-Caveat Lector-

The Clinton Gang plots to tap your phone and to
allow the
Chinese Police to tap everyone's phone.
flw

UNDERNEWS
By Sam Smith
March 17, 1999

The Progressive Review
1739 Conn. Ave. NW Washington  DC 20009
202-232-5544 Fax: 202- 234-6222
[EMAIL PROTECTED]
http://prorev.com

THE CHINA CLIPPER
& OTHER HORROR STORIES

Charles Smith of the journal Softwar, who tracks
the
links between politics, trade, and technology, has
shed new and disturbing light on the Clinton
administration's China dealings. Based in part on
his
extensive Freedom of Information discovery, Smith
outlines this chronology:

-- In 1992 ATT comes up with a tap-proof phone.
The
government sees the device as a security threat.
-- Webster Hubbell is assigned by Janet Reno to
deal
with the secure phone issue. Documents relating to
Hubbell are still being withheld on national
security
grounds, others are so censored that even their
classification level is blacked out.

-- Assistant Attorney General Colgate writes
Hubbell:
"AT&T has developed a Data Encryption Standard
product for use on telephones to provide security
for
sensitive conversations.  The FBI, NSA and NSC
want
to purchase the first production run of these
devices
to prevent their proliferation. They are difficult
to
decipher and are a deterrent to wiretaps."

-- In 1993, Webster Hubbell arranges to buy the
entire production run of secure AT&T phones using
a
slush fund filled by drug war confiscations.
-- Part of the plan is to refit the phones with a
new
chip called Clipper that has been developed by
NSA.
This chip allows the government to tap the phone
using a special key.

-- A supply of these refitted phones is given to
the
Drug Enforcement Agency. Now other government
agencies can tap the DEA.

-- The plan also mandates Clipper chips for all
American telephones. According to the Colgate memo
to
Hubbell, "FBI, NSA and NSC want to push
legislation
which would require all government agencies and
eventually everyone in the U.S. to use a new
public-
key based cryptography method."

--- According to a 1993 White House email from
George
Tenet, Ron Brown insisted the Commerce Dept. be
one
of the "key holders" for all Clipper phones. The
Clipper plan will eventually put on hold because
of a
large public outcry.

-- ATT says it is wants to distribute a limited
version of its secure phone until the Clipper chip
plan is ready.

-- In April 1994, Hubbell resigns from the Justice
Department under allegations of fraud.  By late
June
1994, Lippo boss James Riady meets with John
Huang,
Webster Hubbell and Bill Clinton during five days
of
White House visits.  Early the next week, a Lippo
unit pays Hubbell the first $100,000 of what is
reported to be over a half million dollars.

-- Two weeks after the Lippo money is given to
Hubbell, former Lippo banker Huang gets a job at
the
Commerce Department as Assistant Secretary.
Huang's
position determines technology transfers to such
places as Indonesia and China. Huang is briefed 37
times on encryption communications by the CIA
while
working at the Commerce Department. Immediately
after
each briefing, Huang walks across the street to
the
Lippo/Stephens Group offices and to make long
distance phone calls and send faxes to points
unknown. Huang and his wife will subsequently take
the Fifth Amendment and refuse to testify at
Senate
Congressional hearings.

-- In 1994, with administration approval, ATT
sells
its secure communications system to the Chinese
Army.
The export is called "Hua Mei." Thus the Chinese
Army
gets the secure communications equipment that the
American public can't.

-- Clinton also authorizes a Chinese Army lab to
obtain designs similar to the Clipper chip. The
exchange is done in the guise of law enforcement
cooperation
between the Department of justice and the Chinese
police. Writes Charles Smith: "Bill Clinton and
Janet
Reno have given the Communists the ability to
track
every Chinese citizen."

In short, the Clinton administration:

-- refused to let ATT sell an untappable phone to
American citizens
-- allowed ATT to sell this technology to the
Chinese
Army
-- attempted to mandate a quick-tap chip for all
American phones, one whose use would be partly
controlled by Ron Brown and the Commerce
Department
-- provided the DEA with phones that others in the
government could tap
-- sold the quick-tap chip technology to the
Chinese
police.

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