-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. DECLARATION & DISCLAIMER ========== CTRL is a discussion and informational exchange list. 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