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Copyright © Pine Lake Media Group 2004 1 INTRODUCTION There are those who claim that the Clinton administration only lied to the world about sex. The claims are wrong because I was a witness to the smashing of the biggest lie, the arming of communist China. I am not a lawyer but I have won three out of four cases brought before a Federal Court. The wins were against the best lawyers that the government could buy. The victories also came at a cost, not to me, but to the credibility of the U.S. government and the Clinton presidency. The first and most damaging lie that the Clinton lawyers made was that a Chinese commissioner, named Shen, was a civilian representative of the communist government, and not a member of the People’s Liberation Army. This claim, and the accompanying claim of personal and business privacy, was made before a Federal Judge. The claim was part of an elaborate effort to deny access to over 1,000 pages of information dealing with Shen and his so-called civilian organization, the Commission of Science, Technology and Industry for National Defense (COSTIND). When the Clinton lawyers finished I, in turn, dropped a complete bio of General Shen on the desk of Federal Judge Robert Payne. The dossier on General Shen included his current military status and details about COSTIND the military unit he was in. Shen was not only second in charge of COSTIND but the unit itself is run entirely by and for the Chinese Army under the command of General Ding Henggao. To say that Judge Payne was upset is an understatement. While many Judges facing Clinton administration lawyers took lying for granted, Judge Payne threatened to lock all of the U.S. 2 government attorneys up and throw away the key if he did not have the 1,000 pages of withheld materials on his desk in 48 hours. This book, in part, is based on that hard won material. It took some risk and a great deal of effort on my part to win back the Freedom of Information that was ours to begin with. Death threats and various probes of personal and private information are common now. The cost, personally and professionally, has been great. The price of documenting the success of General Shen and his commander General Ding is small when compared to what the Chinese Army obtained from the Clinton administration. In a span of eight years the PLA moved from a second rate peasant army to a first class global fighting force. That great leap forward came from the incredible success of General Shen, General Ding and others like them who won the first information war. The Chinese Army took the Clinton White House armed only with a checkbook. 3 CHAPTER ONE LORAL AND HUGHES All war is based on deception… Sun Tzu – The Art of War. In 1989 China faced a military crisis. China was about to become an ex-super power. In 1989, Major General Yang Huan, Chinese Deputy Commander of the Second Artillery (Strategic Rocket Forces), wrote a paper in the National Defense review. Yang admitted that China had to rapidly improve the red nuclear missile force or face third rank global status. General Yang outlined three areas absolutely necessary for China to “improve” its aging “first generation” of nuclear missiles. General Yang’s three goals were to improve “the survivability... the striking ability... [And] the penetration technology of strategic weapons.” According to Yang, “accuracy and power are chief factors used to judge weapon striking power.” Yang wrote in 1989 that China’s strategic missiles were cumbersome, inaccurate and unreliable. Yang predicted that in the near future American anti-missile defenses would halt any Chinese missile attack. According to Yang, “strategic weapons can be used in actual fighting only when they can penetrate enemy defenses and reach and strike the target a necessary condition to protect itself and destroy a target.” Yang’s fear was that America would deploy a “STAR WARS” system large enough to neutralize China’s nuclear missile force but small enough to not threaten Russia. The U.S./Iraq Gulf war that followed Yang’s article was filled with nightly battles between Patriot and SCUD. The 4 results from the Iraq war accelerated the military view that anti-missile systems could neutralize Chinese rocket forces. In 1994, General Ding Henggao served as Chairman, Commission on Science, Technology and National Defense Industry (COSTIND). General Ding solved China’s nuclear strategic problems. In 1994, General Ding wrote a small article titled REFORMING DEFENSE SCIENCE, TECHNOLOGY, AND INDUSTRY that appeared in China Military Science. Ding wrote “in a future anti-aggression war, our country will uphold the concept of active defense. It means that active defense is not just defensive, it is offensive as well. Our air-defense weapons system and even the whole weapons system should have two capabilities. It could greatly help overall quality and effectiveness if we possess one or two effective weapons that can assume the offensive.” In 1994, Chinese Army General Ding Henggao, and his team of two sub-commanders, Lt. General Shen Rongjun and Lt. General Huai Guomo, led the most spectacular raid of U.S. military technology since the 1949 atomic espionage by Soviet spies, Ethel and Julius Rosenberg. Secret documents forced from the Commerce Dept. by a Federal lawsuit prove that the Clinton administration sought direct military exports to China. The documents detail Commerce Dept. contacts with a Chinese Army unit called COSTIND. COSTIND, according to the General Accounting Office, “oversees development of China’s weapon systems and is responsible for identifying and acquiring telecommunications technology applicable for military use.” 5 In 1994 COSTIND took the offensive - target USA. COSTIND Vice Minister, Lt. General Shen met and consummated a series of satellite deals with Bernard Schwartz the CEO of Loral. The technology obtained from the COSTIND/Loral deals saved China billions in missile R&D and turned the Second Corps into a deadly force of thermonuclear war. In 1994 Bernard Schwartz, CEO of Loral Aerospace, went to China with Commerce Secretary Ron Brown. Bernard Schwartz, by co-incidence, also donated just over a million dollars to the DNC. Before moving to Commerce, Brown headed the Democratic National Committee. The Federal Election Commission fined the DNC in 2002 for “knowingly and willingly” accepting donations from Chinese army sources. When Mr. Schwartz flew to China he hoped to make a sale or two. For example, Loral manufactures satellites, radars, global navigation and worldwide secure communications systems. All the fine things a “wannabe” super-power would desire. In 1994, just prior to traveling with Brown, Mr. Schwartz had his LORAL staff prepare a shopping list for the Chinese and Ron Brown. This list, complete with very big pictures, would make Loral’s large ticket items easier to understand and digest at Ron Brown’s (executive) level. However, the same list would also make anyone familiar with military equipment go bananas. On that day Ron Brown stopped being Secretary of Commerce and started his new career as an international arms dealer. The items LORAL carried to the meeting with Ron Brown resemble a JANE’S Defense catalog of high tech weapons. 6 Some of the Loral suggested “red” ticket items up for sale included “Airborne Reconnaissance Cameras, Weapon Delivery, Target Acquisition, Missile Guidance, Shipboard Target Acquisition, Radar Warning, Missile Warning, RF Jamming, IR Jamming...” and so on. Please note - Anything that starts with “weapon”, “missile” or “target acquisition” does NOT qualify as a civilian application. During the August 1994 trade trip to China, Schwartz met with Liu Ju-Yuan the minister of China Aerospace Corporation. China Aerospace makes both the civilian Long March rocket and the nuclear tipped CSS missile for the Chinese Army Second Artillery Corps. Minister Liu is also the official boss of Chinese Army Colonel Liu Chao Ying who contributed thousands of dollars to the DNC through convicted China-Gate figure Johnny Chung. Colonel Liu’s real boss, however, turned out to be General Ji, the Military Intelligence Director of the People’s Liberation Army. Schwartz also met directly with a Chinese General at his own request. In 1994, Chinese Army Lieutenant General Shen Rougjun was second in command at COSTIND - the Chinese Commission for Science, Technology and Industry for National Defense. In 1994, COSTIND General Shen attended several business meetings with Hughes and Loral. In August 1994, Lt. General Shen met and consummated a series of satellite deals with Bernard Schwartz, the CEO of Loral. The Beijing meeting was requested by Schwartz arranged by President Clinton and included Commerce Secretary Ron Brown. The technology obtained from Loral included advanced rocket guidance and encrypted satellite telemetry systems. 7 Loral’s CEO says the company never sought special treatment but the facts and documents differ from his assertion. The August 1994 meeting with General Shen was at the request of Loral CEO Bernard Schwartz. President Clinton personally approved the request. Furthermore, in June of 1994, presidential aide and Democrat Party fund-raiser Mark Middleton received a letter from Loral Chairman Bernard Schwartz. Schwartz, a million dollar donor to the Democrat Party and a donor to Mrs. Clinton’s New York Senate bid, thanked Middleton for a 1994 meeting at the White House with another top Clinton aide “Mr. McLarty.” The letter was obtained from the U.S. Commerce Department by using the Freedom of Information Act. The meeting, according to a Loral attachment, was to ask Russia to change their “GLONASS” navigation satellite system to another radio frequency. According to Loral, “international aviation interests are considering using GLONASS for position-location, navigation and precision landing of civil aircraft, either alone or in conjunction with the U.S.

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