-Caveat Lector- Panel: Sales Over Security Pushed By JOHN DIAMOND .c The Associated Press WASHINGTON (AP) -- China pressured American satellite companies seeking business in Asia to push for changes in U.S. export laws that eventually helped Beijing secure information useful in improving ballistic missiles, according to a Senate report. The bipartisan Senate Intelligence Committee report, set for release today, is sharply critical of both the Bush and Clinton administrations for lax enforcement of export security provisions designed to prevent foreign countries from getting sensitive U.S. technology. A copy of the report was obtained Thursday by The Associated Press. While the report focuses on U.S. missteps, it also depicts China as shrewdly using its considerable economic leverage to bring about policy changes in Washington that opened the flow of technology exports. As far back as the Reagan administration, Washington was prepared to allow U.S. companies to put commercial satellites into space aboard Chinese rockets. Then, in 1989, the Tiananmen Square crackdown in Beijing led to restrictions on U.S. technology exports. In response, ``China actively lobbied U.S. companies that they were losing valuable business opportunities because of sanctions and government restrictions,'' the committee reported. China made it clear that access to a potentially vast market in telecommunications services and equipment ``would be available to companies willing to cooperate.'' Companies such as Loral Space & Communications and Hughes Electronics paid China for satellite launch services in part because of lower Chinese prices for rocket launches. But the report says another factor was Beijing's insistence that communications companies seeking access to Chinese markets must use Chinese launch services. The report found that decisions easing export rules by both Clinton and Bush ``emphasized commercial interests over national security.'' Both administrations failed to adequately fund satellite export security teams that would monitor interaction between U.S. contractors and Chinese officials, the panel concluded. The panel said it found no evidence that China has incorporated technology gained from U.S. contractors into its current ICBM force, which predates the policies allowing export of U.S. satellites to China. But the report said revenue from U.S. companies buying Chinese launch services funded improvements in Chinese rockets which were virtually interchangeable for military or commercial purposes. White House spokesman David Leavy said President Clinton has already approved steps recommended by the committee to strengthen security oversight of satellite exports. ``We have strong controls to monitor the commercial satellite launches but we are concerned, as is the committee, that unauthorized transfers could assist China,'' Leavy said. During the Clinton administration, the report said, U.S. contractors conducted detailed technical reviews of Beijing rocket technology with little or no U.S. national security supervision. ``Such (technology) transfer enables the PRC to improve its present and future technical know-how,'' the report concluded. The committee said U.S. officials had access to intelligence reports dating to the 1980s that said China ``has had a strategic, coordinated effort to collect technological products and information from the U.S. government and private companies.'' The report cites two cases now under federal investigation in which U.S. companies helped China improve its rockets after commercial rockets carrying U.S.-built satellites crashed. Hughes provided China with valuable technical information following the 1995 crash of a Chinese rocket. Loral did the same thing the following year after another crash. In both cases, no U.S. government security specialists monitored those contacts to prevent leakage of sensitive technology. Rules for satellite deals allowed China to launch U.S.-made equipment but barred the Chinese from access to the inner workings of the satellites. The space vehicles arrived in China for launch under tight U.S. guard. Similar restrictions and monitors were placed over technical contacts between the Chinese and U.S. contractors. In the Loral case, however, ``certain key facilities were not guarded,'' the report said. ``Classified materials were left unattended (and) security officials did not adequately determine the nationality of foreign technicians working in sensitive site areas.'' Officials at Loral did not immediately return calls seeking comment. Hughes spokesman Richard Dore said, ``Hughes does not believe it was ever in the position of passing on any type of security information or anything that would compromise a national security situation'' to China. DECLARATION & DISCLAIMER ========== CTRL is a discussion and informational exchange list. Proselyzting propagandic screeds are not allowed. Substance—not soapboxing! These are sordid matters and 'conspiracy theory', with its many half-truths, misdirections and outright frauds is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. 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