http://www.netmagic.net/~franklin/MT18.html

The ChinaGATE 1
Scandal of 1998

April 4th to December 31st, 1998

The ChinaGATE 1 "Scandal" -- the allegations that the Clinton Administration
allowed U.S. missile secrets to leak to the Chinese -- is a classical
Whitewater Smear. It begins with a series of allegations and accusations
that first appear in the New York Times and which are usually written by
reporter Jeff Gerth. It then continues with other articles in the Mainstream
Media which repeat the same allegations and accusations, which by now are
being mentioned daily by Republican politicians and pundits. After a month
or so of this, a few articles will appear in the Mainstream Media which
attempt to set the record straight, but these are usually ignored by a
partisan Mainstream Media intent on reporting innuendo and shrill claims.

As you will read below, the ChinaGATE 1 "Scandal" was actually an outgrowth
of a partisan Republican effort to "tar" the Clinton Administration and the
Democratic Party with the accusation that the Chinese government was
attempting to buy influence with that Administration and that political
party.

Although you would be hard pressed to find this information in many of the
news articles cited below, the decision to launch U.S. satellites on Chinese
space launchers was made by the Reagan Administration following the
Challenger tragedy. This policy initiative was continued in the Bush
Administration and then into the Clinton Administration.

As you will also read below, the transfer of the authority over the
satellites from the State Department to the Commerce Department was
originally an initiative of the Bush Administration which did not take
effect until the Clinton Administration.

Much of this factual information was not in the original ChinaGATE 2 posting
to these web pages because of my ignorance. I did not know of an important
National Security Council report and of four news articles which had been
made part of the Minority Views in House Report 105-582 of June 16, 1998.
until a fellow researcher, Tom Sawyer, found them and brought them to my
attention.

The full text of the four articles and the National Security Council Report
can be found on pages 22 to 38 of the text or PDF version of House Report
105-582 which you can reach via:

http://thomas.loc.gov/


<snip>

Media Coverage of Political Implications:
Almost None

Much of the political history of the exports authorized by President Bush is
also unknown because of the lack of media coverage. No one in the media has
attempted to determine the political contributions of Hughes, GE, or
Lockheed Martin, or the employees of these corporations to the Republican
Party or to Republican candidates during the Reagan or Bush administrations.

The only press coverage of ChinaGATE 1 during the Bush Administration
evidently appeared in a SINGLE Washington Post article on the Bush
"Scandals" by Michael Isikoff on July 4, 1992 during the 1992 presidential
campaign. This article described, in passing, son Neil Bush's role in the
looting of the Silverado S&L in Colorado, the awarding of an exclusive
offshore oil drilling contract by the government of Bahrain to an
inexperienced Dallas firm whose board of directors included son George W.
Bush, and brother Jonathon Bush's difficulties with Massachusetts regulators
because he was selling stocks in the state without registering there as a
stockbroker. Somehow, reporter Isikoff missed the SINGLE Washington Post
story on the FORGIVENESS of a $4.6 million dollar loan from
FEDERALLY-INSURED S&L to Jeb Bush in 1990, or the alleged interference of
the President himself in the 1984 investigation of a Florida S&L that failed
in July 1985 with bailout costs of $680 million dollars to the American
taxpayer.

But the Bush family was also active in China and Japan during this time.
According to Isikoff:

The president's older brother, Prescott Bush Jr., 69, an international
business consultant who lives in Greenwich, Conn., repeatedly has been
accused of capitalizing on his brother's position -- and indirectly
benefiting from his policies -- in search of business opportunties in China.

In February 1989, 10 days before recently inaugurated President Bush was due
to visit China and other Asian countries, Prescott Bush flew to Beijing on
his own Far East tour. He already was a partner in an $18 million joint
venture with a Japanese firm called the Aoki Corp. to build a country club
outside of Shanghai for foreign business executives.

During the February 1989 trip, Prescott Bush also was serving on the senior
advisory board to a New York firm, Asset Management International Financing
and Settlement Ltd., which paid him $250,000 a year as a consultant. An
internal Asset Management document shows that during the trip, Prescott Bush
and another Asset Management official met with top Chinese economic
officials and discussed a broad array of new business ventures -- including
plans to set up an international satellite communications network linking
Chinese businesses and universities.

Top Chinese officials "figured right away that this is the number one man's
older brother and you better be nice to him," said one former U.S. diplomat
in China who was in the country during the Prescott Bush trip. "I thought
Prescott got very good entree, to say the least."

For most U.S. business executives, plans to invest in China came to a halt
with the June 1989 massacre of pro-democracy demonstrators at Tiananmen
Square in Beijing. But that September, Prescott Bush returned to China,
promoting the satellite communications network and other Asset Management
projects that included a wood-processing venture. "There's no conflict of
interest," he told the Wall Street Journal at the time, but conceded: "It
doesn't hurt that my brother is the president of the United States."

Later that year, President Bush granted a national security waiver
permitting the sale of two Hughes Aircraft Co. satellites to China to be
launched on that country's Long March rockets -- one step in the
administration's efforts to maintain friendly relations with the Chinese
despite the anti-democratic crackdown. At the time, Asset Management
officials told the Los Angeles Times that launching of the satellites would
be "advantageous" for the communications network project.

Company documents indicate that the satellite network plan has not
materialized and there is no evidence that Prescott Bush ever discussed his
private business affairs with anybody in the administration. In addition,
administration officials point out that the president was sensitive enough
to the issue that he told Secretary of State James A. Baker III to send a
cable to all U.S. embassies directing them to avoid giving "any appearance
of preferential treatment" to any business investments involving his brother
or any other members of his family doing business overseas.

Prescott Bush's ties to Asset Management resurfaced last year when it was
disclosed in Securities and Exchange Commission documents that he had been
paid $500,000 in fees for helping arrange an investment in the firm by West
Tsusho Inc., a Tokyo investment firm that since has been been identified by
Japanese police as a front company for one of the country's largest yakuzu,
or organized crime, syndicates.

Prescott Bush, who has not returned recent phone calls to his home in
Greenwich, had met with West Tsusho officials during his initial 1989 trip
to Japan and later invited them to invest in yet another U.S. firm, Quantum
Access, a computer software company headed by one of his nephews, Draper
Kauffman. In a recent telephone interview, Kauffman said that West Tsusho
associates ultimately seized control of his company. "They came in, fired
the management, put in their own people, and ruined the company," said
Kauffman, who added that both he and his uncle were "victims" of the
Japanese.

Asset Management since has been liquidated by a bankruptcy court. Last
month, lawyers for West Tsusho Inc. filed a $2.5 million lawsuit against
Prescott Bush, charging that he reneged on a deal to protect the firm's
investment. In a counter-suit, Prescott Bush asked for $8 million and
charged that he had been unaware when he helped set up the deal that West
Tsusho was "not a legitimate business company, but rather a front" for
people "engaged in nefarious criminal activities in Japan and the United
States."



Summary:

The launches of the nine Bush-authorized satellites and the waiver for a
tenth satellite later reaffirmed by Clinton are as follows:

(1) April 7, 1990 - Hughes Asiasat 1 satellite was launched into a
geostationary orbit using a LM3 space launcher.

(2) July 16, 1990 -Hughes Badr A communications satellite for Pakistan into
low orbit using an LM2 launcher. The launch failed.

(3) August 13, 1992 - the Hughes Optus B1/LM2E (geostationary for Australia)

(4) December 21, 1992 - the Hughes Optus B2/LM2E (failed) geostationary
satellite for Australia.

(5) July 21, 1994 - the Hughes Apstar 1/LM3 (geostationary for China)

(6) August 27, 1994 - the Hughes Optus B3/LM2E (geostationary for Australia)

(7) January 26, 1995 - the launch (failed) of (7) the Hughes Apstar 2/LM2E
geostationary communications satellite - Chinese domestic communications.
The Hughes Apstar 2 exploded shortly after launch, killing six people.

(8) November 28, 1995 - the GE Asiasat 2/LM2E

(9) December 28, 1995 - the Lockheed Martin Echostar 1/LM2E on 28 December
1995.

(10) February 14, 1996 - the Loral Intelsat 708 /LM3B geostationary
satellite for international communications. (The waiver to authorize this
launch had been signed by President Bush in 1992.)




-----Original Message-----
From: [EMAIL PROTECTED] <[EMAIL PROTECTED]>
To: [EMAIL PROTECTED] <[EMAIL PROTECTED]>
Date: Monday, April 17, 2000 11:35 AM
Subject: [CIA-DRUGS] A Philippine/Bush Tidbit


>An excerpt from:
>George Bush
>Fitzhugh Green�1989
>All rights reserved.
>Hippocrene Books, Inc.
>171 Madison Avenue
>New Yor, NY 10016
>ISBN 0-87052-783-5
>270 pages -- First/only edition -- Out-of-print
>-----
>Anbody know anything Kaufmann?
>
>Prescott, Goerge's older brother was working for PanAm and married
Elizabeth
>Kauffman, a "childhood family friend," two weeks before George and Barbara
>married.
>
>Om
>K
>----
>
>Then grandchildren began to appear to the extraordinary Prescott and
Dorothy
>Bush. It was impressed on me how highly they were respected one stormy
night
>in Manila at the end of World War II. I was aide to the Philippine Sea
>Frontier Commander Vice Admiral James L. Kauffman. We were expecting a
>typhoon. The admiral frowned as he entered our quarters at six Pm.,
stomping
>his feet dry. Rain already pelted the windows. I foresaw a hectic evening
of
>meteorological bulletins�a disagreeable prospect.
>
>Minutes later, the base messenger arrived with a radiogram marked
"personal"
>for the admiral. The old sea dog read it. Abruptly the climate changed in
his
>study where we were eyeballing maps of the Philippine archipelago. He broke
>into a grin that could have stopped a typhoon in its tracks. "Tell the
>steward to bring drinks, " he ordered. Minutes later he raised an icy
martini
>to "Prescott S. Bush, the third, my grandson!"
>
>Pps.51-52
>-----
>Aloha, He'Ping,
>Om, Shalom, Salaam.
>Em Hotep, Peace Be,
>All My Relations.
>Omnia Bona Bonis,
>Adieu, Adios, Aloha.
>Amen.
>Roads End
>
>
>


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