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Li Kashing information - http://www.softwar.net/kashing.html
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March 4, 2002
The Honorable Donald H. Rumsfeld
Secretary of Defense
1000 Defense Pentagon
Washington, D.C. 20301
Dear Mr. Secretary:
I am writing to call your attention and express my
opposition to the potential sale of the U.S. telecommunication
company Global Crossing Ltd. to a consortium headed by the Hong
Kong Chinese Hutchison Whampoa Ltd. American intelligence
agencies have found that Hutchison Whampoa's chairman Li
Ka-shing has extensive ties to the Chinese Communist leadership
and is a founder and Board member of China International Trust
and Investment Corporation, which serves as a funding umbrella
for the Chinese military. In addition, Li is reported to have
been a close friend of General Ji Shengde, the former director
of the PLA's military intelligence bureau [See attached official
and press documents].
Li, who is one of Beijing's chief conduits in Hong
Kong, has been involved in an anti-trust controversy in Hong
Kong and widely-documented corruption in obtaining the lease of
the strategic ports on the Panama Canal. Worldwide, Li and
Hutchison have been involved in business practices that
challenge American economic interests. Chinese military
doctrine stresses information warfare and sabotage of
communications systems as a key to successful assymetrical
warfare against the United States. I request that the
Department of Defense do a stringent review of this sale based
on Li Ka-shing and Hutchison Whampoa's relationship to the
People's Republic of China and on the national security
ramifications for the United States.
According to the Global Crossing's literature, the
company provides integrated telecommunications services over the
world's most extensive global IP-based fiber-optic network. By
mid-2001, the Global Crossing fiber-optic network covered 10,000
miles, reaching 27 countries throughout the Americas, Europe and
the Asia-Pacific regions. Its Asian services are provided
through its subsidiary, Asia Global Crossing. These networks
are estimated to control over 15 percent of the fiber-optic
network connecting the U.S. with Europe; 23 percent of the
network with Asia, and 25 percent with South America.
Most significantly, the Global Crossing companies'
clients include the US military, the Department of State and the
other U.S. government agencies. In addition, the U.S. military
and other U.S. agencies, as well as NATO use the companies'
fiber-optic cables to conduct communications. In July, 2001,
Global Crossing won a services contract from the Department of
Defense to provide an advanced wide area network Internet
service to the Defense Research and
Global Crossing Page 2.
Engineering Network [DREN], which links more than 6,000
scientists and engineers at defense laboratories, test centers,
universities and industry sites. DREN has also been reported to
potentially link every major U.S. military command, and would
potentially risk the security of all "gatekeepers" of major U.S.
national security communications networks. The DREN contract
was recently reopened for bidding because of Global Crossing's
shortcomings. However, in the February 14, 2002, New York
Times, Ms. Mary Moore, the spokeswoman for Global Crossing,
said, "We think we are still in the running for this award."
Needless to say, that contract under a company owned by Li
Ka-shing would be a national security nightmare.
The purchase of Global Crossing would enable Mr. Li,
who has previously faced monopoly-related charges in Hong Kong,
of manipulating the international market. And the ownership of
Global Crossing would enable Hutchison and the Chinese to gain
valuable insight and access to developments in the industry that
could hinder competitiveness and cutting-edge leadership of U.S.
companies in the international market. Above all other issues, I
must underscore that a thorough investigation of this proposed
sale is of utmost importance for U.S. national security.
I look forward to hearing from you to discuss a full
investigation by the Department of Defense as soon as possible.
In addition, I would like a copy, in classified and unclassified
form, of a study written by SOUTHCOM during the period when Gen.
Wesley Clark was the CINC, related to strategic threats to the
United States in Latin America, including Hutchison control of
the Panama Canal. The contact person in my Washington office,
who is conducting a preliminary Congressional investigation on
this matter, is Mr. Al Santoli. Please contact me through Mr.
Santoli at 202-225-2415. Thank you for your consideration of
this vital matter.
Sincerely,
Dana Rohrabacher
Member of Congress
cc: Hon. Condoleeza Rice, National Security Council
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