This was a no-brainer which is why the State Dept still can't get it right.

Bruce


http://www.eweek.com/print_article2/0,1217,a=178660,00.asp

  Source: U.S. State Dept. to Limit Chinese Computer Use May 18, 2006 By
Reuters

WASHINGTON (Reuters)---The U.S. State Department, reacting to security
concerns after its purchase of computers from a Chinese company, will not
use the equipment for classified information, an aide to Virginia Republican
Rep. Frank Wolf said Thursday.

In March, the State Department said it had purchased a batch of computers
from China's Lenovo Group Ltd. At the time, Michael Wessel, a member of the
congressionally created U.S.-China Economic and Security Review Commission,
said the purchase should be investigated, especially if codes embedded into
the computers could be remotely activated.

The security concerns came shortly after Congress pressured a state-owned
Arab company, Dubai Ports World, into walking away from plans to manage
several U.S. port terminals.

"The computers will not be used for transmitting classified information,"
said the congressman's aide, who asked not to be identified.

A Lenovo official Thursday said he was still gathering information on Wolf's
news conference and declined to comment.

Wolf chairs a House panel that oversees federal funds for the State
Department. He was scheduled to talk to reporters about the State Department
computer deal later Thursday.

In March, the State Department said nearly 16,000 Lenovo computers, valued
at more than $13 million, were purchased under standard U.S. 
government purchasing rules. The computers were procured through CDW Corp.,
a government contractor based in Vernon Hills, Illinois.

Lenovo bought IBM's personal computer division last May. The computers
bought by the State Department were assembled in the United States and
Mexico with integrated circuits made in Taiwan, according to the company.

While the computer order was for unclassified systems with removable hard
drives, some experts raised concerns about the opportunity for intelligence
gathering through hardware and software.

Last year, China's state-controlled CNOOC Ltd. dropped its bid to acquire
U.S. oil and gas company Unocal Corp. after a strong backlash from the U.S.
Congress.

(Additional reporting by Jim Wolf)
Copyright (c) 2006 Ziff Davis Media Inc. All Rights Reserved.



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