June 27, 2000

                    China uses computers
                    from U.S. illegally

                    By Bill Gertz
                    THE WASHINGTON TIMES


                         China's main nuclear weapons center is using
                    U.S. supercomputers illegally to simulate warhead
                    detonations without actual underground tests, The
                    Washington Times has learned.

                         U.S.-origin high-performance computers are
                    being used at the Chinese Academy of Engineering
                    Physics, the main nuclear weapons facility in Beijing.
                    The facility is viewed by officials as China's version
                    of Los Alamos National Laboratory, according to
                    Clinton administration intelligence officials.

                         The use of U.S. supercomputers � with
                    computational speeds of billions of operations per
                    second or faster � at the nuclear facility was
                    outlined in a report classified "top-secret" and
                    circulated among senior U.S. national security
                    officials last month, said the officials who have seen
                    it. They discussed some elements of the report on the
                    condition of anonymity.

                         Disclosure of the use of U.S. computers to help
                    develop China's nuclear arms comes as the Clinton
                    administration and Congress are considering new
                    measures to loosen exports of American-made
                    high-performance computers.

                         An amendment to the current defense
                    authorization bill President Clinton signed in February
                    further relaxed export rules on advanced computers,
                    allowing U.S. manufacturers to begin selling faster
                    systems on Aug. 15.

                         Officials did not identify the U.S. manufacturers of
                    the systems or how they were obtained.

                         Supercomputer sales have been restricted
                    because they are crucial elements for designing and
                    developing nuclear weapons, missiles and advanced
                    conventional arms, according to defense officials.

                         Additionally, the U.S. intelligence community
                    reported last month that China is expanding a nuclear
                    research facility at Mianyang. The so-called "Science
                    City" there is working on both nuclear weapons and
                    civilian energy research, the intelligence officials said.

                         The reported supercomputer use at the nuclear
                    facility is the third time China's government has been
                    detected diverting U.S.-origin computers to defense
                    facilities.

                         In 1997, China agreed to return a Silicon
                    Graphics supercomputer that was illegally diverted
                    through a Hong Kong front company to a Chinese
                    defense facility.

                         A White House National Security Council
                    spokesman declined to comment, citing a policy of
                    not talking about intelligence matters.

                         A U.S. intelligence official who was not familiar
                    with the report said that it has been difficult for U.S.
                    intelligence agencies to learn whether China is using
                    complete U.S. advanced computers, or whether they
                    are using a combination of U.S. components and
                    homemade systems.

                         According to Clinton administration officials, the
                    president hopes to dramatically ease export control
                    on high-powered computers.

                         An amendment to the current defense
                    authorization bill sponsored by Sen. Harry Reid,
                    Nevada Democrat, would make it easier for the
                    president to change the export rules by reducing a
                    congressional notification period from 180 days to
                    30 days.

                         The argument of some officials who support the
                    changes is that the systems are so widely available
                    that controlling them is futile.

                         Other officials who oppose the decontrol note
                    that the United States produced the best and fastest
                    supercomputers and that they should not be exported
                    to countries that could use them against the United
                    States, like China.

                         A Senate national security aide said the
                    administration "failed completely" to win Chinese
                    government cooperation in checking on the end use
                    of U.S. computers sold during the 1990s.

                         "That's why the Chinese know that they can use
                    these computers with impunity," the aide said, noting
                    that the relaxation of controls "has been a disaster for
                    U.S. national security."

                         Stephen Bryen, a Pentagon export-control official
                    during the Reagan administration, said he predicted in
                    the early 1990s that U.S. supercomputers would be
                    used by China for developing advanced nuclear
                    weapons.

                         "That's been the great worry about transfers of
                    supercomputers," he said. "That they would be able
                    to design a new generation of smaller warheads that
                    can fit on smaller missiles or which can be MIRVed"
                    � multiple, independently targetable re-entry
                    vehicles, or multiple warheads.

                         Mr. Bryen said in an interview that the United
                    States was able to radically reduce the number of
                    actual underground nuclear tests needed for
                    developing new warheads, from several hundred to
                    about five.

                         "This is not good news for us because the
                    Chinese can do a lot of this covertly," he said. "It will
                    be hard for us to know their capabilities, and we will
                    have a difficult time understanding the threat."

                         The report by the special House committee that
                    investigated Chinese spying and technology
                    acquisition stated that there is limited information on
                    China's use of U.S. supercomputers. However, the
                    report said that the panel "judges that the [People's
                    Republic of China] has been using high performance
                    computers for nuclear weapons applications."

                         The report stated that under relaxed export rules,
                    China may have purchased as many as 603
                    high-speed computers between 1996 and 1998.

                         Following the illegal diversion to defense use of
                    several U.S. supercomputers by Russia and China,
                    Congress in 1998 passed a law requiring tighter
                    restrictions.

                         The law required exporters to notify the
                    government before selling supercomputers to nations
                    like China and Russia.

                         The U.S. computer industry opposed the
                    requirement and has lobbied instead for further
                    relaxation of controls as computer computational
                    capabilities increased.

                         In July, Mr. Clinton loosened the restrictions
                    further to allow exports of machines capable of 6.5
                    billion operations per second, and in February
                    announced he will allow sales of computers that carry
                    out 12.5 billion operations per second.

                         According to the Wisconsin Project on Nuclear
                    Arms Control, the Chinese Academy of Engineering
                    Physics was identified in June 1997 as an "entity of
                    concern," a designation that warned American
                    exporters that the institute was involved in defense
                    programs.

                         A Senate Governmental Affairs subcommittee
                    report on weapons proliferation stated that China
                    stepped up purchases of U.S. supercomputers for its
                    nuclear weapons and missile development program in
                    the late 1990s.



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