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Date: Mon, 17 Nov 1997 10:29:48 -0400 (EDT)
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From: Patricia Neill <pnpj@db1.cc.rochester.edu>
Subject: IP: RE: FBI COVER-UP OF CHINESE INFILTRATION OF WHITE HOUSE (fwd)
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---------- Forwarded message ----------
Date: Sun, 16 Nov 1997 10:34:13 -0600
From: jqp@globaldialog.com
To: cas@majordomo.pobox.com
Subject: FBI COVER-UP OF CHINESE INFILTRATION OF WHITE HOUSE

from The Washington Weekly:
    _________________________________________________________


       FBI COVER-UP OF CHINESE INFILTRATION OF WHITE HOUSE
      Clinton and Gore Funded by Chinese Agents Since 1989

    Friday's leak through the Washington Post that  the  FBI  has
known  since  1991  that  the  Democrat  Party  is infiltrated by
Chinese agents is a  seminal  event.  For  it  offers  sufficient
detail  to  complete  the  picture  of  how  the  entire  Chinese
intelligence penetration succeeded.  When combining it with other
leaks,  intelligence  reports,  and  congressional  investigation
results, the following picture can be put together:


    In the 1980s, the People's Republic of China made a  decision
to  build  the most powerful military force in the world. In less
than a decade, China's annual military spending tripled. In terms
of manpower, it already had the largest army in the world. But to
project force, it needed a modern Navy as  well.   To  rival  the
U.S.  military,  it needed advanced U.S. military technology, and
it needed U.S. dollars to purchase  such  technology.  Republican
administrations had permitted trade with China that produced hard
currency, but had  employed  tight  export  controls  to  prevent
advanced  U.S. military technology from falling into the hands of
Communists. So the  Chinese  government  bet  its  money  on  two
Southern  Democrats  with  an  expressed  and desperate desire to
ascend to the U.S. Presidency.


THE INGENIOUS DIVERSION

    It is against the law for a  foreign  government  to  support
U.S.  politicians,  and movement inside U.S. borders of Communist
China agents is watched closely by FBI counterintelligence.

    So Communist China set up a diversion so  ingenious  that  it
has  confused reporters for years, but has been known to and kept
secret by the FBI.  Mainland China used its archrival Taiwan,  as
well  as Hong Kong, as conduits for the funds paid to Clinton and
Gore. Democratic Taiwan and Hong Kong are  the  last  places  you
would  look  for Communist agents, and the many U.S. subsidiaries
of  Taiwanese,  Hong   Kong,   and   Indonesian   companies   and
organizations  offered  convenient  footholds  through  which  to
launder money and buy influence with U.S. politicians.

    China Resources bought into  Lippo  Bank  of  Hong  Kong  and
Indonesia  and  placed its officers John Huang and James Riady in
Arkansas. John Huang was born in Mainland China, but  had  served
in  the  Taiwanese  air  force.   Ya Long Economic Trading of the
Chinese Hainan province sought influence and  legitimacy  through
the  Hsi  Lai  temple of Taiwan, through its representative Maria
Hsia, born in Taiwan.

    Both John Huang and Maria Hsia are known by  the  FBI  to  be
agents of Communist China. Together with James Riady, they formed
the Pacific Leadership  Council,  and  invited  none  other  than
then-Senator Al Gore to the Hsi Lai temple headquarters in Taiwan
in 1989.   On  behalf  of  the  Chinese  government,  Maria  Hsia
promised  Al  Gore that she would persuade all her colleagues "in
the future to play a leader role in your presidential race." When
Al  Gore  entered  the  Hsi Lai temple of Los Angeles seven years
later to facilitate the laundry of donations in a  "fund-raiser,"
he must have known it came from the Chinese government.

    Well, Gore didn't make it to the presidential race  a  second
time,  because  of  another  promising candidate that the Chinese
government had bet even  more  money  on:   Bill  Clinton,  then-
Governor of Arkansas.


THE BAG MEN

    To help Clinton's election for president, enormous amounts of
money  was  needed.  The  money  flowed  primarily  through three
channels. Money needed for legitimate  spending  by  the  Clinton
campaign  flowed  through  the  Lippo- controlled Worthen Bank of
Little Rock, which among other cash transfers granted  Clinton  a
crucial  $3.5 million "loan" to bring him over the top in the New
York  primary.  Money  needed  for  legitimate  spending  by  the
Democrat  National  Committee was laundered primarily through the
Pacific  Leadership  Council.  For  Clinton's  1996  re-election,
additional money for the DNC and for various committees and funds
operating  on  behalf  of  Bill  Clinton  was  laundered   though
individual  bag  men  like Charlie Trie and Johnny Chung, who had
the money wired to them directly from the Bank of China.

    But in 1992, the most significant use of funds,  we  suspect,
was illegitimate.  A campaign such as that of Bill Clinton cannot
succeed without the availability of unlimited  cash  to  buy  off
bank  regulators  and  public officials to look the other way. To
pay  local,  state,  and  federal  police   officers   to   block
investigations  and  grand  jury  proceedings.  To  pay newspaper
reporters and editors to avert their gaze and stop  investigating
sensitive  issues. To throw around in vote-buying efforts, in the
Clinton campaign referred to as "walking-around money."

    All these illegitimate uses of campaign money have one  thing
in  common.   The  money  need  not be laundered. It need only be
brought in from the donor.  And brought in it was. In  planeloads
of   cash,  brought  in  through  the  remote  Mena  airport  and
transferred to the trunk of the Cadillac of bag man  Jerry  Parks
who,  according  to  the  London  Telegraph,  together with Vince
Foster transported the illegal cash to Little Rock.  Both  Foster
and  Parks  are  now  dead, and we have no idea how much cash was
brought in through this route, though we suspect it surpassed the
amount  of  money  that  was  laundered into legitimate political
spending.

    Of all the bag men discovered so far, six are  now  dead,  36
have  pleaded  the Fifth Amendment, eleven have fled the country,
and  eleven  are  living  in  foreign  countries  and  refuse  to
cooperate.


THE PAYBACK

    With Bill Clinton elected president  and  John  Huang  placed
with a top secret clearance (without examination) in the Commerce
Department, the Chinese got what they wanted:   unlimited  access
to  the  military, civilian and dual-use technology that had been
denied them during Republican administrations:

  (*) F-16 fighter jets
  (*) Cray supercomputers for weapons development
  (*) Machine tools for cruise missile construction
  (*) Global Positioning System technology for missile guidance
  (*) Satellites and satellite technology
  (*) The entire U.S. Patent database.
  (*) Nuclear Power plants


    John Huang used his top secret clearance to  gain  access  to
classified  U.S.  military  and  industrial secrets on encryption
technology and its relationship  to  intelligence  gathering  and
software  marketing  across the world. He then took the documents
across the street, to an office run by Riady partner Stephens' of
Little  Rock,  where  he  dropped  the documents so they could be
collected by Chinese intelligence.

    And when Chinese military and intelligence wanted a  foothold
in  America,  President  Clinton  personally  met twice with Long
Beach officials to push through a deal to lease the former  naval
base  to  the  Chinese COSCO front company on extremely favorable
terms despite vocal national security concerns.


THWARTING THE INVESTIGATION

    The most shocking and  devastating  revelation  made  by  Bob
Woodward's story Friday is that after Chairman Thompson announced
two weeks ago that he was suspending his public hearings, the FBI
obtained intelligence showing that the Ministry of State Security
in Beijing -- the Chinese equivalent of the CIA -- boasted it had
been successful in "thwarting" the congressional inquiry.

    How could Chinese agents be able to "thwart"  an  inquiry  by
the  U.S. congress? The answer is not hard to find. One need only
look at those who irrationally attacked  Chairman  Fred  Thompson
for  his  opening  statement,  where he revealed that there was a
Chinese plot  to  influence  the  election.   His  statement  was
deliberately  non-partisan, so there would be no partisan reasons
to counterattack. But the interests of the  Chinese  intelligence
agency would be served.  Senator John Glenn said: "I think I have
seen everything the chairman has seen, and I  recall  nothing  to
document allegations that China had done anything illegal." After
the FBI offered to show the classified evidence  to  any  Senator
who  wished  to see it, Senator Glenn fell strangely silent. Even
more shocking was Senator Glenn's offer to negotiate an  immunity
agreement  on  behalf  of  John  Huang. How did John Glenn end up
representing a Communist agent  whom  Senate  staffers  had  been
unable to locate?

    Senators Carl Levin and Robert  Toricelli  displayed  similar
behavior.   Both  having  accepted cash from John Huang, they too
spoke the case of the Chinese intelligence agency:  "I  find  the
fact  that Mr. Huang would maintain an arrangement where he would
make phone calls outside the Department of Commerce not in and of
itself   suspicious,"   Senator  Toricelli  said  of  the  secret
Stephens' office where Huang dropped his stolen state secrets.

    We can add to this list Senate Minority leader  Tom  Daschle,
who  has  accepted  cash  from  Maria  Hsia,  and  who personally
recommended John Huang to be placed in the  Commerce  department.
He  later  was  instrumental  in  imposing  a  fixed  deadline on
Thompson's inquiry, so it could be stalled by  Democrat  Senators
and by the White House.


    Chairman Thompson's landmark  opening  statement  included  a
reference  to the U.S. media. He referred to intelligence showing
Chinese agents "attempting to communicate Beijing's views through
media channels in the United States."

    It comes as no surprise, then, that network  and  cable  news
anchors   took  the  position  of  Senator  Glenn  in  ridiculing
Thompson's allegation.  And the Boston Globe wrote:

  "Does anybody really think little  Clinton,  raised  in  that
  tar-shingled  shack  in  Hope, Ark., with his gutsy mom going
  out to nurse the poor for short money, trying to find a  life
  for  herself  and her two boys, marrying four times along the
  way, learning to take her small pleasures where she could, at
  the  race track or the cigarette counter, do you really think
  that her boy grows up to become president only  to  sell  out
  the  USA  to  Chinese  spies laundering cash through Buddhist
  nuns?  I don't." [Violin music off]

    Whether they know it or not, all of those listed  above  have
been  used  as  instruments  of  a  successful disinformation and
propaganda campaign by a foreign Communist government.

    Fortunately, the Chinese haven't gotten to Bob Woodward or to
William Safire, or to Tim Russert who repeatedly has invited them
both on NBC's "Meet the Press" to tell what they know  about  the
Chinese  penetration  of  the  U.S. government. Chris Matthews is
another of the few mainstream media commentators who has  had  an
ear  for  the gravity of this scandal.  And there is at least one
FBI counterintelligence agent who is so outraged by the  cover-up
of his superiors that he is now leaking to Bob Woodward.

    Neither have the Chinese government gotten to Dan  Burton  or
Bob  Barr, the only Congressmen left to take seriously the threat
of Chinese infiltration.  Burton, a fervent  anti-Communist,  and
Barr,  a  former  CIA employee, now form the last line of defense
against a People's Republic of China already occupying the  White
House.



[ For more details of the Chinese penetration, its bag  men,  and
its   reporting   and  non-reporting  since  1995,  see  the  new
Washington Weekly archive "Chinagate," available to the public at
http://www.federal.com ]




  Published in the Nov. 17, 1997 issue of The Washington Weekly
  Copyright 1997 The Washington Weekly (http://www.federal.com)
          Reposting permitted with this message intact

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