To: Kenneth E. Phillipps who wrote (61423 ) 3/18/2009 7:24:48 PM From: Hope Praytochange Respond to of 224755 The Pentagon's last annual report on China's military warned that China "continues a systematic effort to obtain dual-use and military technologies from abroad through legal and illegal commercial transactions." It stated that Immigration and Customs Enforcement rated China's aggressive and wide-ranging espionage as "the leading threat to U.S. technology." Mr. Huang was a Chinese-born employee of Indonesia's Lippo Bank, who went to work for the Commerce Department and also became a major Democratic Party fundraiser, collecting $3.4 million nearly half of which had to be returned to donors because of suspicions that the money came from the Chinese government. He sponsored several fundraisers for Mr. Locke in 1996, raising more than $30,000. Mr. Huang pleaded guilty in 1999 in a deal with U.S. prosecutors to illegally giving $2,500 to Los Angeles mayoral candidate Michael Woo in 1993 and $5,000 to a California political group that raised money for Democratic candidates. Mr. Locke's donations were not mentioned in the court case. Mr. Sioeng, an Indonesian businessman who has ties to the Chinese government, also supplied funds to Mr. Locke through intermediaries, according to a congressional report on the campaign finance investigation. Mr. Sioeng fled the U.S. in the 1990s after the FBI began investigating. He was never formally charged in the case, but congressional testimony from senior U.S. intelligence and law enforcement officials, including Attorney General Janet Reno and FBI Director Louis J. Freeh, identified him as a Chinese agent. They told a Senate committee that there was credible intelligence that Mr. Sioeng acted on behalf of China to influence U.S. elections with campaign contributions. A spokesman for Mr. Sioeng denied the allegations at the time. Records show Mr. Sioeng's bank account got wire transfers of more than $2 million from two Hong Kong holding companies at the same time that he was contributing to Mr. Clinton's re-election campaign. Under investigation According to a 1998 House Committee on Oversight and Government Reform report, Mr. Locke received $8,700 in contributions from Sioeng family members, business associates and employees. The committee found no evidence showing that Mr. Locke knowingly accepted illegal donations from Mr. Sioeng's family and associates but outlined "serious questions regarding some of the contributions and their apparent violation of Federal campaign funding laws." It is illegal for a foreign national to contribute to a U.S. candidate. Mr. Locke told the House committee that he met Mr. Sioeng twice but had no knowledge that donations were funneled from abroad, according to the report. "Committee investigators identified eight contributions from Sioeng family members and associates totaling $8,700 around July 29, 1996 to Gary Locke's 1996 campaign for governor of Washington State," the House report said. "Committee investigators traced the funding of five of the contributions totaling $5,500 to a foreign bank account in Hong Kong that the Committee has associated with Ted Sioeng." Four other payments totaling $4,400 appeared to be illegal "straw donor" conduit payments by employees of companies that the Sioeng family either owned or had business ties, according to the House committee report. A separate 1997 Senate report of the Governmental Affairs Committee said Mr. Sioeng and his family made $2,200 in contributions to Mr. Locke's campaign for governor. The report also contained photos of Mr. Locke, Mr. Clinton and Mr. Huang together at a May 1996 Democratic fundraising event in Washington, D.C., which had the goal of raising $1 million, and together at a separate May 1996 fundraiser also in Washington with Mr. Clinton and Mr. Sioeng.