-Caveat Lector-

August 9/16, 1999
THE SPY WHO WASN'T
by BILL MESLER


Pat Buchanan calls Wen Ho Lee the epicenter of the most dangerous penetration
of America's nuclear labs "since the Rosenbergs went to the electric chair in
1953." Senator Don Nickles says that Lee, a mild-mannered Taiwanese-born
scientist at the Los Alamos nuclear weapons lab in New Mexico, was
responsible for the "most serious case of espionage" in US history. Senator
Frank Murkowski says he's perpetrated "the greatest loss of nuclear military
secrets in our nation's history," secrets that, in the words of Senator
Richard Lugar, will place the United States "at significantly greater risk
from a Chinese ballistic missile attack." Lee's guilt has so been taken for
granted that NBC's Brian Williams called a recent report that Lee will not be
prosecuted "amazing."

Yet as the facts have emerged during the relentless four-month media frenzy
surrounding Lee, he has looked less like a master spy and more like the
innocent victim of neo-McCarthyite Republicans who see the Chinese menace
everywhere and hope to use the "China threat" as a bludgeon against Democrats
in the upcoming presidential election. Since his name first surfaced in the
pages of the New York Times in early March, the case against him has turned
out to be laughably circumstantial, based largely on illegal, politicized
Republican leaks. As an eager corps of credulous reporters--particularly at
the Times--has turned the farfetched leaks into lead stories without taking
the time to do balanced reporting, the smear campaign has condemned Lee to an
Alger Hiss-like existence, shamed and suspect in the eyes of most Americans.

But Republican politics and a reckless media don't deserve all the blame.
Smarting from controversy over fundraiser Johnny Chung and angling to look
just as tough on the Chinese as their colleagues on the right going into the
2000 elections, Democrats have done little to challenge even the wildest
Republican allegations, and indeed have appeared more than happy to let Lee
take the fall. Energy Secretary Bill Richardson not only acquiesced in the
scandal mongering by firing Lee; his efforts to find scapegoats and to blame
the affair on his predecessor, Federico Peña, have lent credence to the
right's claims of Chinese penetration of the nuclear labs.

Bit by bit, every piece of "evidence" against Lee that has first appeared in
the New York Times--his trips to China, his phone call to a fellow
Taiwanese-born physicist under investigation--has turned out to be far less
nefarious than originally depicted. Even the most serious charge, that Lee
downloaded data used to simulate nuclear explosions onto an unclassified
computer, has proved specious. It now appears that Lee was sloppy in his
handling of sensitive materials, but no more so than his colleagues at Los
Alamos. One source at the General Accounting Office who has investigated
computer security violations at the facility says the case against Lee looks
like it "had more to do with appropriation politics and a general need for a
cold war enemy" than espionage.

The most Kafkaesque element of the accusations against Lee may be the crime
itself, or lack thereof. Lee is accused of sharing America's most
sophisticated miniaturized nuclear warhead design with the Chinese. China now
claims to have designed miniaturized warheads, yet it is still decades behind
US technology and shows little signs of catching up. Wen Ho Lee's biggest
crime may simply have been to be the wrong ethnicity in the wrong place in
the wrong election year. "This is the case of a pretty sexy group of things
coming together," says Stan Norris, senior analyst at the Natural Resources
Defense Council. "You've got nuclear bombs, espionage. Throw in a dash of
political campaign contributions and an upcoming election, and you have the
perfect Washington story. He might have done some things he shouldn't have
done, like mishandling computer information. But he wasn't alone in doing
those things. It is beginning to look like Wen Ho Lee was a scapegoat."



Anatomy of a Scandal

The Wen Ho Lee saga really began back in 1988, when, according to
Congressional sources familiar with later briefings by intelligence
officials, CIA agents were approached by a Chinese scientist who offered to
spy for the United States. The scientist handed over a one-page document
suggesting that China had data on a highly advanced warhead design called the
W-88, a miniaturized warhead originally developed at Los Alamos. Although the
document did contain some classified data, it was primarily drawn up from
declassified information and contained nothing proving that the Chinese
actually acquired the W-88. The agents concluded the scientist was in fact a
spy for the Chinese and rejected his offer. The Chinese had and still have
good reason to want the CIA to believe it had the W-88: The tiny warhead
would make Chinese ICBMs almost immune to interception by ballistic missile
defenses being developed by the United States--defenses China has adamantly
opposed.

The incident was largely dismissed until resurrected in 1995 by Notra
Trulock, then the Energy Department's director of intelligence. On the basis
of the 1988 document and more recent Chinese advances in warhead
miniaturization, Trulock concluded that the Chinese had in fact acquired
critical information on the W-88 from the United States. His conclusion
clashed with speculation by the CIA that China had obtained information on
warhead miniaturization from the Russians or even developed improvements
through their own weapons program. Nonetheless, Trulock's hunch would lead to
an FBI investigation of Wen Ho Lee, the only scientist from Los Alamos, where
the W-88 was developed, who had traveled to China in the mid-eighties. Lee
had appeared on the FBI's radar screen once before, in 1982, when he phoned
another Taiwanese-born scientist suspected of passing neutron bomb secrets to
the Chinese. (As would later happen to Lee himself, that scientist was fired
but never charged with any crime.)

Dismissed by the CIA and other intelligence analysts, Trulock's assessment of
Chinese spying would find a more welcome reception three years later before a
highly politicized committee in the House of Representatives chaired by
California Republican Christopher Cox. The Cox committee was investigating
whether contributions to the 1996 Clinton re-election campaign played a role
in helping sensitive satellite technology find its way to China. Last fall
Trulock took his allegations before the committee, and soon he had named Lee
as the Energy Department's "chief suspect" in the case.

On March 6, New York Times reporters James Risen and Jeff Gerth broke a story
headlined "China Stole Nuclear Secrets for Bombs, U.S. Aides Say." Quoting
Trulock extensively, Risen and Gerth reported that China had made "a leap in
the development of nuclear weapons: the miniaturization of its
bombs...accelerated by the theft of American nuclear secrets from Los Alamos
National Laboratory in New Mexico," a charge that cannot be proven to this
day. Based on illegal leaks made about a pending investigation (leaks
reminiscent of the Monica Lewinsky affair), the story claimed that "a
reconstruction by the New York Times reveals that throughout the government,
the response to the nuclear theft was plagued by delays, inaction and
skepticism" even though "government investigators had identified a suspect,
an American scientist at Los Alamos laboratory." (The "reconstruction" would
soon lead to calls for the resignation of everyone from Attorney General
Janet Reno to White House National Security Adviser Sandy Berger.) The story
went on to quote an unnamed government official as saying the suspect "stuck
out like a sore thumb" because of trips made to mainland China in 1986 and
1988.

In fact, the Energy Department approved Lee's trips to attend two technical
conferences. He had attended similar conferences throughout the world,
particularly in Western Europe. During the 1986 trip to China, Lee's wife was
actually working as an informant for the FBI to spy on mainland Chinese
scientists. Nonetheless, on the same Saturday morning that the Times story
broke, the FBI called in "the suspect" for questioning. Time reported that
this time they "turned up the heat." By Sunday night, Lee, who had never
before asked for counsel, finally stopped talking to investigators. A friend
of Lee's later told Time that Lee's two-day ordeal had left him bewildered.

The next day, Energy Secretary Bill Richardson ordered that Lee be fired from
Los Alamos for failing to report contacts with officials from "sensitive"
countries (that is, for not having disclosed meeting a Chinese scientist on
one of his early trips to China) and for giving deceptive answers (he had
earlier failed a polygraph test regarding his possible mishandling of
computer files). As if proof of espionage had been predetermined, Richardson
told the Washington Post, "We are still trying to pin down exactly when the
information was passed." Meanwhile, with Washington abuzz over Wen Ho Lee and
Democrats bracing for yet another potentially embarrassing scandal,
Republicans quickly resurrected two bills promoting ballistic missile defense
that were voted down last year. Thanks to a reversal of opposition from the
Administration and key Democrats, the bills passed overwhelmingly in both the
Senate and House.

As cooler heads began to prevail and the evidence against Lee began to appear
as thin as it was, a new reason to suspect the scientist emerged, again
through an article written by James Risen and Jeff Gerth and again based on
illegal leaks about the ongoing investigation. The April 28 article, titled
"U.S. Says Suspect Put Code on Bombs in Unsecure Files," said officials
charged that Lee, "who held one of the Government's highest security
clearances, had been transferring enormous files involving millions of lines
of secret computer code," code "used to design nuclear weapons." The Times
reported that "the huge scale of the security breach has shocked some
officials." Republican Senator Richard Shelby was quoted as saying the
evidence "confirmed my worst fears." Bill Richardson, now using Lee's name as
an adjective, justified a decision to temporarily shut down computer systems
at Los Alamos in the wake of the disclosures by saying "these Wen Ho Lee
transgressions cannot occur anymore." On May 10 Time echoed this story,
reporting that investigators had found that between 1994 and 1995 Lee was
"surreptitiously downloading millions of lines of classified code from the
lab's top-secret computer database and storing the codes on the hard drive of
his personal office computer," and that the codes "could have found their way
into scores of foreign hands."

In an interview with The Nation, Edward Curran, a director at the DOE's
office of counterintelligence, admitted that Los Alamos scientists have a
record of mishandling classified information. "A lot of this is incidental,"
said Curran. "These things often happen when an employee is under pressure
because of timeliness or things of that nature. These are issues that can be
dealt with through training." Lee might have an even better excuse than other
violators. In 1994 Los Alamos split what had been a single computer system
into a secure and an unsecure system. Lee had just received a second,
unsecure computer at his workstation, which could easily have led to
confusion. As for his downloading of nuclear codes, Lee had been assigned to
the lab's archiving project, and it was his job to download vast amounts of
such information. "Of course he moved a lot of files," says Chris Mechels, a
former computer systems manager at Los Alamos who worked with Lee for many
years. "Anyone who had a lot of files at that time had to move them around
because of the computer changes. This wasn't anything sinister. What they
have done to Wen Ho Lee is an outrage." None of the articles the New York
Times ran on Lee's downloading of computer files mentioned that it was part
of Lee's job as an archivist.

In truth, mishandling of classified data was happening at other labs across
the country as well. An April 20 report by the General Accounting Office on
security at US nuclear labs found numerous "problems with information
security." In the case of Lawrence Livermore National Laboratory, the report
noted, officials have been "unable to locate or determine the disposition of
over 12,000 secret documents," including ones involving "nuclear weapons
design." The report also noted that "both DOE and laboratory officials showed
little concern for the seriousness of the situation and told us that they
believed the missing documents were the result of administrative error...
and not theft." Los Alamos was singled out for special criticism by the GAO
report, which noted that "issues related to the inadequate separation of
classified and unclassified computer networks were identified at Los Alamos
in 1988, 1992 and 1994. This problem was only partially corrected in 1997, as
classified information was discovered on Los Alamos' unclassified computer
network in 1998." In other words, mishandling of information of the sort Lee
is accused of was occurring as late as 1998, well after the time period when
Lee's alleged transgressions are said to have occurred.

Yet another grave distortion by reporters involves the nature of the codes
downloaded by Lee. According to Mechels and Lee's lawyer, Mark Holscher, the
legacy codes Lee downloaded were actually useless without more highly guarded
input devices to make them meaningful to a weapons designer. But as late as
June 15, the New York Times continued to suggestively report that Lee "had
downloaded thousands of secret codes used in the design of the most
sophisticated American nuclear weapons."



The Disappearing Missile

The biggest hole in the case against Lee became apparent with the release of
the much-ballyhooed Cox report on May 24: the absence of the crime itself.
The Cox committee, a likely source of some of the leaks about the Wen Ho Lee
case, was big on sweeping Yellow Peril allegations but short on facts. Among
the more fantastical of its claims was that "almost every [Chinese] citizen
allowed to go to the United States" as part of an officially sanctioned
delegation "likely receives some type of [intelligence] collection
requirement" and that the Chinese have 3,000 US-based "front" corporations.

Most telling, after the shadowy figure of Wen Ho Lee provided much of the
buildup for the release of the committee's report, the actual document did
not even mention his name--a glaring omission that can only be explained by
the committee's failure to marshal any concrete evidence against him. And
while the report claimed that the Chinese stole data on the W-88--the
original allegation, made in early March by the New York Times, that led to
Lee's dismissal--its only hard evidence was the highly suspect 1988 document
handed over by a Chinese agent and dismissed by most in the intelligence
establishment since that time. "The Cox report and all this hoopla have not
really disclosed anything we didn't know before," says Union of Concerned
Scientists senior staff scientist Lizbeth Gronlund. "It would be dangerous to
infer that [China] poses some kind of danger it didn't pose before."

While there is little evidence to suggest the Chinese have acquired the
know-how necessary to construct the W-88, there are solid reasons to believe
they haven't. The most important is that they haven't built one. China's
aging arsenal of some two dozen single-warhead, liquid-fueled ICBMs (compared
with an 8,000-warhead US arsenal) more closely resembles US warhead
technology from the fifties than anything designed in recent decades. And
China shows no inclination toward allocating the tremendous resources
necessary for a Great Leap Forward in missile technology. As Bulletin of the
Atomic Scientists publisher Stephen Schwartz has written, China's entire
military budget of $35 billion barely equals what the United States spends
annually on nuclear weapons alone. "This is not a question about know-how,"
says Gronlund. "People think that if China wanted this technology they would
have to steal it. That just isn't true. They have made a conscious decision
not to emulate the United States and Russia and not get into this very
expensive nuclear-arms-race position."

Despite the lack of evidence, Senator Jesse Helms and other staunch hawks
continue to use the Wen Ho Lee case and the vague specter of Chinese
espionage to impede Senate ratification of the Comprehensive Test Ban Treaty.
"Right-wing ideologues have used Wen Ho Lee's case to create a seeming
current of disclosures that paints the Clinton Administration as
irresponsible on defense issues," says Christopher Paine, senior research
associate at the Natural Resources Defense Council. "Now this China issue has
fired them up, and we are seeing all this new pressure to disengage in arms
control."



Enter the Dragon

At a recent luncheon in Washington, DC, hosted by the ultraconservative
Federalist Society, a member of the audience asked Senator Robert Smith, a
presidential aspirant, a question about Bill Lann Lee, acting head of the
Justice Department's civil rights division. Confusing Bill Lann Lee with Wen
Ho Lee, Smith went into a frenzy about how the Chinese government was
threatening national security and that it was a disgrace that Bill Lann Lee
wasn't being watched more carefully. "He just kept using the name," a source
told the online magazine Slate. "Bill Lann Lee this, Bill Lann Lee that."
Smith capped his misplaced diatribe with the remarkable statement that many
think "the bombing in Kosovo was designed to distract the public's attention
from the Bill Lann Lee matter."

Whatever finally happens to Lee--Wen Ho Lee, that is--it is clear that the
rush to judgment by the media and irresponsible officials hinged to a great
extent on his ethnicity. One Time story on Lee released soon after the
allegations against him first appeared quoted a man who was a neighbor and
co-worker of Lee's. Although the man defended Lee, one of the few quotes used
was his comment that Lee had once said he was "the local 'Dragon.'" The
article never quite explained what the neighbor meant or in what context the
statement was made.

Paranoid images of Wen Ho Lee, "the Dragon," both reflect and fuel suspicions
against all Chinese in America. Since Lee's name first surfaced in connection
with the espionage case, Chinese lab workers describe an array of humiliating
experiences, from teasing and innuendo to suspicions that Asians are being
passed over for promotions. "In one case a trainer for a computer security
class was introduced with a Chinese surname and there was snickering in the
audience," says Raymond Ng, a mechanical engineer at Sandia National
Laboratory. "In other cases people were warned that you should cancel this or
that contract because it involves a professor at a Chinese university. These
aren't even classified projects I'm talking about."

Republicans continue to use the Lee case to hammer home "soft on China"
allegations against Democrats in upcoming elections, meshing the details with
a vast menagerie of allegations about China from Johnny Chung to more general
charges of spying. Many Asians, particularly those working in the weapons
labs, fear that Lee is being used to cast a blanket of suspicion over Asians
in general, particularly Chinese. One Hong Kong-
born Lawrence Livermore lab worker described Lee's case as a "political
football."

Meanwhile, the witch hunt for spies at the Energy Department appears to be
engulfing more than just Asians. As Congress considers stripping the
department of responsibility for the weapons labs, Bill Richardson's quest
for scapegoats appears insatiable. He now wants to take the Orwellian step of
polygraphing the 5,000 department employees who have access to the most
sensitive information on nuclear weapons.

Yet DOE officials say Wen Ho Lee himself will probably never be charged, not
with espionage or even the lesser charge of mishandling classified
information. Even Christopher Cox, whose House committee almost
single-handedly destroyed Wen Ho Lee's life, has been conspicuously silent
about the case. "Two conclusions are not merited," Cox told the press after
his investigation concluded. "One, that he's innocent, and two, that he's
guilty."

And that is where Wen Ho Lee will probably remain in the eyes of most
Americans: in a kind of netherworld between guilt and innocence. Friends say
he now spends most of his time mowing his lawn, fishing and hiding from the
press. He and most of his neighbors have disconnected their home phones.
Notra Trulock, the Energy Department official who first identified Lee as a
"prime suspect," is doing much better. He just received the department's
Special Act Award, netting him $10,000 for his role in exposing Chinese
espionage. Announcing the award, Bill Richardson told the New York Times that
Trulock "performed a service to the country that needs to be recognized."




------------------------------------------------------------------------------
--
Bill Mesler is a Washington, DC-based journalist who writes frequently for
The Nation.

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