The Peking Pentagon
Timmerman, Kenneth R.
"The Peking Pentagon" the people on Taiwan and any danger to the interests of the United States arising therefrom." The TRA is not a security treaty, but it comes close. It defines U.S. policy—the law of the land, in...
...And both Lewis and his son Steve, who are partners in a California technology transfer outfit called Generation Ventures, were booked at the Peking hotel where Hua Mei was holding its annual meeting last January...
...Bring a touch of "practical nostalgia", the exact time and hourly melodies to your home or office and send for your StationMaster Chime Clock(s) today...
...No officials the money has been appropriated, and no projects approved," a Pentagon spokesman said...
...It's a mishmash of everything that could possibly go wrong...
...Schumaker complained to Commerce and was reassured that the U.S...
...Lewis is also co-director of the Stanford University Center for International Security and Arms Control, a position he once shared with Perry, from 1988 through 1993...
...Although Schumaker was never given a clear explanation why his company's product could not be sold, he was led to believe that the types of chips it would help make could be used to make state-of-the-art military radars...
...Triplett wrote in the sizing after the New York Times that Perry's "high-level military exchanges, intelligence sharing, coordinated mili Cold War...
...The first project the commission agreed to embark on was the Hua Mei Telecommunications deal with SCM/Brooks...
...Louis, the new company was set up to capitalize on China's tremendous thirst for advanced technology...
...Goodman's study was carried out under the aegis of Stanford University's Center for International Security and Arms Control—Bill Perry's old shop...
...The first of those official trips was during the Carter administration...
...Consequently, the $50-million appropriation has been canceled—at least temporarily...
...Under Perry, the Pentagon has not only allowed these items to be sold to China...
...Pentagon sources say that when Perry visited the headquarters of the National Security Agency at Fort Mead, Maryland, in late 1994, he raised the issue of the SCM/Brooks sales to China, and requested that NSA drop its objections...
...Lewis denies he ever checked in...
...By May 1993, a congressional aide recalls, "we began getting these calls from State, complaining about DoD and China...
...One year later, the firm orchestrated the $1-billion purchase of Sanders Associates by Lockheed, a deal that paved the way for Lockheed's dramatic expansion and eventual merger with Martin Marietta last year...
...He sold his stake in ESL, Inc., the high-tech maker of defense communications and intelligence systems he created in 1964, to defense giant TRW, earning several million dollars in the process...
...is leading the Chinese to believe the Administration means to lift restrictions on military sales to China...
...We were told to drop our objections," one Pentagon official said, "because the political fix was in...
...31...
...The U.S...
...tems...
...The second was in October 1994, when he signed a ground-breaking military cooperation agreement with Lt...
...But many others believe it may be too late, and that three years of constructive engagement with China, coupled to the Clinton administration's consistent refusal to enact any meaningful sanctions when the Chinese break their commitments to the U.S., may have emboldened the Chinese leadership to the point of military aggression...
...Huai is my good friend...
...foreign policy is often unhelpful, but just occasionally it reminds administrations of principles of integrity and justice that tap-dancing executive branch negotiators would sometimes rather forget...
...high-tech despite its bad behavior...
...According to the report, "The violations...
...exports...
...Indeed, most of the technology SCM/Brooks was intending to sell could be used for secure military communications with little or no modification...
...You need to send the Taiwanese a message of power and friendship, and to the Chinese the message that they had better not push it...
...Congressional critics say they are concerned that the commission has Perry shared become the vehicle for a dangerous giveaway of U.S...
...According to Nicholas Eftimiades of the Defense Intelligence Agency, author of Chinese Espionage Operations, "COSTIND personnel engage in espionage by attempting to steal foreign technology with military applications, primarily from the United States...
...After leaving the Defense Department in 1981, he joined Hambrecht & Quist Incorporated, an investment bank and venture capital firm in the San Francisco Bay area...
...COSTIND also manages the effort to procure foreign military and dual-use technology, either through commercial deals (such as the one John W. Lewis is engaged in) or through espionage...
...tary exercises and joint peacekeeping...
...Jeremiah was The allegations center on a Perry associate whose company has entered into a joint venture with an entity controlled by the Chinese army...
...What Brooks doesn't say, however, is that SCM/Brooks delayed some of the equipment shipments until after the Clinton administration unilaterally put an end to multilateral export controls on March 31, 1994-much to the surprise of many U.S...
...Powered by a Japanese precision quartz movement (batteries are included...
...Add $9.95 shipping/insurance (plus sales tax for CA delivery...
...Floyd Spence, chairman of the National Security Committee, wrote to Perry in January, requesting an explanation of the Hua Mei project and asking whether the national security community raised objections to the sale...
...Our policy accepts China at its word when it says that it wants to become a responsible world power," Perry said...
...On the contrary, they seem sanguine...
...1'01112 011 China's Military Loves Bill Perry 24 April 1996 • The American Spectator Only under Bill Clinton could we have a Secretary of Defense wrAo's made a fortune trading high-tech goods to an enemy ecretary of Defense William J. Perry had harsh words for China's leaders in a speech before Pentagon planners at the National Defense University on February 13...
...The Chinese claimed they would be used for weather forecasting...
...And that is where John Lewis came in...
...04-1...
...To his credit, Perry never attempted to disguise his views...
...In the brochure for Generation Ventures handed out by Steve Lewis in Peking, John Lewis boasts of his recent appointment to the Defense Policy Board...
...And a Japanese government official, reacting to the new regulations that resulted from the Goodman study in October, called them "a clear attempt by the Clinton administration to satisfy California computer manufacturers—especially Sun Microsystems and Silicon Graphics, whose boss, Ed[ward R.] McCracken, was active in Clinton's 1992 presidential campaign...
...has misread Chinese signals on Taiwan, and failed to punish the Chinese for violating their public commitments to nonproliferation...
...is how you manage modern logistics," Lilley says...
...From being the lead agency in restricting the sale of strategic technology to countries such as China during the Reagan and Bush administrations, Defense soon became the lead agency in making that same technology available...
...Hourly chime—can be turned off if desired...
...Xu from America's Huizi, the same general who ordered the crackdown against prodemocracy students in Tiananmen experience at Square in 1989...
...In 1991, Perry, Carter, and Mitchel Wallerstein (now Carter's deputy in charge of counterproliferation) co-authored a study for the National Academy of Sciences that called for a dramatic reduction in export controls, as a means of enhancing U.S...
...If we are to avoid the worst Taiwan Straits crisis since 1958, they need to be disabused of this idea...
...The Nanchang facility is the same plant the Chinese have designated for the production of Russian Su-27 fighter bombers—the most advanced aircraft they have ever tried to build...
...In fact, the Commerce Department should have known what to expect...
...Meanwhile, an unclassified September 1995 CIA analysis of Goodman's proposals warned that "computers serve as strong catalysts" to weapons development, and that their absence meant that "a weapons developer must devote much greater time and human effort" to basic calculations...
...That had some very specific and potentially dangerous ramifications--especially since 30 April i996 • The American Spectator the country that stood to benefit the most from relaxed export controls was China...
...Under Perry, the Commerce Department agreed last October to license-free exports up to 7,500 MTOPS...
...national security...
...Nie Li, the wife of COSTIND director General Ding, Bill Perry's friend in China...
...Lewis...
...When the national security agencies back in Washington got word of the deal, the alarm bells went off immediately...
...export regulations...
...If the deal were to go through, the U.S...
...One year warranty and 30-day return privilege (no refund for postage...
...I have no conflicts of interest which would in any way inhibit my ability to do this job," Perry said...
...That soon changed...
...Order by mail (see address below) or by toll-free phone (1-800-797-7367...
...Nonetheless, while some export control reform surely was needed, Perry's plans went much farther than even the most outspoken advocates of decontrol had hoped...
...Companies Without Clout But not everybody benefited from Bill Perry's views on national security...
...What the Chinese really want from the U.S...
...His company won a contract from the Nanjing Electronic Devices Institute to supply high-tech equipment used in growing non-silicon wafers for specialized computer chips in December 1993...
...Schumaker accepted the decision...
...ATM systems are used by banks for financial transfers because their sophisticated encryption logarithms make data transfers highly secure...
...his contacts with COSTIND, traveling with Perry to Peking in October 1994 to attend the inaugural meeting of the U.S.-China Defense Conversion Commission...
...Responding to a Commerce Department query about the McDonnell Douglas machine tools last year, the CIA replied: "The establishment of an advanced machine tool facility anywhere in China presents a unique opportunity for Chinese military aerospace facilities to access advanced equipment which otherwise might be denied...
...At any rate, both technologies were so sensitive they could not be exported without the approval of COCOM, the multilateral export control regime in Paris...
...State said Perry was the problem," the congressional staffer notes, "because he had a relationship with a Chinese general...
...The commission was to receive a $50-million appropriation in this year's defense budget...
...he was commander-in-chief of the Pacific fleet from 1987 to 1990, and vice chairman of the Joint Chiefs of Staff until his retirement in 1994...
...technology, all in the name of "constructive with Chinese engagement...
...industry, he argued...
...Old colleagues do business with one another...
...Meanwhile, Lewis continued o...
...He believed the U.S...
...The administration has refused to apply pressure on Russia to limit strategic arms sales to China, and inexplicably threw away the best nonproliferation tool available when it unilaterally disbanded the Coordinating Committee for Multilateral Export Controls (COCOM) in March 1994...
...Perry believed that the Pentagon's highteeh weapons would rely increasingly on new technologies developed by the civilian sector, and that America's high-teeh industries needed to capture new export markets to maintain their qualitative advantage...
...The latest on the list: side-scan sonar, deep sea cameras, remotely activated undersea manipulators, and special deep diving lights, all capable of operating at depths of 12,000 feet...
...The Chinese know we are bluffing when we threaten to sanction them," he says, "because the only way we can sanc- d'@ tion them is by shooting ourselves in the foot...
...This is a short list of what you need to do deep sea mapping," one Pentagon analyst said, "so you can better hide ballistic missile submarines in canyons on the ocean floor...
...Stanford had been conducting studies on defense conversion, nuclear force posture, and export controls, with support from corporate sponsors who stood to benefit from Perry's China and export controls policies...
...was first issued by Lt...
...26 April 199 6 • The American Spectator no armchair admiral...
...However, John Holum, the Friend of Bill who heads the Arms Control and Disarmament Agency, vigorously rejects that characterization...
...origin...
...would take up the issue with the German government...
...General Xu's visit occurred at the same time, Triplett noted, that the Defense Department's Office of Net Assessment was "conducting computerized war games to see how we would fare against a resurgent Chinese military 25 years hence...
...Schumaker still doesn't know whether this was done...
...In a parallel case, the Garrett Engine Company division of AlliedSignal is seeking to sell simulation equipment and testchambers that would allow the Chinese to assemble gas turbine engines, a capability that has long escaped them...
...29 Documents obtained by TAS show that Lewis used his influence with his former companies such as AT&T and General DataComm, and exported to China with requisite U.S...
...Lilley believes the U.S.-China relationship is "a tangled web of misunderstanding, mismanagement, and just plain stupidity...
...At the same time, an internal Pentagon critique rejected Goodman's proposals out of hand...
...knowledge he Perry's coziness with the Chinese military has been criticized before...
...Congressional Republicans and Democrats say they are taking "very seriously" allegations of "cronyism" contained in a recent article in the Far Eastern Economic Review...
...could help China to convert its outsized, redundant, and highly inefficient military industrial complex into a more modern and cost-effective industrial machine...
...General Huai contacted a former Chinese rocket scientist, Hua Di, who left China in 1989 to become a research fellow at Stanford University's Center for International Arms Control and Security under John Lewis and Bill Perry...
...it also gives appointees obstacles to access to highly classified intelligence information available only to the very top level of Pentagon the sale...
...The computer industry had been begging the Commerce Department to allow it to sell supercomputers with speeds up to 5oo MTOPS...
...In commending Lewis for his role in winning the contract, SCM/Brooks chairman Adlai Stevenson hailed "this effort to revolutionize Chinese civilian and commercial telecommunications with America, a symbol of the goal of global cooperation...
...haterhilise 185 Berry Street, San Francisco, CA 94107 Z 01:1)1 I: 111 1011-1 RI I P110 \I...
...As a McDonnell Douglas spokesman explained, "Commerce has now re-authorized the export licenses," and promised not to threaten sanctions against the Chinese company that violated the earlier agreement...
...28 April 19 9 6 • The American Spectator The problem with Stevenson's characterization was that their Chinese partner, an outfit called Galaxy New Technology, was owned and operated by the People's Liberation Army...
...that will use them against us and William Perry continues to defend his policy, though it jeopardizes national security...
...And now Perry is under scrutiny because of his relationship to individuals and companies reaping enormous profits from the policies he has championed...
...In a letter to a senior State Department official dated April 26, 1993, Lewis revealed that Perry was backing his effort to sell advanced telecommunications equipment to China despite the clear understanding that export licenses "for this and many similar projects would probably be denied" on national security grounds...
...military moves—sending the USS Nimitz steaming through the Taiwan Straits in January, and repositioning the USS Independence closer to Tai-wan —signs that Perry's Pentagon may finally be beginning to get it right...
...Until Perry's arrival, the Pentagon had opposed plans to sell Cray supercomputers to a Chinese research institute...
...As a division of TRW today, ESL is still highly respected and highly profitable...
...Floyd Spence, the chairman of the House National Security Committee, has asked the General Accounting Office to investigate Perry and SC&M...
...And very soon...
...Bill Gertz of the Washington Times has reported that Nanchang is also where the Russians shipped small rocket motors last year...
...Indeed, TS&A's current chairman, retired admiral David Jeremiah, was appointed by Perry to the prestigious Defense Policy Board last year...
...That kind of response certainly leads the Chinese to think they know—they think the U.S...
...AlliedSignal insists that the engines will be used solely for a Chinese military jet trainer aircraft, and says that the Chinese have provided written assurances about this, just as they once did with McDonnell Douglas...
...allies...
...Peking's China Daily reported on June 22, 1991, that COSTIND "is responsible for scientific research and testing of weapons for all of China's armed forces...
...demonstrate intentional and willful violations of U.S...
...Huai Guomo, deputy director of COSTIND, in 1992...
...Once the two struck a deal, they established Hua Mei Telecommunications as the official Chinese recipient for the technology...
...And Lewis, with his high-powered contacts in Washington and Peking, was the perfect choice to steer the venture through the shoals of export regulations in the United States and corruption in China...
...The Far Eastern Economic Review asserts that the order to purchase advanced telecommunications equipment from the U.S...
...Despite all this, neither the Commerce Department nor the Pentagon has expressed reservations about the sale...
...He also wants it to look into two cases that were first described in these pages last April ("China Shops...
...Ding Henggao, chairman of COSTIND, China's Commission of Science Technology and Industry for National Defense...
...Wallerstein has refused to respond to questions on his role in commissioning the Goodman study...
...And at one meeting of the Defense Technology Security Agency, where he was challenged by technicians about the military capabilities of the equipment SCM wanted to transfer, Lewis picked up the phone and called Perry, ostensibly to tell him he would be late for a meeting...
...Crafted of beautiful Asian hardwoods...
...The End of Export Control Bill Perry has never believed that the U.S...
...Critics claimed the Chinese would use them to calculate ballistic missile trajectories...
...This is something they lust for...
...State said Perry was the problem," the staffer goes on, "because he had a relationship with a Chinese general...
...When Congress asked Perry last year to provide a report on the $5o-million fund he wanted for the U.S.-China Defense Conversion Commission, Perry turned to another, Col...
...Elkenberry was put in charge of selling Congress on the advantages of high technology sales to the Chinese military-precisely the type of deal that SCM/Brooks wanted to make...
...One outside panel of computer exporters called it "completely misguided" because it compared $15,000 computer work stations with million-dollar supercomputers...
...Both sales, of course, were approved by the political echelons of Perry's Pentagon, despite the warnings of technical staffers about the potential damage to U.S...
...Please give order #1042C174...
...government would have to seek a waiver of the COCOM rules...
...Some of the quality features of this outstanding clock: ^ Exacting replica of 19th century railroad clocks...
...A career export control official, who spoke on conditions of anonymity, explained what has happened: "This administration made a strategic decision right at the start to eliminate export controls as a means of growing exports...
...Export control concerns became "irrelevant" not because the technology involved was commonplace, but because the control mechanism-COCOM-had ceased to exist...
...State was really upset, because they were the ones who were supposed to be squishy on China, and now they were forced to take a hard line...
...and 6 am...
...He said he had sold his interest in Technology Strategies and Alliances, and had resigned from the boards of TRW and of the Beltway consulting giant SAIC...
...General Xu's August 16, 1994, trip to Washington would have gone unnoticed if defense downit had not been for a senior Republican congressional aide, William C. Triplett II...
...controls on the sale of supercomputers and other advanced technologies, which has greatly benefitted Silicon Valley industries that contributed heavily to the Clinton campaign—Bill Gates's Microsoft, Apple Computer, Silicon Graphics, and Sun Microsystems not least among them...
...The Chinese, after all, have once again pledged not to use the equipment for military ends...
...Government approval...
...Very clearly...
...Goodman was subsequently commissioned by Wallerstein and his counterpart at Commerce, assistant secretary for export administration Sue E. Eckert, to draft a study that would recommend the removal of virtually all controls on supercomputer exports...
...Instead, according to an investigative report by the Commerce Department's Office of Export Enforcement, the equipment was installed by the Chinese in a military aircraft facility in Nanchang, in violation of clear written assurances provided by the Chinese to McDonnell Douglas...
...In February 1985, he founded H&Q Technology Partners, Inc., to specialize in mergers and acquisitions as the shakeup in the U.S...
...Lilley, however, sees in the recent U.S...
...Wallerstein refused to answer direct questions as to whether the Defense Technology Security Agency had dropped its earlier objections to shipping Lewis's technology...
...But I do think," he says, "that our national security is also related to the strength of our economy and its ability to develop the type of defense we need...
...Without the friendship of a John Lewis, Schumaker's company pursued the normal route open to American exporters: It applied to the Commerce Department for an export license...
...Decontrolling highspeed computers will allow proliferants 'to build a bomb in a basement,'" it noted...
...Perry and the Chinese Spy Perry had officially joined Stanford's Center for International Security and Arms Control in 1989, but had an informal relationship with the university for years before that...
...Another reason is that Russia is selling China massive quantities of combat aircraft and ballistic missile technology, while the Clinton administration turns a blind eye...
...According to Washington Times reporter Bill Gertz, Perry has known General Ding "for ten years...
...defense industry began...
...Westminster chime plays different melody every hour on the hour...
...Presumably the two nurtured their acquaintanceship during Perry's six unofficial trips to Peking in the 1980's and early 1990's...
...Another contributor to the study was Sy Goodman, a former colleague of Perry's at Stanford, who now teaches at the University of Arizona, and has been awarded consulting contracts by the Pentagon since Perry assumed the helm...
...We had to pick up the pieces after Perry tried to dismantle COCOM," Reagan administration official Steven D. Bryen recalls...
...Robert A. Brooks, the president of Brooks Telecommunications International, which is handling the technology side of the deal in the U.S., called the export control concerns "irrelevant...
...to China...
...Goodman proposed decontrolling computers up to speeds of to,000 MTOPS...
...it has encouraged the sales...
...New information now shows that machine tools exported to China by McDonnell Douglas have been diverted to a military aircraft plant...
...But Perry himself, and the policy of "constructive engagement" he has championed for the last three years, have abetted the aggressive behavior China is pursuing today...
...the charges stem from his ongoing relationship with his former Stanford colleague, John W. Lewis...
...Virtually all computers worldwide that operate at speeds over too MTOPS [million theoretical operations per second] are of U.S...
...Moreover, the report says, CATIC, the Chinese purchaser, "has demonstrated a consistent pattern of deliberate actions which do not constitute either technical errors or simple negligence," and it is likely to move the machines again to military facilities, thereby posing "an imminent threat to the national security of the U.S...
...At the same time, a new contract to sell telecommunications equipment to the army was discussed...
...Correspondence obtained by The The American Spectator • April 19 9 6 American Spectator shows that Lewis used his influence with his former colleague Bill Perry to overcome obstacles to the sale...
...We lose...
...government should be in the business of controlling trade...
...Modernizing the People's Liberation Army But the charges of "cronyism" have not been leveled at Perry because of the Stanford brain trust inside the Defense Department, or even because he hired former colleagues to write studies whose results were known before they were even begun...
...H&Q subsequently became known as Technology Strategies and Alliances, and continues to work with companies having a major stake in Pentagon procurement policies...
...General Huai and his boss, General Ding, subsequently proposed to Perry that they establish the U.S.-China Defense Conversion Commission to facilitate technology transfers from the U.S...
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...When Perry left Stanford for the Pentagon in 1993, Lewis stayed behind to take care of business...
...John Lewis receive compensation from any entity related to the Hua Mei project contemporaneously with his duties as a member of the Defense Policy Board or as a consultant to the Department7 Were these relationships fully disclosed by Mr...
...Pentagon Perry's Revolving Door Bill Perry has benefited enormously from the Pentagon's "revolving door...
...That "occasionally" is surely today...
...ISDN systems allow for high-speed secure communications over long distances, and are used by Internet service providers and by many large companies...
...The Ultimate Insider In August 1994, Perry appointed his former colleague John Lewis to the colleague Perry Defense Policy Board, a kind of permanent "Team B" of nongovernmental officials who advise to overcome the Secretary of Defense...
...His conviction led to the establishment of the U.S.-China Defense Conversion Commission in October 1994...
...Pentagon officials complain that Goodman was awarded a contract by the Pentagon (conveniently funded by the Commerce Depaitinent) to perform a "politically-skewed analysis" on behalf of the computer industry...
...I suggested to Chinese officials that a foreign joint venture might be able to secure licenses for next-generation telecoms technologies, enabling China to leap frog," Stevenson said...
...It was a potential $t-billion deal to sell a broadband-Integrated Service Digital Network (B-ISDN), fiber optics technology, and encrypted ATM systems...
...will do nothing...
...Some intelligence analysts have concluded that the Garrett engine technology will be used to manufacture a new generation cruise missile engine...
...Now the Commerce Depas tnient has launched a new investigation—not against the Chinese, but against its own employees, to determine who leaked the Office of Export Enforcement report to the media...
...Karl Elkenberry, who had done graduate work at Stanford under Lewis...
...At the meeting, Senior Colonel Deng Changru, the former head of telecommunications development for the Chinese army, was made a director ofHua Mei...
...Size: 22" h. x 12" w. ' (II t T1111 ,111 Still Only $129* *But here is an even better deal...
...The point is," says Republican aide Triplett, "somebody who is in business with Chinese generals shouldn't be on the [Defense Policy] Board...
...Norman E. Schumaker, the CEO of a small, New Jersey company called EMCORE, is furious with Perry, the Pentagon, and the Commerce Department...
...The Stanford studies were also financed through grants from the Carnegie Endowment, where Perry was a member of the board...
...After review by the intelligence community, Commerce refused authorization to ship the equipment, known as a Metal Oxide Chemical Vapor Disposition system...
...In an October 1995 speech in Seattle, he noted that he had visited China eight times, "twice in an official capacity...
...But China sends quite the opposite message when it conducts missile tests and large military maneuvers off Taiwan, when it exports nuclear weapons technology, or abuses human rights...
...The Chinese co-chairman of the new company was Lt...
...In a letter to the editor of the Far Eastern Economic Review, Brooks protested that "the components of the network were obtained through normal commercial channels from Bring exquisite beauty to your home or office, with...
...According to the Far Eastern Economic Review, the president of Galaxy, Senior Colonel Deng Changru, had previously been in charge of telecommunications research for the army...
...He assumed that if the intelligence community was concerned that the technology could enhance China's military capabilities, then his company should refrain from the sale...
...Automatically turns off between 10 p.m...
...The Goodman study was immediately criticized within the Pentagon and by outside experts as soon as copies began circulating last August...
...The machine tools, which were KENNETH R. TIMMERMAN writes frequently on strategic trade issues and publishes the Iran Brief, a monthly investigative newsletter...
...It is time for China to start sending the right messages...
...The American Spectator April 1996 At least some of those trips—such as the one Perry took in the fall of 1992, just prior to the presidential elections —were sponsored by Stanford University...
...The American Spectator • April 1 9 9 6 The Bill Comes Due As China turns up the heat in the Taiwan Straits and blatantly ignores U.S...
...By encouraging technology exports to Peking that have significantly aided the Chinese in modernizing their military plants, and by turning a blind eye to Chinese espionage and agents of influence in this country, Secretary Perry has sent a message of his own: China can continue to raid the cookie jar of U.S...
...The last time a Clinton administration official was asked what Washington would do if China attacked Taiwan, assistant secretary of defense Joseph Nye, in Peking last November, replied, "We don't know and you don't know...
...The act also commits the president "to maintain the capacity of the United States to resist any resort to force, or other forms of coercion, that would jeopardize the security, or the social or economic system, of the people on Taiwan...
...Perry argues that engagement is not appeasement," says congressional aide William Triplett...
...The Nanjing Institute claimed, however, that they wanted the wafers to make LEDs for outdoor electronic displays—a much-used item in China because of the complexity of Chinese calligraphy...
...policy—the law of the land, in this case—as deeming any intimidation of Taiwan by force "a threat to the peace and security of the Western Pacific area and of grave concern to the United States...
...Economic security is an integral part of national security" became an administration battle cry...
...Lewis and Stevenson traveled to Peking just after the November 1992 presidential elections to lay the groundwork for the deal...
...Although Lewis denies any conflict of interest and says he left Hua Mei before joining the Defense Policy Board, SCM officials say he resigned from the SCM board only in January 1995...
...Rodell-7 has painstakingly re-created these masterpieces and has provided them with precision movements undreamed of in the days of our grandparents...
...The Pentagon claimed that the Chinese military could use the fiber optics technology to upgrade their military communications...
...Not only is such an appointment highly prestigious...
...The Chinese just had a six-man military team here looking at precisely this issue...
...During his February 1994 confirmation hearing as secretary of defense, after the death of Les Aspin, Perry tried to quell fears that his long-standing relationships with some of the nation's largest and most secretive defense firms might constitute a conflict of interest...
...Indeed, at his confirmation hearing on February 24,1993, he said that trying to control the sale of dual-use technology was "a hopeless task," and that it "only interferes with a company's ability to succeed internationally if we try to impose all sorts of controls in that area...
...He does know, however, that Aixtron recently announced it had just signed a deal to sell more of the same equipment to Nanjing, and was openly marketing it to other potential clients in China...
...NSA appears to have complied...
...Three other SAIC board members had by then joined him at the Pentagon, including the current CIA Director, John Deutch...
...Classified as "Regulator"-10 secsJweek accuracy...
...1 Is1101-,1---16- 24 11011:‘, \ 1) \1 Ilk...
...Taking advantage of the had gained summer congressional recess, Perry arranged a discreet visit to the Pentagon's war room for Gen...
...admonitions about its sales of missile and nuclear technologies to countries such as Iran, many observers are beginning to wonder whether Bill Perry's long-standing relationships with COSTIND and the People's Liberation Army may have clouded his view...
...At the same time, the Clinton administration has squandered important bargaining chips that might have helped to put the brakes on China's military modernization program and its sabre-rattling over Taiwan...
...to eavesdrop on Chinese military communications...
...SCM/Brooks, Lewis, and Stevenson may have fallen into a Chinese trap...
...Goodman and Wallerstein, Lewis and Perry: It is a closed loop system, where cronies on the outside get fed by their pals on the inside...
...lly KENO R. The American Spectator • April 19 9 6 25 originally used by Rockwell to build the B-1 bomber, were supposed to have been used by the Chinese to build MD-81 trunkliner aircraft...
...For James Lilley, a former ambassador to Peking, the Chinese "have understood that their real friend in this administration is Bill Perry," and have been using him to gain access to advanced technology...
...In addition to the supercomputers, a host of other items with potential military use were at issue...
...The National Security Agency weighed in against transferring encryption software, objecting that it would make it more difficult for the U.S...
...COSTIND reports directly to the Military Commission of the Chinese Politburo, and has been identified by the Defense Intelligence Agency as the "lead agency" of China's defense industrial complex...
...Lewis and I were involved as matchmakers," Hua Di recalled...
...In other words, General Ding is China's top weapons scientist, and he commands China's best spies...
...One reason we lose, Pentagon and intelligence community sources say, is that the high-tech goods we sell to the Chinese military help them to design whole families of new weapons sys27 The study was carried out under the aegis of Stanford's Center for International Security and Arms ControlPerry's old shop...
...Smaller companies without political clout were missing the boat in China, while their overseas competitors were grabbing contracts they were forbidden to pursue...
...Perry shared with Chinese officials the knowledge he had gained from America's experience at defense downsizing after the Cold War...
...While serving in the Carter administration, he was already active in weakening COCOM...
...This is war-fighting capability...
...The Stanford Brain Trust Bill Perry returned to Washington in 1993, with wide contacts in the defense and high-tech industries, and a group of well-placed friends, many of whom he brought with him to the Pentagon...
...He linked up with former Senator Adlai Stevenson III and was appointed executive director of a Chicago-based company called SCM/Brooks Telecommunications...
...That's like comparing a Piper 15o with a Boeing 747," one expert said...
...SCM/Brooks announced their first China contract on May 6,1993...
...That general was Ding Henggao, chairman of China's Commission of Science Technology and Industry for National Defense, COSTIND...
...The phrase was first used by Harvard University professor Ashton Carter, now deputy assistant secretary of defense of international security affairs...
...The allegations center on a Perry associate, John W. Lewis, whose Chicago-based company, SCM (now called SC&M), has entered into a joint venture with a Chinese entity controlled by the People's Liberation Army...
...Perry, Carter, Wallerstein, and Goodman were the architects of the dramatic liberalization of U.S...
...In one letter, dated April 26,1993, Lewis reminded undersecretary of state–designate Frank Wisner of his ongoing discussions of the sale with Perry...
...From his beginnings as a high-tech entrepreneur and deal-maker in the 1960's and 197o's, he went on to join the Carter administration as undersecretary of defense for research and engineering—but not before cashing in...
...decision-makers...
...Jointly owned by SCM International Ltd., a Chicago-based international merchant bank active in China, and Brooks Telecommunications Corp...
...Spence also raised a more embarrassing issue: "Did Mr...
...If the Chinese have gotten the idea that it is appeasement, it is largely Perry's fault...
...Indeed, this is the logic used again and again to justify an astonishing array of high-tech exports to China...
...StationMaster Chime Clock by Rodell-7 In the 19th century, these handsome clocks kept America's trains on time...
...He also said he would recuse himself from any procurement decisions involving Stanford University...
...Export controls were wrong in principle, and damaging to U.S...
...If things had worked out as planned, one of the first recipients of the funding would have been a company run by John Lewis...
...Perry put his convictions into practice within days of being tapped to run day-to-day operations as deputy secretary of defense in 1993...
...Then he learned from articles in the specialized press that his German competitor, Aixtron Inc., was boasting of having sold identical technology to the Nanjing Institute after his company's license had been denied...
...His brain trust included a coterie of strong-willed ideologues who shared his view that strategic export controls were a "wasting asset" and should be abandoned...
...During the past 30 years they have successfully developed an atomic bomb, a hydrogen bomb, intercontinental missiles and submarine missiles, telecommunications and weather satellites and a four-stage rocket...
...of St...
...The argument was sophisticated, and won widespread support in the Clinton administration...
...Congressional meddling in U.S...
Vol. 29 • April 1996 • No. 4
