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To: jlallen who wrote (766)12/30/1998 5:02:00 PM
From: Bill  Read Replies (1) | Respond to of 880
 
House Says China Deal Harmed U.S

By Will Lester
Associated Press Writer
Wednesday, December 30, 1998; 2:08 p.m. EST

WASHINGTON (AP) -- United States technology deals with China, including some with military significance, harmed national security, a House committee concluded unanimously today.

''These transfers are not limited to missile satellite technology, but cover
militarily significant technology,'' said Rep. Christopher Cox, chairman of a
special House committee investigating military and commercial deals with
China.

''Based on unclassified information, we have found that national security
harm did occur,'' he said.

The select committee began with an inquiry into the Clinton
administration's satellite export dealings with China and whether his
actions compromised security or were influenced by campaign
contributions.

But Cox indicated the report, which is partially classified, examines the
relationship between the United States and China over the last two
decades. He wouldn't elaborate on details of the report, but said it looks
at the relationship between the two countries during Republican and
Democratic administrations.

''United States transfer of technology to the People's Republic of China
has been the target of serious PRC efforts over the last two decades,''
Cox said without giving specifics.

The committee makes 38 recommendations for legislation and executive
action to remedy a situation that it found has hurt national security. Cox
said more details of the report would be provided to the administration
and Congress as appropriate, and unclassified portions of the report
would be made public as soon as possible.

Cox noted the committee of five Republicans and four Democrats worked
closely through holidays and in the weeks around elections to come up
with the bipartisan finding.

When it was formed in June, the committee was given broad subpoena
powers and special authorization to look into tax records of individuals
and businesses it considers pertinent to its investigation.

Several federal and congressional probes looked into whether China was
provided with restricted information that could be used to improve missiles
and military satellites.

Valuable military technology allegedly flowed to China as part of
commercial satellite deals in which U.S.-built communications satellites
were put into orbit on low-cost Chinese rockets.

The committee has pursued its investigation in a low-key manner, keeping
its work secret because of the classified material involved.

Cox said the transfer of sensitive materials goes beyond the investigations
of Hughes Electronics Corp. and Loral Space & Communications to other
technology deals.

Rep. Norman Dicks, D-Wash., agreed with Cox that the report was put
together in a bipartisan spirit. He said he's been assured by the White
House that it will carefully consider implementing the recommendations of
committee.

''They recognize this is a bipartisan effort that has yielded a consensus
product,'' Dicks said. ''That isn't easy to do in the climate that we were
operating in.''