To: Zoltan! who wrote (15183 ) 5/15/1998 12:14:00 AM From: DD™ Read Replies (2) | Respond to of 20981
CUNG SAYS HE FUNNELLED $$$ FROM CHINESE MILITARY OFFICER TO THE DEMS.. DRUDGE REPORT By Matt Drudge THU MAY 14 1998 22:57:49 EDT Democratic fund-raiser Johnny Chung has told federal investigators that he funneled dollars from a Chinese military officer to the Democrats during President Clinton's 1996 re-election campaign, the NEW YORK TIMES is set to report in Friday editions. The exclusive report written by Jeff Gerth took official Washington by storm late Thursday night. "Chung's account, coupled with supporting documents such as bank records, is the first direct evidence obtained by the Justice Department that elements of the Chinese government made illegal contributions to the Democratic Party," reports Gerth. As sneaked earlier this week in this space, Gerth has been building a story that expands on his initial report of a possible illegal sale of U.S. tech intelligence to the Chinese. Gerth, who was described as completely exhausted late Thursday night after filing the story, was assisted by the paper's Justice Department hotshot David Johnston and Don Van Natta. The sound of Pulitzer has been ringing in the air all week at the TIMES Washington bureau. "It's the first in a series of reports that appears to as serious as anything we've seen here," one story watcher told the DRUDGE REPORT. Chung has told investigators, the paper reports, that a large part of the $100,000 he gave to Democratic causes in the summer of '96 came "from China's People's Liberation Army, through a Chinese lieutenant colonel and aerospace executive whose father was Gen. Liu Huaqing." Liu was then not only China's top military commander but also a member of the top leadership of the Communist Party, reveals Gerth. "It is not clear whether other Chinese officials or executives were involved in the purported payments by Ms. Liu, or what her motivation or the Chinese military's was." "At the time, Clinton was making it easier for American communication satellites to be launched by Chinese rockets, a key issue for the People's Libertation Army and for Ms. Liu's company, which sells missiles for the military and also has a space subsidiary." Jim Kennedy, adviser to White House counsel, told the paper on Thursday: "We had no knowledge about the source of Mr. Chung's money or the background of his guest." "The TIMES looks like it is exploiting the emotional atmosphere that has developed around the state of China's military since India tested its nuclear bombs earlier this week," a well-placed congressional source told the DRUDGE REPORT. The story runs thousands of words and is set above the fold on Page One of Friday's NEW YORK TIMES. x x x x x