From:

http://www.worldnetdaily.com/bluesky_smith/20000614_xcsof_blue_sky_a.shtml


The Chinese Army is open for investment, seeking western money to
improve its military space complex.  On May 29, the Chinese Army
Second Artillery Corps moved into western economic markets when
Hong Kong based Asian Star Development Corporation announced an
exclusive deal to become the "agent" for the "Chinese Academy of
Space Technology."

"Asian Star Development, Inc. (NASD OTC BB: ASTV), is pleased to
announce the appointment, dated May 29, 2000, by the Chinese
Academy of Space Technology (China's equivalent to NASA in the
United States), naming Asian Star Development, Inc. as the agent
for the Academy," noted the official statement by Asia Star
Corporation.

Stephen Chow, President of Asian Star, stated, "We are extremely
excited and most honoured to be appointed for this prestigious
undertaking.  Asian Star firmly believes that it is beneficial to
China and the rest of the world to have The Academy actively
participate in the explosive new technological era we are
entering."

To western investors, the term "Academy of Space Technology"
brings dancing visions of young students, working on peaceful
science.  Thus, helping these young students make their way into
the cosmos is a wonderful way of diverting swords into
plowshares, and accordingly, the official statement from Asia
Star Corporation purrs like an investment kitten.

Asia Star "will represent the Academy in introducing and
promoting, on an international basis, The Academy's various
commercial products, such as satellite communication networks,
global positioning systems and all other commercial products
developed by the Academy.  China continues to launch satellites
for commercial purposes and last year successfully completed its
first unmanned space shuttle mission."

Yet, space is not all flowers and doves of peace.  The Academy
also recently launched a navigation and communications satellite
for the People's Army Second Artillery Corps.  The Asia Star
assessment of the Chinese Academy of Space Technology as the
"equivalent to NASA in the United States" is somewhat colored by
deception but the "explosive" part is closer to being correct.

According to the Defense Intelligence Agency, the Chinese Academy
of Space Technology helps to maintain and operate the Chinese
Army nuclear ballistic missile force pointed at America. Those
missiles are built by Great Wall Industries and maintained by
engineers from the "Academy."  Recent moves within the Second
Artillery include tests of the new Dong Feng 31 and the Dong Feng
41 missiles.  Both weapons can deliver nuclear warheads on
American soil with pinpoint accuracy.

According to a report by Lt. Col. Dennis Blasko, U.S. military
attach� to Beijing, the Academy of Space Technology is actually
part of the China Aerospace Corporation, and directly under the
control of the Chinese Ministry of Aerospace.  The Academy of
Space Technology is part of China Aerospace's empire of over 75
commercial enterprises plus research institutes and factories,
including Great Wall Industries and the Shanghai Academy of
Spaceflight Technology.

Nor is the China "Academy" alone among the China Aerospace gems
of military-academic manufacturing excellence.  Its sister - the
"Shanghai Academy of Spaceflight Technology" is also major player
in Chinese Army manned flight program.  However, the Shanghai
Academy has another product a bit more challenging for the
average space student.

In December 1996, Shanghai Academy of Spaceflight Technology
senior engineer Liu Xinamin revealed a project that he and his
students had been laboring on for over five years.  His
announcement came during a Beijing Arms show.  Liu introduced
Shanghai Academy's best-known young communist student achievement
to date - the LY-60 air defense missile, designed to "process up
to 40 targets, track 12 and distinguish the three that present
the highest threat".

The LY-60 is a "hit-to-kill" interceptor missile, with a maximum
speed of 1,165 miles-per-hour, designed to destroy aircraft,
cruise missiles and helicopters.  It is 15 feet long, 10 inches
in diameter with a single solid propellant motor and can maneuver
up to 7 gs.

Shanghai Academy engineer Liu said the LY-60 had been under
development for five to six years and completed testing in 1996.
The Academy designed anti-air missile is currently being deployed
by the People's Liberation Army and has been exported to the
Middle East.

The LY-60 is not the only curious product from China Aerospace.
China Aerospace is currently under U.S. Government investigation,
along with American defense contractor Boeing/Douglas, for the
illegal export of missile manufacturing equipment.  The equipment
was sold to China Aerospace for a "civil" airliner project and
shipped from Long Beach in late 1994.

In 1994, Commerce Secretary Ronald H. Brown visited China
Aerospace to promote the sale of U.S. products, and helped
persuade top officials finally to move forward on a renegotiated
airliner production deal with Boeing/Douglas.  Two weeks later,
the Commerce Department approved sale of the machines. In the
end, despite opposition to the sale by some military officials,
the Pentagon itself did not oppose it.

In March 1995, Boeing/Douglas officials discovered that six of
the machines had not been sent to the agreed-on commercial plant
in Beijing, but 800 miles away to the Nanchang Aircraft Co.,
which makes cruise missiles and jet fighters.  Investigators have
evidence that they believe suggests the machines were intended
for military use all along.  In 1993, while Chinese officials
swore the machines would be used only for civilian purposes, U.S.
spy satellite photos showed construction of the huge building at
the Nanchang military plant where the six machines were later
installed.

Despite this historic act of deception, China Aerospace is best
known for adding a page to Bill Clinton's Presidential legacy.
The crowning jewel of China Aerospace scandals was the donation
of $300,000 to the 1996 Clinton/Gore campaign.  Colonel Liu Chao
Ying, a China Aerospace executive, arranged for convicted
China-Gate figure Johnny Chung to meet General Ji of the People's
Liberation Army.  General Ji, head of Chinese Army Intelligence,
had a few things to pass on to Mr. Chung, including a check for
Bill Clinton.

"It was my 57 trips to the White House that attracted the Chinese
Army attention," stated Johnny Chung during a recent
WorldNetDaily interview.  "Attracted Colonel Liu Chao Ying.  At
first, all I knew was she was the daughter of a famous Chinese
General.  I did not know she too was a Chinese officer.  I
thought she was no different that say the daughter of General
Colin Powell.  She said she would help my business."

China Aerospace Col. Liu's first act was to arrange for Johnny
Chung to meet General Ji in the basement of a Hong Kong
restaurant.  According the Chung, General Ji "told me three
things:  'We really like your President.  We would like to see
him re-elected.  I will give you $300,000 U.S. dollars and you
give it to the President and the Democrat Party.'"

"Let my banking records speak for themselves," concluded Chung.
"My banking records are the proof the money came from the Chinese
Army.  I gave all my records to the Dept. of Justice but they
have yet to give them to Congress."

Janet Reno and the Dept. of Justice have done nothing to deter
China Aerospace from conducting business as usual in the United
States.  Even so, the May 2000 Asia Star Corporation's statement
did contain a curious legal caveat about the Chinese Army space
business.

"The above statements in regard to Asian Star Development, Inc.
and the Chinese Academy of Space Technology which are not purely
historical are forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, including
Asian Star Development, Inc.'s beliefs, expectations, hopes or
intentions regarding the future," noted the announcement.

"It is important to note that actual outcome and the actual
results could differ materially from those in such
forward-looking statements.  Factors that could cause actual
results to differ materially include risks and uncertainties such
as technological, legislative, corporate and marketplace
changes."

One other factor that could cause actual results to differ is
deception.  3,000 years ago the Chinese warlord Sun Tzu wrote,
"All war is based on deception."  War in the 21st century may be
fought in space but - when it comes to China Aerospace - Master
Sun's first rule of combat still applies.


source documents -

CHINA'S DEFENSE INDUSTRIAL TRADING COMPANIES
Defense Intelligence Reference Series VP-1920-271-90
http://www.softwar.net/pladef.html




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