http://www.softwar.net/thenews.html

The Clinton administration has reneged on its agreement to
deliver CHINA-GATE documents in a Federal Court case in
Richmond, Virginia.  On April 23, 1999, the DOJ attorney
representing Commerce promised to deliver a required index of
secret materials in a motion before Federal Judge Robert Payne,
requesting more time.

On April 29, 1999, the Dept. of Justice Attorney representing
the Commerce Dept. issued a notice to the Court that it has
withdrawn its motion to deliver a "Vaughn Index" or index of
classified documents that are being withheld.  The DOJ attorney
claimed the index was rendered "moot" by the Judge's order for
the Commerce Dept. to deliver all the documents to him behind
closed doors ("in camera"), including a full explaination of why
each document should be withheld.

According to the motion from the Clinton administration, there
are now an unknown number of Commerce documents being withheld
from public release for unspecified reasons.  The Commerce Dept.
now intends to withhold more information from the public than it
would normally release on an ordinary Freedom of Information Act
request.  The move, if accepted, might effectively gut the
Freedom of Information Act, allowing agencies not to respond
even if taken to court.

However, the move by the Commerce Dept. was not un-expected.
Within hours of being notified, this reporter filed a
counter-motion with the Federal Court.  This reporter had
previously requested the index of secret document, citing a
previous case that provides for the Commerce Dept. to provide
some explanation for the documents they are refusing to release.
According to the Court of Appeals for the District of Columbia
Circuit Vaughn v.  Rosen, the defendant agency bears the burden
of sustaining its action of withholding records.

This reporter also protested the incomplete and shoddy job that
was done by the Commerce Dept.  For example, one document
released in 1998 by the Commerce Dept. appears to be partially
withheld or lost this time around.  The Commerce Dept. could
only find the second to last page of a nine page Defense Dept.
report, a list of the Chinese and American Directors of the high
tech fiber optic transfer to the PLA.

The list is topped by "Madam Nie Li" who was identified in a
Congressional Reporting Service Report as "Lt. General Nie Li"
of the People's Liberation Army (PLA).  Madam General Nie is
also the wife of PLA spymaster, General Ding Henggao, former
commander of the Chinese Commission on Science, Technology and
Industry for National Defense (COSTIND).

This reporter can't be certain if the Judge is viewing the full
nine page DOD report behind closed doors.  Without the "Vaughn"
index there is no way to be sure if the Commerce Dept. is
trying to classify documents already released.

Clearly, the Commerce Dept. did not inspect the SOFTWAR lawsuit
submitted in 1998.  The entire DOD document was provided by this
reporter as evidence.  Additional documents from the Commerce
Dept. supplied as evidence were also ignored.

For example, the Commerce Dept. has not supplied any information
on a 1994 meeting between Secretary Ron Brown, Loral CEO Bernard
Schwartz and Chinese General Shen of COSTIND.  Commerce also has
not supplied information on the well documented meetings with
PLA missile engineers and U.S. space contractor Hughes.

However, above all, the Commerce Dept. forgot to include copies
of any pictures, videos or tape recordings taken at meetings
with the Chinese Army.  According to one recently released
document supplied by the Commerce Dept., photographers from both
sides attended meetings between Chinese Army Generals and
Clinton administration officials.

The meeting was held in Beijing in August of 1994.  The meeting
included a Major General who was also PLA Deputy Director of
Intelligence.  The meeting also included Defense Secretary Perry
and PLA spymaster General Ding Henggao.  General Ding is also
the husband of Lt. General "Madam" Nie Li, the Chinese co-chair
of the Hua Mei deal listed in the missing DOD document from
1996.

The two motions are now before Judge Robert Payne, who has the
all the secret Commerce documents that Commerce turned over on
April 23, 1999.

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1 if by land, 2 if by sea.  Paul Revere - encryption 1775
Charles R. Smith
SOFTWAR         http://www.softwar.net      [EMAIL PROTECTED]
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SOFTWAR EMAIL NEWSLETTER                            05/03/99
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