http://www.worldnetdaily.com/bluesky_smith/19990928_xcsof_squandered.shtml Newly declassified documents, forced from the U.S. Commerce Dept. by a Federal lawsuit, shows that $200 million in World Bank loans for a "Technology Development Project" actually went to weapons research labs and businesses wholly owned by the Chinese Army. The documents reveal that World Bank loans were used to modernize the Chinese Army Defense Industry. "The objective of the project is to support the (Chinese) Government's continuing reforms in technology policy and institutions so as to promote the development of clear, productivity-enhancing technologies in China's industries," states a 1995 report written by the Industry and Energy Operations Division of the World Bank. According to the World Bank report, "the (Chinese) Government will pass on US$194.3 million of the loan proceeds through SPC (State Planning Commission) to eligible sub-borrowers in the form of sub-loans, with the Golden China Corporation acting on its behalf as a financial agent." "The first component is designed to assist in transforming part of the research and development (R&D) establishment into market-responsive technology development corporations," states the World Bank report. "This component would hive off the most dynamic technology development and service-oriented elements of existing research institutions to create - - through a competitive selection process - - new, market-oriented entities, called Engineering Research Centers (ERCs)." "The second component comprises complementary investments in improving technology public services, including: (i) the modernization of the National Institute of Metrology and (ii) a technical assistance program for a Productivity Center as well as for several training activities." However, according to the Defense Dept., "Golden China Corporation" and many of the so-called "Engineering Research Centers (ERCs)" supported by the World Bank loans were actually owned and operated by the Chinese Army unit COSTIND (Chinese Commission for Science, Technology, and Industry for National Defense). For example, the World Bank provided: - $5 million to the Northwest Institute for Nonferrous Metal Research for "rare earth materials" used in "chemical, aviation," and "nuclear power stations." The Northwest Institute for Nonferrous Metal Research is part of the China National Nuclear Corporation (CNNC), producer of all nuclear weapons for the Chinese Army. - Over $5 million to the Harbin Research Institute for "welded steel products" used in "aviation" and "ship building." Harbin was identified by the Dept. of Defense as a Chinese Army front used to purchase Allied Signal turbo-fan engines for the People's Liberation Army Air Force (PLAAF) in 1996. - Over $4 million to the Marine Design & Research Institute of China for "ship design software and services." The Marine Design & Research Institute is part of the China National Ship Building Corp. and the primary design facility for all Chinese warships, including nuclear powered submarines. - Over $4 million to the Nanjing Radio Factory for "audio/visual" products used in "T.V.s, satellite equip., radios, CD players, etc." The Nanjing Radio Factory is owned and operated by the Chinese Army. The factory produces a wide variety of electronics for the PLA including CRTs, satellite equipment, and secure military radios. - $3 million to Xi'an Jiatong University for "fluid machinery" research used in "turbo-compressors". Xi'an Jiatong University was identified by the Dept. of Defense as a major research center for the Chinese Army, sharing facilities with the PLA chemical and biological weapons facilities that are located nearby. The Chinese Army loans from the World Bank also financed several money making ventures for the Chinese Army. For example, the World Bank provided $5.5 million to the "China Textile Academy" for "productivity enhancement." The World Bank was joined by "Foreign & Domestic Partners" also seeking to improve the PLA textile production such as "Toray (Japan); Dupont (U.S.); Bermag (Germany), the Textile Academy in Russia; and the Wool Bureau of New Zealand." Even the World Bank could not avoid the fact that Chinese workers are being exploited under harsh conditions by the Chinese Army. The World Bank report notes that "one-third" of the "11,000" textile firms associated with the China Textile Academy are small to medium size enterprises (SMEs). The report noted that many of the labor intensive textile "industries are in urgent need of various properties" such as "environmental protection" for their workers. According to a 1997 Rand Corp. report on the Chinese Defense Industry, the profits from PLA business ventures, such as textile exports, are split between the PLA Generals and the Chinese Army. The Chinese Army profits are used to purchase advanced weapons, build new barracks for troops and provide medical services for the PLA officers. The Chinese Generals use their slice of the profits for "lavish parties", "foreign luxury automobiles" and "Swiss bank accounts." Thus, there is little money left to provide "environmental protection" or improve working conditions. Of course, the Clinton administration, claims that it is impossible to identify Chinese Army owned companies. Despite the difficulty, President Clinton is required by law to perform this task. Clinton signed the Fowler Amendment into law October 17, 1998. It requires that a list of companies controlled by Communist China's People's Liberation Army be published in the Federal Register by January 15, 1999. So far, Clinton has ignored the law and refused to reveal the PLA-owned businesses in America. On Friday, Sept. 24, 1999, the ten top leaders in the House of Representatives wrote a letter to Clinton, demanding immediate compliance with U.S. law requiring public disclosure of the PRC's PLA-owned companies doing business in the United States. According to House members, the Clinton White House claimed in September 1999 to have assigned the task of identifying the PLA companies to the Defense Intelligence Agency (DIA). The DIA, however, has quietly informed Congressional leaders that the White House did NOT ask them to prepare such a list. Thus, the identity of the Chinese Army front companies operating inside the United States continues to go unreported. Many of the PLA companies that Clinton refuses to identify are well known to the Commerce Dept. The facts show the Clinton administration actively courted business with the Chinese Generals. In 1995, General Ding Henggao sent Ron Brown a partial list of PLA-owned firms, including a local Chinese Army contact, complete with phone, fax and address. "The Clinton-Gore administration's failure to obey the law is knowing, willful, and long-standing," said House Policy Chairman Christopher Cox, who released the letter. "Eight months after the deadline in the law, it is essential that the President comply. By violating this statutory obligation, the President shows contempt not only for the law but for Congressional oversight and the national security." ================================================================ source documents - http://www.softwar.net/wbpla.html ================================================================ Pcyphered SIGNATURE: B56FFEB43F9C394FC15B01C19287F3BFDAF55A62C32B90250B49271DD2109463 17560C373825B4F16C17A91180473FA0C3B80D844DD2B7BF08DBF0D620A9A344 A4B33D29EC84C90D ================================================================ SOFTWAR EMAIL NEWSLETTER www.softwar.net 09/28/99 *** to unsubscribe reply with "unsubscribe" as subject *** ================================================================
