The following documents were obtained from Smith v. Commerce
and show that the Dept. of Commerce was fully aware of Li
Ka-Shing's funding communications systems with the PLA.

Li Ka-Shing currently has control of both ends of the Panama
Canal through his Hutchison Whampoa Group.  Li Ka-Shing is to
the PLA what Howard Hughes was for the CIA.

crs
================================================================
To:               Alain DeSarran@USFCSHqOIOEAP@DoC
Cc:               Dolores F Harrod@USFCSHqOIODAS@DoC
                  Mark Bayuk@USFCSBeijing@DoC

Bcc:
From:             Robert Bannerman@USFCSBeijing@DoC
Subject:          Helms Tesitmony
Date:             Monday, December 22, 1997 9:15:37 CST
Attach:
Certify:          Y
Forwarded by:

Dear Alain:

Mark Bayuk obtained a chart from DAO entitled "China's
Defense-Industrial Trading Organizations", which is a
non-classified document. The reference number for this document
is: Defense Intelligence Reference Document No. PC- 19212-57-95,
October 1995. According to Mark, BXA has a copy of this chart
(which is too big to fax to you), and he will ask someone at BXA
to give it to Dolly.

I think this chart is what you are looking for. It includes
companies such as China North Industries Group (NORINCO), China
Electronic Systems Engineering Company (CESEC), etc. I will also
fax you a typical article I found yesterday which mentions CESEC
and identifies it has a PLA-affilated company.

This chart is the only list that we have here in China of
PLA-affiliated companies. The Chinese government does not
publish such a list, nor do we know of any other published
source or data base of PLA-affiliated companies.

If you have any trouble getting a copy of this chart from BXA,
please let me know and I will have someone type up the list of
companies from the chart and send it to you.

Regards,
Bob


================================================================

1997 Asia Communications
CDMA Network Development Underway

CHINA's second carrier is hoping to enlist Hong Kong based
Hutchison Telecom in the development of a CDMA mobile phone
network, writes Nick Ingelbrecht.

Lian, Tong Telecommunications Corp is aiming to launch services
in an initial 20 cities next year as a precursor to a national
service and was due last month to finalize an agreement with
Hutchison for technical and financial support.  The planned
network will have capacity for 400,000 subscribers in the first
phase and room for a further 600,000 users under phase two.
Lian Tong officials said the CDMA network would supplement their
GSM service in areas where customer demand exceeded be available
radio frequencies.  The carrier has recruited CDMA suppliers
Lucent, Samsung and Motorola to build trial networks in
Shanghai, Tianjin and Guangdong.

The focus of the build-out will be in southern China and 13 of
the initial 20 cities are in Guangdong province.  Networks are
also planned for Shanghai, Tianjin, Beijing, Suzhou and
Hangzhou.  This arrangement would enable Lian Tong to take
advantage of roaming arrangements with Hutchison's CDMA
subscribers in Hung Kong.

Lian Tong has opened a new wireless department at its Beijing
headquarters to oversee the CDMA project.  Lian Tong has a
national assignment of 4MHz of radio spectrum in the 800MHz band
for the new network. Hutchison's parent company, Hutchison
Whampoa is already investing in a separate CDMA venture in China
through its Chung Kiu joint venture.  Chung Kiu has agreements
to develop CDMA networks in some 37 cities in association with
Great Wall Mobile Communications, the joint venture between the
Ministry of Posts and Telecommunications (MPT) and China
Electronics Systems Engineering Company (CESEC) a subsidiary of
the People's Liberation Army.

Lian Tong said it has 30 GSM networks connected with the national
phone network, serving a total of 300,000 cellular subscribers.

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