The following documents were obtained by Federal Court order
in Smith V. Commerce 398cv716.  The first document is an
official Commerce letter to General Huai Guomo from then
BXA Undersecretary Barry Carter.  General Huai's reply letter
appears in full chinese text and has the official heading of
COSTIND - the translation is attached below.

===============================================================

UNITED STATES DEPARTMENT OF COMMERCE
The Deputy Under Secretary for
Export Administration
washington. D.C. 20230

August 3, 1995

Lt. General Huai Guomo
Vice Minister
Commission of Science, Technology and
Industry for National Defense
Beijing, China

Dear General Huai:

Enclosed is a copy of our publication of U.S. businesses
interested in investing in Chinese defense enterprises
converting to civilian production, the U.S. Industry Directory.
We are also forwarding to you, through Major General Chen of
your Embassy here in Washington, an additional 750 copies of
this publication for you to distribute among the COSTIND
enterprises as you believe appropriate.

I continue to believe that U.S. and Chinese cooperative
activities in support of defense conversion, such as the
publication of this directory, remain important even in the face
of current difficulties between our two countries. We have made
considerable progress toward realizing the goals of the U.S.-
China Joint Defense Conversion Commission. I hope that you agree
with me that there remain excellent opportunities to continue to
make progress.

One such opportunity is our open invitation to reschedule the
visit by a delegation of Chinese defense enterprise
representatives to the United States. The dates we have
suggested for this trip are September 17-30, 1995, or some
mutually convenient dates thereafter.

I look forward to receiving your response to our invitation so
that we may continue our important work together, and to our
meeting again soon.

Respectfully,

Barry E. Carter

===============================================================

ENGLISH TRANSLATION FOR REFERENCE

AUGUST 30, 1995

Mr. Barry E. Carter
Deputy Under Secretary
Bureau of Export Administration
U.S. Department of Commerce
Washington, D.C.
U.S.A.

Dear Sir:

Your two letters and the publications of "THE U.S. INDUSTRY
DIRECTORY" duly received.  I would like to express my
appreciation to you and your collegues for your fruitful work in
promoting the U.S.-China Joint Defense Conversion Cooperation.

I agree with you that there does exist the opportunities to
continue to make progress in our defense conversion cooperation
even in the current difficulties between our two countries.  The
prepartaion work for organizing some of the enterprises to come
to the U.S. for discussions of defense conversion projects has
still been underway.  This mission will be sent as the
conditions are mature.  Arrangements also has been made in
regard to the defense enterprises leaders from China being
trained in the U.S. as was set by the U.S.-China Joint Defense
Conversion Commission.

Wish our defense conversion cooperation achieve further results
through joint efforts.

HUAI GUOMO (signed)
VICE MINISTER
COMMISSION OF SCIENCE, TECHNOLOGY
AND INDUSTRY FOR NATIONAL DEFENSE

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PLA General Huai Guomo official bio

http://www.softwar.net/huai.html

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