. After being turned down by Chung, the Chinese
military succeeded in obtaining the Blackhawk parts through other means.
Allegedly, former Reagan official Alexander Haig lobbied the White House on
China's behalf to acquire the Blackhawk parts.

In 1997, the Clinton administration granted the Chinese army permission to
buy the spare helicopter parts.
U.S. Army UH-60 Blackhawk helicopter at work in Kosovo. According to the Rand
Corporation, the Chinese army obtained Blackhawk advanced communications
equipment illegally "under the guise of non-restricted merchandise." U.S.
Army photo.

The Chinese army reportedly uses the Blackhawk helicopters for search and
rescue operations. However, the UH-60 helicopter also has a long history of
military service and could play a critical role in any People's Liberation
Army effort to invade Taiwan.

Blackhawk helicopters served the U.S. forces in Kosovo and in the desert war
with Iraq in airborne assaults on enemy positions.

Aviation Week & Space Technology noted that defense evaluations of the
Chinese army helicopter force show that the Asian superpower is critically
short of the vertical airlift needed for an invasion of Taiwan. In contrast,
the Indian army alone has more helicopters.

U.S. intelligence sources also confirmed that Russia has offered to lease
helicopters to China for the invasion of Taiwan.

The Chinese military actions appear to be a major long-term effort to acquire
U.S. helicopter technology. According to a 1997 Rand report, Chinese arms
manufacturer Poly Technologies illegally sought U.S. exports of Blackhawk
parts. The Rand report noted that one such subsidiary of Poly Tech, a firm
called "PTK International," was also involved in espionage.

"Dynasty handled all incoming and outgoing money for Poly, including
management of all Poly investments in the U.S., and coordinated procurement
of defense-related materials with PTK and U.S. firms," noted the 1997 Rand
report. "Allegedly, Dynasty illegally shipped some of these materials,
including advanced radar systems, minicomputers, and advanced communications
equipment for use in the PLA UH-60 Blackhawk helicopters, to China under the
guise of non-restricted merchandise."

Federal Judge Robert Payne forced the Commerce Department to release the Rand
Corporation report in 1998. The report also contains detailed information
about Poly Technologies and its origin.

"Poly Technologies, Ltd., was founded in 1984, ostensibly as a subsidiary of
CITIC (China International Trust and Investment Corporation), although it was
later exposed to be the primary commercial arm of the PLA General Staff
Department's Equipment Sub-Department. Throughout the 1980s, Poly sold
hundreds of millions of dollars of largely surplus arms around the world,
exporting to customers in Thailand, Burma, Iran, Pakistan, and the United
States," states the Rand report.

The connections to Poly Technologies also lead directly to President Clinton.
In 1996, Poly Technologies Chairman, Wang Jun, met with then-Commerce
Secretary Ron Brown. Wang is described as an international arms dealer and,
according to intelligence sources, travels on an official "diplomatic"
passport issued by the People's Republic of China.

On Feb. 6, 1996, the Chinese arms merchant attended one of the infamous White
House "coffee" sessions. Wang was invited to the White House function at the
behest of convicted Democratic fund-raiser Charlie Trie, who also donated
thousands of dollars to the Clinton-Gore re-election campaign. In 1998, Wang
refused to be interviewed by House Investigators looking into the Chinagate
scandal.

The Chinese army interest in U.S. helicopter technology did not end with the
successful attempt to acquire Blackhawk parts. In 1995, the Clinton
administration also sent a catalog directly to a Chinese army general that
included offers to sell advanced U.S. helicopter technology.

The catalog, "U.S. Industry Directory -- A Directory of U.S. Businesses
Interested in Defense Conversion Opportunities in the People's Republic of
China," was sent directly to People's Liberation Army Gen. Ding Henggao. The
catalog was prepared and submitted to Ding by the U.S. Commerce Department
under Brown.

The 73-page report of U.S. defense companies represents the Clinton
administration's "bilateral military" relationship with communist China. The
catalog of 58 U.S. military manufacturers also included a name, address and
phone number provided by Boeing Helicopters. Boeing emphasized for Ding that
they were already working on the "234 Commercial Tandem Rotor Chinook
helicopter in China."
U.S. Army CH-47 Chinook helicopter is designed to lift heavy artillery and
armored vehicles directly into battle. The Clinton administration tried to
conceal information on advanced Chinook engines sold to Harbin Aircraft
Corporation, a Chinese army-owned military aircraft manufacturer. U.S. Army
photo.


The Boeing 234 helicopter is an advanced version of the American CH-47
Chinook heavy lift helicopter, considered the mainstay of the U.S. military.
The large, twin-rotor Chinook is capable of lifting heavy items such as
artillery and armored vehicles directly to the battle zone. The 101st U.S.
Army Division used Chinook helicopters to outflank Iraqi forces during the
Gulf War.

Another document forced from the U.S. Commerce Department in federal court
shows that the Chinese military also sought advanced Chinook engine
technology. The documents were released under the orders of Federal Judge
Robert Payne during a 1998 Freedom of Information Act lawsuit.

According to a 1995 letter to the Commerce Department, American turbine
manufacturer Allied Signal wanted to sell an advanced computerized version of
the Chinook helicopter engine directly to Harbin Aircraft Corporation.
Government lawyers withheld the document, a letter from Allied Signal, for
"privacy" reasons.

Last year Payne reviewed the letter and determined that "Harbin Aircraft
Corp." is actually owned by the Chinese military, and ordered it to be made
public. Harbin currently manufactures large numbers of MiG fighter jets for
the People's Liberation Army Air Force and brags about supporting over 1,000
planes in combat service.

Chung, now living in Los Angeles, noted that the People's Liberation Army's
efforts were successful. Chung has also been the target of at least two
assassination attempts linked to the Chinese military.

"As a stone on ice, the helicopter deal broke the ice," asserted Chung. "This
ice-breaker allowed the Chinese army to purchase other military equipment
from the United States."

"I told the Justice Department all of this. Helicopters are not all they
want," warned Chung. "The point here is they tried to throw the stone to open
the gate. They want to open the door for more military equipment."



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Charles Smith is a national security and defense reporter for WorldNetDaily.



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