In 1995, Chinese Army Lt. General Huai Guomo and several other
key Generals of the PLA, were taken on a tour of the U.S. Energy
Dept.  The tour, part of a joint U.S/Chinese Defense conversion
project, included an invitation to the Chinese Generals to form
"joint" U.S./Sino nuclear projects.

Details of the 1995 Chinese Army meeting at the Energy Dept.
were written in a report by the U.S. Commerce Dept.  The 1995
Commerce Dept. report is part of over 1,000 pages of materials
on meetings with Chinese Army officials obtained from a Federal
lawsuit filed in 1998.  The documents were forced from the
Commerce Dept. in a Feb. 23, 1999 Court order issued by Judge
Robert Payne.

According to the Commerce Dept. documentation, Susan Tierney,
Assistant Energy Secretary of Policy attended the meeting with
the Chinese Army.  "She noted that the DOE Secretary visited
China last month and that cooperation with China is a high
priority," states the Commerce report.

"(Tierney) noted that DOE and the China State Planning
Commission have similar goals in the following areas: 1) Science
and technology development (especially in energy); 2) Funding of
research (such as fusion and fission)".

The Chinese General who attended the meetings, Lt. General Huai
Guomo, was then Vice Minister of COSTIND - the Chinese
Commission on Science, Technology and Industry for National
Defense.  In 1995, Lt. General Huai was under the command of
COSTIND Minister, PLA General Ding Henggao.  Chinese Generals
Ding and Huai helped establish the Galaxy New Technology joint
venture called "HUA MEI" in 1994.  The HUA MEI venture allowed
the Chinese Army to purchase an AT&T encrypted, secure,
fiber-optic network.

The 1995 Commerce document is partially blacked (secret) out by
the Clinton administration.  According to the March 1995 report,
Lt.  General Huai explained that his unit, COSTIND, had "six
specialty areas - 1) Aerospace; 2) Aviation; 3) Electronics; 4)
Ground Force Military Equipment; 5) Shipbuilding; 6) Nuclear."

"The business leaders asked for POC's (point of contact) for the
49 projects and Huai suggested they contact Col Xu at the
Embassy," states the Commerce Dept. report.

"Barry Carter (Commerce) mentioned the package he was preparing
which will include POC info.  MGen Deng offered his assistance
in COSTIND if any company had difficulty communicating with
industries in China. He said there are investment dollars put
aside for the 9th five year plan, and they do not have to be
limited to the 49 projects...  The Chinese said that anyone
wanting to make deals should move forward rapidly so that it
will be covered in the next 5 year plan which is just being
drawn up".

Then, according to the Commerce report, Lt. General Huai asked
several questions, concerning the financial and legal aspects of
U.S. nuclear power.  "LTG Huai asked if the govt takes back its
money when industry develops the final product...Does the
business keep tech patent rights?"

"At the end of the meeting at Energy," concludes the Commerce
document.  "The Chinese indicated that they would like to
develop cooperation in the nuclear field.  They expect to have
problems in handling nuclear waste and would like to develop
future cooperation in handling such waste.  US has no
cooperation right now in the nuclear area, but China hopes to
have some in the future".

Lt. General Huai had good reason to hope for future U.S./Sino
nuclear cooperation.  Huai's commander, General Ding, gave the
Commerce Dept. an official 1995 list of PLA owned companies
wanting business.  The list included contacts and projects at
the "China National Nuclear Corp", "The Academy of Engineering
Physics" and "China YuanWang (Group) Corp.".

General Ding sent the list of official contacts from the Chinese
Defense industry, along with a personal letter, to be circulated
to U.S. businesses by the Clinton Commerce Dept.  If any contact
on the list should fail to respond, the Chinese Army eagerly
provided a "Col.  Xu" as the prime contact at their Washington
Embassy, including the military attache's direct phone and fax
number.  The PLA owned companies operated with the direct
blessing of the Clinton administration, seeking joint ventures,
American investors, and U.S. technology.

While the "sales" division of Commerce was well versed in PLA
owned companies as early as 1995, the same cannot be said of the
export enforcement division of the same U.S. agency.  A 1997
Commerce Dept. e-mail to Frank Deliberti at the Commerce Bureau
of Export Administration (BXA) from Robert Bannerman in Beijing
states "This list, called 'China's Defense-Industrial Trading
Organizatins' published by DIA (Defense Intelligence Agency),
was posted in several places in the BXA/OEE section I worked in
a year ago."

"I used the chart to discover that Yuanwang Group," continued
Bannerman.  "The importer that is alledged to have imported
the Sun Computer shipped to the National Defense Technical
Institute of China in Changsha, was directly under the control
of COSTIND.  I keep a copy of this chart in my files."

The Commerce Dept. knew computers were being sold directly to
the Chinese Army.  The U.S. Commerce Dept. acted as a contact
point for both the PLA buyers and the American computer
manufacturers.  The same PLA owned Yuanwang Corp that the
Commerce would push as an official contact in 1995 for peaceful
"Defense" conversion projects, acquired high-speed Sun computers
for the Chinese Army in 1997.

According to another document from the Commerce Dept., Defense
Secretary Perry had promised General Huai's boss, PLA General
Ding Henggao, "a Cray super-computer to be used directly by the
Chinese weapons establishment to help design newer and safer
nukes".

The prime buyer of super-computers during the Cold war was the
U.S.  military.  By 1995, Cray was a major defense contractor,
supplying giant processors to the National Security Agency (NSA)
and U.S. Air Force.  Yet, in 1995 Cray was not doing so well.
The collapse of the Soviet Union also dried up defense funds.

In 1995, eager to make new foreign sales, Cray sales
representatives traveled to Beijing to meet with PLA officers
during a Commerce sponsored event.  In 1995, Cray attended the
"JCCT Meeting" in China.  The Joint U.S./China Technology summit
held in October 1995 in Beijing, included major American defense
computer manufacturers such as IBM, SUN, Apple, Digital, Silicon
Graphics and Cray.

Nor was China's missile program left begging for CPU power.  In
1994, Tandem Corp. exported computers to China Great Wall Corp.,
a company owned by the Chinese Army, during a Ron Brown trade
trip.  Commerce Dept. documents show that China Great Wall
Industry is owned by "China Electronics Systems Engineering
Company (CESEC), a subsidiary of the People's Liberation Army".

In 1993, Great Wall, along with nine other PLA controlled
companies, sold nuclear tipped M-9 missiles to Pakistan.  In
response, Great Wall was banned from purchasing U.S. controlled
technology such as computers.

Only a few months later, Great Wall was allowed to buy over $100
million of U.S. computers.  Tandem Corp. CEO James Treybig
attended an August 1994 Presidential trade mission to Beijing
with Ron Brown.  A Brown trade mission document states "Tandem
and China Great Wall Industry will announce in August their
joint venture".  Another document found in the files of former
Commerce Secretary Ron Brown states that Treybig "negotiated a
$100 million dollar joint venture for Tandem Computers while in
China".

The PLA purchase of U.S. computer power was the perfect cap to
Chinese nuclear espionage operations against America.  The
computers that power U.S. atomic weapon labs have evil twins
inside red China.  The PLA super-computers can run American
nuclear bomb design software and codes with little or no
modification.  They are identical to the computers at U.S.
weapons labs right down to the vendor support.

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