[Congressional Record Volume 144, Number 111 (Friday, August 7, 1998)]
[House]
[Pages H7421-H7426]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         TRANSFER OF AMERICAN TECHNOLOGY TO CHINESE COMMUNISTS

  The SPEAKER pro tempore (Mr. Hunter). Under the Speaker's announced 
policy of January 7, 1997, the gentleman from California (Mr. 
Rohrabacher) is recognized for 60 minutes as the designee of the 
majority leader.
  Mr. ROHRABACHER. Mr. Speaker, on April 30 of this year, I came to the 
floor of the House to use 1 hour of time available to me in a special 
order to discuss a matter of utmost importance to the security of our 
country and the safety of the American people.
  In that special order, which I gave on April 30, I disclosed 
information that indicated that American aerospace firms, with the 
acquiescence of officials in the Clinton administration, and perhaps 
the President himself, had facilitated the transfer of sophisticated 
rocket technology to the Communist Chinese. If true, I stated, 
Americans have been put in jeopardy and that this could be the worst 
technological betrayal of our country since the Rosenbergs.
  For those of my colleagues who do not remember the Rosenbergs, the 
Rosenbergs were people who worked for the United States in our own 
program to develop an atomic bomb during World War II; who, for 
whatever reason, gave the secrets of producing that atomic bomb to 
Communist Russia, to the Soviet Union when it was under the control of 
Joseph Stalin.
  Well, today, unfortunately, it appears that some major American 
aerospace companies may well have given to the world's worst abuser of 
human rights, tyrants that are on the par with Joseph Stalin and Mao 
Tse Tung and other tyrants of the past, may have given them secrets 
that we developed during the Cold War for our own protection. They have 
given them those secrets in a way which will increase their capability 
of building rockets that could hit the United States with nuclear 
weapons.
  Mr. Speaker, I take the floor again today to update my colleagues and 
interested parties on what has happened since my initial disclosure, as 
well as disclose new information that has come to light concerning the 
use of technology developed and paid for by the U.S. taxpayers, handed 
over to the Communist Chinese.
  First and foremost, since my first address, nothing has emerged that 
suggests that my original statements were inaccurate. The more 
information that becomes available, the more certain it becomes that 
aerospace firms like Loral Space and Communications, Hughes and 
Motorola, callously disregarded the security of our country. To be fair 
on this, Hughes Corporation denies that they have done anything to 
improve Communist Chinese rocket capability, and is taking steps to 
provide me with information which they believe will demonstrate this 
fact and will demonstrate the fact they have remained true to the 
United States.
  Hughes notwithstanding, there is ample evidence that American 
technology was transferred to this hostile potential enemy of the 
United States and that the vast experience of some of our best 
aerospace engineers provided the Communist Chinese the guidance needed 
to upgrade and perfect highly sophisticated weapons systems, increasing 
the reliability and capability of Communist Chinese rockets. This has 
given what anyone has to admit is at least a potential enemy of the 
United States, a better ability to deliver nuclear warheads to our 
country, to American cities, to incinerate millions of our people.
  Did the Communist Chinese have that capability before? Yes, they did, 
minimally, have that capability. Perhaps they could have gotten a 
rocket to us. But now, thanks to American know-how, given them by 
American aerospace companies, their rockets are more accurate and are 
more reliable, and now their rockets can kill more than one nuclear 
warhead, and this, thanks to American know-how.
  I expected, after my first speech on this issue, that the companies 
in question would protest that I was wrong, that my fears were 
unfounded, that my sources had exaggerated the damage being done to our 
security. That has not been the case. The dangers to our country may, 
in fact, have been understated. Since disclosing the limited 
information I uncovered, there have been several hearings in the House 
and in the Senate looking into this horrific possibility that the money 
that we Americans spent developing technology to defend us ended up 
perfecting Communist Chinese rockets, and in the House, a select 
committee of nine distinguished Members has been appointed. Under the 
leadership of the gentleman from California (Mr. Cox), this select 
committee is now organizing its efforts to thoroughly investigate the 
situation.
  One of the executives in question is Bernard Schwartz of Loral. 
Schwartz was hell-bent to sell an arsenal of high-tech weapons to the 
Communist Chinese, weapons that would have put tens of thousands of 
American military personnel in jeopardy, our military personnel, our 
sons and daughters on our ships or in our airplanes. In any future 
confrontation between the United States and China, our military people 
would have been put in jeopardy of being shot out of the air, blown out 
of the water, and murdered by Communist Chinese who are being armed 
with technology that was developed by the United States for our own 
defense.
  This is what Bernard Schwartz wanted to sell to the Communist 
Chinese. We do not know exactly how much of

[[Page H7422]]

this lethal weapons-related technology Loral was able to transfer. He 
was stopped in many cases, and he was not given permission in many 
cases. But what is clear, that when it comes to the upgrading of 
China's rocket system, which could land a nuclear weapon here, Loral 
was anxious to help, and in fact there is evidence to indicate that the 
weapons systems, that these missiles were improved with Loral's help.
  According to reports, on February 6, 1996, a Chinese long march 
rocket carrying a $200 million Loral satellite, exploded shortly after 
its launch from a satellite launch center in China. Loral and the 
Hughes Corporation went to work on an accident review for the insurance 
companies who insured that flight and insured the coverage of that 
loss.

  First of all, we need to understand that it is illegal for 
corporations to transfer this weapons technology and to upgrade 
rockets, so there was no excuse whatsoever for Hughes and Loral to be 
going through an accident investigation that was involving only the 
blow-up of a Chinese rocket, not the malfunction of a satellite system. 
There should have been no discussions whatsoever.
  The Chinese Government, once Loral and Hughes jumped into analyzing 
what had gone wrong with this launch, the Chinese Government requested 
a Chinese-born Loral executive named Dr. Wah Lim, to be put in charge 
of this report. Loral complied with this request, and replaced an 
experienced American U.S. Air Force colonel who was at that time 
responsible for the launch security, and they replaced this man, this 
American military officer at Loral, they replaced him with Dr. Lim, who 
had been requested by the Communist Chinese. One wonders why that 
happened. One wonders what justification there could be in that.
  In May 1996, the 200-page accident review, this report that dealt 
with this rocket's performance, was finished and this again had nothing 
to do with the satellite, it had to do with the explosion of the 
rocket. This report was unlawfully faxed by Dr. Lim, the man who the 
Chinese had requested be on this team, this report was faxed to the 
Communist Chinese themselves without either a State Department or 
Defense Department approval.
  One year later, when the Pentagon completed an assessment of what had 
happened, an assessment of this report, and Dr. Lim's actions taken to 
provide this report to the Communist Chinese, our Defense Department 
concluded, and I quote: ``The United States national security has been 
harmed,'' end of quote.
  To put that in terms that my colleagues might understand, now 
millions of Americans live under the threat of being incinerated by a 
nuclear weapon launched at the United States from China, and made more 
accurate and made more reliable by our own aerospace industry.
  Mr. Speaker, I have spoken with a former security monitor for U.S. 
space launches overseas who has monitored Loral launches in the former 
Soviet Union and in China. He claims to have witnessed serious lapses 
in the security of U.S. satellites and these rocket launches in both 
countries. In addition, the Cox committee will be looking into reports 
by the Defense Department officials who were present at Loral's 
launches in China. We are talking especially about that launch in 
February of 1996.
  The mass of information is somewhat confusing, but to begin with, the 
report that we are talking about that went to the Communist Chinese, 
this was supposedly for insurance companies, and the one that of course 
ended up going directly to the Chinese Communist rocket builders is not 
just a general assessment. It turns out that that report that was put 
together by Loral and Hughes engineers, it is not just a road map, it 
is kind of a blueprint, if you will, for perfecting the Chinese 
Communist long march rocket system.
  That rocket system, before the American intervention, before our 
experts started talking to the Communist Chinese, had blown up four 
times in a row. It was one of the world's most unreliable systems. But 
the suggestions that they were given were so precise that it was not 
just trying to perfect things and make things better, it was so precise 
it included such things as make sure, and I will use terms that are not 
classified terms, turn this widget and replace it with a 
``thingamabob.'' Make sure that the settings on the ``what'a-ya-call-
it'' panel are turned this way. And even a layman like myself, with 
very little technological background, but even I could read and see 
that this was a blueprint for improving a Communist Chinese rocket 
system and had nothing to do with the satellite itself. It was clearly 
instructions on how to dramatically improve that Communist Chinese 
rocket system.
  And guess what? Think about it. After these meetings and after this 
report was put in the hands of the Communists, well, guess what? After 
they got their advice from, their technological advice from their 
American buddies, this particular Communist Chinese rocket system flew 
successfully, and has continued to fly successfully. Now it is a 
reliable rocket system, from the most unreliable in the world to a very 
reliable system. No more explosions. It is a perfected system. The 
trouble is, that same system is identical, although it is carrying 
American satellites now, it is identical to the system that carries 
nuclear warheads, atomic bombs. The difference between that rocket 
system and the one that carries the weapons to kill us, the only 
difference, one is painted a pastel color and is very beautiful and the 
other may have military painting on it.
  Mr. Speaker, I say to my fellow colleagues, this is a severe, a 
severe breach of American security, and has put our country in 
jeopardy. We are not just talking about American satellites. Again, 
when we hear the issue discovered, those people who talk about 
satellites, are trying to confuse the issue. What we are really talking 
about is the upgrading of a nuclear weapons delivery system in the 
hands of the Communist Chinese, a weapons system that is designed to 
hit American cities and vaporize millions of our own people.
  Shame on Loral and any other American company involved in providing 
this assistance to a potential enemy of the United States of America.
  Another aerospace company, Motorola, appears to have been involved in 
advancing Chinese ballistic missile capabilities as well. In this case, 
Motorola took a Chinese rocket, not the same one that we are talking 
about with Loral and Hughes, took a Chinese rocket, called the Chinese 
long march 2-C rocket and upgraded its capabilities. The long march 2-C 
was a relatively reliable system, unlike the other one that we are 
talking about that Hughes and Loral were dealing with. It had in fact 
flown 14 times before the Americans came around to use it in order to 
launch a new generation of communication satellites.

  The problem with launching those satellites was that it was a 
reliable system, but it really was not as capable as Motorola and other 
companies wanted it to be. In fact, as long as it saved money and did 
not enhance the Chinese ability to attack its enemies, meaning the 
United States, it was okay for Loral to use that system, because it was 
reliable and they had done that on their own, the Chinese had developed 
that on their own.
  What happened was this: In all of the launches of that Chinese long 
march 2-C rocket before Motorola showed up with its engineering advice 
and sophisticated technology, in all of those launches, the Chinese 
rocket that we are talking about only carried one payload. In the 
launches afterwards, after Loral had 40-some engineering meetings with 
the Chinese, and after Loral gave them certain technologies, the 
Chinese rocket that we are talking about went from carrying one payload 
to carrying two payloads.
  Now, that may not sound very threatening, but let me put it this way: 
American technology was then used to double the capacity of a Communist 
Chinese missile system. This is called MIRVing. When we have only one 
payload and then we take it to two or more payloads, it is MIRVing. 
This is the ability to dispense more than one projectile from a rocket, 
whether it is a satellite or a nuclear warhead. That is from one 
rocket, more than one payload is MIRVing. And so others will know why 
that is a threat, instead of just destroying one city, that rocket now 
could destroy two American cities rather than just one American city. 
Is that important that we have doubled

[[Page H7423]]

their capability of this rocket system to destroy American cities and 
obliterate our countryside with just one missile? Yes, that is really 
important.
  The frightening fact screams out at us. China did not have MIRVing 
capability for this system before the iridium satellite contract was 
signed with Motorola. However, on September 1, and here is a quote from 
the Chinese themselves, on September 1, 1997, the official Communist 
Chinese news agency reported, and I quote: A Chinese long march rocket 
carrier containing two simulations, two simulations of iridium 
satellites owned by the American electronic giant Motorola was 
successfully launched.
  And here is the hook to it. The carrier, based on the long march 2-C, 
was the first of its type ever launched. Why was it the first of its 
type? Because it carried two satellites, two payloads instead of one.
  An American company essentially doubled the capacity of a Communist 
Chinese rocket system to carry payloads. Both payloads may be deadly 
payloads that would put millions of American lives in jeopardy.
  In addition, Motorola officials confirmed to me that they have 
provided the Chinese with technology such as exploding bolts. Exploding 
bolts. That is the technology that facilitates the stage separation of 
rockets. So that if a rocket is taking off, some of the times the 
Chinese rockets that were taking off before Loral and Hughes and 
Motorola got over there, they tried to separate their stages, and they 
would just explode.
  That is what was explained to me the first time I heard about this. 
And I looked at the engineer, the American engineer who was telling me 
about this, and I said, you know, I think it is a good thing when 
Chinese rockets explode. We like it when Chinese rockets explode, 
because those rockets then cannot come over here and kill our loved 
ones.
  Well, at first the company was turned down, Motorola, when they 
wanted to give some of these technologies, these exploding bolts that 
facilitate MIRVing and stage separation technology, they were turned 
down. They were turned down in their attempt. Just as perhaps Bernie 
Schwartz was turned down on some of these requests early on to sell 
weapons technology to the Chinese, they were turned down to sell these 
exploding bolts to the Chinese. But through a Clinton administration 
sleight of hand, by readjusting the paperwork, the licensing process 
moved forward, and this technology, which helps the rockets, was moved 
from the rocket category, which is illegal for these companies to 
transfer to the Communist Chinese, it was moved to the satellite list 
simply by reworking the paperwork.
  Now, it is permissible for them to give this technology, before it 
was illegal. The end result: Communist Chinese, who are infamous copy 
cats, these people spend billions of dollars trying to copy American 
ideas and technology and engineering, these famous copy cats ended up 
with 40 of these incredibly precise and sophisticated pieces of 
aerospace engineering.

                              {time}  1200

  We do not expect them to try to copy this when it gives them the 
ability to perfect their own missile system.
  Motorola indicated to me that they wanted to provide me with 
information that would convince me that they were not guilty of 
betraying the security of our country. Unfortunately, they have not 
been willing to provide me with any more information and suggesting, 
instead, well, we are only going to talk to the Cox committee which is, 
as I said, now just getting organized.
  Frankly, I look at this as a stall and will let the public and my 
colleagues determine for themselves whether they think that this is a 
stall or an attempted coverup.
  I gave Motorola every opportunity to correct what they said was a 
false impression on my part. They decided not to provide me with 
information, knowing that I would be speaking to the House of 
Representatives as well as to the American people on this issue.
  I will continue to speak to the House of Representatives and the 
American people on this issue and continue my investigation of this 
issue. If Motorola chooses not to make information available, we can 
only think the worst of them for it.
  The Hughes Corporation, on the other hand, has tried to be 
cooperative. The company has some serious questions to answer in regard 
to three satellite launches in China that did not have U.S. security 
monitors present.
  Under U.S. regulations, security monitors were needed. They had to be 
there. It was required that they be there for all the launches in 
China. Yet, they were not there at three of these major launches.
  Why was that? Hughes Aircraft and Hughes Electronics understood the 
necessity, the legal requirement for these launches to be monitored. 
Hughes is making, however, as I say, information and personnel 
available to me so that if mistakes were made, we can talk about them 
and they can be corrected. I take that as an act of good faith on the 
part of Hughes.
  One question I will be asking is why Hughes hired the son of a 
general, of a Chinese Communist general, to be involved in their own 
program. In fact, the son of the general they hired is the general who 
was in charge of China's own military satellite program. We need to 
know the role that this man played in that company, the son of a 
Communist Chinese general, as well as whether he has had a hand in some 
of these sensitive decisions as well as access to this very sensitive 
U.S. aerospace technology.
  Hughes must explain the role that they have given to Dr. Wah Lim. 
They hired Wah Lim, Hughes hired Wah Lim as a senior vice president 
after the Loral report debacle was made public.
  I will be reporting back to my fellow Members of Congress and to the 
American people upon the return from our August break. This issue 
should not be lost in the headlines of controversy that are now flowing 
through Washington, D.C. This issue is important to our national 
survival.
  The central issue in this egregious breach of America's national 
security is whether or not China is a threat to America and to the 
peace of the world. Some people just say, well, I say we give Communist 
Chinese all this technology. Some people shrug their shoulders and say 
``so what,'' because they do not understand the threat that China poses 
to the world.
  I believe that Communist China should be the ultimate factor in the 
determination of U.S. foreign policy today, just as containing 
communism was our primary factor during the Cold War.
  The truth is that, despite utilizing some forms of capitalism, China 
is still a one-party Communist dictatorship. That has become especially 
evident in the recent attempt by brave democrats across China to 
officially register as a democratic party during President Clinton's 
visit to China. As a result, all of the leaders of that movement are 
currently in jail or under house arrest with constant harassment by 
State security forces.
  When China was going in the right direction, I would not have been 
here complaining that we were too involved in cooperating with 
Communist China. I would not have been. But China is not going in the 
right direction. There has been a regression. It is becoming more 
repressive.
  Ten years ago, before Tiananmen Square, the Communist Chinese had 
other elements in their society who were developing alternatives. They 
seemed to be accepting the fact that alternatives had a right to exist. 
There was an acceptance of certain kinds of religious activities in 
China. People, communications were opening up. It is going in the 
opposite direction.
  The Communist Chinese, while becoming more totalitarian now, are also 
becoming more heavily armed and more belligerent. By the way, there is 
a white paper on China's national defenses. The document is from a 
leadership document of the Communist Chinese themselves. It was 
released last week. This white paper details China's own goals. It 
calls the United States and its alliance with democratic countries in 
Asia as ``the main threat to world peace and stability.'' It calls our 
own defense pact, America's defense pact with Japan, ``an infringement 
on China's internal affairs.''
  What, pray tell, might China's national military objective be? 
Beijing's white paper emphasized China's intention to use force, if 
necessary, to conquer the free people of Taiwan. These

[[Page H7424]]

are people that the United States, by treaty, have sworn to protect and 
defend.
  China is also staking out its claim to all the territories in the 
South China Sea, including islands just off the coast of the 
Philippines, almost within view of the Philippines and Malaysia as 
well.
  In partnership with the despicable SLORC regime, this is the Chinese 
Communists are in partnership with a regime in Burma, the SLORC regime, 
that is one of the darkest corners of this planet and one of the most 
malevolent and evil, evil regimes in this world.

  Human rights organizations all over the world have targeted Burma 
because of this ugly regime. China is arming the SLORC regime to the 
teeth in exchange for raw materials, cutting down and destroying their 
teak forest, as well as having a hand in the drug trade, in the heroin 
trade coming out of Burma.
  That is China. Of course it is important. In this, China, while 
cozying up to this dictatorship, actually supporting the dictatorship 
in Burma, is building a chain of military naval installations in Burma 
along the Indian Ocean that, in part, have lead India, have lead India 
to become more aggressive in developing its own conventional and 
nuclear weapons policies.
  While China was assuring the world that it was against this nuclear 
arms race, and we have seen that in Pakistan and in India and what a 
threat it is, but while China says it is against that arms race, what 
has it done? It continues to ship and to smuggle components to Pakistan 
for their nuclear weapons program and their missile delivery systems.
  This is really, perhaps, the thing that China is doing that perhaps 
causes a short-term threat, even greater than the long-term threat of 
their own missiles. If Pakistan and India began exchanging rockets and 
atomic bombs, millions of people will die, and it will be a tragedy 
beyond all description. China is helping people put these weapon 
systems together.
  Even worse, during, and this is during and after, President Clinton's 
stay in China, our new strategic partner, because that is what the 
President is trying to say China is, our partner, this villainous, evil 
regime is this strategic partner, even while he was there trying to 
make friends with them so they would be good guys, the Communist 
Chinese continued to transfer weapons of mass destruction technology 
and know-how to Iran and Libya while the President was there.
  This was confirmed to me by a State Department official last week 
during a House Committee on International Relations hearing. The 
Communist Chinese have more than earned their title as the number one 
on the CIA's list of major proliferators of weapons of mass destruction 
technology.
  However, the most egregious demonstration of contempt, contempt for 
the people of the United States and contempt for President Clinton, was 
demonstrated when Beijing successfully tested an engine for a whole new 
generation of long-range ICBMs. This weapon that can hit the United 
States from mobile missiles launched in China, this engine for this new 
rocket was tested while President Clinton was right there in Beijing 
saying, let us be friends. Let us be friends. This is worse than 
Neville Chamberlain and his efforts to try to befriend Adolf Hitler in 
order to prevent aggression just prior to World War II.
  The people in Beijing, these dictators, these gangsters, are laughing 
at the United States of America and laughing at us. Why not? We are 
helping them modernize their weapons systems. We are actually giving 
them the money that they need to do it, as well as the expertise of 
what they need.
  Oh, this is the same group of people, the Butchers of Tiananmen 
Square. Will they show the people of the United States the same kind of 
mercy they showed their own people when they mowed them down, thousands 
of young people who wanted democracy 10 years ago, snuffed out?
  Will they show us the same bed of mercy they showed the people of 
Tibet? Right now, the people of Tibet are going through a systematic 
genocide. Communist China could incinerate all of Tibet, and our big 
corporations will still come to us and say, oh, we are going to make 
them more moderate and democratic and peaceful if we just simply 
continue in this trade relationship in which they enrich themselves and 
get our technology.
  What do we get? Well, a few corporations get rich, but most Americans 
end up with a pink slip and out of work because their job is shipped to 
slave labor in China.
  Will they demonstrate to the American people the same type of mercy 
that they have shown to their own women? Women in China, millions of 
them, are forced to get abortions after they have conceived a baby, an 
incredible violation of millions of people with an incredible violation 
of human rights of women.
  Will we trust the survival of our precious freedom and our peace 
basically to help this regime that systematically persecutes believers 
in God, whether they be Muslims or whether they be Christians or 
Tibetan Buddhists?
  Should we continue to subsidize a nation with Most Favored Nation 
status, Most Favored Nation status which gives them an unfair advantage 
over us; that holds, and this country has a $40 billion annual trade 
surplus with the United States all the time while breaking every 
promise to abide by the international standards respecting our own 
patents and our own intellectual property rights.
  They are the biggest thieves of America's intellectual property. They 
are stealing billions of dollars from our creators in Hollywood and in 
Broadway and our musicians and our filmmakers.
  Every year, they steal billions of dollars. Even before we can sell 
it overseas, they are reproducing these things, giving us no royalties, 
undercutting our own people from getting their just rewards for what 
they are creating, not to mention the intellectual property rights when 
they steal our technology and use our ideas to outcompete us and put 
our people out of work.
  How does China maintain this huge advantage? Of course we have 
permitted China to have a 30 or 40 percent tariff on our goods. When 
our people want to sell over in China, they end up paying 30 or 40 
percent tariffs. When they come to sell their goods in our country, 
they are only charged 3 or 4 percent.
  They have slave labor there as compared to our free labor, and they 
flood our markets with these consumer goods, putting our people out of 
work. These businesses say, oh, we have to maintain the status with 
China. Why? Because we want to sell our products there.
  That is baloney. These big businesses do not want to sell our 
products there because China is demanding, in order to sell products 
there, we have to build a manufacturing unit. This is not fair trade. 
We are being saps. We negotiated the well-being of our own people away. 
Now we are putting our country's security in jeopardy.
  It is basically what we are engaged in in China economically is 
little more than corporate welfare subsidized by U.S. taxpayers who end 
up guaranteeing the investments of these corporations in China through 
the Export-Import Bank, in other words. Then our taxpayers guarantee 
the investments there. They set up the companies. They use the slave 
labor. They do not sell in China. They export them back to the United 
States, and they put out of work the taxpayers, the working people who 
are subsidizing and guaranteeing their investments in the first place. 
It is a sin against our people.
  This is the kind of China that we are struggling to maintain a good 
relationship with, and, oh, let us not cause any problems. Let us not 
say anything. Let us not confront them with the evil doings and the 
buildup of their nuclear weapons industry or confront them, that they 
are threatening us or our friends or democracy or undermining the peace 
of the world interest.
  We have got to be quiet about these things because of what? Because 
some huge multinational corporations are making a short-term profit. In 
the end, what will happen to those corporations? I will tell you. They 
will be expropriated. They will be expropriated, or the American people 
will lose out.
  In order to sell to China, the few companies that are able to sell to 
China, as I say, are forced to set up these manufacturing units. This 
has happened in the aerospace industry. What those leaders in the 
aerospace industry are doing are taking the short

[[Page H7425]]

term. They are saying, yes, we will make a profit, a huge billion 
dollars profit this year, even though it means we are setting up a 
manufacturing unit in China that 2 years from now or 5 years or 10 
years from now will be used to outcompete the American aerospace 
industry.
  We are selling out the jobs of our people in the long run in order 
for a short-term profit for these companies. It is wrong. It is wrong.
  These are unfair advantages of what? They have given the Communist 
Chinese $40 billion, $50 billion a year to build up their military. Why 
do we continue with this insane policy? It is an insane policy.
  It has even led to the point that we are giving them rocket 
technology which they are aiming their rockets at us. So why do we 
continue this? How is it possible?
  This body, my colleagues, ends up voting a majority to provide a 
trading status for this type of regime. Why is it? Yes, there is a 
handful of big corporations who are making immense short-term profits 
but, of course, that would not sell it here. The selling pitch is that 
by continuing this relationship with China, continuing this 
relationship with China, we are making them more democratic. We are 
going to make them liberal. It's the a hug-a-Nazi theory, and the Nazi 
will become a liberal democrat.
  It is ridiculous what is actually happening. Instead of making the 
Communist Chinese more democratic, instead of our corporations over 
there interacting with the people of China and making them more 
democratic, what has happened is just the opposite.
  By the way, the people of China are our friends. We are not talking 
about the people of China. We are talking about the oppressors and the 
Fascist government that holds them in a powerful grip. They know they 
are gangsters. They know they are bad guys. They know they are a clique 
that is holding a country of a billion people under submission. They 
think we are saps by playing a game by not confronting them with that.
  What is actually happening, we are not making them more democratic. 
The Communist Chinese are corrupting our democratic processes. This 
corruption is, was epitomized by the millions of dollars that China may 
well have poured into the 1996 U.S. election campaign of President 
Clinton and Vice-President Gore and to the Democratic Party.
  Do you remember, does everyone here remember the impoverished 
Buddhist monks that supposedly gave $5,000 checks to Vice-President 
Gore when he was out campaigning in California at that Buddhist temple? 
Everybody knows we are not supposed to have fund-raisers at a religious 
institution.
  Where do those $5,000 checks come from? Those were impoverished 
Buddhist monks. I mean, our economy is not doing that well that even 
impoverished Buddhist monks can give $5,000 donations. Where did it 
come from?
  We are talking about money being funneled into the American 
democratic process in order to what? In order to further a policy that 
is contrary to the interest of our people. They are corrupting us. We 
are not making them more democratic.
  What about Loral president, Bernie Schwartz, the man we first talked 
about, the man who is pushing selling weapons technology that can kill 
American military personnel, a man who was over there, responsible for 
overseeing this company that upgraded these Chinese missiles and, as 
the Defense Department says, put our country's security at risk and has 
harmed our national security? This was the largest single contributor 
to the Democratic Party and to President Clinton's reelection effort in 
the last campaign. The largest single contributor.
  Again, it is aimed at China policy. China policy. They are corrupting 
our system. Chinese officials from their own aerospace companies tried 
to channel hundreds of thousands of dollars into the Clinton campaign. 
Much of it was discovered and returned.

  But what is important was this was not just a Chinese aerospace 
company. We are talking about a Chinese aerospace company that, like 
most of their companies, are nothing more than a front for the People's 
Liberation Army. That means the military in China was trying to channel 
money into our election process. The People's Liberation Army.
  We do not know if millions of dollars did not end up in the 
President's reelection campaign. It looks like some did. But that is 
one thing that we will be looking into.
  Our policies in regards to China are, at the very best, amoral. At 
the very best, they are saying set morality aside. Be practical. That 
is at the best. But more likely, our policies have to be considered by 
people around the world as immoral as policies based on certain people 
profiting from activities that they know to be contrary to any 
standards and values held by the American people.
  Someday, there will be a price to pay for this type of immorality 
that is set in policy. There is a symmetry in the universe. When a 
person or when a country engage in this type of blatant immorality and 
ignores the standards that have been given to us and the values that we 
believe in, that our Founding Fathers and their American people believe 
in, there will be a price to pay. It inevitably leads to the pit of 
deprivation of defeat and despair.
  The Adolf Hitlers of the world and the Al Capones of the world always 
end up in the ash heap of history, in the rogue's gallery. But we 
Americans should demand a higher standard. If we do not, we will pay 
the price. Our children will pay the price. Already we are paying the 
price economically with jobs lost here going to slave labor in China.
  We won the Cold War, not by compromising with evil. We won the Cold 
War because we looked at the Soviet Union, and Ronald Reagan called it 
an evil empire and we sought to contain it and to make sure that it was 
not in any way assisted as long as it posed this threat to the 
democratic nations of the world.
  We never gave Most Favored Nation status to the Soviet Union. Never. 
Ronald Reagan would have thought it was a joke to give more trade and 
permit the Russians to have more hard currency through trade with the 
United States in order to make them nicer.
  No. We said in order to have a closer relationship with us, you have 
got to become a freer society. You have got to open up so that 
religious people and people who disagree with you have rights to speak.
  You have got to quit the genocide on different peoples in Tibet and 
elsewhere. And do you know what? Essentially those vicious people who 
ran the government and the Soviet Union and the Kremlin, they 
collapsed. They cracked because we took a moral stand.
  Yes, we played China off against the Soviet Union during the Cold 
War, just as we played Stalin off against Hitler when Hitler and the 
Japanese were the major threats to the security and the peace of the 
world. Yes, we did that. But the Cold War is over. The China card no 
longer needs to be played.
  In fact, China has replaced the Soviet Union, as the Soviet Union 
replaced Hitler, as the country and the people that we need to be 
concerned about to maintain the peace of the world, the greatest threat 
to our economic security, the greatest threat to the peace and the 
greatest threat to freedom.
  Some people are surprised to see, my gosh, it has even gone so far 
that we were giving these people nuclear weapons. Why be surprised? Why 
be surprised at that? What is the result of this? All over the world 
this is known. Our policies of weakness towards China are known.
  In Japan, what is going to happen with Japan? Japan is going through 
a crisis. If we are not strong and we do not provide leadership and we 
do not stand for the things that give us the strength of a Nation, give 
us the right to reach out to the rest of the people of the world and 
say let us lead the way, those people will go in another direction. 
They will be on their way. Their leadership will cut deals with the 
gangsters that threaten the world.
  What will happen in Japan? What would happen if Japan said, uh-oh, 
this part of the world is now going to be dominated with Communist 
China. We better cut our deals with Beijing. This will be a far 
different world 50 to 100 years from now if that happens. It will be a 
world in which our children and our grandchildren will suffer greatly 
and the threat will be enormous.

[[Page H7426]]

  What about in India? Why did India have to explode its nuclear 
weapon? Why did Pakistan move forward? Yes, they have their own 
problems. But at the same time, India is watching China. India is 
watching China. They might be able to handle a threat from Pakistan, 
but China? Maybe the democratic countries of the world, even in 
Thailand.
  But let us take this out. What about those people who are struggling 
to build democracy? What about the former Soviet Union? In Russia, 
these people are struggling. Any factor can turn Russia this way or 
that way.
  The United States is not seen as a powerful strong force for freedom; 
and, instead, we are letting the Chinese dominate this huge part of the 
planet. Russia borders on China.
  What about the bad guys in Russia? What about the evil forces in 
Russia? They will cut their deals with Beijing and undermine peace and 
prosperity and the development of freedom in Russia.
  There are major consequences to these insane policies that we have 
had with China. We have seen it now with India, as I say, India and 
Pakistan. It makes it more likely to have a war there. Japan is 
drifting into an anti-American orbit.

  In other words, these are significant issues. These are historic 
issues that we must deal with. The threats to America's national 
security and our future prosperity, well-being of our people did not 
end with the end of the Cold War. We have got to pick up the torch. We 
have got to be diligent. We have got to be strong, just as our Founding 
Fathers were, just as every generation has had to be strong in order to 
maintain this American dream.
  There are many scandals that we are going to hear about in the next 
30 days. This titillation is swirling through the capital. All this 
attention is focused on the so-called scandals. Let the American people 
not lose sight of what we are, what I am talking about today.
  Let them not lose sight of what I call Missilegate, if nothing else, 
the fact that our own weapons, our own technology are being turned 
against us, and that our policies are skewed toward helping a 
dictatorship and impoverishing the American people to build up the 
billions of people in the mainland of China which, in the end, is 
stolen from them by an oppressive dictatorship.
  I will continue to investigate this, and I hope the American people 
will continue through this other scandal to focus on this important 
issue. We will move forward on it, as I say, and I will give certain 
updates, especially when I come back after the August break.
  But in the end, our vigilance as Americans, as the world's last hope, 
last best hope of all of mankind, it is our vigilance that will save us 
and save all humankind. We are the keepers of the flame. Let us not 
share the power of that flame with tyrants and the enemies of freedom.

                          ____________________