The China Connection Is the Real Scandal|
Now we know why the Democrats were so vicious
in their attacks on Senator Fred Thompson (R-TN) and
Rep. Dan Burton (R-IN). Theirs were the committees
that were closing in on the China connection, the
scandal that can bring down the Clinton presidency, the
scandal that has made Congressmen start to utter the T
word (treason). A series of front-page news stories in
the New York Times (May 15, 16, 17) essentially vindicated Thompson's charge that the Chinese Communist
Government tried to influence the 1996 U.S. election
with campaign contributions.
Bill Clinton's friend and ubiquitous Democratic
fundraiser Johnny Chung told Federal investigators that
he funneled nearly $100,000 from the Communist
Chinese military to the Democratic campaign in the
summer of 1996. The money was handed to Chung by
the daughter of the top commander of China's People's
Liberation Army, General Liu Huaqing, who was also
one of the top five members of the Chinese Communist
Party's ruling Politburo.
Chung's liaisons with the Clinton Administration
were so cozy that he was able to arrange for the daughter, who goes by the name of Lt. Col. Liu Chaoying, to
get a speedy visa and come to America to be photographed with Clinton on July 22, 1996. She is what is
called a "princeling," one of the privileged offspring of
China's ruling elite. In addition to her title as Lieutenant Colonel in the People's Liberation Army, she is a
senior manager and vice president for China Aerospace
International Holdings, which is the Hong Kong arm of
China Aerospace Corporation, a state-owned jewel in
China's military-industrial complex, with interests in
satellite technology, rocket launches, and missiles.
Johnny Chung told Federal investigators that Col.
Liu actually gave him $300,000, which she said originated with China's military's intelligence arm, and told
him to use the money for Democratic campaign contributions. He apparently kept $200,000 for his "businesses." Soon after the picture-taking fundraiser, Col.
Liu had Chung open a California branch of Marswell
Investing, another of her Hong Kong enterprises, whose
chief "business" was parking Chinese money in the
United States. She also invested $300,000 in Chung's
facsimile business. Chung was quite a hustler; he
visited Clinton's White House 49 times.
After fundraising investigations began last year, the
Democratic National Committee returned $366,000 to
Chung which were suspected of being illegal foreign
contributions. Chung has pleaded guilty to campaign-related bank and tax fraud.
The Democrats' Largest Contributor
U.S. intelligence discovered in 1993 that China had
sold missile technology to Pakistan. Because of
bipartisan Congressional demands, Clinton barred the
U.S. space industry from using Chinese rockets to
launch their satellites. U.S. satellites were put on the
"munitions" list, the list of our most sensitive military
and intelligence-gathering technology. The reason
these commercial satellites are important is because
they carry technological secrets essential to "significant
military and intelligence interests."
In June 1994, the CEO of Loral Space and Communications, Bernard Schwartz, made a $100,000 contribution to the Democratic National Committee. He then
joined a Ron Brown trip to China that led to a $250
million telecommunications deal for Loral's satellites
to be launched by Chinese rockets.
In October 1994, Clinton lifted the sanctions he had
imposed on China for selling missile technology to
Pakistan. In early 1995, Schwartz sent a letter to
Clinton urging that responsibility for satellite-export
licenses be shifted from the State Department to the
Commerce Department. Meanwhile, both Schwartz
and Johnny Chung made more huge donations, in
excess of $100,000, to the Democratic Party.
On February 6, 1996, despite reports that China
continued to export nuclear technology to Pakistan and
missiles to Iran, and over the objections of our State
and Defense Departments, Clinton signed waivers for
four U.S. satellites to be launched by Chinese rockets.
On the very same day, Wang Jun (a "Chinese arms
dealer") attended one of Clinton's now-famous campaign coffees in the White House and spent some time
in Ron Brown's Commerce Department office. Wang
Jun owns a huge stake in a Chinese enterprise that
benefited from Clinton's waivers, China International
Trade and Investment Corporation.
On Feb. 15, 1996, the Chinese rocket launching a
$200-million Loral satellite blew up. Without telling
the U.S. Government, Loral scientists prepared a 200-page report advising China how to improve the guidance of its missiles and forwarded this helpful advice to
China without Pentagon approval.
The rationale for allowing U.S. satellites to be
launched by Chinese rockets is that the technology is
safely locked up in a black box, and Americans monitor
the launch to assure that it stays secured. But when the
Loral rocket blew up, the parts were scattered. The
Pentagon refused comment on the Drudge report that
the Loral engineers who reviewed the recovered debris
said that the encryption hardware was missing.
U.S. intelligence has reported that China has
targeted 13 of its 18 CSS-4 long-range missiles against
U.S. cities. The CIA says that China's targeting was
made more accurate by Loral's unauthorized help. The
Justice Department started a criminal investigation of
Loral, and the State Department warned that Loral's
actions were "criminal, likely to be indicted, knowing
In March 1996, despite the objections of Secretary
of State Warren Christopher, the Defense Department
and our intelligence agencies, Clinton personally
transferred jurisdiction over satellite-export licensing
from the State Department to his pal, Commerce
Secretary Ron Brown. Meanwhile, Bernard Schwartz
stepped up his contributions to the Democratic Party
and became the largest single contributor in the 1996
election cycle. Clinton signed another waiver this year
to allow Loral Space to export a satellite that is scheduled to be launched by the Chinese in November.
Congress is finally starting to realize that American
national security is at stake. On May 20, the House
voted 364 to 54 to ban the export of all satellites to
China. And, by 417 to 4, the House passed a resolution
warning Clinton not to enter into any new agreements
with China involving space or missile technology
during his forthcoming trip to Beijing. The resolution
also rebuked Clinton by declaring that his decision to
issue the waiver to Loral Space and Communications
earlier this year was "not in the national interest of the
United States," and instructed the President to indefinitely suspend all U.S. satellite exports to China,
including a pending Loral deal.
The fact that Clinton personally issued the waivers
to allow shipments of U.S. technology that greatly
improved the accuracy and reliability of Communist
China's missiles is grounds for impeachment, regardless of whether or not there was any quid pro quo for
those decisions. U.S. space technology was just what
China needs to make intercontinental ballistic missiles
and point them more accurately at U.S. cities. And he
did it despite the objections of the U.S. State Department, Defense Department, Justice Department, and
Because China shared U.S. technology and equipment with Pakistan, Clinton is also responsible for
India starting the nuclear race in Asia. India has fought
three wars with its neighbor, Pakistan, since the end of
World War II and looks upon Pakistan's new military
capabilities as a direct threat.
Clinton's policy decisions were, on their face,
damaging and dangerous to U.S. national security. And
the calendar provides an ominous frame of reference.
When Clinton's policy decisions that dramatically
benefited China's military capability and Loral's
profits, and the hundreds of thousands of dollars of
campaign donations from the Chinese government and
from Loral, are all placed on the calendar, the sequence
shows a pattern of corruption that cannot be ignored.
That's the real campaign finance scandal.
The Chinese Military Threat
Communist China views the United States as its
major adversary and is building an awesome military
arsenal, with modern weapons, planes and missiles.
China already has the world's largest army (3 million
men), 5,000 combat aircraft, and 300 nuclear warheads.
The Chinese shopping list includes aircraft carriers,
missile-equipped warships, nuclear attack submarines,
fighter aircraft, and land-based intercontinental ballistic
missiles with multiple warheads.
China is capable of buying such costly, warlike
luxuries only because of the U.S. cash that flows from
the pockets of Americans, known as our trade deficit,
which has been running about $40 billion a year for
some years. That's enough money to build up a
military/nuclear force capable of threatening the United
States, as well as dominating the Pacific.
China's expansionist aspirations are no secret. Now
that China has pocketed Hong Kong, China can turn its
avaricious eyes on Taiwan, Singapore, Indonesia,
Guam, and even threaten the sailors of the U.S. Seventh
Fleet. When China was harassing Taiwan during its
election, General Chi of the People's Liberation Army
crudely commented about China's ability to deliver a
nuclear warhead on Los Angeles.
A classified Air Force report released in May 1997
warned that China's effort to build an advanced ICBM
capability is "steadily increasing." The report stated
that this missile "will be a significant threat not only to
U.S. forces deployed in the Pacific theater, but to
portions of the continental United States and to many of
China is determined not only to become a nuclear
superpower but also a world-class industrial power, and
the Communist bosses expect slave labor, theft, and
U.S. folly to help them achieve those goals. They
require a transfer of U.S. high technology as part of
every business deal so that, in the next round, they
expect to manufacture the goods without U.S. help and
become a major exporter of cars, chemicals, steel,
electronics, and aircraft. China has made several
spectacular deals, which pretended to be merely commercial, but will vastly expand China's military and
industrial espionage and subversive capabilities.
The China Ocean Shipping Company (Cosco), a
600-ship global shipping company controlled by the
People's Liberation Army, is trying hard to acquire a
20-year lease on the U.S. Naval Shipyard in Long
Beach. Clinton personally lobbied for the Cosco deal
at a White House meeting in September 1995. U.S.
taxpayers recently spent $500 million to modernize this
deep-water port at the epicenter of our defense research
and production in southern California. Rep. Duncan
Hunter (R-CA) is trying to amend the Defense Authorization bill to stop the deal from going through.
A Cosco subsidiary made an agreement to lease the
ports of Colon and Cristobal at both ends of the Panama
Canal (the strategic American property that Jimmy
Carter gave away). Another Cosco subsidiary made a
deal for a shipyard in Mobile, Alabama, facilitated by
a $138 million, 25-year, U.S.-taxpayer-subsidized loan
guarantee. It was arranged under a 40-year-old Transportation Department program that was intended to
help the American shipping industry.
Congress Must Stop Kowtowing to China
The vote on Most Favored Nation (MFN) status for
Communist China is coming up again. Taking a
principled position against MFN would give Republicans the high ground on morals, national security, and
economics. It would put them on the side of human
rights, freedom, fair trade, and jobs for Americans,
while at the same time exposing Clinton's policy of
abandoning human rights, exporting U.S. jobs, and
endangering national security in order to get cash for
We were promised that trade relations would
encourage the Chinese Communists to become civilized
members of the family of nations and open up a billion-person market. We gave them 17 years of MFN to
prove it, and they flunked the test.
The Chinese cracked down brutally on all the brave
Tiananmen Square youngsters in 1989. If we care
about human rights, we must not forget those who
marched with the papier-maché Statue of Liberty.
China leads the world in the persecution of people
of all religious faiths, especially Christians. China bans
all religious activity and expression unless directed by
Communist Party officials. Priests have been arrested
for saying Mass. Evangelical "house churches" have
been disrupted and closed. Christians have been
interned for "re-education." The police intimidate the
people with anti-religious slogans painted in public
places. China's policy of forced abortions, sterilizations, and infanticide is a festering scandal.
The Chinese are professional thieves. Chinese
plants openly steal, then manufacture and sell, our
computer software, video films, musical recordings,
compact disks, books, and other intellectual property.
These illegal products are sold all over the world,
resulting in a loss to Americans of $2 billion a year.
In 1996, the Chinese were caught red-handed
smuggling 2,000 AK-47 automatic assault rifles to Los
Angeles street gangs. Our BATF uncovered a sophisticated operation, which must have enjoyed the complicity of the Chinese government, to sell weapons at a
400% mark-up to U.S. big-city gangs that want to wipe
out their rivals. Those arrested had direct links to
China's Defense Ministry, Deng Xiaoping's son-in-law,
and arms dealer Wang Jun (the same one who attended
a Clinton White House coffee).
Chinese "businessmen" are into weapons trafficking
in a big way. China sells missiles, nuclear components,
and chemical and germ warfare equipment to our
enemies such as Libya, Iran and Iraq.
Why do the advocates of "free trade" and "global
economy" continue to insult our intelligence with the
fiction that friendly commercial relations will cause
China to respect democracy and human rights? The
evidence is overwhelming that China looks on the
United States, not just as an economic competitor, but
as the enemy.
U.S. trade with China is a one-way street: China
sells to us but won't buy from us, resulting in our
annual trade deficit with China of $40 billion. People
who won't buy aren't much of a "market." China has
a 35% tariff on U.S. goods going to China, while we
have only a ridiculously low 2% tariff on Chinese
products imported to America. Congress should
impose a tariff on imported Chinese goods equal to the
tariff they impose on our goods going into China. It's
more important to reduce U.S. income taxes than to
favor the people who want to buy imports from China
made with slave labor.
Congress should reject Most Favored Nation
(MFN) status for China and notify the World Trade
Organization that, if it admits China, we pull out -- not
only for national security reasons, not only because of
its persecution of Christians, not only because of its
massive theft of our intellectual property, not only
because of its outrageous arms trafficking with our
enemies, but also because of China's scandalous
attempt to influence the 1996 American elections.
Congress should move rapidly with Congressional
investigations of Asian attempts to influence U.S.
policy through cash contributions to Bill Clinton and
the Democratic National Committee.
Holy Smoke! Smokescreen for Bigger Government!
Raise taxes on American workers who make little
more than $250 a week, and pay billions of dollars to
lawyers who make far more than $250 an hour! That's
what the tobacco bill will do. The trial lawyers promoting it are so powerful that they even got the Senate to
vote 58 to 39 to defeat an amendment that would have
capped their fees at $250 an hour. The trial lawyers are
one of the most important special-interest groups that
elected Bill Clinton, and the tobacco bill is better than
winning the lottery.
Contrary to what Clinton and sponsor John McCain
(R-AZ) claim, the tobacco bill isn't about kids or about
health. It's about greed, big tax increases, and Bigger
While the trial lawyers will "only" get billions of
dollars from the tobacco bill, Clinton will get hundreds
of billions of dollars to expand the reach and mischief
of Big Government. The bill will create seventeen new
government agencies with awesome new powers
including the authority to spend three-quarters of a
All this money will come from a tax increase of up
to $100 a month on low-income smokers. About 34
percent of the new tax will be paid by those who make
less than $15,000 a year, and about 59 percent will be
paid by those earning less than $30,000, while only two
percent will be paid by those making more than
The bill will increase the cigarette tax by $1.10 a
pack. Wall Street analysts believe that, when all
provisions of the tobacco bill are taken into account, the
actual price increase will be closer to $3 a pack.
Why is Congress spending taxpayers' money to
subsidize the farmers who grow tobacco, and at the
same time imposing a discriminatory tax on the people
who use their products?
The money generated by the gigantic tobacco bill
all flows in the wrong direction. Low-wage American
workers will be hit with an oppressive tax because of
the sins of the tobacco companies, and the tobacco
companies will be hit with oppressive fines for the sins
of teenagers who refuse to stop smoking.
The bill might make some sense if the three-quarters of a trillion dollars were refunded to the taxpayers
in tax cuts. But that's not the plan; instead, the money
will enrich the politicians beyond their wildest fantasies.
The National Taxpayers Union has issued a
"Comparison-Report Card" showing that the tobacco
bill is "strikingly similar" to Clinton's tremendous tax
hike in 1993. Every single Republican in Congress
courageously voted against Clinton's 1993 tax hike, but
today the weak-kneed Republican leadership supports
the tobacco tax bill because it's wrapped in kids.
There are two enormous differences between these
two big tax increases -- both in where the burden falls
and where the money goes. The 1993 tax hike fell
mostly on the so-called rich and the excess revenues
went for deficit reduction, but the tobacco tax will fall
mostly on low-income Americans and the revenues will
fuel Bigger Government.
The tobacco bill is deviously designed to provide
tax revenues for all Clinton's liberal spending programs, particularly federal babysitting, "educating
parents," institutionalizing children at ages three and
four, giving extravagant new funding to the highly
politicized Centers for Disease Control, and even
Clinton-Kennedy nationalized health care.
The tobacco bill gives Big Brother Federal Government vast new powers by creating dozens of new
federal crimes. It gives broad new powers to the Food
and Drug Administration to regulate, and even ban,
both tobacco and tobacco advertising.
The tobacco bill is a prescription for a federal police
state. It gives the Federal Government the power to
conduct monthly, random and unannounced inspections
of all retail establishments, and to control the entire
distribution chain of tobacco products in an effort to
stop the inevitable black market that the high cigarette
tax will cause.
It gives the Federal Government the power to
conduct multi-million-dollar mass-media propaganda
campaigns to control our thinking. It provides $350
million dollars for Clinton and his cronies to go on
junkets around the world to lobby foreign governments
to ban smoking. (What a great opportunity to sell plane
seats on these official trips to donors to the Democratic
The tobacco bill sets a dangerous precedent for the
Federal Government to take control of a private, legal
industry and milk it in order to enrich the politicians
and the trial lawyers.
This year, the target is smokers. When Big Brother
has an extra three-quarters of a trillion dollars to spend,
who will he target next? Owners of Sport Utility
Vehicles? Gun owners? People who won't wear seat
belts? Parents who spank their children? Homeschoolers? Wake up, Americans, to how Clinton and
Congress are trying to spend even more of our money
and control even more of our lives.