-Caveat Lector-

Chung Testifies Before House Panel

By PETE YOST
.c The Associated Press

WASHINGTON (AP) -- Campaign fund-raising figure Johnny Chung is testifying in
public for the first time, alleging that the head of Chinese military
intelligence provided $300,000 intended to help re-elect President Clinton.

Chung's testimony before the House Government Reform Committee, scheduled for
today, comes at a sensitive time in U.S.-Chinese relations, strained by
NATO's accidental bombing of China's embassy in Belgrade as well as the
investigation into whether China stole U.S. nuclear weapons secrets.

Chung is Exhibit A for Republicans who argue that China was attempting to
influence the 1996 presidential elections. Democrats counter that the FBI can
trace only $20,000 to the Democratic National Committee out of the $300,000
that Chung says was funneled to him by Gen. Ji Shengde, the head of Chinese
military intelligence.

``Most of the remaining funds went for his personal use, including mortgage
payments,'' says a recently prepared bipartisan report of the Senate
Intelligence Committee.

The report also noted that Chung's allegation that he'd been given the money
to assist in the election of Clinton ``is contrary to his previous
statements.''

Chung is the latest congressional witness in the ongoing House committee
probe spearheaded by Rep. Dan Burton, R-Ind.

In the course of his cooperation with the Justice Department's criminal
investigation of campaign fund-raising abuses in the 1996 elections, Chung
``stated that in August 1996 he had been given $300,000 by a senior PRC
official to assist in the election of President Clinton,'' the Senate report
states.

Chung's testimony follows disclosures by the Los Angeles Times about Chung's
dealings with Ji.

According to the Times, Chung says he was told by Ji that ``we like your
president. I will give you 300,000 U.S. dollars. You can give it to the
president and the Democratic Party. We hope he will be re-elected.''

Chung also is expected to testify that he was told by a Beijing banker that
former Little Rock, Ark., restaurateur Charlie Trie approached the Chinese
government sometime before February 1996 asking for $1 million to support
Clinton and the Democratic Party.

Clinton as Arkansas governor frequented Trie's restaurant near the state
capitol in Little Rock and Trie in 1996 offered more than $600,000 from
questionable sources to Clinton's legal defense fund, which rejected the
donations. Trie goes on trial next Monday in Little Rock, charged with
obstructing a U.S. Senate investigation into campaign fund-raising abuses by
ordering the concealment of subpoenaed documents in Arkansas.

In addition, according to congressional sources, Chung also will say he was
told by Ji associate Liu Chaoying, the daughter of China's retired top
general, that:

China steered business to a Hong Kong aerospace executive with controversial
links to the Republican Party.

China had funneled $500,000 to an international trading firm of former
Clinton White House aide Mark Middleton, who worked for presidential chief of
staff Mack McLarty. Middleton's lawyer, Robert Luskin, has denied that
Middleton worked for China.

Chung contributed $360,000 to the Democratic Party and visited the White
House more than 50 times from 1994 to 1996. Chinese business executives
frequently accompanied him.

In one instance, Chung brought five Chinese businessmen, most officials of
government-controlled companies, to hear Clinton tape a radio address in
March 1995. In a White House visit two days before he was admitted for the
radio address, Chung handed Hillary Rodham Clinton's chief of staff, Margaret
Williams, a $50,000 contribution.

Chung ``often sort of hung around the anteroom of the first lady's office,''
then-White House spokesman Mike McCurry said in 1996 at the start of the
campaign finance controversy. McCurry said Chung apparently tried ``to
portray himself as someone who had greater influence than the facts would
allow.''

Chung pleaded guilty to making nearly $30,000 in illegal contributions to
Democrats, including $20,000 to the Clinton-Gore re-election campaign. Chung
also pleaded guilty to tax evasion and fraudulently obtaining a loan for his
home.

Chung could have been imprisoned for 37 years and fined $1.45 million. He was
sentenced to five years probation and 3,000 hours of community service.

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