http://www.worldnetdaily.com/bluesky_smith/19990629_xcsof_early_warn.shtml According to a recently declassified secret report from the FBI, U.S. Commerce officials were warned in 1995 of Chinese military and commercial espionage. On June 1, 1999, FBI Acting Chief of the Litigation Unit, Scott A. Hodes, released sections of a still secret report on Chinese espionage in written testimony submitted in a Federal lawsuit by this reporter. "The document is 1 of 18 documents submitted to the Court by the Department of Commerce for an in camera inspection," wrote Hodes in his testimony for Federal Judge Robert Payne. "This document is described as an FBI report dated April, 1995, and designated by the Department of Commerce as document # 98-02018-OSY1-001, originated and classified 'Secret' by the FBI. Portions of the document contain information responsive to plaintiff's request for Department of Commerce records on the subject, China's Commission of Science, Technology, and Industry for National Defense or COSTIND." According to Hodes, the "review determined the information withheld in paragraph 2 on page 17 and paragraph 3 on page 18 no longer warrants classification. Therefore, I declassified paragraph 2 on page 17 and paragraph 3 on page 18 and those portions will now be released to the plaintiff. The remaining portions of page 17 and page 18, as well as the cover page are not within the scope of plaintiff's request. "Furthermore," wrote Hodes, "these portions remain classified "Secret". As these portions do not concern COSTIND, I am not addressing them at this time." According the secret FBI report, "COSTIND generally oversees a whole host of weapons production corporations with their own needs to collect S&T. It is the primary coordinating control over these corporations and also tasks a wide range of Chinese commercial and research institutes to collect high-tech military and industrial items." In addition, the secret report shows that known People's Liberation Army (PLA) commercial espionage is directly linked to military and diplomatic espionage. According to the secret FBI report "The State Science and Technology Commission (SSTC) is the non-military counterpart of the COSTIND, and like COSTIND it is involved in China's S&T modernization effort. The SSTC largely oversees civilian S&T collection, using the S&T diplomats in the United States as a key collection tool." The secret report was generated as part of the standard counter-intelligence task assigned to the FBI. The report was given to U.S. Commerce officials at a secret level. The report describes both PLA "collection" operations and tools such as "diplomats in the United States." The FBI has come under fire recently for providing poor counter-intelligence to the Dept. of Energy, concerning PLA espionage involving nuclear weapons. The 1995 report shows the FBI counter-intelligence team was busy warning the Clinton administration about COSTIND and the PLA. In the past ten years the PLA has scored a significant number of military and commercial espionage victories against America. >From super-computers to satellite navigation the PLA snapped up a fire-sale of formerly defense related equipment at bargain basement prices. Much of the equipment included U.S. manufacturing equipment and U.S. training, thus, not only was the technology exported but so were the America jobs. This author has documented transfers which include: - Rockwell Collins GPS navigation to Shanghai Aviation for missiles and bombers, a company owned by the PLAAF. - Radiation hardened chips for nuclear warheads, including training for Chinese technicians inside America. - Blade cutters and molds for a NORINCO artillery-fuse production facility owned by the PLA. - McDonnell Douglas machine tools to China National Aero-Technology Import Export Corporation (CATIC) for fighter/bomber production, a company owned by the PLAAF. - SUN super-computer to Yuanwang Corp. for nuclear weapons development, a company owned by the PLA unit COSTIND. - $100 million of Tandem (now Digital) computers to Great Wall Industries for long range missiles and satellites, a company owned by the PLA. - AT&T fiber-optic communications systems to New Galaxy Technology, a PLA company, for the Chinese Army General Logistics Division. - Hughes secure Air Traffic Control systems directly to the PLAAF for "military" air defense. - $200 million of Motorola secure radios for the People's Armed Police (PAP), the Chinese "gestapo" that executes dissidents and runs the "Lao Gai" prison camps. - Advanced Synthetic Aperture Radar (SAR) from Loral Defense to National Remote Sensing Center, State Sciences & Technology Commission of China - SSTC, identified by the FBI and Dept. of Defense as a PLA missile guidance lab. - RSA/Security Dynamics computer security encryption technology to the Laboratory of Information Security (LOIS), a PLA information warfare lab, under the control of China's Ministry of Trade and Economic Co-operation (MOFTEC) and PLA unit COSTIND. During its investigation into Chinese operations to influence the 1996 U.S. presidential campaign, the U.S. Senate Government Affairs Committee Chairman Senator Thompson identified MOFTEC as a conduit for "espionage - economic, political and military - for China. Kind of like a smiling tiger; it might look friendly, but its very dangerous." In June 1999, Representative Randy Cunningham said the commercial deals made with the Chinese Army are like "dealing with a deadly Cobra. You might be able to grab the snake and milk it. You might even do some good with the poison... but be careful where you let it go." According to the Cox report there are 2,000 front companies on the loose, doing business inside America. One of the largest of the PLA front companies is Hutchison Whampoa, which is run by Chinese billionaire, Li Kashing. The Senate Committee revealed that Hutchison Whampoa's subsidiary, HIT has business ventures with the China Ocean Shipping Company, COSCO. COSCO is owned by the PLA. COSCO ships carry Chinese missiles, missile components jet fighters and other weapons technologies to nations such as Libya, Iraq, Iran and Pakistan. In 1996, the U.S. Customs Service seized a shipment of 2,000 Polytechnologies Company machine guns destined for agents posing as America drug gangsters aboard a COSCO ship at the port of Oakland, California. According to the Customs agents, U.S. Poly Tech officials had to call back to Beijing to obtain permission to ship the machine guns. Wang Jun, head of Poly Tech, is a known international arms dealer who had coffee Bill Clinton along with Charlie Trie. Jun also sits on the Board of CITIC, the China International Trust and Investment Corporation. CITIC is the chief investment arm of the Chinese central government and the bank of the People's Liberation Army, providing financing for Chinese Army weapons sales and for the purchase of Western technology. Jun's fellow CITIC Board member is Mr. Li Ka Shing, chairman of Hutchison Whampoa Ltd. Li Ka Shing is so close to the Chinese government that the Clinton White House included his bio along with Chinese President Jiang Zemin to the CEO of Loral Aerospace, Bernard Schwartz, just prior to the 1994 Ron Brown trade trip to Beijing. According to documents provided by the Commerce Dept., Brown and Schwartz were to meet both COSTIND General Shen Rougjun and Li Ka Shing. Li has served as a middle man for PLA satellite purchases. For example, Li financed several satellite deals between the U.S. Hughes Corporation and China Hong Kong Satellite (CHINASAT), a company owned by the People's Liberation Army unit COSTIND. Besides trying to buy satellites for the PLA, in 1997, Li Ka Shing and the Chinese Navy nearly obtained four huge roll-on/roll-off container ships from America. These ships were intended to transport PLA military cargo. The ships were part of a multi-million dollar deal that would have been financed by U.S. taxpayers. Li Ka Shing has invested more than a billion dollars in China and owns most of the dock space in Hong Kong. In an exclusive deal with the People's Republic of China's communist government, Li has the right of first refusal over all PRC ports south of the Yangtze river. Li Ka Shing currently owns both the pacific and atlantic ports on the Panama canal. Li Ka Shing attempted to purchase the military port of Long Beach California for COSCO and the Chinese Navy. A June 1997 Rand report, "Chinese Military Commerce and U.S., National Security," stated, "Hutchison Whampoa of Hong Kong, controlled by Hong Kong billionaire Li Ka Shing, is also negotiating for PLA wireless system contracts, which would build upon his equity interest in PLA arms company Poly Tech-owned Yangpu Land Development Company, which is building infrastructure on China's Hainan Island." In 1998, Li Ka Shing attempted to issue $2 billion in bonds, through his Hutchison company, in the United States. According to the Dow Jones Newswire, Hutchison revealed that 50 percent of the bonds would be used through a subsidiary known as Chung Kiu Communications Ltd., which had signed agreements to provide cellular services and equipment to joint ventures between the People's Liberation Army and the Chinese Ministry of Posts and Telecommunications. In June 1999, Li Kashing and his PLA partners bought their way into the communications grid of north-east America, bringing PLA signals intelligence (SIGINT) operations inside the United States. Hutchison Telecom and the PLA are now a major player in the American mobile-phone business with the recent investment of nearly $1 billion into VoiceStream Wireless. The $957 million deal, the PLA biggest investment yet in America, will allow funding of VoiceStream's merger with Omnipoint. Omnipoint provides a service to more than 100 million subscribers, predominantly in the north-eastern cities of the U.S., including critical military, commercial and diplomatic sites in New York, Boston and Philadelphia. The opportunity for PLA profits and communications espionage now spans the massive east coast of America. The deputy chairman of Hutchison's sister company Hutchison Whampoa, Victor Li Tzar-kuoi, described the investment as a "milestone for the group", saying it would be funded by "internal" sources. "It is something we have been working on for a while," said Hutchison Telecom managing director Canning Fok Kin-ning. "People have been wondering what (we) were going to do with (our) cash," Mr Fok said. "We are a very conservative company. Rather than going in and taking a big position at the start, we do it step by step." ================================================================ http://www.softwar.net/fbiprc.html ================================================================ 1 if by land, 2 if by sea. Paul Revere - encryption 1775 Charles R. Smith SOFTWAR http://www.softwar.net [EMAIL PROTECTED] Pcyphered SIGNATURE: DBAB8A1A16EC716F1A89A7FE0ECD34871A3EEAC56DA0CBE20843EE0DB89F9C84 2D4BF263438B4AFA9FA4B589A989999F5FF2CABC8D190718A650AB1E23A26A54 CE3C35CED69E3154 ================================================================ SOFTWAR EMAIL NEWSLETTER 06/29/99 *** to unsubscribe reply with "unsubscribe" as subject *** ================================================================
