June 9, 1999
Americans who are fascinated with spy and mystery fiction
should get the Cox Report for their summer reading. It's a
The Cox Report establishes the nexus among Chinese espionage,
trade with China, and illegal Chinese campaign donations. They are
all cut from the same cloth, and the Cox Report stitches the pieces
That Communist China engaged in massive espionage to acquire
U.S. military secrets, which can some day be used to threaten us and
our allies, comes as no surprise. What is sensational about the Cox
Report is the scope of China's success, and that it was achieved
with the assistance of lax security, commercial transactions that
concealed the transfer of military technology, and illegal campaign
contributions to elect Bill Clinton and the Democrats in 1996.
The People's Republic of China (PRC) has "stolen classified
information" on all seven of the United States' most advanced
thermonuclear warheads, plus classified design information on our
never-tested neutron bomb. The first of China's mobile ICBMs, the
DF-31, "may be tested in 1999 and could be deployed as soon as
The nuclear secrets stolen by Communist China are not
inconsequential; they give the PRC "design information on
thermonuclear weapons on a par with our own." The Cox Committee
states that the PRC will surely "exploit this design information in
its next generation of weapons."
The hallmarks of the PRC's espionage strategy are the blurred
lines between military and commercial technology. The Central
Military Commission adopted Deng Xiaoping's "16-Character Policy,"
his command to combine the military and civil, combine peace and
war, give priority to military products, and let the civil support
The Cox Report unravels the many ingenious Chinese techniques
used to acquire U.S. military technologies. The Chinese constantly
pressure U.S. commercial companies to transfer technology in joint
ventures, and they extensively exploit dual-use products and
services for military advantages.
Nepotism is the name of the game in China's socio-political
structure. The elite of the post-Deng ruling clique are the
"princelings," the sons and daughters of Party officials who are
credentialed with exalted business, military and political titles.
Their status, as well as the cash bulging in their pockets,
gave them extraordinary access to the Clinton White House. Among
these specially anointed emissaries from China were Wang Jung, son
of the late PRC President, and Liu Chaoying, daughter of the former
most powerful PRC military boss.
Wang, who attended one of the notorious Clinton coffees in the
White House, was connected to $600,000 in illegal campaign
contributions made by Charlie Trie to the Democratic National
Committee, and also to the 1996 Chinese attempt to smuggle AK-47
assault rifles to Los Angeles street gangs.
Liu, who was ostentatiously garbed with the titles Colonel in
the People's Liberation Army as well as Vice President of a major
missile and space corporation, attended a Clinton fundraiser in
California. She gave $300,000 to Johnny Chung to use for Clinton's
reelection in order "to better position her in the United States to
acquire computer, missile, and satellite technologies."
Hughes Space and Communications, after the explosion of two of
its communications satellites launched by China, gave China valuable
information to make its rockets "more reliable." This information,
which was directly applicable to China's military rockets and
satellites, was not licensed by the United States for export.
Loral Space and Communications, as a result of the 1996 crash
of a rocket carrying its communications satellite, performed "an
unlicensed defense service for the PRC that resulted in the
improvement of the reliability of the PRC's military rockets and
ballistic missiles." This information about Western diagnostic
processes facilitates improvements in reliability for all PRC
missile and rocket programs.
The Defense Department concluded that "Loral and Hughes
committed a serious export control violation by virtue of having
performed a defense service without a license." The State
Department referred the matter to the Department of Justice for
possible criminal prosecution.
Don't hold your breath until Janet Reno indicts. Loral's CEO
was the largest Democratic contributor of legal campaign money.
We are kidding ourselves if we think that these are the acts of
a friendly trading partner whose rough edges can be smoothed over by
admission into the World Trade Organization (which means automatic
status as what used to be called Most Favored Nation). Like all
Communist countries, "the Party controls the gun"; i.e., the
Communist Party is supreme over all government, military and
civilian entities, including the army, navy, air force, espionage
operations, government bureaucracies, commercial enterprises, and
Don't let anybody tell you that the Cox Report is a dud. Even
though the Clinton Administration censored out a third of the text,
it's an explosive missile.