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Chung: Top Chinese General 'Had to Know' of Corruption
Johnny Chung with Carl Limbacher
Thursday January 27, 2000

"We like your president. We want to see him reelected."
Those were the words of former Chinese intelligence chief Gen. Ji Shengde, as
he sat across a dinner table from me in 1996 and pledged $300,000 to the
Democratic Party for the express purpose of reinstalling Bill Clinton in the
White House.

Now, in a stunning development that has shaken China's ruling class to its
core, the general has been arrested as part of a massive crackdown on
widespread government corruption. The scandal revolves around billions of
dollars in smuggled merchandise and apparently touches dozens of high-ranking
Communist Party, police and banking officials.

Ji is being held pending his full cooperation with investigators. It's not
clear whether he's under house arrest or has actually been jailed.

The New York Times reported last Saturday:

"During the 1990s, the sprawling syndicate smuggled billions of dollars worth
of cars, oil and industrial materials through the bustling Southeastern port
of Xiamen, evading huge sums in taxes, according to officials familiar with
the case . . .

"Bit by bit, officials in Xiamen and Beijing have privately confirmed to
foreign reporters many startling details about a case that has Beijing's
political cognoscenti buzzing with speculation about where it may lead."

My sources tell me that the investigation has now led to some of the same
Chinese government officials whom I came to know after I became famous in
China for my friendship with Bill and Hillary Clinton. Besides Ji, Liu
Chaoying, the China Aerospace executive who introduced me to the general, is
now under investigation.

As the Times reports, the dimensions of this scandal are something never
before seen in China. Even the vice minister of China's Justice Department
has been detained and questioned.

When I testified before Congress about Ji's offer to help re-elect Clinton,
Beijing was not pleased. It sent agents to assassinate me. The FBI has
confirmed the arrest of at least one of them.

As for Ji, he was demoted. He's now a teacher, which is a far cry from the
status he once enjoyed as the keeper of China's intelligence secrets. For the
son of one of China's most powerful military men, Ji's demotion is a personal
disgrace.

Just days ago, after months of refusing to talk, Vice Minister of Justice Li
Ji-Zhuo implicated Ji in the smuggling conspiracy. Li was compelled to talk
after Yang, a low-level informant in Southern China, named Ji along with 50
other top Communist Party officials.

At the center of the scandal is Xiamen businessman Lai Changxing, president
of the Yuanhua Group, who investigators say bribed local customs officials to
look the other way as his smuggling operation grew.

Key witness Yang was the intermediary between Lai and Ji, with whom Yang
worked very closely.

According to the Times:

"The authorities have closed down (Lai's) Yuanhua company, and at some point
last fall Lai disappeared, presumably into a secret life abroad."

Lai isn't the only one with a secret life abroad. Sources tell me that
Chinese investigators have learned about United States bank accounts held by
Ji's wife totaling millions of dollars. And if that weren't bad enough, both
Mr. and Mrs. Ji own million-dollar-plus homes in a wealthy Los Angeles
neighborhood, according to the latest revelations.

For now, Ji has thrown up a protective umbrella over his relationship with
Lai and has yet to tell probers where the mysterious businessman is hiding.

While the scandal rocks Beijing's princeling class, Ji's former boss, Gen.
Xiong Guangkai, is enjoying a red-carpet welcome at the Clinton Pentagon as
he cajoles top U.S. military officials to trim military aide to Taiwan and
abandon America's own plans for a missile-defense shield.

Could Xiong be involved in the smuggling conspiracy as well? There's no
evidence to suggest that yet. Still, the way things work in the Chinese
military, it's hard to believe Ji would do anything that Xiong hadn't already
approved.

People's Republic of China President Jiang Zemin has yet to address the
burgeoning scandal directly. But in a Jan. 14 address to the Communist
Party's Central Disciplinary Inspection Committee, Jiang made a thinly veiled
reference to the rampant corruption, according to a report in the People's
Daily the next day:

"Leading cadres who are found to have violated discipline and the law must
certainly be strictly investigated and handled . . . No matter who they are,
no matter what their seniority, they should be punished in whatever way is
appropriate."

Now, Beijing's ruling class waits and wonders: If Gen. Ji Shengde begins to
talk, whom is he liable to bring down with him? And how will President Jiang
react as the scandal spreads to China's princelings?

For more on Clinton'e sell-out to the Chinese, get your copy of Betrayal: How
the Clinton Administration Undermined American Security today!

Also, check out Red Dragon Rising: China's Military Threat to America






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