Time: Wed Sep 03 18:01:45 1997
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Date: Wed, 03 Sep 1997 17:57:29 -0700
To: (Recipient list suppressed)
From: Paul Andrew Mitchell [address in tool bar]
Subject: SLS: Loose Bits Sink Ships ... (fwd)

>It is said that "loose lips sink ships".  There is nothing more
>valued to the military than the freshest information from the
>enemy.  Over the past few weeks, I have shown the Clinton
>administration engaged at the highest levels to export US
>military technology to China.  Then Secretary of Defense William
>Perry, working with then Secretary of Commerce Ron Brown,
>officially set things in motion.  DOD would look the other way
>while Commerce did the shipping.  Secret memos forced from the
>administration show that the decisions were made inside the
>White House.  The involvement of Tony Lake, George Tenet and
>Vice President Gore in erecting the White House driven
>"Inter-Agency Working Group" for cryptography (IWG) all point
>directly at the President as being responsible.
>The route to Beijing from Washington is not a direct road, mind
>you, but as in the HUA Mei, case, it still led directly to the
>Generals of the Peoples Liberation Army.  Two PLA Generals owned
>the HUA Mei Hotel.  Thus, the PLA was able to purchase encrypted
>cellular phones, radios and a secure - real time - fiber optic
>communications net from the U.S., using the guise of a
>"commercial" application.  The fact that the seller was a close
>associate of William Perry was simple co-incidence, in
>Washington terms.
>Still, a more direct route to the new world can always be found.
>When the President of China visited Seattle on November 16,
>1993, he met with President Bill Clinton.  Out of that meeting
>came an agreement for the US to sell super computers to China.
>Yet, less that 48 hours before PRC President John Sa Men met
>with President Clinton, the Director of the NSA, Adm. McConnell,
>just happened to write a letter to Secretary Ron Brown, giving
>his approval for super computer exports (eg.. November 15, 1993
>letter).  The ink was hardly dry on Adm. McConnell's letter when
>Bill was shaking hands with John Sa Men.  Of course, the US
>super computers are now doing nuclear weapon research at the
>Chinese Academy of Science.  Just another Washington
>Then there is the documentation from the Defense Logistics
>Agency, another arm of DOD, where U.S. military cryptographic
>devices, computers, software and radios were sold as "scrap" to
>dealers in surplus military equipment.  The massive amount of
>material and military systems involved are not measured by the
>pound but by the ton!  The article noted that entire systems,
>complete with software, were recovered by investigators but no
>major shake up at DOD seems to be underway.  Again, indirect
>routes have led to Hong Kong based Chinese operations to
>scavenge advanced systems from the U.S.  Again, DOD refused to
>clean up the problem and ignored the potential threats.
>Then there are the twin security problems posed by John Huang
>and Ira Sockowitz.  The Commerce Department cannot really say
>what John Huang had access to.  However, the CIA has made it
>clear that he did receive briefings that would pose a serious
>threat to the national security.  Ira Sockowitz, on the other
>hand, walked out of the Commerce Department with boxes of secret
>material, placing them in his personal safe at the Small
>Business Administration.  Unauthorized removal from a SCIF of
>secret document is a clear violation of Federal law.  
>Most people would face a couple of years in jail for what Ira
>Sockowitz did.  Yet, Mr. Sockowitz has nothing to fear from the
>Attorney General.  Janet Reno does not wonder why a Commerce
>employee would take thousands of pages of secret material from
>the Commerce Department directly after Ron Brown died.  In fact,
>Ira missed the plane that Ron crashed in, thus he was more or
>less alone with all those secrets when he returned to
>Washington.  Perhaps, another Washington co-incidence?
>Finally, we have Vince Foster with NSA cryptographic materials
>in his office at the time of his death.  In fact, the NSA and
>the White House denied Vince had anything to do with the ultra-
>secret National Security Agency.  Yet, after legal action by
>Washington Weekly, the NSA was forced to release a few pages of
>two binders that Mr. Foster had in his office at the time of his
>death.  All that is known is Vince was invited to Ft. Meade on
>May 2, 1993 with Benard Nussbaum and Webb Hubbell.  They had
>lunch and discussed cryptographic policy.  Of course, the Secret
>documents from April and February of 1993 prove the Clinton
>administration was preparing to mandate the Clipper chip and ban
>all other computer security.  As draconian as the
>nationalization of all computer security seems the basic fact
>remains that Clipper also came with it's own Achilles heel.
>That flaw was clearly pointed out by NASA which noted, in their
>rejection letter on Clipper, that a single penetration of the
>master keys (eg... a "John Walker") would compromise all the
>Clipper chips.
>It is said that loose lips sink ships...  However, in the new
>age of Clinton security that phrase can rightly be modified to
>read:  "Loose bits sink ships..."
>1 if by land, 2 if by sea.  Paul Revere - encryption 1775
>Charles R. Smith
>Pcyphered SIGNATURE:

Paul Andrew Mitchell                 : Counselor at Law, federal witness
B.A., Political Science, UCLA;  M.S., Public Administration, U.C. Irvine

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