-Caveat Lector-
"Love your neighbor, but pull not down your hedge."
-- George Herbert, 1623 - 1662
Squandered loans to China?
Newly declassified documents, forced from the
U.S. Commerce Department by a federal lawsuit,
shows that $200 million in World Bank loans for a
"Technology Development Project" actually went
to weapons research labs and businesses wholly
owned by the Chinese army. The documents
reveal that World Bank loans were used to
modernize the Chinese army defense industry.
"The objective of the project is to support the
(Chinese) Government's continuing reforms in
technology policy and institutions so as to promote
the development of clear, productivity-enhancing
technologies in China's industries," states a 1995
report written by the Industry and Energy
Operations Division of the World Bank.
According to the World Bank report, "the
(Chinese) Government will pass on US$194.3
million of the loan proceeds through SPC (State
Planning Commission) to eligible sub-borrowers in
the form of sub-loans, with the Golden China
Corporation acting on its behalf as a financial
agent."
"The first component is designed to assist in
transforming part of the research and
development (R&D) establishment into
market-responsive technology development
corporations," states the World Bank report. "This
component would hive off the most dynamic
technology development and service-oriented
elements of existing research institutions to create
-- through a competitive selection process -- new,
market-oriented entities, called Engineering
Research Centers (ERCs)."
"The second component comprises complementary
investments in improving technology public
services, including: (i) the modernization of the
National Institute of Metrology and (ii) a technical
assistance program for a Productivity Center aswell as for
several training activities."
However, according to the Defense Department,
"Golden China Corporation" and many of the
so-called "Engineering Research Centers (ERCs)"
supported by the World Bank loans were actually
owned and operated by the Chinese army unit
COSTIND (Chinese Commission for Science,
Technology, and Industry for National Defense).
For example, the World Bank provided:
$5 million to the Northwest Institute for
Nonferrous Metal Research for "rare earth
materials" used in "chemical, aviation," and
"nuclear power stations." The Northwest
Institute for Nonferrous Metal Research is
part of the China National Nuclear
Corporation (CNNC), producer of all
nuclear weapons for the Chinese army.
Over $5 million to the Harbin Research
Institute for "welded steel products" used in
"aviation" and "ship building." Harbin was
identified by the Department of Defense as a
Chinese army front used to purchase Allied
Signal turbo-fan engines for the People's
Liberation Army Air Force (PLAAF) in 1996.
Over $4 million to the Marine Design &
Research Institute of China for "ship design
software and services." The Marine Design
& Research Institute is part of the China
National Ship Building Corp. and the
primary design facility for all Chinese
warships, including nuclear powered
submarines.
Over $4 million to the Nanjing Radio
Factory for "audio/visual" products used in
"T.V.s, satellite equip., radios, CD players,
etc." The Nanjing Radio Factory is owned
and operated by the Chinese army. The
factory produces a wide variety of
electronics for the PLA including CRTs,
satellite equipment, and secure military
radios.
$3 million to Xi'an Jiatong University for
"fluid machinery" research used in
"turbo-compressors." Xi'an Jiatong
University was identified by the Defense
Department as a major research center for
the Chinese army, sharing facilities with the
PLA chemical and biological weapons
facilities that are located nearby.
The Chinese army loans from the World Bank also
financed several money making ventures for the
Chinese army. For example, the World Bank
provided $5.5 million to the "China Textile
Academy" for "productivity enhancement."
The World Bank was joined by "Foreign &
Domestic Partners" also seeking to improve the
PLA textile production such as "Toray (Japan);
Dupont (U.S.); Bermag (Germany), the Textile
Academy in Russia; and the Wool Bureau of New
Zealand."
Even the World Bank could not avoid the fact that
Chinese workers are being exploited under harsh
conditions by the Chinese army. The World Bank
report notes that "one-third" of the "11,000" textile
firms associated with the China Textile Academy
are small to medium size enterprises (SMEs). The
report noted that many of the labor intensive
textile "industries are in urgent need of various
properties" such as "environmental protection" for
their workers.
According to a 1997 Rand Corp. report on the
Chinese defense industry, the profits from PLA
business ventures, such as textile exports, are split
between the PLA generals and the Chinese army.
The Chinese army profits are used to purchase
advanced weapons, build new barracks for troops
and provide medical services for the PLA officers.
The Chinese generals use their slice of the profits
for "lavish parties," "foreign luxury automobiles"
and "Swiss bank accounts." Thus, there is little
money left to provide "environmental protection"
or improve working conditions.
Of course, the Clinton administration, claims that
it is impossible to identify Chinese army-owned
companies. Despite the difficulty, President
Clinton is required by law to perform this task.
Clinton signed the Fowler Amendment into law
Oct. 17, 1998. It requires that a list of companies
controlled by Communist China's People's
Liberation Army be published in the Federal
Register by Jan. 15, 1999. So far, Clinton has
ignored the law and refused to reveal the
PLA-owned businesses in America.
On Friday, Sept. 24, 1999, the ten top leaders in
the House of Representatives wrote a letter to
Clinton, demanding immediate compliance with
U.S. law requiring public disclosure of the PRC's
PLA-owned companies doing business in the
United States.
According to House members, the Clinton White
House claimed in September 1999 to have
assigned the task of identifying the PLA
companies to the Defense Intelligence Agency
(DIA). The DIA, however, has quietly informed
congressional leaders that the White House did
NOT ask them to prepare such a list. Thus, the
identity of the Chinese army front companies
operating inside the United States continues to go
unreported.
Many of the PLA companies that Clinton refuses
to identify are well known to the Commerce
Department. The facts show the Clinton
administration actively courted business with the
Chinese generals. In 1995, General Ding Henggao
sent Ron Brown a partial list of PLA-owned firms,
including a local Chinese army contact, complete
with phone, fax and address.
"The Clinton-Gore administration's failure to obey
the law is knowing, willful, and long-standing,"
said House Policy Chairman Christopher Cox,
who released the letter. "Eight months after the
deadline in the law, it is essential that the
president comply. By violating this statutory
obligation, the president shows contempt not only
for the law but for congressional oversight and the
national security."
http://www.worldnetdaily.com/bluesky_smith/19990928_xcsof_squandered.shtml
Bard
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