-Caveat Lector-

From:

http://www.worldnetdaily.com/bluesky_smith/20000920_xcsof_red_money_.shtml


Red money inside American politics

� 2000 WorldNetDaily.com


There is one golden rule to politics: the one who has the gold
makes the rules. And China seems to be a major source of cash for
the life-blood of modern politics in America. The Chinese money
flow continues today. For example, Bernard Schwartz, CEO of Loral
Space & Communications Ltd., gave $12,500 in 1991-1992 to
Democrats. In 1993-1994 he gave $112,500 to Democrats just three
months after being included in an August 1994 China trade trip.

In August 1994 Bernard Schwartz accompanied Ron Brown on the
Presidential Business Development Mission trade trip to China. At
the behest of Bill Clinton, Schwartz met with officials of the
Chinese defense industry including Chinese army Lt. Gen. Shen
Rong-Jun, and Liu Ji-Yuan the minister of China Aerospace Corp.
China Aerospace manufactures all Chinese army ballistic missiles
and space rockets.

After contributing, Schwartz received huge China satellite
contracts at a time when his company was not doing well. In this
election cycle Schwartz has donated over $600,000 directly to the
Democrats or directly to Democrat candidates including Hillary
Clinton and Sen. Ted Kennedy. Schwartz denies buying access.

Another company that denies it has insider access at the highest
level is the trading firm Goldman Sachs. Former Treasury
Secretary Robert Rubin worked at Goldman Sachs before coming to
the Clinton administration to run money policy. Documents
obtained using the Freedom of Information Act show that Gore
campaign chairman Commerce Secretary William Daley met in October
1997 with Goldman Sachs and the leader of an Asian firm reported
to be "an intelligence-collection front for China."

The documents show that then Commerce Secretary Daley met with
Chinese billionaire Li Ka-Shing during a closed luncheon
sponsored by the powerful investment firm Goldman Sachs. Daley
currently operates and controls Al Gore's campaign. Li Ka-Shing's
company, Hutchison Whampoa, currently operates and controls the
two ports on the Panama Canal, the Pacific port of Balboa and the
Atlantic port of Cristobal.

The meeting was held onboard the Goldman Sachs' boat "Monkey's
Uncle" as part of an informal "talk" between Secretary Daley, Li
and several "influential business people." The documents show
that Daley's meeting onboard the "Monkey's Uncle" included a Mr.
Duo from China Resources, a firm reported by Senator Fred
Thompson, R. Tenn., to be "an agent of espionage -- economic,
military, and political -- for China."

After the Daley meeting, Goldman Sachs was given the exclusive
and very lucrative stock offering for Petrochina, an oil company
wholly owned by the Chinese government. One other major
stockholder in Petrochina is, of course, Chinese tycoon Li
Ka-Shing. In the 2000 campaign, the Goldman Sachs Political
Action Committee alone has donated over $200,000 split evenly
between Republican and Democrat candidates.

Still, China is not alone when it comes to corruption politics.
The newly found capitalists in Beijing do have some strange
bedfellows. For example, the U.S. energy industry is not lacking
for attention from inside the Clinton/Gore fundraising machine.
Federal Election Commission records show that Mission Energy CEO
John Bryson donated money to the Clinton/Gore campaign and
contributed money to Clinton's legal defense fund.

Mission Energy is also a partner of Indonesia's Lippo group, a
consortium part-owned by Indonesian billionaire Moctar Riady and
the Chinese army-owned finance company CITIC. Moctar Riady is
also accused of illegally donating money to the Clinton-Gore
political campaigns.

In 1994, Edison Mission Energy landed a trade trip with Ron Brown
to Indonesia. As a result of that trip, Mission Energy ended up
with a contract to build the Paiton I Indonesian coal fired power
plant. Previously released documents from the U.S. Commerce
Department clearly show that the Paiton I project was actually
filled with known corruption from President Suharto's
administration.

Paiton I was billed as the first "private" electric plant in
Indonesia. However, private ownership in Indonesia equated into
owned and operated by the Suharto "First Family."

The partners in the Paiton I consortium included Edison Mission
Energy, Mitsui & Co., Ltd. of Japan, General Electric Capital
Corporation, and P.T. Batu Hitam Perkasa. Just by co-incidence,
of course, P.T. Batu was owned by Indonesian dictator Suharto's
youngest daughter, Titek Prabowo, and her brother-in-law, Hashim
Djojohadikusumo.

Prawabo's brother-in-law, Hashim, also received an exclusive, no
bid, no-cut contract to supply coal for the power plant. Hashim's
financial backer in his coal mining business is Moctar Riady and
the Lippo Group. The U.S. State Department characterized the
over-priced coal contract with Hashim as "the Achilles Heel" of
Paiton Swasta I.

Nor did Edison Mission Energy miss any opportunity to use its
inside influence using former members of the Clinton-Gore
administration. One Commerce document noted that "Warren
Christopher is on Edison Mission's board of directors."

According to Commerce, ".75%" of the Paiton project was reserved
for Suharto's daughter Prabowo. Prabowo's cut amounted to an
instant $15 million in cash. Her kickback, along with a cut for
"brother-in-law" Hashim and various other Suharto relatives, was
provided up front, in cash, in the form of a $50 million loan.
The $50 million loan was to be paid back by the profits
(dividends) returned from the $2.6 billion Paiton project.

Today, the Paiton I power contract is invalid. The Indonesian
courts ruled, based on the documented evidence presented here,
that the multibillion dollar electric deal with Edison Mission
Energy was corrupt from the beginning. The power plant is shut
down and silent. The price of corruption was the fact that no one
could afford to pay for the power from Paiton I.

Clinton-Gore officials were keenly aware of the Indonesian
dictator and his greedy relatives. An October 1998 State
Department cable from U.S. Ambassador J. Stapleton Roy shows that
Clinton administration officials met with Indonesian Director
General of Electricity Endro Utomo Notodisoerjo. Endro, according
to the cable, was more than honest about the Indonesian
president.

"Commenting on corruption, collusion and nepotism (KKN), Endro
said that in the past there was no separation between 'power'
(not electric but former first family power) and business. 'All
the IPP's have a relation with power, and it is still going on,'
added Endro."

If you ever wonder why Congress does not investigate and Janet
Reno is silent about Paiton I then consider this:

In the 2000 campaign, the Edison International PAC money totals
over $300,000 in donations split almost evenly between Democrats
and Republicans. According to records complied by the Citizens
for Responsive Politics, Edison Mission Energy Corporation also
spent $724,000 this year lobbying Congress to pass permanent
trade status for China.

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