[House Report 105-829]
[From the U.S. Government Publishing Office]



                                                 Union Calendar No. 471
105th Congress, 2d Session  -  -  -  -  -  -  -  - House Report 105-829


 
        INVESTIGATION OF POLITICAL FUNDRAISING IMPROPRIETIES AND
             POSSIBLE VIOLATIONS OF LAW INTERIM REPORT

                               ---------- 

                              SIXTH REPORT

                                 by the

                        COMMITTEE ON GOVERNMENT
                          REFORM AND OVERSIGHT

                             together with

                     ADDITIONAL AND MINORITY VIEWS
                             Volume 2 of 4





November 5, 1998.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed



   INVESTIGATION OF POLITICAL FUND-RAISING IMPROPRIETIES AND POSSIBLE 
                    VIOLATIONS OF LAW--VOLUME 2 OF 4



                                                 Union Calendar No. 471
105th Congress, 2d Session  -  -  -  -  -  -  -  - House Report 105-829


                      INVESTIGATION OF POLITICAL

                     FUNDRAISING IMPROPRIETIES AND

                      POSSIBLE VIOLATIONS OF LAW

                            INTERIM REPORT

                               __________

                              SIXTH REPORT

                                 by the

                        COMMITTEE ON GOVERNMENT

                          REFORM AND OVERSIGHT

                             together with

                     ADDITIONAL AND MINORITY VIEWS

                             Volume 2 of 4





November 5, 1998.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed


              COMMITTEE ON GOVERNMENT REFORM AND OVERSIGHT

                      DAN BURTON, Indiana, Chairman
BENJAMIN A. GILMAN, New York        HENRY A. WAXMAN, California
J. DENNIS HASTERT, Illinois         TOM LANTOS, California
CONSTANCE A. MORELLA, Maryland      ROBERT E. WISE, Jr., West Virginia
CHRISTOPHER SHAYS, Connecticut      MAJOR R. OWENS, New York
CHRISTOPHER COX, California         EDOLPHUS TOWNS, New York
ILEANA ROS-LEHTINEN, Florida        PAUL E. KANJORSKI, Pennsylvania
JOHN M. McHUGH, New York            GARY A. CONDIT, California
STEPHEN HORN, California            CAROLYN B. MALONEY, New York
JOHN L. MICA, Florida               THOMAS M. BARRETT, Wisconsin
THOMAS M. DAVIS, Virginia           ELEANOR HOLMES NORTON, Washington, 
DAVID M. McINTOSH, Indiana              DC
MARK E. SOUDER, Indiana             CHAKA FATTAH, Pennsylvania
JOE SCARBOROUGH, Florida            ELIJAH E. CUMMINGS, Maryland
JOHN B. SHADEGG, Arizona            DENNIS J. KUCINICH, Ohio
STEVEN C. LaTOURETTE, Ohio          ROD R. BLAGOJEVICH, Illinois
MARSHALL ``MARK'' SANFORD, South    DANNY K. DAVIS, Illinois
    Carolina                        JOHN F. TIERNEY, Massachusetts
JOHN E. SUNUNU, New Hampshire       JIM TURNER, Texas
PETE SESSIONS, Texas                THOMAS H. ALLEN, Maine
MICHAEL PAPPAS, New Jersey          HAROLD E. FORD, Jr., Tennessee
VINCE SNOWBARGER, Kansas                        ------
BOB BARR, Georgia                   BERNARD SANDERS, Vermont 
DAN MILLER, Florida                     (Independent) 
RON LEWIS, Kentucky

                    Kevin Binger, Staff Director
                 Barbara J. Comstock, Chief Counsel
         David A. Kass, Deputy Counsel and Parliamentarian
               Lisa Smith Arafune, Deputy Chief Clerk
               Phil Schiliro, Minority Staff Director

                            -----------

          MINORITY STAFF                       MAJORITY STAFF
Kevin Binger, Staff Director        Kristin L. Amerling, Minority 
Barbara Jean Comstock, Chief            Counsel
    Counsel                         Kenneth M. Ballen, Minority Chief 
James C. Wilson, Chief                  Investigative Counsel
    Investigative Counsel           Philip S. Barnett, Minority Chief 
David A. Kass, Deputy Counsel and       Counsel
    Parliamentarian                 Courtney A. Cook, Minority Staff 
Michael Bopp, Senior Investigative      Assistant
    Counsel                         Sarah Despres, Minority Counsel
J. Timothy Griffin, Senior          Jonathan M. Frenkel, Minority 
    Investigative Counsel               Counsel
Kristi L. Remington, Senior         Harold W. Gossett, Minority 
    Investigative Counsel               Professional Staff Member
Elliot S. Berke, Investigative      Christopher P. Lu, Minority 
    Counsel                             Counsel
Robert J. Dold, Investigative       Michael J. Raphael, Minority 
    Counsel                             Counsel
Jason Hopfer, Investigative Counsel Ellen P. Rayner, Minority Chief 
John Irving, Investigative Counsel      Clerk
Rae Oliver, Investigative Counsel   Jessica R. Robinson, Minority 
Jim Schumann, Investigative Counsel     Staff Assistant
Michelle E. White, Investigative    David Sadkin, Minority Counsel
    Counsel                         Philip M. Schiliro, Minority Staff 
Dudley Hodgson, Chief Investigator      Director
Milt Copulos, Investigator          Andrew H. Su, Minority Staff 
Kevin Davis, Investigator               Assistant
G. Andrew Macklin, Investigator     Amy R. Wendt, Minority Staff 
John T. Mastranadi, Investigator        Assistant
Matt Tallmer, Investigator          Barbara A. Wentworth, Minority 
Thomas P. Bossert, Assistant to         Research Assistant
    Chief Counsel                   Michael T. Yang, Minority Counsel
Jason Foster, Assistant Systems     Michael J. Yeager, Minority 
    Administrator                       Counsel 
Laurel Grover, Staff Assistant      
Kenneth Feng, GAO Detailee          
Roger Stoltz, GAO Detailee          
Richard D. Bennett, Special Counsel 
    to the Committee                



                         LETTER OF TRANSMITTAL

                              ---------- 

                                  House of Representatives,
                                  Washington, DC, November 5, 1998.
Hon. Newt Gingrich,
Speaker of the House of Representatives,
Washington, DC.
    Dear Mr. Speaker: By direction of the Committee on 
Government Reform and Oversight, I submit herewith the 
committee's sixth report to the 105th Congress.
                                                Dan Burton,
                                                          Chairman.



                            C O N T E N T S

                              ----------                              
                                                                   Page
Preface..........................................................     1
Chapter I: Introduction..........................................     5
Chapter II: Unprecedented Obstacles to the Committee's 
  Investigation..................................................    47
Chapter III: The Democrats' Failure to Return Illegal Campaign 
  Contributions..................................................   149
Chapter IV: Unprecedented Infusion of Foreign Money Into the 
  American Political System......................................  1185
    Part A: The Riady Family and John Huang: Access and Influence 
      with the Clinton White House...............................  1185
    Part B: Yah Lin ``Charlie'' Trie and His Relationship with 
      the Clinton Administration.................................  1347
    Part C: Johnny Chung: His Unusual Access to the White House 
      and His Political Donations................................  1671
    Part D: The Sioeng Family's Contributions and Foreign Ties...  2131
Chapter V: The Failure of Government Agencies to Vigorously 
  Pursue Campaign Violations.....................................  2933
    Part A: Jorge Castro's Illegal Campaign Contributions, and 
      Why They Were Never Prosecuted.............................  2933
    Part B: FEC Enforcement Practices and the Case Against 
      Foreign National Thomas Kramer: Did Prominent DNC 
      Fundraisers Receive Special Treatment?.....................  2983
Chapter VI: The Hudson Casino Rejection..........................  3111
Chapter VII: Procedural Background of the Campaign Finance 
  Investigation..................................................  3863

                                 VIEWS

Additional views of Hon. Dan Burton..............................  3881
Additional views of Hon. Pete Sessions...........................  3920
Minority views of Hon. Henry A. Waxman, Hon. Tom Lantos, Hon. 
  Robert E. Wise, Jr., Hon. Major R. Owens, Hon. Edolphus Towns, 
  Hon. Paul E. Kanjorski, Hon. Gary A. Condit, Hon. Bernard 
  Sanders, Hon. Carolyn B. Maloney, Hon. Eleanor Holmes Norton, 
  Hon. Chaka Fattah, Hon. Elijah E. Cummings, Hon. Dennis J. 
  Kucinich, Hon. Rod R. Blagojevich, Hon. Danny K. Davis, Hon. 
  Thomas H. Allen, and Hon. Harold E. Ford, Jr...................  3923
Additional views of Hon. Thomas M. Barrett.......................  4878



                                                 Union Calendar No. 471
105th Congress                                            Rept. 105-829
                        HOUSE OF REPRESENTATIVES

 2d Session                                                 Vol. 2 of 4
_______________________________________________________________________


   INVESTIGATION OF POLITICAL FUNDRAISING IMPROPRIETIES AND POSSIBLE 
                           VIOLATIONS OF LAW

                                _______
                                

November 5, 1998.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

_______________________________________________________________________


  Mr. Burton, from the Committee on Government Reform and Oversight, 
                        submitted the following

                              SIXTH REPORT

                             together with

                     ADDITIONAL AND MINORITY VIEWS

    On October 8, 1998, the Committee on Government Reform and 
Oversight approved and adopted a report entitled, 
``Investigation of Political Fundraising Improprieties and 
Possible Violations of Law.'' The chairman was directed to 
transmit a copy to the Speaker of the House.


=======================================================================


                           CHAPTER IV, PART A

  UNPRECEDENTED INFUSION OF FOREIGN MONEY INTO THE AMERICAN POLITICAL 
                                SYSTEM:

THE RIADY FAMILY AND JOHN HUANG: ACCESS AND INFLUENCE WITH THE CLINTON 
                              WHITE HOUSE

=======================================================================


THE RIADY FAMILY AND JOHN HUANG: ACCESS AND INFLUENCE WITH THE CLINTON 
                              WHITE HOUSE

                              Introduction

    John Huang is the first individual to be associated with 
campaign finance improprieties in the 1996 elections. The 
scandal was brought to the public's attention in a September 
1996 Los Angeles Times article detailing the first known 
illegal contribution to the DNC, and naming John Huang as the 
fundraiser involved.\1\ Soon thereafter, other questionable DNC 
contributions came to light, also related to Huang.\2\ As more 
information on possible illegal or inappropriate contributions 
to the DNC was reported, the media reviewed Huang's background 
and found ties to the Riady family of Indonesia and President 
Clinton.\3\
---------------------------------------------------------------------------
    \1\ The report detailed a $250,000 contribution from a subsidiary 
of a South Korean company, Cheong Am America Inc. The DNC acknowledged 
that it did not return the contribution until the Los Angeles Times 
raised questions about its propriety. Allan C. Miller, Democrats Return 
Illegal Contribution, L.A. Times, Sept. 21, 1996, at A16.
    \2\ See William Safire, The Asian Connection, New York Times, Oct. 
7, 1996, at A2 (detailing $425,000 contribution from Arief and Soraya 
Wiriadinata); Glenn R. Simpson & Jill Abramson, Legal Loopholes Let 
Overseas Contributors Fill Democrats' Coffers, Wall Street Journal, 
Oct. 8, 1996, at A1 (outlining contributions from Lippo Group employees 
and entities and a contribution from Keshi Zhan).
    \3\ William Safire was the first to link DNC fundraiser John Huang 
with the Riady family of Indonesia. Safire also disclosed contributions 
to entities related to Bill Clinton from the Riady family of Indonesia 
during the 1992 Presidential campaign, as well as a $425,000 
contribution from an Indonesian couple with ties to the Lippo Group. 
William Safire, The Asian Connection, New York Times, Oct. 7, 1996, at 
A2.
---------------------------------------------------------------------------
    The Riadys are foreign nationals residing in Indonesia, 
nevertheless, they were active participants in the 1992 and 
1996 campaigns of President Clinton. The family's facilitator 
for contributions as well as political matters was John Huang, 
a former senior executive with the Lippo Group. The Riadys had 
access to the highest levels of the U.S. Government, including 
the President and his Cabinet. James and Aileen Riady, well 
known to the President, DNC and White House staff as foreign 
nationals, attended many exclusive DNC fundraisers which 
usually required contributions for attendance.
    During the 1996 elections, Huang was a fundraiser for the 
DNC after leaving his position at Commerce in late 1995. Huang 
had been active in the 1992 campaign, raising money for then-
Governor Clinton, as well as the DNC. The Committee found that 
Huang was responsible for nearly half of the money which has 
been returned to date by the DNC. Even after Huang organized 
events which were widely attended by foreign nationals, 
including the Riadys, the DNC did not carefully review the 
contributions attributed to Huang. It is incomprehensible that 
nobody at the DNC or White House raised concerns about the 
fundraising activities occurring at the DNC in the 1996 
election cycle.

   I. From Indonesia to Arkansas: Riady and Huang's Early Connections

    The relationship between John Huang, the Riady Family, and 
President Clinton, goes back to the late 1970's in Little Rock, 
Arkansas.\4\ The patriarch of the Riady family, Mochtar Riady, 
is an Indonesian of Chinese descent who built up the Lippo 
Group empire in Asia.\5\ The Lippo Group's core business is 
banking and allied financial services within the Asia Pacific 
region, and also includes a property development arm.\6\ In the 
mid-1970s, Mochtar Riady planned to expand his business 
enterprises into the United States and began looking for 
partners. He soon met the Stephens family of Arkansas and 
subsequently entered into various joint ventures with Stephens 
Inc.\7\
---------------------------------------------------------------------------
    \4\ Id.; Peter Waldman, By Courting Clinton, Lippo Gains Stature at 
Home in Indonesia, Wall Street Journal, Oct. 16, 1996 at A1; Seth 
Mydans, Family Tied to Democratic Party Funds Built an Indonesian 
Empire, New York Times, Oct. 20, 1996 at A10; Howard Fineman & Mark 
Hosenball, The Asian Connection, Newsweek, Oct. 28, 1996 at 24.
    \5\ See Hip Hing Holdings Document Production 4624-4641, at 4625 
(Forbes Magazine, Chinese language edition translated, Mochtar Riady 
Swimming with the Current, Oct. 1993) (hereinafter HHH 4624).
    \6\ Lippo owns 70 percent of Hong Kong China Ltd., a property 
investment and development firm with $1.2 billion in assets. Lippo also 
owns 59 percent of Hong Kong Chinese Bank, Ltd, a banking and finance 
firm with $2.3 billion in assets. In addition to these holdings, Lippo 
has extensive investments in the United States, China, Indonesia, Hong 
Kong, Vietnam, and Malaysia. Indonesian Enterprise, The Non Aligned 
Movement Toward the Next Millennium, Publication Secretariat for the 
Non Aligned Movement, 1995, vol. 3 at 261-274; Lippo, a Player in Asia, 
Seeks U.S. Empire, the Washington Times, Oct. 24, 1996.
    \7\ Mochtar Riady first met Jackson and Witt Stephens in 1976. At 
the time, Riady was looking into buying Bert Lance's share of the 
National Bank of Georgia. Although that deal fell through, Riady and 
the Stephens brothers formed a friendship and in 1978 established 
Stephens Finance Ltd. in Hong Kong. There were several other joint 
projects before Lippo and Stephens acquired a substantial stake in 
Worthen Bank of Arkansas in 1983. See Deposition of James T. Riady, 
Stephens Group, Inc. v. U.S. (Cl. Ct. No. 91-1458T) Mar. 5, 1993 at 26-
28; Deposition of C. Joseph Giroir, Senate Committee on Governmental 
Affairs Special Investigation, Apr. 30, 1997 at 32-35 (hereinafter 
``Giroir Senate Deposition''); HHH 4624, 4631.
---------------------------------------------------------------------------
    It was through the Lippo-Stephens partnership that a young 
James Riady came to intern at Stephens' off-Wall Street 
investment bank in Little Rock, Arkansas. Subsequently, James 
Riady came back to the United States to assist with Lippo and 
Stephens' new joint venture, Worthen Banking Corporation. By 
1983 Riady and Stephens both had invested in the Worthen Bank 
in Little Rock, Arkansas.\8\ James Riady ultimately moved to 
Little Rock to establish Worthen Bank's international trade 
division.\9\ Following James Riady was John Huang, who had been 
working for the Riady family in Hong Kong.\10\
---------------------------------------------------------------------------
    \8\ Giroir Senate Deposition at 32-35.
    \9\ According to Joe Giroir's testimony, Lippo's strategy in 
investing in Worthen was to expand into the international arena. They 
also established ``Edge Act'' offices, authorized to engage in 
international transactions--but not take deposits, in New York and Los 
Angeles. Giroir Senate Deposition at 38-39.
    \10\ Huang was the vice president for the Far East Area at Worthen. 
Prior to his position at Worthen, Huang was executive vice president 
under James Riady at Stephens Finance Ltd. in Hong Kong. See Giroir 
Senate Deposition at 41; LippoBank Production L001710-001713 (Resume of 
John Huang) (Exhibit 1).
---------------------------------------------------------------------------
    While in Little Rock the Riadys met then-Governor Bill 
Clinton and formed a friendship lasting through Clinton's 
Presidency.\11\ The Riadys not only were friends, but also 
financially supported Clinton's gubernatorial campaigns 
throughout the 1980s.\12\ During their time spent in Arkansas, 
the Riadys met other individuals who later would play a role in 
the campaign finance story as well. In particular, James and 
Mochtar Riady developed a relationship with C. Joseph Giroir, 
Jr., a partner in the Worthen Banking Corporation, attorney at 
the Rose Law Firm, and friend of the President and First 
Lady.\13\ In addition, they made contacts with individuals who 
would later serve on the White House staff and in high-level 
positions within various departments and agencies.
---------------------------------------------------------------------------
    \11\ Deposition of Charles L. DeQueljoe, House Government Reform 
and Oversight Committee, June 9, 1998 at 41, 111-112 (hereinafter 
``DeQueljoe Deposition'').
    \12\ DeQueljoe Deposition at 40-43.
    \13\ Giroir Senate Deposition at 35-36.
---------------------------------------------------------------------------
    James Riady and Huang stayed in Little Rock until 
approximately 1987, when the Riadys sold their shares of 
Worthen Bank and focused their attention on a bank they 
previously had purchased in San Francisco, California.\14\ Soon 
thereafter they established the Bank of Trade in Los Angeles, 
which later became LippoBank.\15\
---------------------------------------------------------------------------
    \14\ The Riadys were bought out of Worthen by the Stephens family 
after the bank experienced a major defalcation by Bevil Bressler in 
1986. After the defalcation, regulators investigated the quality of 
Worthen's assets and determined there were problems. Allegations were 
made against Worthen's loan practices and asset quality. Eventually, 
the Riadys traded their interest in the Worthen Bank for the Stephens' 
interest in the Hong Kong Chinese Bank, and also traded their interests 
in other joint ventures. Deposition of Arthur Vernon Weaver, House 
Government Reform and Oversight Committee, Aug. 11, 1997, at 76; Giroir 
Senate Deposition at 47; White House Document Production EOP 037032-034 
(Exhibit 2).
    \15\ Giroir Senate Deposition at 47.
---------------------------------------------------------------------------
    The Committee found that although by the 1990s the Lippo 
Group had numerous U.S. affiliates and subsidiaries, generally 
the U.S. operations were not profitable.\16\ Furthermore, 
former Lippo executive Charles DeQueljoe explained that the 
U.S. operations were a topic of debate among the senior Lippo 
executives.\17\ Many in the Lippo hierarchy felt that the 
overall Group should not maintain any unprofitable 
operations.\18\ Others argued that LippoBank California was 
important ``strategically,'' in order to have a presence in the 
United States.\19\ Those believing in the strategic importance 
of the U.S. operations prevailed. However, the profitability of 
the operations is important as many of the Riady linked 
political contributions came from these Lippo entities which 
had no or minimal net profits at the time of the 
contributions.\20\
---------------------------------------------------------------------------
    \16\ Based on documents and Committee interviews, most of Lippo's 
American based affiliates/subsidiaries were highly specialized 
corporations established as either shells with no apparent business or 
for the purported purpose of holding property. See generally Chapter 3, 
II.
    \17\ DeQueljoe Deposition at 92-93.
    \18\ Id.
    \19\ Id.
    \20\ For a detailed analysis of the Riady family and Lippo 
entities' contributions, see generally Chapter 3, II.
---------------------------------------------------------------------------
    Equally important to the Riadys' legal ability to 
contribute to political campaigns was the fact that between 
1990 and early 1991, James Riady and his wife returned to 
Indonesia where James Riady took over Indonesia based Lippo 
operations.\21\ After James Riady's departure, Huang was in 
charge of Lippo's U.S. operations.\22\ Huang's position with 
Lippo in the United States allowed him time to participate in 
fundraising activities during the 1992 election cycle.
---------------------------------------------------------------------------
    \21\ DeQueljoe Deposition at 43-44.
    \22\ Id. at 58.
---------------------------------------------------------------------------

 II. Huang and Riady's Early Relationship With the Democratic National 
                               Committee

                  A. 1991 DNC Fundraising Trip to Asia

    Even from Asia, the Riadys were involved in the DNC's 1992 
fundraising effort. The family played host for a DNC 
delegation, headed by then-Chairman Ron Brown, visiting Hong 
Kong in December 1991.\23\ John Huang organized the Hong Kong/
Lippo portion of the trip from the United States, as noted in a 
memorandum written by the organizer of the Asia tour, Melinda 
Yee:
---------------------------------------------------------------------------
    \23\ DNC Document Production E 0000140 (Exhibit 3); F 0010739 
(Exhibit 4).

        John Huang is our key to Hong Kong. He is also 
        interested in renewing his trusteeship to us on this 
        trip through his Asian banking connections. He has 
        agreed to host a high dollar event for us in Hong Kong 
        with wealthy Asian bankers who are either U.S. 
        permanent residents or with U.S. corporate ties. He 
        will make sure that all of the hotel accommodations, 
        meals, and transportation are paid for by his bank. He 
        should be invited to be part of our delegation.\24\
---------------------------------------------------------------------------
    \24\ Exhibit 3.

    The Lippo Group did schedule numerous meetings for the DNC 
delegation, including what was referred to on the schedule as, 
``DINNER ($$) HOSTED BY LIPPOGROUP [sic] (JOHN HUANG).'' \25\ 
The dollar signs appear to refer to the fact that the dinner 
was held for the purposes of fundraising. Although there were 
several fundraising events scheduled, the DNC is unable to 
account for any contributions which may have been raised in 
conjunction with the Hong Kong trip.\26\
---------------------------------------------------------------------------
    \25\ DNC Document Production E 0000627-629 (Exhibit 5).
    \26\ The Committee sent interrogatories to the DNC regarding the 
1991 trip to Asia and Hawaii. The Committee asked the DNC to provide a 
list of contributions raised from each leg of the trip: Hong Kong, 
Taiwan, and Hawaii. DNC General Counsel Joseph Sandler responded:

        Although I have not been able to identify with certainty 
      all contributions raised from this trip, and know of no way 
      to do so, I have determined that the DNC's computerized 
      records of contributions received include a source code 
      called ``Hawaii Trip,'' which appears to have been created 
      in December 1991. Attached as Exhibit E is a print out of 
      the DNC's A/S 400 records of all contributions attributed, 
---------------------------------------------------------------------------
      in those records, to his source code.

All of the contributions listed in Exhibit E related to only the Hawaii 
portion of the trip. DNC Document Production DNC 4125841; DNC Response 
to Interrogatories from the Committee on Government Reform and 
Oversight, Feb. 26, 1998, Interrogatory 10.
    It appears that the trip was successful, as then-DNC 
Chairman Ron Brown had high praises for John Huang. When Brown 
returned from Asia, he wrote to Mochtar Riady, thanking him and 
the Lippo Group for hosting the DNC delegation during their 
stay in Hong Kong. Brown wrote, ``I especially wanted to 
recognize my friendship with John Huang and the tremendous 
asset that he is to the Lippo Group.'' \27\
---------------------------------------------------------------------------
    \27\ Exhibit 4.
---------------------------------------------------------------------------
    While preparing for the 1991 Asia fundraising trip, John 
Huang recommended that the DNC enlist the services of Maeley 
Tom for the trip.\28\ In a DNC memo, Ms. Tom's role is 
described:
---------------------------------------------------------------------------
    \28\ DNC Document Production 0856803 (Exhibit 6).

        Originally, she was just going to join us on the Hawaii 
        leg. However, because she can speak Chinese fluently, 
        has a proven track record in fundraising with donors 
        from Asia, and has credibility with Maria Hsia and John 
        Huang, I believe that we will maximize our dollars both 
        immediately and after the trip with Maeley's presence. 
        She has already been working with Maria, John and 
---------------------------------------------------------------------------
        others to plan a successful trip for us.

    At the time of the trip, Ms. Tom served on the Executive 
Committee of the DNC.\29\ Ultimately, Ms. Tom did participate 
in the Asia trip with Secretary Brown.
---------------------------------------------------------------------------
    \29\ Exhibit 6.
---------------------------------------------------------------------------
    After the election, James Riady hired Maeley Tom to be his 
liaison with the DNC.\30\ Ms. Tom explained her new position 
with the Lippo Group in a letter to David Wilhelm, then-
Chairman of the DNC:
---------------------------------------------------------------------------
    \30\ MT 00811-833 (Billing records from Maeley Tom to Lippo Group, 
produced to Senate Governmental Affairs Committee); DNC Document 
Production DNC 0841082-083 (Exhibit 7); Hip Hing Holdings Document 
Production 5090 (request dated Sept. 9, 1994 to Ong Bwee Eng in Jakarta 
to wire Hip Hing Holdings [Lippo subsidiary] for reimbursement of, of 
among other things, consultant fee to Maeley Tom).

        The Riady family, LIPPO GROUP, were [sic] concerned 
        about the way I was being treated with regards to my 
        appointment with the SBA. In Seattle, James Riady asked 
        me to consider working for them on a contractual basis 
        to put together the business leaders from East Asia 
        with the Administration for meetings and education 
        purposes. He felt we could do this thru [sic] the DNC 
        and use this as a vehicle to raise dollars from a fresh 
        source for the DNC.\31\
---------------------------------------------------------------------------
    \31\ Exhibit 7.

    Although it is unclear what Maeley Tom did for Riady as his 
DNC liaison, Riady kept her on his payroll from July 1994 
through August 1996.\32\ In addition, by December 1995, James 
Riady had an additional contact at the DNC with the hiring of 
John Huang. Riady assisted John Huang in attaining a 
fundraising position with the DNC focusing on the Asian 
community.\33\
---------------------------------------------------------------------------
    \32\ It appears from documents produced by Maeley Tom that she was 
employed by the Lippo Group from July 1994 through Aug. 1996. MT 00811-
833 (Billing records from Maeley Tom to Lippo Group, produced to Senate 
Governmental Affairs Committee).
    \33\ For a more detailed description, refer to infra III A.
---------------------------------------------------------------------------

         B. 1992 Elections: Riady and Huang Support for Clinton

    As they had supported Mr. Clinton in his gubernatorial 
races, the Riady family, although no longer living in the 
United States, supported Clinton in his Presidential race. 
After James Riady and his wife Aileen returned to Jakarta in 
1990, they personally contributed $450,000 to the DNC and 
various state Democratic parties in the weeks and months 
leading up to the November 1992 election.\34\
---------------------------------------------------------------------------
    \34\ The $450,000 figure represents the amount contributed by James 
and Aileen personally. A company under the control of the Riadys also 
contributed $50,000 to the DNC in support of the Clinton campaign. For 
a more detailed analysis of the contributions, see generally Chapter 3, 
II.
---------------------------------------------------------------------------
    It is impossible to discern Riady's motives for 
contributing to a U.S. election, as Riady is not cooperating 
with investigators. Generally foreign nationals do not have the 
same vested interest in a candidate as a citizen living in the 
Unites States would have, nor do the laws allow a foreign 
national to contribute. However, from documents produced to the 
Committee, it is possible to speculate that Riady wanted his 
interests to be heard. For example, on August 13, 1992, James 
and Aileen Riady contributed a total of $40,000 to Democratic 
causes. The following day, then-Governor Bill Clinton, on his 
way to a fundraiser, took a 5 minute car ride with James Riady. 
The request for the time with Riady is memorialized in an 
August 14, 1992 memorandum from then-campaign aide Melinda Yee:

        James Riady is the Deputy Chairman of Lippogroup [sic] 
        and a long-time acquaintance of yours. The group is in 
        financial services in the U.S. and throughout Asia. Mr. 
        Riady lived in Arkansas from 1985-1987 when he was 
        president of Worthen Bank in Little Rock.

        He has flown all they [sic] way from Indonesia, where 
        he is now based, to attend the fundraiser. He will be 
        giving $100,000 to this event and has the potential to 
        give much more. He will talk to you about banking 
        issues and international business. This is primarily a 
        courtesy call.\35\
---------------------------------------------------------------------------
    \35\ Clinton/Gore '92 Document Production CG92B 00543 (Exhibit 8); 
see also CG92B 01461 (Exhibit 9).

    It is clear from the memorandum that James Riady was not 
living in the United States. The President also knew from his 
time in Arkansas that the Riady family were Indonesian 
nationals. Nevertheless, the car ride meeting and subsequent 
contribution began the cycle of the Riadys giving to Clinton 
and Democratic causes supporting Clinton's candidacy. The Riady 
family remained close to Clinton, who would meet with the Riady 
family and hear their concerns on various topics important to 
their business.
    The Riadys' generosity did not stop when Bill Clinton was 
elected. They contributed $200,000 to the 1992 Presidential 
Inaugural Committee (``PIC'').\36\ PIC is the entity which 
plans and pays for the President's inauguration ceremony and 
related festivities. However, not only did the Riadys 
personally support the Clinton campaign and inaugural, their 
companies and employees did as well.\37\
---------------------------------------------------------------------------
    \36\ See generally Chapter 3, II.
    \37\ For a detailed analysis of other Lippo Group employees and 
their contributions, see generally Chapter 3, II.
---------------------------------------------------------------------------
    More than any other individual affiliated with the Riadys, 
John Huang was an active supporter of then-Governor Clinton's 
1992 Presidential election. During the 1992 election cycle, 
John Huang and his wife Jane contributed a total of $32,800 to 
the DNC and California state Democratic party.\38\ Huang also 
contributed $86,000 to PIC, which was later reimbursed by the 
Lippo Group's Bank of Trade.\39\ Not only did he contribute 
himself, but Huang also engaged in fundraising activities in 
the Asian American community on behalf of Governor Clinton.\40\ 
His efforts warranted him a spot on the DNC's ``must consider'' 
list for government appointments once President Clinton took 
office.\41\
---------------------------------------------------------------------------
    \38\ For a detailed analysis of John and Jane Huang's 
contributions, see generally Chapter 3, II.
    \39\ For a detailed analysis of John Huang's contributions to PIC, 
see generally, Chapter 3, II.
    \40\ Huang participated in an Asian Pacific American Unity 
Fundraising Lunch in California. In a briefing memo on the event, 
written by Melinda Yee, she notes, ``This fundraising lunch, hosted by 
California Secretary of State Mar. Fong Eu and John Huang, a banker 
(who had met you when he was with James Riady who opened a bank in 
Arkansas in 1985). . . .'' Clinton/Gore '92 Document Production CG92B-
00530; CG92B-00398-399.
    \41\ In an Aug. 27, 1993 memorandum, DNC Chairman David Wilhelm 
wrote to John Emerson in White House Presidential Personnel regarding 
``Asian Pacific American Appointments.'' John Huang is described as a 
``DNC Trustee, Major Fundraiser . . . Needs extra push for Deputy 
Assistant Secretary Position for East Asia & Pacific.'' DNC Document 
Production DNC F 0031764-771; see also ``Asian Pacific American Must 
Consider Recommendations to the Clinton Administration, Nov. 1992'' 
White House Document Production EOP 048876-77.
---------------------------------------------------------------------------

 III. Employment Relationships Between the Clinton Administration and 
                            the Lippo Group

      A. Lippo Employees Obtain Positions within the New Clinton 
                             Administration

    Eventually, Huang's fundraising efforts were rewarded with 
an appointment as Principal Deputy Assistant Secretary for 
International Economic Policy at the International Trade 
Administration of the Department of Commerce.\42\ Around the 
time of the election Huang began pursuing an appointment 
through Clinton's transition team.\43\ Soon after the new 
administration took office, Maeley Tom wrote to the new Deputy 
Director of Personnel to recommend Huang:
---------------------------------------------------------------------------
    \42\ Huang was originally approved in Dec. 1993, but did not 
actually begin working at the Commerce Department until July 18, 1994. 
DNC Document Production D 0000840-852 (Executive Branch Public 
Financial Disclosure Report); see White House Document Production EOP 
002131-132 (Exhibit 10). The Senate Governmental Affairs Committee 
wrote extensively on the facts surrounding Huang's appointment to the 
Commerce Department and his tenure there, therefore the issues will not 
be extensively covered in this report. Senate Committee on Governmental 
Affairs, Final Report of the Investigation of Illegal or Improper 
Activities in Connection with 1996 Federal Campaigns, S. Rept. No. 167, 
105th Cong., 2d sess., vol. 1 (1998) (hereinafter ``Senate Report'').
    \43\ Huang sent his and Charles DeQueljoe's resume to Jerry Stern, 
a member of the Presidential Transition team. (Exhibit 11).

        John Huang, Executive Vice President of Lippo Bank, is 
        the political power that advises the Riady Family on 
        issues and where to make contributions. They invested 
        heavily in the Clinton campaign. John is the Riady 
        Family's top priority for placement because he is like 
        one of their own. The family knows the Clintons on a 
        first-name basis because they made a huge investment in 
        Arkansas when they built their bank there.\44\
---------------------------------------------------------------------------
    \44\ Emphasis added. White House Document EOP 052763-769 (Exhibit 
12)

    Huang's name was considered by Presidential Personnel 
several times before his actual appointment in July 1994.\45\ 
In fact, Bruce Lindsey, then-Director of Presidential 
Personnel, was unable to recall anything about Huang's 
appointment at the Department of Commerce.\46\
---------------------------------------------------------------------------
    \45\ White House Document EOP 009340-341 (Exhibit 13); EOP 002117-
118 (Exhibit 14).
    \46\ Lindsey Deposition at 63, 67-68.
---------------------------------------------------------------------------
    Along with documents showing Huang's interest in a 
government position, the Committee found that James Riady was 
also placed on a list of ``must consider'' appointments. Unlike 
Huang, who sought a position with a department or agency, 
documents show that Riady was interested in placement on a 
commission or advisory council dealing with international trade 
or banking.\47\ Such commissions or councils normally consist 
of U.S. citizens with some expertise or knowledge in the 
designated field which qualifies them to advise the U.S. 
Government. Although James Riady may have unique knowledge of 
international trade and banking, he is not a U.S. citizen. 
Nevertheless, one DNC document describes James Riady, who had 
not lived in the United States since 1990, as a ``leading 
national fundraiser'' for the DNC in 1992.\48\
---------------------------------------------------------------------------
    \47\ DNC Document Production DNC 3540680-681 (Exhibit 15).
    \48\ All the individuals on the list were considered ``must 
considers'' and were to be sponsored by the DNC. DNC Document 
Production DNC 1729180-183 (Exhibit 16).
---------------------------------------------------------------------------
    Not only were both Huang and Riady seeking some sort of 
position within the new administration, they also assisted in 
the placement of another Lippo employee, Charles DeQueljoe, 
within the Clinton administration.\49\ However, DeQueljoe, 
unlike James Riady, is a naturalized U.S. citizen who lived in 
Jakarta at the time he sought a position on a commission. 
Although Riady did not serve on any commissions or advisory 
committees, DeQueljoe became a member of the Investment and 
Services Policy Advisory Committee (``INSPAC'') of the U.S. 
Trade Representative.\50\
---------------------------------------------------------------------------
    \49\ DeQueljoe Deposition at 61-63.
    \50\ John Huang, at the instruction of James Riady, assisted 
DeQueljoe in attaining his position on the Investment and Services 
Policy Advisory Committee (``INSPAC''). DeQueljoe lived in Jakarta 
while he served, and flew to Washington, DC, to attend the meetings. 
However, DeQueljoe was only able to attend three of the meetings held 
by INSPAC. DeQueljoe Deposition at 82, 88; Memo to Jerry Stern from 
John Huang, undated (Exhibit 11).
---------------------------------------------------------------------------
    Huang worked to secure the INSPAC position for 
DeQueljoe.\51\ James Riady steered DeQueljoe toward John Huang 
for assistance because Huang was ``well-regarded within the 
Democratic Party and that he had a number of good relationships 
and contacts within the Democratic Party.'' \52\ James Riady 
had encouraged DeQueljoe to contribute to the campaign if he 
wanted to be noticed in his endeavor to attain a position in 
the administration.\53\ Huang then advised DeQueljoe to 
contribute $50,000 to the DNC at the end of November 1993.\54\ 
After taking both Riady and Huang's advice, DeQueljoe was 
selected for the INSPAC position.
---------------------------------------------------------------------------
    \51\ DeQueljoe depended solely on Huang to acquire a commission 
position. At the time he was appointed to INSPAC, DeQueljoe was living 
in Jakarta, Indonesia. DeQueljoe testified that he had not interviewed 
with anyone in the administration. The only individual in the 
administration with whom he spoke about an appointment was Debbie Shon. 
Huang had introduced DeQueljoe to Shon during the APEC summit in 
Seattle in 1993. During his deposition, DeQueljoe was asked, ``When you 
were seeking a position within the Clinton administration, had you 
contacted anyone without Huang's assistance?'' He answered, ``No, I did 
not.'' DeQueljoe Deposition at 66, 69-70.
    \52\ DeQueljoe Deposition at 23.
    \53\ DeQueljoe Deposition at 29.
    \54\ DeQueljoe Deposition at 28.
---------------------------------------------------------------------------

      B. Lippo Hires Friends and Former Employees of the Clinton 
                             Administration

    Upon President Clinton's election, many friends and 
associates of the new President saw an opportunity to further 
their own interests by trading on access to his administration. 
Similarly, many of Clinton's friends followed him to Washington 
to find jobs within the new administration. Having spent time 
in Arkansas, both James Riady and John Huang knew officials at 
all levels of the administration. In addition, Lippo hired 
individuals with ties to the Clintons and contacts within the 
administration.
    Shortly after the election, in Apr. 1993, C. Joseph Giroir, 
a former law partner of First Lady Hillary Rodham Clinton, 
incorporated the Arkansas International Development Corporation 
(``AIDC'').\55\ AIDC was initially capitalized by funding from 
the Lippo Group.\56\ The purpose of AIDC was to develop 
projects or joint ventures for the Lippo Group.\57\ In 1995, 
Giroir and Lippo formed a limited liability company, also 
referred to as AIDC.\58\ Through the corporation, the Riadys 
paid Giroir a salary of between $350,000 and $600,000 with 
bonuses.\59\ Similar to the Riadys, Giroir was a major 
contributor to the DNC. In 1996 alone, Giroir contributed close 
to $200,000 in conjunction with fundraisers organized by John 
Huang.\60\
---------------------------------------------------------------------------
    \55\ Deposition of C. Joseph Giroir, Jr., Senate Governmental 
Affairs Committee, Apr. 30, 1997 at 15 (hereinafter ``Giroir 
Deposition'').
    \56\ Giroir testified that the Lippo Group advanced Giroir $50,000 
which he used as the initial capitalization of the company. Giroir 
Deposition at 15-16.
    \57\ Giroir Deposition at 17-18.
    \58\ Giroir testified that originally he was paid ``roughly a 
couple hundred thousands dollars [sic] a year in fees'' by AIDC-1. In 
1995, he was then paid ``roughly $500,000'' per year from AIDC-2. In 
each instance, a Lippo subsidiary was paying the salary. Giroir 
Deposition at 17.
    \59\ Giroir Deposition at 17-19.
    \60\ Giroir Deposition at 158-159, 167.
---------------------------------------------------------------------------
    In late 1995, around the time that Giroir and Lippo 
incorporated the second AIDC, Giroir hired former White House 
staffer Mark Middleton.

1. Mark Middleton

    Mark Middleton was a Special Assistant to the President and 
Deputy to Counselor Mack McLarty before resigning his position 
in February 1995.\61\ He had also been a fundraiser for the 
1992 Clinton campaign, raising $4 million in Arkansas 
alone.\62\ While Middleton was an employee of the White House, 
James Riady and John Huang visited him frequently.\63\ In July 
1995, Middleton was retained by the Riady funded AIDC and paid 
$12,500 per month.\64\ As a consultant, Middleton was supposed 
to seek out businesses looking for opportunities in the Asian 
market, particularly joint venture partners for Lippo 
entities.\65\ Between July 1995 and April 1997, Middleton was 
paid his monthly retainer yet delivered no finalized venture 
contracts.\66\
---------------------------------------------------------------------------
    \61\ White House Document EOP 068500.
    \62\ Eliza Newlin Carney and Peter H. Stone, Blind Ambition, 
National Journal, June 7, 1997, at 1123.
    \63\ White House Document Production EOP 004522-526 (summary of 
John Huang WAVES records prepared by White House); White House Document 
production EOP 055316-318 (summary of James Riadys WAVES records 
prepared by the White House).
    \64\ Giroir Deposition at 233-234.
    \65\ Giroir Deposition at 229-234.
    \66\ Giroir testified that at the time of the deposition in Apr. 
1997, there was one contract that Middleton brought to AIDC that was 
under negotiations, but not finalized. Therefore Middleton was paid at 
least $262,000 by the Riadys in that time period, but produced no joint 
venture partners. Giroir Deposition at 234.
---------------------------------------------------------------------------
    In addition to his other projects, Middleton arranged 
meetings and completed other tasks directly for James Riady. 
Mr. Middleton invoked his Fifth Amendment right against self 
incrimination in response to a Committee subpoena, therefore 
the Committee was unable to ask him about his work for the 
Riadys.\67\ However, former Lippo officer Charles DeQueljoe 
stated that although he was not aware of the precise work 
Middleton was doing, ``from time to time I would overhear 
conversations where people would be contacting Mark to ask Mark 
for that information or ask Mark for this, something like 
that.'' \68\
---------------------------------------------------------------------------
    \67\ Letter to Chairman Dan Burton from Robert D. Luskin, attorney 
to Mark Middleton, Feb. 27, 1997 (asserting Middleton's fifth amendment 
privilege against self incrimination with respect to the Committee 
subpoena).
    \68\ DeQueljoe Deposition at 134.
---------------------------------------------------------------------------
    Soon after leaving the White House, and while working at 
International Realty Investors,\69\ Middleton took a trip to 
Asia.\70\ During the trip, Middleton received a message from 
his assistant, ``[a]lso, Larry [Middleton] spoke with Johnny 
Huang who said that you need to get your itinerary to the Riady 
Group [sic]. They want to `take care of you' while you are in 
Hong Kong--have a car meet you at the airport, etc. . . ..'' 
\71\ The Riadys also took care of Middleton while he was in 
Jakarta, where he stayed at the Riadys' hotel.\72\ Although he 
had already resigned his White House position, Middleton passed 
out his White House business cards while on the trip. He 
requested that his assistant send the business cards to his 
brother, Larry Middleton, who would be joining him on the 
trip.\73\ Until October 1996, there was a message on 
Middleton's old White House voice mail which advised callers of 
his new phone number.\74\
---------------------------------------------------------------------------
    \69\ International Realty Investors [IRI] was a company privately 
owned by Steven J. Green. Green met Middleton through his work at the 
White House. Before starting work with IRI, Green was aware that 
Middleton would make one trip to Asia. The trip was supposedly to let 
some of Middleton's contacts know that he was now in the private 
sector, and look for some business opportunities to bring back to 
Green. After working for Green for several months, Middleton decided 
that he wanted to take on consulting clients of his own, and have Green 
as a client rather than an employer/employee relationship. The 
relationship never worked out, and Middleton soon began his own 
business, CommerceCorp International. Middleton signed a contract with 
AIDC before he left IRI. Interview with Stephen J. Green, Committee on 
Government Reform and Oversight, Mar. 10, 1998.
    \70\ Middleton left for an Asia tour on Mar. 20, 1995, he traveled 
to Beijing, Hangzhou, Shanghai, Hong Kong, Macao, Taiwan, Jakarta and 
Brunei. Gould Document Production 0265.
    \71\ Gould Document Production 0053.
    \72\ Middleton wrote a memorandum to Jose Hanna of the Lippo Group: 
``I will be arriving in Jakarta on Wednesday, Apr. 5th . . . I am 
writing to find out the hotel arrangements you have made for me in 
Jakarta and if you have set up a meeting for me with Mr. Bakrie.'' 
Gould Document Production 0059; 0062.
    \73\ Middleton's assistant confirmed that she had sent the cards in 
a fax, ``I fedexed your White House cards to Larry.'' Gould Document 
Production 0060.
    \74\ Deposition of Yusuf Khapra, Government Reform and Oversight 
Committee, Aug. 12, 1997, at 99 (hereinafter ``Khapra Deposition''); 
White House Bulletin, Oct. 31, 1996, at 2.
---------------------------------------------------------------------------
    Middleton had regular contacts with John Huang, who was 
then working at the Commerce Department.\75\ In addition, in 
this same timeframe, Middleton was visiting the White House 
quite frequently. His former intern Yusuf Khapra would admit 
him to the White House:
---------------------------------------------------------------------------
    \75\ See generally Commerce Department Production of John Huang's 
Phone Logs; Gould Document Production, Middleton's Phone Messages.

        Generally, cases where I cleared him in and I listed 
        myself as the visitee, he--it would often be because he 
        wanted to sort of, you know, work the halls, and meet a 
        number of different people, drop by on a number of 
        different offices and didn't have a specific meeting 
        set with anyone.\76\
---------------------------------------------------------------------------
    \76\ Khapra Deposition at 99.

    It is unclear what Middleton was doing during his visits to 
the White House. However, he organized many White House tours 
and lunches for what appear to be his clients. In addition, he 
was able to schedule meetings for clients with the President 
and First Lady.\77\ Although the Committee does not have much 
information on Middleton's duties relating to the Lippo Group, 
it is aware of at least one meeting with the President which 
Middleton arranged for James Riady.
---------------------------------------------------------------------------
    \77\ The First Lady's Oct. 30, 1995 schedule lists meetings with 
Nina Wang, of Hong Kong, and Mark Middleton and later Mark Middleton 
with the Widjaja family of Indonesia. White House Document Production 
EOP 020356. On Nov. 2, 1995 Middleton arranged for the Widjajas to have 
their photo taken with President Clinton. EOP 0585027-533 (Schedule of 
the President). During the Widjajas visit to the United States, 
Middleton also arranged for them to meet with Don Fowler on Nov. 1, 
1995. Fowler's schedule notes: the Widjaja family is one of the 
wealthiest and most successful families in Indonesia; Mark Middleton 
will discuss their giving potential at a later date. [Emphasis added] 
DNC 302227.
---------------------------------------------------------------------------
    In September 1996, Middleton contacted Mack McLarty about 
arranging a meeting between the President and James Riady:

        As I remember, Mr. Middleton called me and related that 
        Mr. Riady and the President had had a visit at some 
        earlier meeting that I was not in attendance, and they 
        did not complete their conversation, according to Mr. 
        Middleton, and that the President had asked Mr. Riady 
        to arrange an appointment with him to finish their 
        conversation. And Mr. Middleton is asking me to follow 
        up on the President's request, making me aware of the 
        President's request.\78\
---------------------------------------------------------------------------
    \78\ Deposition of Thomas F. ``Mack'' McLarty, House Committee on 
Government Reform and Oversight, Sept. 5, 1997 at 185-186 (hereinafter 
``McLarty Deposition'').

    Middleton then sent McLarty a cryptic memorandum referring 
to a ``meeting participant,'' \79\ which McLarty confirmed was 
about scheduling a meeting with James Riady.\80\ James Riady 
arrived in Washington on September 8, 1996 and checked into the 
Hay Adams Hotel under the care of Mark Middleton.\81\
---------------------------------------------------------------------------
    \79\ It is important to note that the White House never produced 
this document, even though McLarty recognized it as a document he 
received. However, Mark Middleton's company, CommerceCorp, produced it 
in response to a Committee subpoena. CommerceCorp Document Production 
CC-H-000157 (Exhibit 17).
    \80\ Mack McLarty told Middleton to contact Nancy Hernreich about 
setting up a meeting for Riady; McLarty would inform Hernreich ahead of 
time. McLarty testified, ``I told [Hernreich] that Mr. Middleton may be 
calling her about an appointment for James Riady; that, as I understood 
it, the President had requested to see Mr. Riady to complete a 
conversation they had had at some earlier point in time.'' Hernreich 
then asked Bruce Lindsey to inquire whether the President would like to 
meet with Riady. According to Lindsey, he asked the President, and the 
President agreed. McLarty Deposition at 185-186, 188-189; Deposition of 
Bruce R. Lindsey, House Government Reform and Oversight Committee, 
Sept. 8, 1997 at 211 (hereinafter ``Lindsey Deposition'').
    \81\ Hay Adams Hotel documents show that Middleton paid for Riady's 
accommodations on his corporate credit card. Hay Adams Hotel Documents 
(unnumbered).
---------------------------------------------------------------------------
    On September 9, 1996, the President, Riady, Middleton and 
Bruce Lindsey met. Bruce Lindsey, the only individual available 
for questioning about the meeting, described the following:

        They discussed, again, they talked about social sort of 
        things, family, what they were doing. James asked the 
        President, made some comment to the President about 
        how--had he given any thought to what he was going to 
        do after he was President because he'd be so young. . . 
        . James said something as he was leaving to the effect 
        of I think you made the right decision on MFN [Most 
        Favored Nation trading status] and I hope you will stay 
        engaged in China.\82\
---------------------------------------------------------------------------
    \82\ Lindsey Deposition at 218-219.

    The Riady family had consistently shown an interest in 
China and MFN status. At the time of the meeting, the Lippo 
Group had engaged in an expansion of their business into China, 
in particular, forming a partnership with China Resources 
Company. Shortly after President Clinton took office, Mochtar 
Riady wrote to Clinton, advocating among other things, MFN 
status for China.\83\
---------------------------------------------------------------------------
    \83\ The letter also thanks Clinton for the personal time he spent 
with the Riady family on Inauguration day 1993. White House Document 
Production EOP 003036-003039 (Exhibit 18).
---------------------------------------------------------------------------
    It should be noted that the ethnic-Chinese Riady family's 
business was very closely tied to the MFN trading privilege for 
China, and the development of the Asian markets generally.\84\ 
The Riadys made contributions toward then-candidate Clinton's 
election even though at that time Clinton was linking the grant 
of MFN privilege for China to human rights issues.\85\ In fact, 
candidate Clinton criticized President Bush for his stance on 
MFN to China.\86\ However, after taking office President 
Clinton softened his position on MFN, and ultimately approved 
MFN for China in May 1993.\87\ By 1994, President Clinton 
completely de-linked China's MFN trading privilege from its 
human rights record.\88\ While many would certainly argue that 
there are sound policy reasons for the extension of MFN status 
for China, President Clinton is one of the rare politicians to 
have dramatically altered his position on this controversial 
issue.
---------------------------------------------------------------------------
    \84\ Choi Hak Kim, Mochtar Riady, A Man of Insight, Forbes (Chinese 
Language Edition), Oct. 1993.
    \85\ David Lauter, Clinton Blasts Bush's Foreign Policy Record, 
L.A. Times, Aug. 14, 1992, at A1.
    \86\ Id.
    \87\ Jim Mann, Clinton Ties China's Trade in Future to Human 
Rights, Asia: He Extends Favored-Nation Status, L.A. Times, May 29, 
1993, at A1.
    \88\ John M. Broder and Jim Mann, President De-links Most Favored 
Nation Privilege from Human Rights, L.A. Times, May 27, 1994.
---------------------------------------------------------------------------
    On matters relating to Indonesia, Mark Middleton assisted 
the Riadys as well. Not only did he organize a meeting with 
President Clinton, Middleton also spoke with President Soeharto 
of Indonesia on behalf of the Riady family.\89\ In an October 
1995 letter to James Riady, Middleton wrote, ``On two separate 
occasions, I spoke to President Soeharto and mentioned how 
helpful you have been to him here in Washington. He certainly 
seemed to be very appreciative of your efforts.'' \90\ 
Middleton appears to have served two separate functions for the 
Riady family, taking care of both political and business 
interests.
---------------------------------------------------------------------------
    \89\ CommerceCorp Document Production CC-H-000484-487 (Exhibit 19).
    \90\ Exhibit 19.
---------------------------------------------------------------------------

2. Webster Hubbell

    Before the Riadys brought on Mark Middleton, they had hired 
another Clinton administration figure, former Associate 
Attorney General Webster Hubbell, who was also a Rose law firm 
partner of Hillary Clinton. Hubbell resigned from his position 
with the Justice Department in April 1994, citing a dispute 
with his former law partners at the Rose Law Firm.\91\ James 
Riady hired Hubbell in June 1994, after his resignation from 
the Department of Justice that April.\92\ Hubbell was paid a 
lump sum of $100,000 for unknown services performed between 
June 27, 1994 and December 6, 1994.\93\ The hiring occurred 
around the same time as John Huang finally was approved for a 
position at the Department of Commerce.
---------------------------------------------------------------------------
    \91\ Hubbell's legal problems were first disclosed by the 
Washington Post on Mar. 2, 1994. Hubbell officially announced his 
resignation from the Department of Justice on Mar. 14, 1994 and 
formally resigned on Apr. 8, 1994. Susan Schmidt, Law Firm Probing 
Hubbell, the Washington Post, Mar. 2, 1994 at A1; Justice Aide Leaves 
Today, New York Times, Apr. 8, 1994 at A6.
    \92\ Hearing on the Improper Handling of Documents in Deputy White 
House Counsel Vincent Foster's Office after His Death Before the Senate 
Special Committee to Investigate the Whitewater Development Corporation 
and Related Matters, 104th Cong., 2d sess., 242-244 (1996) (testimony 
of Webster Hubbell).
    \93\ Both Riady and Hubbell refuse to describe what services, if 
any, Hubbell performed. In addition to his salary, the Lippo Group also 
paid for a trip to Jakarta and Bali for Hubbell and his wife. 
Deposition of Webster L. Hubbell, Senate Select Committee on Whitewater 
Development Corp. and Related Matters, June 4, 1996, at 103-124; 
NationsBank account records for Webster Hubbell (Exhibit 20); Hip Hing 
Holdings Document Production HHH 1415 (Exhibit 21).
---------------------------------------------------------------------------
    The timing of Hubbell's hiring raised concerns, as it came 
on the heels of an Oval Office meeting between James Riady, 
John Huang and Arkansan Mark Grobmyer.\94\ Soon after Hubbell 
had resigned from the Department of Justice, he became a target 
of the Office of Independent Counsel's Whitewater 
investigation. Hubbell was allegedly cooperating with 
prosecutors after he left Justice, but by the summer of 1994 
all cooperation had ceased.\95\ At the same time, numerous 
friends and associates of the President hired Hubbell as a 
``consultant,'' although he performed little, if any work for 
all of the employers.\96\ However, by December 1994, Hubbell 
pleaded guilty to charges of tax evasion and mail fraud related 
to his work at the Rose Law Firm. After the guilty plea, 
Hubbell was relieved of the majority of his consulting work, 
but only after he was paid over $700,000. In the spring of 
1995, Hubbell approached Mark Middleton to ask whether the 
Riadys would keep him on the payroll as he prepared to enter 
prison.\97\ According to Middleton's attorney, Middleton told 
Hubbell that he would have to ask James Riady or John 
Huang.\98\ At the time, Huang was working at the Commerce 
Department, not for the Riadys.
---------------------------------------------------------------------------
    \94\ During the week of June 21-25, 1994, James Riady and John 
Huang attended several meetings at the White House. At the time, Huang 
was scheduled to receive a Presidential appointment at the Department 
of Commerce. On June 23, 1994, Riady, Huang and Mark Grobmyer met with 
the President at 10 a.m. Before the meeting with the President, Riady 
had a 7:30 a.m. breakfast with Webb Hubbell at the Hay Adams Hotel, 
where Riady was staying. Directly after the meeting with the President, 
Riady had lunch with Hubbell, again at the Hay Adams Hotel. The 
$100,000 wire transfer was in Hubbell's account by June 27, 1994. DOT 
0084B (June 23, 1994 Calendar of Webster Hubbell); see EOP 055316-318 
(WAVES Summary of James Riady).
    \95\ Stephen Labaton & Jeff Gerth, Asian Paid $100,000 to Hubbell 
Days After Visits to White House, New York Times, Mar. 20, 1997 at A1.
    \96\ After leaving Justice, Hubbell received over $700,000 from 
friends and associates of President Clinton while he was allegedly 
cooperating with the Independent Counsel.
    \97\ Jeff Gerth and Stephen Labaton, A Wider Circle at White House 
Knew of Efforts to Help Hubbell, New York Times, Apr. 10, 1997, at A1.
    \98\ Id.
---------------------------------------------------------------------------
    During the investigation of campaign financing matters, all 
of the payments to Hubbell came to light due to the connection 
to James Riady. The Committee soon discovered that there was an 
effort within the Clinton administration, of which the 
President and First Lady were aware, to find work for 
Hubbell.\99\ Mack McLarty had planned to write a memo to the 
President and First Lady, ``to let them know that I had been 
supportive of Webb and the transition, while difficult, was not 
going to be just completely an impossible one.'' \100\ 
Ultimately McLarty says he did not write a memo, rather, he 
told the President or First Lady in person about prospects for 
Hubbell.\101\ However, Hubbell has denied that the Riady 
payment or any other money he received from friends of the 
President affected his cooperation with the Independent 
Counsel.\102\
---------------------------------------------------------------------------
    \99\ In fact, a senior administration official was quoted in the 
press as saying, ``taking care of Webb became like petting the new 
bunny, if you wanted to show the President you were supportive, this 
was a good way to do it: pet the bunny.'' David Willman, Efforts on 
Hubbell's Behalf May Be a Key to Whitewater Inquiry, L.A.. Times, Apr. 
6, 1997 at A1; Deposition of Thomas F. ``Mack'' McLarty, House 
Government Reform and Oversight Committee, Sept. 5, 1997 at 56-60 
(hereinafter ``McLarty Deposition'').
    \100\ McLarty Deposition at 103-104.
    \101\ Id. at 104.
    \102\ Stephen Labaton & Jeff Gerth, Asian Paid Hubbell $100,000 
Days After Visits to White House, New York Times, Mar. 20, 1997 at A1.
---------------------------------------------------------------------------
    Unfortunately, the Committee has been unable to receive 
testimony from Hubbell on the payments, as he invoked his Fifth 
Amendment right against self-incrimination in response to 
Committee inquiries on the matter.\103\ Likewise, James Riady 
and John Huang, the two individuals who may also have knowledge 
of the terms of Hubbell's Lippo employment, have refused to 
cooperate with the Committee. An associate of James Riady told 
the media that Riady explained, ``Mr. Hubbell was our very 
close friend, when he left [the Justice Department], we felt we 
should help him out. We didn't like to see him without a source 
of income.'' \104\
---------------------------------------------------------------------------
    \103\ Doug Buford, who did legal work for the Riady family, 
testified about Hubbell's interest in working for the Lippo Group: Webb 
called me, after he left Justice, and we were talking, I don't recall 
when, but at some point after he left Justice, and, you know, we were 
talking about what he was doing and where he was going to work and 
stuff like that, and he asked me--told me he was doing consulting work 
and asked me if I thought the Lippo Group would be able to use him or 
whether he could work for them or not.'' Buford called John Huang and 
told him of Hubbell's interest. Buford testified that he was careful to 
inform Huang that he was placing the call on his own and had not 
discussed it with anyone at the White House. When asked if he thought 
there would be a different response if the information came from the 
White House, Buford replied, ``I didn't know, but I didn't want to be 
party to any confusion.'' Deposition of C. Douglas Buford, Jr., House 
Government Reform and Oversight Committee, Oct. 23, 1997 at 53-54.
    \104\ Peter Waldman, East Meets West: By Courting Clinton, Lippo 
Gains Stature at Home in Indonesia, Wall Street Journal, Oct. 16, 1996, 
at A1.
---------------------------------------------------------------------------
    It is clear that the Riadys, themselves and through 
employees, not only financially supported Clinton and the DNC 
during the 1992 campaign, but also hired individuals close to 
the Administration. Although James and Mochtar Riady were not 
living in the United States, John Huang coordinated the 
contributions made by Lippo related individuals and 
entities.\105\ After President Clinton was elected in 1992, the 
Riadys and Huang remained in contact with him, making frequent 
visits to the White House as well.
---------------------------------------------------------------------------
    \105\ For a detailed explanation of all contributions, see 
generally Chapter 3, II. In addition, another Lippo executive who was 
based in Jakarta, Jose Hanna, solicited contributions for U.S. 
elections from Lippo employees abroad. It is not clear whether all 
individuals who contributed were United States citizens. DeQueljoe 
Deposition 36-37, 141.
---------------------------------------------------------------------------

     IV. Huang and Riady's Contacts With the Clinton Administration

                          A. General Contacts

    Both the Riady family and John Huang had unusual access to 
the President, the White House, and the administration in 
general. In total, James Riady visited the White House compound 
on at least 20 occasions between April 1993 and September 
1996.\106\ During approximately the same time period, March 
1993 through October 1996, John Huang visited the White House 
over 95 times.\107\ Some of these visits, for both Huang and 
Riady, included visits with the President. Their contacts with 
the President and high level administration officials even 
extended to international events and meetings abroad. The 
Riadys' access is unusual for foreign nationals, even though 
they were also major DNC contributors.
---------------------------------------------------------------------------
    \106\ The total is according to Workers and Visitors Entry System 
Records [WAVES] logged by the Secret Service. James Riady's name showed 
up on 25 occasions for which he was scheduled to be admitted to the 
White House compound. However, there were only 20 occasions for which 
there was a ``time of arrival'', meaning that Riady actually was logged 
through the gate. Generally, there are also manners in which one also 
can get into the compound without being ``waved'' in by a White House 
staffer. The Committee is aware of two instances where James Riady 
entered the White House compound without creating a record, on June 25 
and Sept. 10, 1994. White House Document Production EOP 055316-318.
    \107\ The Committee is unable to determine what occurred during the 
majority of Huang's visits as he has invoked his fifth amendment right 
against self incrimination. Many of Huang's visits were made to Special 
Assistant to the President and Deputy to the Counselor Mark E. 
Middleton. Mr. Middleton also invoked the fifth amendment in response 
to Committee subpoenas. In addition, many witnesses could not remember 
anything about Huang's visits. White House Document Production EOP 
004522-526.
---------------------------------------------------------------------------
    On many occasions when James Riady visited the White House, 
John Huang accompanied him.\108\ Riady was granted private 
meetings with the President on several occasions as well. For 
instance, the entire Riady family was invited to the 1993 
Inaugural events and met privately with President and Mrs. 
Clinton.\109\ Subsequently, James Riady attended at least two 
of President Clinton's Saturday Morning Radio Addresses, along 
with Huang and family members.\110\ After the June 24, 1994, 
Radio Address President Clinton invited Riady and his family to 
remain, ``Just sit everybody down, wherever you want them 
James.'' \111\ That June 1994, Riady and Huang were at the 
White House on several occasions, not only meeting with 
President Clinton, but with White House staff as well. These 
visits occurred a month before Huang assumed his position at 
the Commerce Department, but also coincided with Riady's hiring 
of Webster Hubbell.\112\
---------------------------------------------------------------------------
    \108\ White House Document Production EOP 055316-318 (summary of 
James Riady's WAVES records); White House Document Production EOP 
004522-526 (summary of John Huang WAVES records).
    \109\ Exhibit 18.
    \110\ White House Document Production EOP 055316-318 (summary of 
James Riady's WAVES records); White House Document Production EOP 
004522-526 (summary of John Huang WAVES records).
    \111\ White House Communications Agency videotape of June 24, 1994 
Saturday Morning Radio Address.
    \112\ For further discussion of Webster Hubbell's employment with 
the Lippo Group, see infra III, B, 2.
---------------------------------------------------------------------------
    Soon after the 1992 election, and even before the 
inauguration, Huang contacted President-elect Clinton's nominee 
for Commerce Secretary, Ron Brown, about arranging a meeting 
with Mochtar Riady, father of James Riady and Chairman of the 
Lippo Group.\113\ An internal Commerce Department communication 
recommended that Brown accept the meeting:
---------------------------------------------------------------------------
    \113\ Letter to Ronald H. Brown from John Huang, January 7, 1993 
(Exhibit 22).

        Yes, Lippobank [sic] is a major banking firm in Asia--
        over \1/2\ billion in assets--also headquartered in US 
---------------------------------------------------------------------------
        in NY with office throughout the US.

        John Huang took Pres. Clinton to Hong Kong in 1985 with 
        an Arkansas Trade Delegation and was very active in 
        92.\114\
---------------------------------------------------------------------------
    \114\ Scheduling Recommendation Office of the Secretary/Executive 
Secretariat 1/29/93 (Exhibit 23).

    Later that year, Huang and Mochtar Riady requested that 
Commerce Secretary Brown meet with Shen Jueren, Chairman of 
China Resources and a major partner of the Lippo Group.\115\ In 
late 1992, China Resources purchased 15 percent of the Lippo 
owned Hong Kong Chinese Bank.\116\ China Resources subsequently 
infused the failing LippoLand with tens of millions of dollars, 
effectively bailing the Riady family out of a precarious 
financial situation.\117\ Since 1993, the Lippo Group and China 
Resources entered into dozens of joint venture projects in the 
People's Republic of China.\118\
---------------------------------------------------------------------------
    \115\ China Resources is a Chinese Government owned company which 
is a joint venture partner with the Lippo Group and partner in the 
Lippo controlled Hong Kong Chinese Bank. Letter to Ronald H. Brown from 
John Huang, Sept. 10, 1993 (Exhibit 24).
    \116\ Investigation on Illegal or Improper Activities in Connection 
with the 1996 Federal Election Campaign--Part II Before the Senate 
Committee on Governmental Affairs, 105th Cong., 1st sess., at 29 
(testimony of Thomas R. Hampson, president of Search International, 
regarding the Lippo Group).
    \117\ Id.
    \118\ Id.
---------------------------------------------------------------------------
    At the time the meetings for Shen Jueren were requested, 
China Resources was becoming one of Lippo's most important 
partners. During the same visit to the United States, Huang and 
Riady also organized a meeting between Vice President Gore and 
Shen Jueren as well.\119\ Huang wrote to Vice President Gore's 
then-Chief of Staff Jack Quinn, thanking Quinn for meeting with 
Shen Jueren and noting a meeting between him and Gore. Quinn 
had no recollection of ever meeting Shen Jueren, nor did he 
recall the letter from Huang.\120\
---------------------------------------------------------------------------
    \119\ White House Document Production EOP 049490 (Exhibit 25).
    \120\ Deposition of Jack Quinn, Government Reform and Oversight 
Committee, Nov. 4, 1997 at 23.
---------------------------------------------------------------------------

                    B. 1993 APEC Meeting in Seattle

    The Riady family was able to show off its close ties to 
President Clinton during the 1993 Asian Pacific Economic 
Cooperation (``APEC'') summit in Seattle, Washington. Lippo 
organized a group of Indonesian businessmen to visit Little 
Rock, Arkansas before the summit.\121\ The group of 
Indonesians, along with James Riady, then traveled with a group 
of Arkansas businessmen to the APEC summit in Seattle.\122\ A 
sister-state agreement between Arkansas and Indonesia was to be 
signed at a ceremony during the APEC summit, and James Riady 
planned to have President Clinton and President Soeharto 
attend.\123\ However, the White House staff had concerns about 
the President's participation in such an event, as noted in a 
letter from Joe Giroir to James Riady:
---------------------------------------------------------------------------
    \121\ Arkansas International Development Corp. Document Production 
005381-383 (Exhibit 26).
    \122\ DeQueljoe Deposition at 98-99.
    \123\ Exhibit 26.

        Mack [McLarty] and Mark Middleton indicated that it 
        will be a determination made by the Director of 
        National Security; and that the human rights 
        controversy surrounding East Temor [sic] may be an 
        impediment that will have to be overcome. I note that 
        Doug Bufford [sic] is speaking with Bruce Lindsey about 
        this, this week; John Huang has spoken directly to the 
        President and the President has indicated, in general, 
        that he is agreeable to do it. . . .\124\
---------------------------------------------------------------------------
    \124\ Id. [Emphasis added].

    Ultimately, during the 1993 APEC, President Clinton did 
meet with President Soeharto, along with James Riady, over the 
objection of his staff.\125\ Joe Giroir, who assisted in 
organizing the Indonesia delegation, noted that Bruce Lindsey 
was ``mad'' that President Clinton attended the meeting.\126\ 
However, Lindsey did not recall that particular Soeharto 
incident. He did state:
---------------------------------------------------------------------------
    \125\ Giroir Deposition at 186; DeQueljoe Deposition at 104-105.
    \126\ Giroir Deposition at 187.

        I learned that there was a photo op at some time prior 
        to us going to Tokyo [for the G-7 summit], and there 
        was a question as to whether or not--during that photo-
        op they raised with the President whether or not he was 
        going to meet with Suharto.\127\
---------------------------------------------------------------------------
    \127\ Lindsey Deposition at 52.

    The President did meet briefly with Soeharto during a G-7 
Summit in Tokyo in July 1993.\128\ After the Summit, President 
Clinton added a handwritten message in a letter to James Riady, 
that he had enjoyed his visit with Soeharto.\129\
---------------------------------------------------------------------------
    \128\ Associated Press, Clinton, Suharto Discuss East Timor Human 
Rights Problems, July 7, 1993.
    \129\ White House Document 930728 (Exhibit 27).
---------------------------------------------------------------------------

                    C. 1994 APEC Meeting in Jakarta

    The 1994 APEC summit was held in Jakarta, Indonesia. James 
Riady initially planned to host a group of Arkansans during the 
summit, paying for their airfare and hotel expenses.\130\ Riady 
and Joe Giroir drafted a list of individuals to be invited, 
including former Associate Attorney General Webster Hubbell, 
who was then under investigation by the Whitewater Independent 
Counsel.\131\
---------------------------------------------------------------------------
    \130\ Arkansas International Development Corp. [AIDC], a company 
controlled by Joe Giroir, issued invitations on his and Riady's behalf. 
Arkansas International Development Corp. Document Production AIDC 
005142-5143 (Exhibit 28). Exhibit 28 is representative of the 
invitations sent to invited individuals. Douglas Buford testified that 
after he received his invitation, he contacted the travel agency, which 
informed him that the hotel and air fare was already paid. Deposition 
of C. Douglas Buford, Committee on Government Reform and Oversight, 
Oct. 23, 1997 at 47-48; see also DeQueljoe Deposition at 132.
    \131\ White House Document Production EOP 020359 (Exhibit 29).
---------------------------------------------------------------------------
    The list of invitees was sent from the Lippo Group to John 
Huang, who was then employed by the Commerce Department.\132\ 
Somehow, the White House came into possession of the list of 
individuals invited by James Riady to the Jakarta summit.\133\ 
No one at the White House is able to recall how the memorandum 
arrived there. Although the logical answer is that the memo was 
sent by John Huang or someone from the Lippo Group to the White 
House, someone else may have brought it to the attention of the 
White House. Nevertheless, once informed of the plan, the White 
House staff held meetings to discuss whether it should go 
forward. Mack McLarty described the topic of the meetings as, 
``whether or not it was a good idea for this Arkansas 
delegation to attend the APEC conference in Indonesia.'' \134\
---------------------------------------------------------------------------
    \132\ Exhibit 29 is dated Sept. 21, 1994 and John Huang began 
working at the White House on July 18, 1994. Jose Hanna, the author of 
the memo, is a Lippo employee.
    \133\ Exhibit 29.
    \134\ White House staff attending the meetings included Mack 
McLarty, Bruce Lindsey, Nancy Hernreich, Marsha Scott and John Podesta. 
Deposition of Thomas F. ``Mack'' McLarty, House Government Reform and 
Oversight Committee, Sept. 5, 1997 at 176-178 (hereinafter ``McLarty 
Deposition'').
---------------------------------------------------------------------------
    Eventually the White House did intervene through Deputy 
Counsel Bruce Lindsey, and request that Riady cull down his 
list of invitees.\135\ Lindsey contacted the Riadys' attorneys 
in Arkansas, Doug Buford and John Tisdale of Lindsey's former 
law firm.\136\ Through a set of intermediaries, the list was 
shortened to only essential individuals acceptable to the White 
House.\137\ According to Mack McLarty the issue for the White 
House was, ``whether there would be any appearance concerns, 
appearance matters raised. I don't believe other states were 
going to have any representations [sic] there.'' \138\ This 
answer was puzzling considering that the Arkansas and Indonesia 
delegations traveled to APEC together the prior year without 
incident, and there was a sister-state agreement between the 
two as well.
---------------------------------------------------------------------------
    \135\ Lindsey Deposition at 93-96; Deposition of C. Douglas Buford, 
Government Reform and Oversight Committee, Oct. 23, 1997 at 10, 45, 59 
(hereinafter Buford Deposition).
    \136\ Lindsey Deposition at 93-96; Buford Deposition at 10, 45, 59.
    \137\ Buford testified that Lindsey contacted him about the list, 
and in turn, Buford contacted Joe Giroir. Eventually, Joe Giroir called 
Buford back with a shorter list. Buford communicated that list to 
Lindsey. Lindsey Deposition at 93-96; Buford Deposition at 10, 45, 59
    \138\ McLarty also testified that at some point John Podesta may 
have also raised some concerns about Webster Hubbell attending: ``. . . 
might raise an appearance issue that would be reported on by the 
press.'' McLarty Deposition at 176-178.
---------------------------------------------------------------------------
    In the end, the White House prevailed, and the majority of 
the invitees did not attend. Bruce Lindsey wrote a memorandum 
to Mack McLarty and John Podesta informing them that the list 
had been cut back and justifying certain persons' 
attendance.\139\ Lindsey then noted, ``James Riady and his 
father would like to have the opportunity to visit briefly with 
President Clinton in the hotel during the visit. James has been 
reasonable in culling the list, and I think we should try to 
schedule a 15 minute meeting for them.''\140\
---------------------------------------------------------------------------
    \139\ The memo notes that Lindsey spoke with John Tisdale and Doug 
Buford about APEC. White House Document Production EOP 030679 (Exhibit 
30). Buford testified that he wanted to attend APEC, and explained his 
conversation with Lindsey:

        A: . . . we talked about that and whether it was a good 
      idea for me to go in my capacity as a chamber 
      representative, you know, and he eventually said no.
        Q: He asked you not to go?
        A: Yes.

Buford Deposition at 47.
---------------------------------------------------------------------------
    \140\ Exhibit 30.
---------------------------------------------------------------------------
    The Riadys did in fact meet with President Clinton at his 
hotel in Jakarta. Lindsey explained how the meeting at the 
hotel was scheduled:

        The Riadys wanted the Clintons to go to their house, 
        and that was not going to happen. The President was not 
        going to go to the Riady's house while he was there. 
        And, so, I think I said to James one time, look, the 
        President is scheduled to leave at 6:00 to go X. Why 
        don't you and your dad come by at ten till.\141\
---------------------------------------------------------------------------
    \141\ Lindsey Deposition at 103, 105.

    Lindsey stated there was no discussion of policy, ``[i]t 
was just, `Hello. How are you?' And then they said a prayer . . 
. they talked about old times, you know, about when they had 
met before . . .'' \142\ Regardless of the content of the 
discussion, as the Committee is unable to question the other 
attendees of the meeting, the fact that the Riadys were able to 
meet privately with the U.S. President at all during the trip 
and the amount of time the White House staff spent negotiating 
some sort of APEC deal with them, is notable. In addition, the 
meeting with the President in Jakarta was not an isolated 
incident. The Riady family was granted meetings with other high 
level officials in the administration who were traveling 
abroad, where policy issues more than likely were discussed.
---------------------------------------------------------------------------
    \142\ Lindsey Deposition at 103, 105.
---------------------------------------------------------------------------

               D. Meetings with Administration Officials

    In February 1994, James Riady hosted a luncheon for 
Commerce Department officials traveling in Indonesia to promote 
the U.S.-ASEAN Alliance for Mutual Growth.\143\ The luncheon 
attendees included Commerce Undersecretary Jeffrey Garten and 
Deputy Undersecretary David Rothkopf, who would later be John 
Huang's superiors in the International Trade Administration at 
Commerce.\144\ Rothkopf was unable to recall who at the 
Commerce Department had organized the luncheon, which was held 
at James Riady's home.\145\ However, Rothkopf recalled that 
Melinda Yee, a good friend of John Huang and the Riady family, 
did attend the luncheon as well.\146\ Melinda Yee invoked her 
fifth amendment rights against self-incrimination and is not 
cooperating in the Committee's investigation. Ms. Yee had 
assisted in organizing a Commerce Department contract signing 
ceremony with the Lippo Group and its American joint venture 
partner.
---------------------------------------------------------------------------
    \143\ Event Scenario and Talking Points for Riady Lunch, Feb. 25, 
1994, Commerce Department Document Production, unnumbered (Exhibit 31).
    \144\ While at Commerce Huang worked directly under Chuck Meissner, 
the Assistant Secretary for International Economic Policy at the 
International Trade Administration. Meissner, in turn, reported to 
Rothkopf and Garten.
    \145\ Deposition of David J. Rothkopf, Senate Committee on 
Governmental Affairs, June 2, 1997 at 20 (hereinafter ``Rothkopf 
Deposition'').
    \146\ Id. at 21-22.
---------------------------------------------------------------------------
    Along with Melinda Yee, John Huang and Lippo consultant Joe 
Giroir played a major role in the Lippo contract's inclusion in 
the signing ceremony.\147\ Soon after Huang arrived at 
Commerce, he organized a lunch with Joe Giroir and Commerce 
Department employees Melinda Yee and Nancy Linn Patton.\148\ 
Yee and Linn Patton were both working on the upcoming Commerce 
Department Trade Mission to the Asian region led by Secretary 
Ron Brown. While at the lunch, either Huang or Giroir brought 
up the subject of the signing ceremonies in China which would 
be held during the trade mission.\149\ Fortuitously, the Lippo 
Group and its American partner were ready to close a contract 
with the North China Power Group at the time that the trade 
mission was to go forward.\150\ Giroir testified that Yee 
suggested he talk to Deputy Undersecretary David Rothkopf about 
the signing ceremony, and that it was Rothkopf who later 
requested that Lippo participate in the ceremony with Secretary 
Brown.\151\ However, Rothkopf testified that he did not know 
Joe Giroir.\152\ Nevertheless, in August 1994, Secretary Brown 
personally traveled to the region, where he attended the 
Beijing signing ceremony involving the Lippo Group joint 
venture.\153\
---------------------------------------------------------------------------
    \147\ Giroir Deposition at 59-61.
    \148\ Giroir Deposition at 59-61.
    \149\ A signing ceremony is an event held during trade missions 
which highlight contracts made between U.S. corporations and businesses 
of the host country. They generally are promotional for the businesses 
involved. Id.
    \150\ Id.
    \151\ Id.
    \152\ Rothkopf Deposition at 61.
    \153\ The signing ceremony was for the Datong power plant project 
in China and the principals were the Lippo Group, Entergy Corp. and 
North China Power Group. The estimated value of the project was $1 
billion. Arkansas International Development Corp. Document Production 
AIDC 003888-3890 (Exhibit 32).
---------------------------------------------------------------------------
    Riady was involved in other events held abroad with Cabinet 
level officials as well. For instance, in June 1996, Riady sat 
at the head table with then-Secretary of Commerce Mickey Kantor 
at a dinner hosted by the American Chamber of Commerce in 
Indonesia.\154\ During a deposition with the Committee, Mr. 
Kantor did not recall the June 1996 dinner with James 
Riady.\155\ However, he did recall a dinner during the 1994 
Jakarta APEC Summit at which he sat next to James Riady.\156\ 
At that time, Kantor was the U.S. Trade Representative (USTR).
---------------------------------------------------------------------------
    \154\ Memo to Jennifer Tate from Carol Walker, executive director 
AmCham Indonesia, June 26, 1996, Commerce Department Document 
Production, unnumbered (Exhibit 33).
    \155\ Deposition of Michael Kantor, House Government Reform and 
Oversight Committee, Aug. 8, 1997 at 112-113 (hereinafter ``Kantor 
Deposition'').
    \156\ Id.
---------------------------------------------------------------------------
    The Riadys also had an interest in the USTR's policies. In 
1994, the Administration, through USTR, was deciding whether to 
renew a special trade status for Indonesia which eliminated 
tariffs on industrial goods it exported. The trade status was 
renewed even though the Soeharto government of Indonesia had an 
abysmal record in workers' rights. Many in the media later 
questioned the Riady family's motives in seeking meetings with 
USTR officials at the time the decision was being made.\157\ 
The Administration insisted that then-Ambassador Kantor 
declined Riady's requests for a meeting during the crucial 
decisionmaking period.\158\ However, the USTR Director for 
Southeast Asia Joseph Damond did meet with Riady in 
Jakarta.\159\ Mr. Damond described Riady's role in the USTR's 
negotiations as a ``cultural intermediary.'' \160\ His role 
still does not explain why a copy of a letter to Mickey Kantor, 
United States Trade Representative, from the Indonesian 
Ambassador to the United States regarding Indonesia's trade 
status was produced from Hip Hing Holding's files.\161\
---------------------------------------------------------------------------
    \157\ David E. Sanger, Administration Moves to Defend Indonesia 
Policy After Criticism, New York Times, Oct. 17, 1996 at A1.
    \158\ Id.
    \159\ Id.
    \160\ Id.
    \161\ Hip Hing Holdings Document Production HHH 3585-3596 (Exhibit 
34).
---------------------------------------------------------------------------
    The special meetings and dinners with the President and 
other high level officials in the Administration put the Riady 
family in a better position in Indonesia. For instance, surely 
the Riadys stance with Indonesian President Soeharto grew when 
James Riady was able to organize a meeting between Clinton and 
Soeharto; something the Indonesian government appeared unable 
to do on its own. Even the appearance of favor with the U.S. 
Government would assist Riady. The Riady family was able to 
curry favor with the Indonesian government by demonstrating 
their political connections to the United States 
Government.\162\ During President Soeharto's reign, being in 
favor with the Soeharto government meant much more than any 
amount of money Riady contributed toward Bill Clinton's 
Presidency.
---------------------------------------------------------------------------
    \162\ The Riady family is ethnic-Chinese, rather than native 
Indonesian or ``Javanese.'' The family patriarch Mochtar Riady found it 
necessary to ``Indonesianize'' his name, Li Mo Tie, in order to comply 
with strong government pressure to eliminate all symbolism relating to 
China, a Communist country. In Indonesia, the ethnic-Chinese 
historically have been considered somewhat suspect. During the late 
1960's and early 1970's there were periods of violence against ethnic-
Chinese, with thousands disappearing in Indonesia.
---------------------------------------------------------------------------

              V. 1996 Elections and Contacts With the DNC

                A. Huang's Move from Commerce to the DNC

     In July 1994, John Huang was appointed Principal Deputy 
Assistant Secretary at the Department of Commerce. However, 
after little over a year at the Commerce Department, Huang 
wanted to move to the DNC as a fundraiser.\163\ Joe Giroir and 
Mark Middleton, both Lippo consultants, approached several DNC 
officials on behalf of Huang.\164\ Giroir and Middleton 
contacted DNC Chairman Don Fowler, and finance officials 
including, Truman Arnold, Marvin Rosen, and Richard 
Sullivan.\165\ Even James Riady met with Don Fowler, and 
advocated the idea of John Huang raising money for the 
DNC.\166\ There was some confusion about whether Huang attended 
the meeting as well. Sullivan and Fowler recalled that John 
Huang was present, whereas, Joe Giroir stated that Huang was 
not there.\167\ In the meeting between Riady and Fowler, Giroir 
described their idea for an Asian American fundraising effort:
---------------------------------------------------------------------------
    \163\ The circumstances of Huang's move from Commerce to the DNC 
was covered extensively in the Senate Report, and will not be repeated 
here. Final Report of the Committee on Governmental Affairs, S. Doc. 
No. 167, 105th Cong., 2d sess., 1655 (1998).
    \164\ Deposition of Richard Sullivan, Senate Committee on 
Governmental Affairs, June 4, 1997 at 217 (hereinafter ``Sullivan 
Senate Deposition''); Giroir Senate Deposition at 77-78, 93-104.
    \165\ Sullivan Senate Deposition at 217; Giroir Senate Deposition 
at 77-78, 93-104.
    \166\ Giroir Senate Deposition at 94.
    \167\ Sullivan Senate Deposition at 241; Deposition of Donald 
Fowler, Senate Committee on Governmental Affairs, at 186; Giroir Senate 
Deposition at 135.
---------------------------------------------------------------------------
        I re-expressed my view that there was a reservoir of 
        support in the Asian-American community, votes as well 
        as financial support, and that if they would focus 
        their attention on that reservoir, that it would be 
        beneficial to the Democratic Party. . . . And then I 
        think James probably seconded my idea from his point of 
        view, having been an Asian American, having resided in 
        Los Angeles, having voted here, having been involved in 
        the political process here, and knowing intimately the 
        Asian community as well as the Asian attitude as well 
        as the Asian propensities.\168\
---------------------------------------------------------------------------
    \168\ Giroir Senate Deposition at 97.

    Giroir's statement about Riady's insight into the American 
political system is not entirely accurate. Although Riady could 
be described as Asian, he was never an Asian American. As Riady 
has never been a U.S. citizen, he never legally has voted in 
the United States. However, Giroir was accurate in that for 
some reason, James Riady was active in the U.S. political 
process. Nevertheless, after sharing their ideas with DNC 
Chairman Fowler, Giroir and Riady placed their recommendation 
for John Huang as the most qualified individual to run such an 
Asian fundraising campaign.\169\
---------------------------------------------------------------------------
    \169\ Id. at 98.
---------------------------------------------------------------------------
    Unfortunately, the group had little luck garnering support 
or interest at the DNC, and subsequently Huang, James Riady, 
and Joe Giroir visited with the President. On September 13, 
1995, Riady, Huang, and Joe Giroir met with President Clinton 
and Deputy Counsel to the President, Bruce Lindsey. Lindsey 
testified that the group generally discussed family and, ``[a]t 
some point in the conversation, I believe John said something 
like, you know, maybe I could be of more help at the DNC than 
at Commerce.'' \170\ Lindsey, who confirmed Huang's interest in 
a later meeting, passed the request along to Harold Ickes.\171\
---------------------------------------------------------------------------
    \170\ Deposition of Bruce R. Lindsey, House Government Reform and 
Oversight Committee, Sept. 8, 1997 at 167 (hereinafter ``Lindsey 
Deposition'').
    \171\ Ickes, then-Deputy Chief of Staff, handled most of the 
campaign related matters from the White House. Lindsey testified that 
once he brought the matter to Ickes' attention, Lindsey was no longer 
involved. Lindsey Deposition at 167.
---------------------------------------------------------------------------
    Harold Ickes recalled that both Lindsey and the President 
told him about John Huang. President Clinton took it upon 
himself to bring the subject of Huang up with Ickes, who 
coordinated campaign activities through the White House:

        [T]he President, had recently spoken to John Huang, 
        that Huang had indicated that he very much wanted to 
        help in the President's re-election effort, that he 
        worked in the election effort in '92, and was prepared 
        to go to work at the DNC or the Re-Elect, wherever the 
        President or any of his people felt he could be best 
        used, and would help not only in raising money but, as 
        importantly, in what we call in the campaign business 
        outreach to especially Asian Americans and especially 
        in California.

        The President asked me if I would--what I thought of 
        that. It sounded fine to me. And the President asked me 
        to follow up on it with John Huang, which I did, and I 
        called him and had a meeting with him, and he 
        subsequently left the Commerce Department and went over 
        to work at the DNC.\172\
---------------------------------------------------------------------------
    \172\ Deposition of Harold Ickes, Senate Governmental Affairs 
Committee, June 26, 1997 at 115-116 (hereinafter ``Ickes Deposition'').

    Huang, who met with Ickes on October 2, 1995, was prepared 
to work at either the DNC or the Clinton/Gore Re-elect, 
whatever Ickes thought was best.\173\ Ultimately, Ickes 
recommended that Huang work at the DNC and contacted Marvin 
Rosen and Don Fowler.\174\ Huang's application still did not 
move forward until the President personally mentioned Huang to 
the head of DNC fundraising, Marvin Rosen, at a November 8, 
1995 fundraiser.\175\ By December 1995, Huang was working at 
the DNC.
---------------------------------------------------------------------------
    \173\ Ickes Deposition at 117-118.
    \174\ Rosen recalled that Ickes called and asked Rosen to interview 
Huang. Deposition of Marvin Rosen, Senate Governmental Affairs, May 19, 
1997 at 137 (hereinafter ``Rosen Deposition''); Ickes Deposition at 
117-118, 127.
    \175\ Rosen Deposition at 137; Sullivan Senate Deposition at 222; 
Don Van Atta, President Is Linked to Urgent Enlisting of Top 
Fundraiser, New York Times, July 7, 1997, at A1.
---------------------------------------------------------------------------

  b. huang's fundraising activities at the dnc and riady's involvement

    Huang organized numerous events while he was employed by 
the DNC, raising $3,422,850.\176\ Out of the total amount 
raised by Huang, approximately $1.7 million was returned by the 
DNC.\177\ DNC Finance Chairman Marvin Rosen and Director 
Richard Sullivan both had concerns about Huang's fundraising in 
July 1996, and agreed not to allow him to individually organize 
any fundraisers involving the President.\178\ The catalyst to 
that decision was a fundraising dinner organized by John Huang 
on July 30, 1996, which featured James Riady.
---------------------------------------------------------------------------
    \176\ DNC In-Depth Contribution Review as of Feb. 28, 1997 (Exhibit 
35).
    \177\ The contributions listed in Exhibit 35, were not returned by 
the DNC until June 1997, subsequently additional illegal or 
inappropriate contributions credited to Huang were returned by the DNC. 
Exhibit 35.
    \178\ Deposition of Richard Sullivan, Senate Governmental Affairs 
Committee, June 5, 1997 at 60, 70, 73 (hereinafter ``Sullivan Senate 
Deposition 2'').
---------------------------------------------------------------------------
    Although there is no Federal Election Commission record of 
James Riady contributing to the DNC in 1994 and 1996, Riady 
continued to attend fundraisers and other DNC events which 
usually would generate contributions in that election cycle. 
For example, internal DNC memoranda show that James Riady was 
on a list of invitees to a DNC Business Leadership Forum 
(``BLF'') event at the White House held on June 21, 1994.\179\ 
The memorandum lists Riady as a current BLF member, and 
describes him as, ``FOB [Friend of Bill]; Former President 
Wortham [sic] Bank in Little Rock; Clinton/DNC donor through 
John Huang; Huang requested his invitation and that we send it 
to Huang's address.'' James Riady and Huang did attend the BLF 
reception at the White House, after they met with then-Special 
Assistant to the President Mark Middleton, who also attended 
the reception.\180\
---------------------------------------------------------------------------
    \179\ DNC Document Production DNC 1276431-433 (DNC Memorandum from 
David Mercer to Richard Sullivan and Fran Wakem, June 11, 1994).
    \180\ White House Document EOP 055316-318 (WAVES of James Riady); 
EOP 004522-526 (WAVES of John Huang).
---------------------------------------------------------------------------
    In 1996 James Riady appears on a DNC ``commit list'' for 
$15,000 in coordination with a June 10, 1996 fundraising dinner 
at the home of Lew and Edie Wasserman in Los Angeles.\181\ 
Later in 1996, DNC Chairman Don Fowler wrote a thank you letter 
to James Riady, addressed to Indonesia, which stated:
---------------------------------------------------------------------------
    \181\ DNC Document Production DNC 3088330-334 (DNC Commit List for 
June 10, 1996, Dinner at the Wasserman Residence, June 3, 1996.

        Thank you very much for sending me the basket of fruit 
        and snacks. It was a wonderful surprise, and I greatly 
---------------------------------------------------------------------------
        enjoyed its contents.

        Your friendship is tremendously important to me in this 
        crucial time. As you know, all of us are working 
        diligently to bring about a huge Democratic victory in 
        November, and your gift reminded me of the support of 
        good Democrats for these efforts.\182\
---------------------------------------------------------------------------
    \182\ DNC Document Production DNC 1728039 (Exhibit 36).

Fowler was surely aware that James Riady was not a U.S. citizen 
and did not live in the United States, thereby making him 
ineligible to contribute to the DNC.
    Subsequently, a September 18, 1996 form letter from Fowler 
to Riady was written, thanking Riady for his participation in 
the recent DNC dinner with the President. The letter noted, 
``Your support enables us to continue assisting the 
Administration in achieving its ambitious agenda. On behalf of 
the DNC, I am sincerely grateful for your work.'' \183\ 
Although the second letter appears to be a form thank you 
letter, one normally does not get a thank you letter unless he 
has contributed.
---------------------------------------------------------------------------
    \183\ DNC Document Production F 0040618.
---------------------------------------------------------------------------

1. July 30, 1996 Jefferson Hotel dinner with James Riady

    On July 30, 1996, Huang organized an intimate gathering of 
four wealthy businessmen, their families, and President 
Clinton. Three of the wealthy businessmen were not American 
citizens, and all four lived in Asia. Included in the group was 
Huang's former employer, James Riady.\184\ Also attending were 
Eugene Wu,\185\ Chairman of the Shinkong Group in Taiwan; James 
Lin,\186\ Chairman of Ennead Inc. in Taiwan; and, Ken 
Hsui,\187\ an executive at Prince Motors and Cosmos Bank in 
Taiwan.\188\ Ken Hsui, who contributed $150,000 toward the 
event, is the only U.S. citizen in the group of dinner 
attendees.\189\
---------------------------------------------------------------------------
    \184\ DNC Document Production DNC 4346984-986 (Exhibit 37); see 
Photo-Op Inc. Document Production LG 51-52 (photos of James and Aileen 
Riady with President Clinton at the Jefferson Hotel on July 30, 1996) 
(Exhibit 38) (Exhibit 39).
    \185\ Photo-Op Inc. Document Production LG 46 (photo of Eugene Wu 
with President Clinton at the Jefferson Hotel on July 30, 1996) 
(Exhibit 40).
    \186\ Photo-Op Inc. Document Production LG 47 (photo of James Lin 
with President Clinton at the Jefferson Hotel on July 30, 1996) 
(Exhibit 41).
    \187\ Photo-Op Inc. Document Production LG 49-50 (photos of Ken 
Hsui with President Clinton at the Jefferson Hotel on July 30, 1996) 
(Exhibit 42) (Exhibit 43).
    \188\ Eugene Wu's Shinkong Group is a conglomerate in Taiwan 
dealing in life insurance, energy, manufacturing, equipment leasing, 
construction, agriculture, computers, security, plastics firms, a 
department store and bank. Wu is married to the sister of one of the 
other guests, James Lin. James Lin's Ennead is a construction firm, 
which built many of the structures owned by the Shinkong Group. Lin is 
also a co-founder of a California company which was fined $41,000 in 
1995 for laundering campaign funds to Los Angeles City Council 
Candidates. Lin is also a member of the National Assembly in Taiwan. 
The third attendee from Taiwan, Ken Hsui, runs several family 
businesses in Taiwan, including Prince Motors, a mid-sized manufacturer 
of vehicle parts. Hsui, a U.S. citizen, is married to Eugene Wu's 
sister. Although Hsui maintains an apartment in Beverly Hills, he 
visits the United States only once or twice a year. The building 
manager of Hsui's condominium complex told investigators that Hsui 
lives in Taiwan but maintains an apartment in the building for his 
visits to the United States. Interview of Gary Thomas, Aug. 15, 1997; 
John Huang Document Production 001290-1294 (Exhibit 44); Judy Keen, 
Judi Hasson & Tom Squitieri, Dinner Raised $488,000--and Questions, USA 
Today Feb. 7, 1997 at A4.
    \189\ DNC Document Production DNC 3686958 (check tracking form for 
Sen Jong ``Ken'' Hsui) (Exhibit 45).
---------------------------------------------------------------------------
    DNC Finance Director Richard Sullivan testified to his 
reaction when he first saw the prospective list of attendees 
for the dinner, ``[a]s I recall, I expressed some dismay.'' 
\190\ However, as there was no time to organize a new dinner, 
the dinner Huang organized went forward.\191\ The list of 
attendees was sent to the White House, and was approved.\192\ 
Sullivan and Rosen had two central problems with the July 30, 
1996 fundraiser:
---------------------------------------------------------------------------
    \190\ Sullivan Senate Deposition 2 at 67.
    \191\ Id.
    \192\ Id. at 67-68.

        Number one, John is not living up to what he had 
        voluntarily come to us and said he could do. We have 
---------------------------------------------------------------------------
        been giving him these events.

        Number two, we are not all that pleased with the fact 
        that he put a couple of foreign nationals into a small 
        dinner with the President. Let me make this clear. The 
        possible--we were not happy with that, you know, 
        because of the possible perception. The press has made 
        a big deal about, oh, you know, why did you have them 
        in when you knew you weren't going to get money from 
        them. Well we were just worried about the 
        perception.\193\
---------------------------------------------------------------------------
    \193\ Id. at 73.

    A strong indicator of their concerns is that Huang was 
barred from organizing Presidential events after the Jefferson 
dinner with Riady.
    Once at the event, the attendees all had their pictures 
taken with the President. Generally the topic of fundraising is 
brought up at events where money is supposed to be raised. 
Although the event was videotaped by the White House 
Communications Agency, not all of the remarks were 
covered.\194\ The President did speak about the next APEC 
meeting and his decision to send U.S. Air Force carriers to the 
Taiwan straits.\195\ The issue was important to the Taiwanese, 
who were threatened by China's ``missile testing'' directed 
toward Taiwan.
---------------------------------------------------------------------------
    \194\ White House Production Tape 18 (White House Communications 
Agency Tape of July 30, 1996 dinner at the Jefferson Hotel).
    \195\ Id.
---------------------------------------------------------------------------
    The dinner organized by Huang appeared to be a favor for 
James Riady.\196\ Huang, although no longer working for Lippo, 
rented a limousine and picked up the Riadys at National 
Airport; the bill was charged to the Lippo Group at the Los 
Angeles address.\197\ It is unusual for a DNC fundraiser to go 
to such lengths for someone who is unable to contribute. In 
addition, the three businessmen who attended the dinner were a 
group of the wealthiest men in Taiwan and perhaps prospective 
or current business partners.\198\ Unfortunately Hsui, a U.S. 
citizen, Lin, and Wu all declined requests for meetings in 
Taiwan with Committee staff and James Riady has refused to 
cooperate with investigators.
---------------------------------------------------------------------------
    \196\ Earlier that evening, James Riady attended an additional 
fundraiser with the President. Huang, Riady, and the President all 
attended a fundraiser for Winston Bryant, Senatorial candidate from 
Arkansas, held at the Hay Adams Hotel that same evening. White House 
Document Production EOP 008591 (Letter to James Riady from Mack 
McLarty, Aug. 2, 1996) (Exhibit 46); EOP 044706-712 (Schedule of the 
President for Tuesday, July 30, 1996--Final).
    \197\ Hip Hing Holdings Document Production HHH 4760 (Exhibit 47).
    \198\ Riady had earlier arranged, through John Huang, for a White 
House tour for the Hsui family. Huang accompanied them on the July 20, 
1993 tour. Hip Hing Holdings Document Production HHH 4736-4737 (Exhibit 
48).
---------------------------------------------------------------------------

2. ``The Indonesian Gardener:'' Huang's relationship to the 
        Wiriadinatas

    Huang, a prodigious fundraiser, may have been raising money 
for the DNC even before he left the Commerce Department. The 
most egregious example is that of Arief and Soraya Wiriadinata, 
an Indonesian couple with strong ties to the Lippo Group, who 
contributed $450,000 to the DNC in the 1996 election 
cycle.\199\ Soraya Wiriadinata is the daughter of the late 
business partner of Mochtar Riady, Hashim Ning.\200\ Her 
husband, Arief Wiriadinata, is a ``landscape engineer'' who was 
soon dubbed a gardener in press reports about the Wiriadinatas' 
contributions.
---------------------------------------------------------------------------
    \199\ See DNC Document Production DNC 1684087 (answers of John 
Huang to questions posed by Newsweek) (Exhibit 49); DNC Document 
Production DNC 3152284-286 (DNC Finance Executive Summary on Arief and 
Soraya Wiriadinata) (Exhibit 50).
    \200\ Exhibit 49.
---------------------------------------------------------------------------
    The Wiriadinata's first contribution, totaling $30,000 was 
given on November 9, 1995, while Huang was still at 
Commerce.\201\ The November contribution was credited to John 
Huang's wife, Jane, and DNC fundraiser David Mercer.\202\ In 
return for their November contribution, the Wiriadinatas, 
accompanied by then-Commerce employee Huang, attended a DNC 
fundraiser for Vice President Al Gore.\203\ All subsequent 
contributions, made after Huang left Commerce, were credited to 
John Huang.\204\
---------------------------------------------------------------------------
    \201\ Exhibit 50.
    \202\ Id.
    \203\ Photo-Op Document Production LG 4-6 (photographs of Arief and 
Soraya Wiriadinata with Vice President Gore and DNC Chairman Don Fowler 
at Nov. 2, 1995 event; photograph of John Huang with Vice President 
Gore at Nov. 2, 1995 DNC event) (Exhibit 51) (Exhibit 52) (Exhibit 53).
    \204\ Exhibit 50.
---------------------------------------------------------------------------
    In addition to issues about the timing of the first 
contribution, the funds used to contribute to the DNC by the 
Wiriadinatas came from Lippo co-founder Hashim Ning in 
Indonesia.\205\ The Wiriadinatas explained that they 
contributed to the DNC because of a kind gesture on the part of 
President Clinton. Hashim Ning was traveling in the United 
States in June 1995, when he fell ill and was 
hospitalized.\206\ James Riady and Huang asked Mark Middleton 
to secure a get well note from President Clinton.\207\ The 
President did in fact send two letters to Mr. Ning: one 
delivered in person by Mark Middleton; and, the second, 
addressed to Mr. Ning in Indonesia, was sent through Mark 
Middleton.\208\
---------------------------------------------------------------------------
    \205\ The Wiriadinatas set up two bank accounts, one for Soraya and 
one for Arief. The only funds in the accounts were wired in early Nov. 
from Hashim Ning. The Wiriadinatas used that account to write all their 
contributions. Nov. 3, 1995, wire transfer from Hashim Ning to Soraya 
Wiriadinata, in the amount of $250,000 (Exhibit 54); Nov. 7, 1995, wire 
transfer from Hashim Ning to Arief Wiriadinata, in the amount of 
$250,000 (Exhibit 55).
    \206\ Exhibit 49.
    \207\ Middleton asked his former assistant at the White House, 
Yusuf Khapra, to get the letter. Khapra was then working as an 
assistant in the Deputy Chief of Staff's office. See Deposition of 
Yusuf Khapra, Government Reform and Oversight Committee, Aug. 12, 1997 
at 82-83 (hereinafter ``Khapra Deposition'').
    \208\ DNC Document Production F 0033816 (Exhibit 56); DNC 1227206 
(Exhibit 57).
---------------------------------------------------------------------------
    The November contribution was the first in a long line of 
contributions by the Wiriadinatas. They again donated to the 
DNC in December, and on December 15, 1995, Arief Wiriadinata 
attended a DNC fundraising coffee at the White House. The 
beginning of the coffee was videotaped, as President Clinton 
walked around the room greeting all of his guests. When the 
President came to Wiriadinata, he grasped the President's hand 
and said, ``James Riady sent me.''\209\ The President 
responded, ``Yes. I'm glad to see you. Thank you for being 
here.''\210\ Wiriadinata's comment about James Riady should 
have raised some concerns about the contributions he gave.
---------------------------------------------------------------------------
    \209\ White House Communications Agency videotape of the Dec. 15, 
1995 DNC coffee.
    \210\ Id.
---------------------------------------------------------------------------
    In addition, the Wiriadinatas moved back to Indonesia, and 
sent many of their checks from abroad. At a November 13, 1996 
press conference, DNC Chairman Don Fowler insisted that the 
Wiriadinata's $450,000 in contributions had been thoroughly 
reviewed and was legal.\211\ Yet only 10 days later, the DNC 
announced that it would return the Wiriadinata contributions as 
they had failed to file 1995 tax returns and had returned to 
Indonesia.\212\
---------------------------------------------------------------------------
    \211\ Ruth Marcus, DNC Official Concedes Mistakes of Process, the 
Washington Post, Nov. 13, 1996.
    \212\ Alan C. Miller, Democrats Give Back More Disputed Money, Los 
Angeles Times, Nov. 23, 1996.
---------------------------------------------------------------------------

3. Donors and events related to Huang

    There were other circumstances where DNC and White House 
staff, or even the President himself, should have realized that 
there was something wrong with the fundraising events. Huang 
put together events attended by numerous foreign nationals, 
where it was even noted by DNC officials that in many 
instances, guests did not speak any English.
            a. February 19, 1996
    John Huang's first major event as a DNC fundraiser was a 
February 19, 1996 Asian Pacific American event attended by the 
President. He was assisted in the fundraising by Charlie Trie, 
many of whose contributions and solicitations have also been 
established as illegal or inappropriate.\213\ Although Huang 
raised $706,000 from the event, at least $200,000 of that has 
already been returned by the DNC.\214\ In addition, there are 
several other contributions related to the event, which the 
Committee has determined should also be returned.\215\ The 
dinner was the first part of a 2 day event for approximately 
80-100 Asian Pacific American donors from across the United 
States, including a breakfast with Vice President Gore the next 
day.\216\
---------------------------------------------------------------------------
    \213\ For a more detailed analysis of Charlie Trie, see Chapter IV 
B.
    \214\ The Committee has created a chart of contributions based on 
DNC check tracking forms related to the Feb. 19, 1996 Hay Adams 
Fundraiser (Exhibit 58).
    \215\ See generally Chapter 3.
    \216\ DNC Document Production DNC 1579590-600 (briefing memo for 
President Clinton written by John Huang).
---------------------------------------------------------------------------
    In the February 19, 1996 event briefing memorandum for the 
President, John Huang points out that immigration policy was 
one of the most important issues to the Asian Pacific American 
community.\217\ Included in the memo was an outline of which 
immigration policies the Asian Pacific American community 
supported, including one of the most important, the ``sibling 
preference'' category for immigration.\218\ At the time of the 
event, President Clinton was on the record as against the 
sibling preference.\219\ However, 1 month later, in an 
unprecedented shift of opinion, Clinton supported the 
preference.\220\
---------------------------------------------------------------------------
    \217\ DNC Document Production DNC 1579590-600 (briefing memo for 
President Clinton written by John Huang).
    \218\ Id.
    \219\ Michael Kranish, Clinton Policy Shift Followed Asian-American 
Fund-Raiser, Boston Globe, Jan. 16, 1997, at A1.
    \220\ Id.
---------------------------------------------------------------------------
    Another troubling aspect of the event was the attendance of 
Doris Meissner, Commissioner of the Immigration and 
Naturalization Service. Doris Meissner sat at the same table as 
Maria Hsia, who worked with Huang on other fundraising 
events.\221\ Briefing papers for the President underline the 
importance of Meissner's attendance at this event as 
immigration and naturalization was a top priority for the Asian 
Pacific American community.\222\
---------------------------------------------------------------------------
    \221\ Photographs of Hay Adams event, Feb. 19, 1996.
    \222\ Briefing for the President of the United States, Feb. 19, 
1996, DNC 1579590.
---------------------------------------------------------------------------
    The briefing memo on the event notes, ``[p]articipants of 
APALC dinner have each donated a minimum of $12,500 to the 
Democratic National Committee.''\223\ However, there were a 
number of foreign nationals at the February 19, 1996 event. At 
least five foreign nationals who were unable to contribute to 
the event sat at the head table with the President.\224\ In his 
remarks at the event, the President appeared to make a 
reference to the fact that many people may not be familiar with 
the U.S. holiday, President's Day: ``It was quite a wonderful 
thing for me to come here on what we in the United States now 
call President's Day and have people say, `Happy New Year and 
Happy President's Day,' at the same time.'' \225\ President 
Clinton, explaining that it was President's Day, referred to 
the fact that it fell on the Chinese New Year. President 
Clinton also praised John Huang's fundraising efforts:
---------------------------------------------------------------------------
    \223\ DNC Document Production DNC 1579590-600 (briefing memo for 
President Clinton written by John Huang).
    \224\ Sitting at the head table was: Nina Wang, Ted Sioeng, Kwai 
Fai Li, Pauline Kanchanalak, and Ng Lap Seng. White House Document 
Production EOP 058577-580 (Exhibit 59).
    \225\ White House Communications Agency videotape of the Feb. 19, 
1996 Hay Adams fundraiser, Tape 5.

        I am virtually overwhelmed by this event tonight. I 
        should have learned by now, I have known John Huang a 
        very long time. At least to be as young as we are, we 
        have known each other a long time. And when he told me 
        this event was going to unfold as it has tonight, I 
        wasn't quite sure I believed him, but he had never told 
        me anything that didn't come to pass, and all of you 
        have made it possible and I want you to know I am very 
        grateful to you.\226\
---------------------------------------------------------------------------
    \226\ Id.
---------------------------------------------------------------------------
            b. May 13, 1996
    Likewise, during a May 13, 1996 fundraiser arranged by 
Huang and Charlie Trie, President Clinton again addressed the 
large number of foreign nationals attending the event at the 
Sheraton Carlton: ``I say to the Asian American community 
here--and to those who come from other countries to be with us 
here tonight--the United States is very grateful for the people 
who have come from the Asian Pacific region, who have made our 
country their home.'' \227\ Among the group of foreign 
nationals was a high ranking executive at the Lippo Group, Roy 
Tirtadji.\228\ Giroir had contributed $100,000 toward the event 
so that he and approximately 20 others, including Tirtadji, 
could attend.\229\ However, Tirtadji, and not Joe Giroir, sat 
at the head table with the President.\230\
---------------------------------------------------------------------------
    \227\ White House Communications Agency videotape of the May 13, 
1996 Sheraton Carlton event, Tape 6 [Emphasis added].
    \228\ Giroir Deposition at 154.
    \229\ Id.
    \230\ Also at the head table were Nina Wang, a foreign national 
unable to contribute, and Mark Jimenez, who was recently indicted by 
the Justice Department for among other things, conduit contributions. 
DNC Document Production DNC 1604073 (seating list for the head table at 
the May 13, 1996 Sheraton Carlton event).
---------------------------------------------------------------------------
    Half of the guests seated with the President at this event 
were foreign citizens. The President only sat at the head table 
for about 15 minutes. According to one witness who sat at the 
head table at this event, during the time the President sat at 
the table, either no one wanted to speak, or could not speak 
English. Therefore, this witness, Jitu Somaya, then struck up 
small talk with the President to fill the time.\231\ In fact, 
the event contained so many foreign nationals that it provoked 
concern among one Democratic official who said, `` `. . . I 
hope people are checking this one out. It was peculiar. There 
were a lot of people who didn't speak English or spoke very, 
very poor English.' '' \232\ The Committee has not found any 
evidence of similar concerns at the White House. President 
Clinton again singled out Huang and Charlie Trie for praise in 
front of the donors they solicited. He did so for good reason. 
The event was slated to raise $500,000,\233\ but documents 
provided to the Committee show that $577,000 was raised from 
only 23 different donors.\234\
---------------------------------------------------------------------------
    \231\ Memorandum of Interview of Jitu Somaya, Apr. 21, 1998, at 2-
3.
    \232\ Los Angeles Times, Dec. 21, 1997, at A1.
    \233\ DNC Finance Summary for May 1996 Events, F 0046523.
    \234\ In is not clear how many individuals attended this event as 
the DNC never produced a full list of attendees. From a partial list, 
at least 132 people attended. DNC Document Production DNC 3341365-367; 
see generally Check tracking forms attributed to the May 13, 1996 event 
at the Carlton Hotel.
---------------------------------------------------------------------------
            c. July 22, 1996
    Huang also organized a July 22, 1996 fundraising dinner 
held in Century City, California. For all of his hard work, 
Huang earned the praise of President Clinton in front of the 
constituency Huang needed to impress the most. Although Huang 
fell short of the $1 million goal, President Clinton said, 
``And I'd like to thank my longtime friend, John Huang . . . 
Frankly he's been so effective, I was amazed that you were all 
cheering for him tonight after he's been around, his aggressive 
efforts to help our cause.'' \235\
---------------------------------------------------------------------------
    \235\ White House Communications Agency videotape 17, July 22, 
1996. The Committee has been unable to determine the total amount 
raised for this event. Based on check tracking forms supplied to the 
Committee by the DNC, the amount raised was around $400,000. Another 
source listed the amount raised as $700,000. Los Angeles Times, Dec. 
21, 1997 at A1.
---------------------------------------------------------------------------
    DNC Chairman Don Fowler revealed that President Clinton's 
remarks about Huang were not meant as a recognition of Huang's 
hard work, but instead, ``It was a laying of his hands on 
John's head . . . The president was saying `He's my friend; 
he's a good guy.' He was creating a connection. It was a way of 
indirectly soliciting the guests.'' \236\
---------------------------------------------------------------------------
    \236\ Id.
---------------------------------------------------------------------------
    James and Aileen Riady attended the event, which was 
shortly before the intimate Jefferson Hotel gathering in 
Washington, DC.\237\ James Riady's company, LippoBank or the 
Lippo Group, also had a table at the event.\238\ Sitting next 
to the President at the head table were two foreign nationals, 
James Riady and Ted Sioeng, neither of whom were legally able 
to contribute to the event.\239\ Several of the Asian Americans 
at the dinner commented on the attendees, noting that ``they 
could not recall seeing so many people from the People's 
Republic of China at such an event.'' \240\
---------------------------------------------------------------------------
    \237\ DNC Document Production F 0046458-463 (List of names for Win 
'96 Badges at the July 22, 1996 Century City event).
    \238\ Deposition of Harold Arthur, Senate Committee on Governmental 
Affairs, Apr. 25, 1997, at 26-28.
    \239\ Exhibit 60; see Chapter on Ted Sieong for further discussion.
    \240\ David Willman, Allan C. Miller & Glenn F. Bunting, What 
Clinton Knew: How a Push for New Fund-Raising Led to Foreign Access, 
Bad Money and Questionable Ties, L.A. Times, Dec. 21, 1997, at A1.
---------------------------------------------------------------------------
    Apparently Huang, desperate to fill the event, asked 
Jessica Elnitiarta, Sieong's daughter, to bring as many people 
as she could.\241\ She made the largest contribution of the 
event, $50,000, earned her father a seat next to the President 
and brought 48 other friends to the event. According to DNC 
fundraiser Chong Lo, a large group of Taiwanese government 
officials and businessman also attended this event.\242\ This 
delegation originally was scheduled to attend an event the next 
day in San Francisco organized by the Lotus Fund. However, 
Charlie Trie and John Huang intervened and persuaded Norman 
Young, Vice Chairman of the Lotus Fund, to have the delegation 
attend the event in Century City instead.\243\ This 
delegation's political contribution allegedly came from Taiwan 
through California National Bank in San Francisco.\244\ The 
Committee has not been able to identify the Taiwanese 
government officials or businessmen who attended the event.
---------------------------------------------------------------------------
    \241\ Senate Committee on Governmental Affairs report at 970.
    \242\ Statement of Chong Lo.
    \243\ Statement of Chong Lo.
    \244\ Id.
---------------------------------------------------------------------------
    Generally, the fundraisers organized by Huang should have 
raised concerns among the DNC hierarchy. Many of Huang's events 
were attended by individuals who were not able to speak 
English, or were widely known to be foreign nationals. In 
particular, the President and senior levels of the DNC and 
White House knew that James Riady was not a U.S. citizen and 
that he did not live in the United States. Another example is 
Nina Wang, who sat at the head table with the President during 
at least two events, and attended several others. It is widely 
known that Ms. Wang is a billionaire from Hong Kong. However, 
she and other foreign nationals were able to attend fund 
raising events with the President of the United States, and no 
issues of impropriety were ever raised by White House 
officials.

                               CONCLUSION

    The Riady family, as foreign nationals, had unprecedented 
access to President Clinton and the highest levels of his 
administration. Although the family knew then-Governor Clinton 
in Arkansas, there is no indication that they were the best of 
friends. In fact, the bulk of the Riadys contributions came 
after Clinton had won the primary in 1992, and it appeared that 
he had a strong chance of winning the Presidency with enough 
financial support. Significant questions remain, among others: 
why the Riadys and their employees contributed so much money in 
the late days of the 1992 campaign; why the Riadys helped John 
Huang move to the DNC in the 1996 elections; and, what the 
Riadys wanted in return.
    Unfortunately, an unprecedented number of individuals have 
invoked their Fifth Amendment right against self-incrimination 
or fled the country in the face of questions posed by 
representatives of the American public. Only pieces are left to 
be patched together to form some sort of story. Investigators 
must draw inferences from the information they are able to 
gather, because there are few people with whom to talk.
    The Committee knows that the Riadys contributed close to a 
million dollars toward Clinton's election in 1992. The family 
then had access to the President, his staff, and high level 
department and agency officials. The Riadys concerns were 
heard. Although administration policies such as MFN, sibling 
preference in immigration, and access to Vietnam were changed, 
questions still remain about what impact contributions may have 
had on the shift.
    The Committee also knows that the Riadys were active in the 
1996 election. The Lippo Group's former executive John Huang 
became a DNC fundraiser, with the assistance of James Riady. 
Over half of the money raised by John Huang was returned by the 
DNC because it was either illegal or inappropriate. Even more 
of the 1996 DNC contributions are illegal, inappropriate, or 
suspect. Through examining bank records, the Committee has 
determined that even more money should be returned. Both Huang 
and the Riadys had ties to many of the individuals involved in 
the fundraising scandal. However, because the illegalities were 
discovered, nobody will know what might have occurred after the 
1996 elections.
    [Supporting documentation follows:]





=======================================================================


                           CHAPTER IV, PART B

  UNPRECEDENTED INFUSION OF FOREIGN MONEY INTO THE AMERICAN POLITICAL 
                                SYSTEM:

    YAH LIN ``CHARLIE'' TRIE AND HIS RELATIONSHIP WITH THE CLINTON 
                             ADMINISTRATION

=======================================================================

      
    YAH LIN ``CHARLIE'' TRIE AND HIS RELATIONSHIP WITH THE CLINTON 
                             ADMINISTRATION

                              Introduction

    Charlie Trie was one of the first major DNC fundraisers to 
come under public scrutiny in the wake of the 1996 election. 
Many of Trie's most notorious fundraising activities were not 
made public until months after the 1996 election. The DNC has 
taken the position that Trie was a rogue fundraiser with no 
official ties to the Democratic party. The White House has 
taken the position that Trie was an old acquaintance of the 
President from Arkansas, but not a White House intimate. The 
Committee has continued to investigate Trie's activities, and 
the material uncovered to date demonstrates that Trie is a 
central figure in the plan to funnel illegal campaign 
contributions into the 1996 campaign.
    The facts uncovered by the Committee indicate that Trie was 
a close friend of President Clinton with wide-ranging access to 
the White House, Presidential advisors, and Clinton 
Administration officials. It appears that Trie used his access 
to the Administration and the DNC to promote a number of 
different interests, including his own and those of his Asian 
business associates. In promoting these interests, Trie 
received extraordinary treatment from the White House and the 
Administration. Trie was allowed to bring a Chinese national, 
Wang Jun, who was the head of a Chinese weapons company, to a 
February 1996 coffee with the President when other major donors 
were not allowed to bring guests to the coffees. Trie received 
the personal attention of a Deputy Assistant Secretary of 
Commerce, Jude Kearney, who introduced Trie to numerous 
American business contacts. Trie also received the assistance 
of the DNC in ventures ranging from the mundane, such as White 
House tours, to the significant, such as hosting events for the 
Secretary of Commerce. Finally, the White House itself gave 
Trie an incredible helping hand. The White House placed Trie on 
an expert Asian trade panel in 1996, when by all accounts, he 
was completely unqualified to serve. Trie used this appointed 
position to promote himself and his business interests.
    However, there are still many unanswered questions 
regarding Charlie Trie's relationship with the White House and 
DNC that the Committee continues to investigate. Many of these 
questions cannot be answered because of the persistent 
stonewalling faced by the Committee. Trie's innermost circle of 
friends and associates has either fled the country or invoked 
their Fifth Amendment rights. Trie has taken the Fifth, been 
indicted, and faces trial in February 1999. Antonio Pan, who 
was indicted with Trie for violating Federal election laws, has 
fled the country. Ng Lap Seng, Wang Jun, and most of Trie's 
foreign benefactors have refused to cooperate with Committee 
investigators. The Clinton Administration has provided no 
assistance in obtaining the cooperation of foreign governments.
    Trie's American associates, including many linked to the 
DNC and White House, have invoked their Fifth Amendment 
privileges, including former senior White House aide Mark 
Middleton, John Huang, and Commerce Department employee Melinda 
Yee. As described throughout this chapter, the final barrier 
the Committee has faced is a consistent lack of candor and 
cooperation even from those witnesses who have testified. Trie 
associates such as Ernie Green, Charles Duncan, and Jude 
Kearney have testified, but their testimony is plagued either 
with inconsistencies with the testimony of other witnesses and 
documentary evidence, or by frequent, disturbing lapses of 
memory.
    Finally, the Committee's investigation of Trie has been 
hampered to a certain extent by the Justice Department's 
ongoing prosecution of Trie. A number of documents belonging to 
Trie were seized by the Justice Department, and are not 
available to the Committee until after Trie's trial. In 
addition, Trie's pending trial has made it impossible for the 
Committee to grant immunity to a number of witnesses close to 
Trie who would offer highly relevant testimony about his 
fundraising activities. For example, the Committee has located 
and obtained a proffer from a confidential witness offering 
substantial evidence against Trie, but the Justice Department 
has refused to approve the Committee's plans to grant immunity 
until Trie's trial is over. Trie's trial has already been 
delayed once, exacerbating the difficulties faced by the 
Committee. The Committee is hopeful that after Trie's trial, 
these documents and witnesses will be made available to the 
Committee so that its investigation may continue.

                        I. Trie's Arkansas Roots

    Yah Lin ``Charlie'' Trie was born on August 15, 1949, in 
Fangcheng Hsien, Honan Province, China, and lived in Taiwan 
with his family from January 1965 to January 1976.1 
Trie emigrated to the United States in February 1976 and began 
working at Charlie Chan's restaurant in Little Rock, 
Arkansas.2 By 1978, Trie was a co-owner of the Fu 
Lin restaurant in Little Rock, Arkansas, with his sister, 
Dailin Outlaw.3
---------------------------------------------------------------------------
    \1\ Declaration of the Taipei Municipal Police Headquarters, Jan. 
22, 1976 (Exhibit 1). There are a number of unexplained discrepancies 
regarding Trie's birth and immigration records. Trie has claimed at 
least four different birthdays. In addition, there are contradictory 
documents regarding Trie's birthplace and residence in Asia. Trie 
claims in his biography to have been born and raised in Taiwan for 26 
years. See Biography of Yah Lin Trie. However, documents prepared by 
Taiwanese authorities state that Trie was born in the People's Republic 
of China, and lived there for 16 years before moving to Taiwan.
    \2\ INS Application to File Petition for Naturalization for Yah Lin 
Trie, Aug. 4, 1983; INS Biographic Information form for Yah Lin Trie, 
July 14, 1983.
    \3\ INS Biographic Information form for Yah Lin Trie, July 14, 
1983.
---------------------------------------------------------------------------
    Charlie Trie's political activity began long before he 
moved to Washington in 1994. In fact, Trie began donating to 
Clinton campaigns even before he became a citizen on December 
7, 1984.4 In a 2-week period beginning on September 
29, 1982, Trie gave Bill Clinton's gubernatorial campaign five 
separate checks totaling $1,100 and his wife, Wang Mei Trie, 
gave another $100 on October 23, 1982.5 Bill 
Clinton's campaign acknowledged Trie's contributions with five 
thank you letters and Bill Clinton, after returning to the 
governor's mansion in 1982, became a frequent guest at Trie's 
restaurant.6 Clinton and Trie appear to have 
developed a friendship during this period of time. In 1988, the 
President appointed Trie to the Arkansas Fire Extinguisher 
Board.7 Trie's daughter told friends that her father 
and Governor Clinton often played basketball together in 
Arkansas.8 It was during this period of time that 
Trie began referring to then-Governor Clinton as ``Lao Ke,'' a 
colloquial Chinese term meaning ``Big Boss.'' 9 
President Clinton has also spoken publicly of their friendship. 
At a May 1996 DNC fundraiser, Clinton recognized Trie and 
remarked that:
---------------------------------------------------------------------------
    \4\ Certificate of Naturalization for Yah Lin Trie, Dec. 7, 1984.
    \5\ Donor History form for Yah Lin Trie, Clinton-Gore Document 
CG92B-00527-28 (Exhibit 2); Donor History form for Wang Mei Trie, 
Clinton-Gore Document CG92B-00526 (Exhibit 3).
    \6\ Exhibit 2.
    \7\ Jill Abramson and Marcus W. Brauchli, ``Mr. Trie Was Serving 
Noodles to Clinton Before Oodles of Cash,'' the Wall Street Journal, 
Dec. 18, 1996 at A1.
    \8\ Interview of Susan Lee, Summer 1997.
    \9\ Translation by Herman Liang. See Lena H. Sun and Dan Morgan, 
``Asian Firm's First U.S. Ties Included DNC; Contribution Followed 10 
Days in Arkansas,'' the Washington Post, Dec. 1, 1996 at A1.

        Soon it will be twenty years that I had my first meal 
        with Charlie Trie. Almost twenty years, huh? Twenty 
        years in just a few months. At the time, neither of us 
        could afford a ticket to this dinner, it's fair to 
        say.10
---------------------------------------------------------------------------
    \10\ White House Communications Agency videotape No. 6, May 13, 
1996. Of course, Trie still could not afford the ticket to the May 13 
fundraiser, or any other DNC event that he attended without the 
assistance of foreign nationals.

A short time later, at a California fundraiser, President 
Clinton told Trie's sister, ``[y]our brother has been my close 
friend for two decades.'' 11
---------------------------------------------------------------------------
    \11\ Deposition of Manlin Foung, House Committee on Government 
Reform and Oversight, Sept. 29, 1997 (``Foung Deposition''), at 55.
---------------------------------------------------------------------------
    The Committee has also learned that Trie's ties with a 
number of his associates in the fundraising scandal predate 
Trie's arrival in Washington in 1994. Many of these 
relationships go back to Arkansas in the mid-1980s. For 
example, it was at the Fu Lin restaurant in 1983 that Trie met 
Antonio Pan, then an employee of a company called United 
Pacific Trading Inc.12 Trie's fundraising activities 
with Pan in 1995 and 1996 led to the indictment of both. Early 
in the 1980s, James Riady of the Lippo Group sent one of his 
executives, Peter Chen, and Chen's assistant Pan to Little Rock 
to run United Pacific, a Lippo subsidiary.13 Pan 
worked in Little Rock for 2 years before he was forced to leave 
the United States in 1985 because he was unable to obtain a 
work permit.14 Trie would renew his relationship 
with Chen and Pan in 1995, when both would begin working with 
him.15
---------------------------------------------------------------------------
    \12\ Interview of Rush Deacon, June 22, 1998, at 2.
    \13\ Id.
    \14\ Id.
    \15\ Business card for Antonio Pan, chief executive officer, 
Daihatsu International Trading, Inc. (Exhibit 4).
---------------------------------------------------------------------------
    While running his small restaurant in Little Rock, Trie 
also struck up a relationship with James Riady of the Lippo 
Group. Riady and his family were leaders in Little Rock's small 
Asian community, and Trie had met them in this 
context.16 Trie also received a $60,000 loan from 
Riady in 1985 which allowed him to expand his restaurant 
operations.17 Trie would proudly mention his 
connections with Riady in 1996, after meeting with him in 
Jakarta.18
---------------------------------------------------------------------------
    \16\ Andrea Harter, ``Trie Tried to Make LR Click for Him,'' 
Arkansas Democrat-Gazette, Sept. 28, 1997 at 1A.
    \17\ U.S. Small Business Administration Portfolio Financing Report, 
May 31, 1985 (Exhibit 5).
    \18\ Interview of Clyde Prestowitz, Feb. 18, 1998 (``Prestowitz 
Interview''), at 3.
---------------------------------------------------------------------------
    In November 1991, Trie sold his restaurant and began a new 
career path by starting Daihatsu International Trading Corp., 
an import-export business.19 Trie was hoping to use 
his contacts in Asia to strike trade deals between Chinese and 
U.S. businesses on a wide variety of commodities. Trie 
attempted to put together deals ranging from chickens to 
wrenches to cigarette filters. Almost all of these deals ended 
in failure.20 For his efforts, though, Trie received 
a letter from President-elect Bill Clinton shortly after the 
1992 election, congratulating him on establishing Daihatsu 
International and thanking him for expanding trade and 
understanding between the United States and China:
---------------------------------------------------------------------------
    \19\ Daihatsu International Certificate of Incorporation, Nov. 14, 
1991, IGI Document HS012411.
    \20\ Interview of Jody Webb, Aug. 29, 1998 (``Webb Interview''), at 
7.

        I am pleased to hear that you are establishing a branch 
        of your company, Daihatsu International, in the 
        People's Republic of China. . . . I wish you success in 
        your new venture, and I appreciate your efforts for our 
        state. Please let me know about your 
        progress.21
---------------------------------------------------------------------------
    \21\ Letter from Bill Clinton to Charlie Trie, Nov. 10, 1992 
(Exhibit 6).

    As part of his import-export business, Trie began making 
frequent trips to China. During one such trip in September 
1992, Trie traveled to Changchun City, China, with several 
Arkansas businessmen and the Arkansas State Auditor, Julia 
Hughes Jones.22 Through Trie's efforts, this 
business trip evolved into a formal sister city relationship 
between Little Rock and Changchun City in May 
1995.23 Trie apparently attempted to capitalize on 
his friendship with Bill Clinton even before he became a major 
donor to the DNC. Before his fundraising improprieties were 
exposed, Trie told an Arkansas newspaper: ``[i]n China, people 
want to know you before they do business with you.'' 
24 The reporter then observed that ``Chinese also 
like to see some proof that you are known and trusted by 
prominent people. Trie's letter of best wishes from President-
Elect Bill Clinton, for example, has helped.'' 25
---------------------------------------------------------------------------
    \22\ Interview of Julia Hughes Jones, Senate Committee on 
Governmental Affairs, June 19, 1997, at 2-3.
    \23\ Id.
    \24\ Doug Thompson, Expatriate Opening Trade Route to China, 
Arkansas Democrat-Gazette, Aug. 14, 1994 at 1G.
    \25\ Id.
---------------------------------------------------------------------------
    At the same time as he was traveling to China, Trie also 
brought at least eight delegations of Chinese government 
officials and businessmen to the United States.26 
For one such delegation in April 1993, Trie enlisted the help 
of Julia Hughes Jones, to arrange a picture between a PRC 
governor and President Clinton.27 In his response to 
the request, Anthony Lake stated:
---------------------------------------------------------------------------
    \26\ Webb Interview at 4-5.
    \27\ Memorandum from Anthony Lake to Thomas F. McLarty, Apr. 13, 
1993 (Exhibit 7).

        The delegation is led by a governor; immediately after 
        his visit another delegation, led by a PRC Vice 
        Minister, arrives in Washington. If we arrange for the 
        governor to meet with the President, we will also need 
        to arrange a similar meeting for the Vice Minister, who 
        outranks him. Foreign provincial officials do not 
        normally meet with heads of state.28
---------------------------------------------------------------------------
    \28\ Id.

Despite the barriers to Trie's request identified in Lake's 
memo, Trie apparently got his way because he entered the White 
House on April 16, 1993 for what was described as a ``photo 
op.'' 29
---------------------------------------------------------------------------
    \29\ Summary of Charlie Trie's Visits to the White House, White 
House Counsel's Office.
---------------------------------------------------------------------------
    Trie's efforts did not go unnoticed in Asia. By early 1994, 
Ng Lap Seng, a wealthy Macau businessman, became Trie's partner 
in his latest venture, an attempt to purchase the dilapidated 
Camelot Hotel in Little Rock. Trie and Ng entered the United 
States in March 1994 to discuss the hotel proposal and inspect 
the building. Ng brought $80,000 in cash with him on his trip 
to the United States.30 Witnesses later saw Ng give 
Trie thousands of dollars in cash.31 These seem to 
be the earliest examples of the receipt by Trie of large 
amounts of money from Ng Lap Seng. In the coming years, Trie 
was to receive over $1 million from Ng, over $130,000 of which 
he would funnel into the DNC.
---------------------------------------------------------------------------
    \30\ Currency Transaction Report for Ng Lap Seng, Mar. 23, 1994 
(Exhibit 8).
    \31\ The amount of cash Ng gave to Trie is in dispute. It ranges 
from $5,000 to $20,000. See Deposition of Lorin Fleming, Senate 
Committee on Governmental Affairs, July 11, 1997, at 37; Deposition of 
Dwight Linkous, Senate Committee on Governmental Affairs, July 10, 
1997, at 33-38.
---------------------------------------------------------------------------
    Ng has not cooperated with any of the campaign finance 
investigations. Nevertheless, the Committee has been able to 
learn a number of critical facts regarding Ng. Ng came to Macau 
from Guangzhou in China in 1979 ``flat broke,'' and worked in 
the Macau garment business.32 However, soon Ng had 
experienced a remarkable metamorphosis, and by the 1990s, was a 
wealthy Macau landowner. How Ng's transformation was 
accomplished is currently unknown. However, there are a number 
of facts about Ng that are known, and reveal a great deal about 
his roots and loyalties. Ng owns a casino/hotel complex in 
Macau that is reportedly frequented by Macau 
gangs.33 Ng denies that he has any connections with 
organized crime.34 However, it is Ng's political 
ties that are of the greatest interest. Ng is a member of the 
Chinese People's Political Consultative Congress, a communist 
organization in the People's Republic of China.35 
The Committee has also interviewed a witness who for several 
years worked closely with Ng in Hong Kong and 
Macau.36 That witness informed the Committee that Ng 
was a peasant farmer before coming to Macau, but somehow had 
been selected to act as a front for municipal and provincial 
authorities in the People's Republic of China.37 The 
witness also informed the Committee that Ng is poorly educated, 
and still does not understand many aspects of his business, 
frequently erupting in anger at business meetings.38 
For his part, Ng has made few comments regarding the campaign 
finance scandal. In one of his rare media interviews, he made 
the following comments:
---------------------------------------------------------------------------
    \32\ Niles Lathem, ``Chinese Checkered Past of Trie Funder,'' New 
York Post, Mar. 1, 1998, at 2.
    \33\ Id.
    \34\ Niall Fraser, ``I'm Caught in Crossfire on Clinton, Says 
Tycoon,'' South China Morning Post, Oct. 19, 1997, at 3.
    \35\ Lena H. Sun and John Pomfret, ``China Adviser's Gift to DNC 
Under Review, After Audit, Party Will Return More Donations'' 
Washington Post, Feb. 25, 1997, at A1.
    \36\ The witness, George Johnson, worked at the Consolidated Trust 
Co. in Hong Kong, where he interacted frequently with Charlie Trie and 
Trie associates William Peh and Ng Lap Seng.
    \37\ Interview of George Johnson, Feb. 13, 1998 (``Johnson 
Interview''), at 2.
    \38\ Id.

        I am very upset, especially about this allegation that 
        I am linked to organised [sic] crime. It is absolutely 
        untrue and has no basis in fact. I don't like to talk a 
        lot because when you find yourself caught up in 
        something like this, it is very difficult to talk your 
        way out. This is political. There is a purpose to all 
        this and the target is President Clinton.39
---------------------------------------------------------------------------
    \39\ Niall Fraser, ``I'm Caught in Crossfire on Clinton, Says 
Tycoon,'' South China Morning Post, Oct. 19, 1997, at 3.

While Ng has made these statements in the press defending 
himself and President Clinton, he has never cooperated with 
Committee investigators.
    Ng and Trie ultimately lost the bid on the Camelot Hotel. 
However, during the bidding process, Trie and Ng made many 
valuable contacts. One prominent lawyer who assisted Trie and 
Ng was C. Joseph Giroir.40 Giroir was a close friend 
of Clinton and a major DNC fundraiser. At one point during the 
bidding process, a local official questioned the source of the 
money offered by Trie and Ng Lap Seng, suggesting that Ng had 
criminal ties in Asia.41 Giroir responded angrily, 
calling the questions ``inappropriate and offensive.'' 
42 But, with the failure of the Camelot Hotel 
project, Trie again changed his business focus, and decided to 
open an office in Washington, DC.43
---------------------------------------------------------------------------
    \40\ Letter from C.J. Giroir, Jr. to Board of Directors, City of 
Little Rock, May 20, 1994 (Exhibit 9).
    \41\ Interview of Lorin Fleming, Senate Committee on Governmental 
Affairs, Aug. 12, 1997 at 3.
    \42\ Exhibit 9.
    \43\ Interview of Jody Webb, Senate Committee on Governmental 
Affairs, June 20, 1997 at 3.
---------------------------------------------------------------------------

                      II. Trie Comes to Washington

    Shortly after his failed attempt to purchase the Camelot 
Hotel, Trie moved to Washington, DC, to open a branch of 
Daihatsu. Trie's move to Washington in the summer of 1994 
coincided with his first major contributions to the DNC, and 
the expansion of his ties to the White House. Trie's 
contributions allowed him to go from an obscure owner of a 
Chinese restaurant to a frequent guest at DNC galas and visitor 
at the White House. In June 1994 alone, Trie visited the White 
House four times.44
---------------------------------------------------------------------------
    \44\ Worker and Visitor Entry System [WAVES] Records of Yah Lin 
Trie.
---------------------------------------------------------------------------
    In this period of time, Trie would also make his first 
contributions to the DNC. Over the course of the next 2\1/2\ 
years, these contributions would total over $229,000. A summary 
of contributions made by Trie, his family, and his companies 
follows:

----------------------------------------------------------------------------------------------------------------
                   Date                                Donor               Amount             Recipient         
----------------------------------------------------------------------------------------------------------------
May 14, 1994.............................  Yah Lin Trie................    $20,000  DNC.                        
May 14, 1994.............................  Yah Lin Trie................     60,000  DNC.                        
May 25, 1994.............................  Wang Mei Trie...............     20,000  DNC.                        
June 21, 1994............................  Daihatsu International......      7,500  DNC.                        
August 1, 1994...........................  Yah Lin Trie................     20,000  DNC.                        
October 20, 1994.........................  San Kin Yip International...     15,000  DNC.                        
April 7, 1995............................  Yah Lin Trie................        500  Daschle Campaign.           
April 26, 1996...........................  Yah Lin Trie................      1,000  Stodola Campaign.           
June 22, 1995............................  Daihatsu International......     50,000  DNC.                        
June 26, 1995............................  E-Fong Do Trie..............      2,000  Daschle Campaign.           
June 26, 1995............................  Wang Mei Trie...............      1,000  Clinton/Gore '96.           
February 29, 1996........................  Daihatsu International......     12,500  DNC.                        
March 21, 1996...........................  Yah Lin Trie................      1,000  Matsui Campaign.            
May 6, 1996..............................  Yah Lin Trie................      1,000  Mark Warner Campaign.       
May 12, 1996.............................  Yah Lin Trie................     10,000  DNC.                        
July 31, 1996............................  America-Asia Trade Center...      3,000  DNC.                        
August 26, 1996..........................  Yah Lin Trie................        560  Fund for Democratic         
                                                                                     Leadership.                
August 28, 1996..........................  Yah Lin Trie................      1,000  Coopersmith Campaign.       
September 28, 1996.......................  Yah Lin Trie................      2,000  DNC.                        
October 2, 1996..........................  Yah Lin Trie................      1,000  Fund for Democratic         
                                                                                     Leadership.                
----------------------------------------------------------------------------------------------------------------

                   A. Trie's First DNC Contributions

1. The June 22, 1994, Presidential Gala

    Charlie Trie was first solicited to contribute to the DNC 
in connection with the June 22, 1994 Presidential Gala in 
Washington, DC. Trie was solicited to give $100,000 to the DNC, 
even though he had never made any significant political 
contributions previously. No one at the DNC demonstrated any 
concern about taking $100,000 from an obscure Arkansas 
restaurateur with little apparent wealth. Trie was rewarded 
with an immediate entree into the world of Washington insiders 
and Presidential intimates, and the DNC was rewarded with 
badly-needed campaign cash.
    Trie was solicited to make his first contributions to the 
DNC by Richard Mays, a close friend of the President from 
Arkansas. Mays had been appointed to the Arkansas bench by 
Governor Clinton, and was also a longtime major DNC donor and 
fundraiser. Mays claims that he knew Trie from patronizing his 
restaurant in Little Rock.45 Mays claimed not to 
recall the exact circumstances of his solicitation of Trie, but 
did state that he ``had the distinct impression that [Trie] was 
in a position to contribute, and wanted to make a 
contribution.'' 46 Mays says he based his conclusion 
that Trie was in a ``position to contribute'' to the DNC on the 
fact that Trie was traveling between Little Rock and 
Washington, DC:
---------------------------------------------------------------------------
    \45\ Deposition of Richard L. Mays, House Committee on Government 
Reform and Oversight, Nov. 5, 1997 (``Mays Deposition''), at 30.
    \46\ Id. at 37.

    Question. When you say ``in a position to contribute,'' do 
you mean he had sufficient money to contribute?
    Mays. I felt he did.
    Question. And how did you get that impression?
    Mays. I don't know how I got that impression, but 
frequently, he seemed like he was traveling extensively, you 
know, I knew he owned that Chinese restaurant down there, and 
he apparently had engaged in some business, other business 
interests. I really didn't have a specific judgment that, in 
fact, he could, but I certainly thought it was worth talking to 
him about it.

           *       *       *       *       *       *       *

    Question. Would you ever see him anywhere other than D.C. 
or Little Rock?
    Mays. I don't recall that I have. I mean, I am not saying I 
haven't, but I don't recall.47
---------------------------------------------------------------------------
    \47\ Id. at 38-39.

Mays asked Trie what he could contribute, and Trie told him 
$100,000.48 Mays claims that he was not surprised by 
Trie's offer of $100,000, even though this was the largest 
contribution he had ever solicited.49 Trie's 
$100,000 contribution was used for the DNC's Health Care 
Campaign, which was a public campaign to promote the 
President's health care legislative proposal.50
---------------------------------------------------------------------------
    \48\ Id. at 39.
    \49\ Id. at 41.
    \50\ Memorandum from David Mercer to John O'Hanlon, June 18, 1994, 
DNC Document F0045848. The DNC's Health Care Campaign was directed in 
large part by Harold Ickes.
---------------------------------------------------------------------------
    At this point, Mays claimed he still had no concern that a 
political novice with little apparent wealth had pledged 
$100,000 to the DNC. Rather than conducting any background 
research of Trie, or looking into the source of Trie's funds, 
he introduced Trie to Terry McAuliffe, then the Finance 
Chairman of the DNC.51 Mays set up a breakfast 
meeting between McAuliffe and Trie. At this meeting, Trie 
confirmed that he would make a $100,000 contribution to the 
DNC, and asked only that he be prominently seated at the June 
22 gala.52 When asked if he ever had a concern about 
the source of Trie's contributions, Mays responded ``[w]hy 
would I have some concern?'' 53
---------------------------------------------------------------------------
    \51\ Mays Deposition at 42.
    \52\ Id. at 44.
    \53\ Id. at 45.
---------------------------------------------------------------------------
    However, Richard Mays was not the only person who accepted 
Charlie Trie's $100,000 contribution without asking any 
questions. To his recollection, no one at the DNC ever 
expressed any concern about Trie's $100,000 
contribution.54 David Mercer, the deputy finance 
director at the DNC, stated that:
---------------------------------------------------------------------------
    \54\ Id. at 45.

        I had no concerns. Whether it was in a situation that 
        here is a guy who wrote a $100,000 check, Arkansas 
        ties, and part of the family, if you will, . . . it's 
        not for me to have those concerns unless something was 
        presented to me by Charlie, which nothing was. . . 
        .55
---------------------------------------------------------------------------
    \55\ Deposition of David L. Mercer, House Committee on Government 
Reform and Oversight, Aug. 21, 1997 (``Mercer Deposition I''), at 125.

At this time, Terry McAuliffe claims that the DNC had an 
---------------------------------------------------------------------------
extensive system in place to check contributions to the DNC:

        So we generally knew most of the people, and we had a 
        very good process, and I would like to state for the 
        record in 1994, we haven't had any problems with 
        checks. . . . I know Laura [Hartigan] checked everybody 
        who sat at a head table.56
---------------------------------------------------------------------------
    \56\ Deposition of Terence McAuliffe, Senate Committee on 
Governmental Affairs, June 6, 1997 (``McAuliffe Deposition''), at 82.

 Of course, there have been problems with contributions made to 
the DNC in 1994, despite McAuliffe's pride in the DNC's vetting 
system. If Charlie Trie's initial contributions were vetted, 
the system still allowed an obscure individual with no personal 
wealth to give $100,000 to the Democratic party.
            a. Trie's $100,000 Contribution Came from Ng Lap Seng
    Trie's $100,000 was given to the DNC in three installments: 
first, a check for $20,000 dated May 14, 1994; 57 
second, a check for $60,000 dated May 14, 1994; 58 
and third, a check for $20,000 dated May 25, 1994.59 
These contributions were drawn on the First Commercial Bank 
account held by Charlie and Wang Mei Trie. The contributions 
were made from $100,000 in funds wired directly from Lucky Port 
Investments, a Hong Kong corporation with no U.S. 
operations.60 In addition, Trie gave $7,500 through 
his company, Daihatsu International Trading Corporation, for 
this event.61 Although Richard Mays is listed as the 
solicitor of this contribution, he failed to recall why he 
solicited it, or even if he solicited it at all.62 
Nevertheless, the $7,500 contributed by Daihatsu was similarly 
derived from foreign sources. Just as Charlie and Wang Mei 
Trie's personal account at First Commercial Bank received a 
$100,000 wire transfer from Lucky Port shortly before the 
contribution, the Daihatsu bank account at First Commercial 
similarly received a wire transfer of $100,000 from Ng Lap 
Seng's account at the Bank of China in Macau shortly before the 
$7,500 contribution was made.63
---------------------------------------------------------------------------
    \57\ DNC Check Tracking Form for Contribution of Yah Lin Trie, May 
14, 1994, DNC Document DNC 3053401 (Exhibit 10).
    \58\ DNC Check Tracking Form for Contribution of Yah Lin Trie, May 
14, 1994, DNC Document DNC 3053400 (Exhibit 11).
    \59\ DNC Check Tracking Form for Contribution of Yah Lin Trie, May 
25, 1994, DNC Document DNC 1075637 (Exhibit 12).
    \60\ First Commercial Bank, N.A. Wire Transfer of $99,985.00 from 
Lucky Port Investments Ltd. to Yah Lin Trie or Wang Mei Trie; First 
Commercial Bank, N.A. Statement for Yah Lin Trie and Wang Mei Trie, May 
1994 (Exhibit 13); see also Report, Senate Committee on Governmental 
Affairs, Investigation of Illegal or Improper Activities in Connection 
with 1996 Federal Election Campaigns, at 2526.
    \61\ DNC Check Tracking Form for Contribution of Yah Lin Trie, June 
21, 1994, DNC Document F0048749 (Exhibit 14).
    \62\ Mays Deposition at 61-62.
    \63\ First Commercial Bank, N.A. Wire Transfer of $99,985 from Ng 
Lap Seng to Daihatsu International Trading; First Commercial Bank, N.A. 
Statement for Daihatsu International Trading Corp., May 1994.
---------------------------------------------------------------------------
            b. Ng Lap Seng's Cash
    Two days before the gala, Ng Lap Seng and his wife entered 
the United States. Ng brought $175,000 in cash with him for his 
short stay in the United States.64 It is unclear 
what Ng did with this cash during his stay. Two days later, on 
June 22, Ng and Trie entered the White House for a meeting with 
Mark Middleton.65 The three later had lunch at the 
White House mess.66 It is currently unknown what was 
discussed at this meeting since Trie and Middleton have invoked 
their Fifth Amendment rights, and Ng has not cooperated with 
investigators.
---------------------------------------------------------------------------
    \64\ Currency Transaction Report for Ng Lap Seng, June 20, 1994 
(Exhibit 15).
    \65\ WAVES records for Yah Lin Trie and Ng Lap Seng, June 22, 1994.
    \66\ DNC Reimbursement of White House Mess Bill, DNC Document DNC 
0328622 (Exhibit 16).
---------------------------------------------------------------------------
            c. Benefits Received by Trie
    Trie received a number of benefits for making his large 
contributions to the DNC. First, he was permitted to bring two 
tables of guests to the June 22 gala. Among his invitees were: 
Ng Lap Seng, the source of much of his money; Pun Nun Ho, the 
wife of Ng; Jude Kearney, a Deputy Assistant Secretary at the 
Department of Commerce; and Anita Middleton, the mother of Trie 
associate Mark Middleton.67 Trie and his wife were 
seated at the head table with the President, Vernon Jordan, and 
DNC Chairman David Wilhelm.68 To be seated at the 
head table, according to David Mercer, Trie had to be approved 
by both the DNC and the White House.69 According to 
Dan Dutko, a DNC donor and fundraiser also seated at the head 
table, the Tries were ``embarrassingly silent'' throughout the 
dinner, and did not seem to know anyone at the 
table.70 However, both Trie and Ng did have their 
photographs taken with the President and First Lady at this 
event.71
---------------------------------------------------------------------------
    \67\ Facsimile from Charlie Trie/Jody Webb to David Mercer, June 
21, 1994, DNC Document F0045837 (Exhibit 17).
    \68\ Photograph of head table, June 22, 1994 (Exhibit 18).
    \69\ Mercer Deposition I at 112.
    \70\ Interview of Dan Dutko, Aug. 19, 1998.
    \71\ Photograph of Yah Lin Trie with President Clinton and Hillary 
Clinton, June 22, 1994 (Exhibit 19); photograph of Ng Lap Seng with 
President Clinton and Hillary Clinton, June 22, 1994 (Exhibit 20).
---------------------------------------------------------------------------
    How Charlie Trie went from an obscure Arkansas restaurateur 
to a major DNC donor and fundraiser raises a number of 
questions. How was it possible for him to donate over $100,000 
without raising the slightest suspicion at the DNC at a time 
when the DNC claims it was still vetting contributions? 
72 Trie was someone the President knew well. Did the 
President have any idea how Trie came into such great wealth? 
The Committee will not know all of the answers until someone in 
Charlie Trie's inner circle stops taking the Fifth and starts 
cooperating with the investigation. However, there certainly 
were warning signs regarding Trie. It is clear that whatever 
signs were present, they were disregarded by DNC fundraisers 
eager to bring in campaign funds. What is more remarkable is 
that warning signs regarding Trie continued to multiply. Still, 
the DNC continued to demand money from Trie, and the White 
House continued to make Trie its honored guest.
---------------------------------------------------------------------------
    \72\ McAuliffe Deposition at 80-82. It was not until after the 1996 
election that the DNC admitted that their vetting of major contributors 
ended in May 1994. Deposition of Jeffrey King, Senate Committee on 
Governmental Affairs, June 26, 1997, at 24, 30.
---------------------------------------------------------------------------

2. The August 2, 1994 Presidential Birthday Event

    The next major DNC event attended by Trie after the June 22 
gala was the August 2, 1994, Presidential Birthday fundraiser 
in Prince George's County, Maryland. Trie contributed an 
additional $20,000 to attend this event.73 The source of 
this $20,000 was a wire transfer of $100,000 from Ng Lap Seng's Bank of 
China bank account in Macau.74 Ng Lap Seng came to the 
United States to attend this event. On July 31, Ng entered the United 
States, bringing with him $42,000 in cash.75 On August 1, 
1994, Ng and Trie entered the White House to meet and have lunch with 
Mark Middleton.76 The following day, on August 2, Trie and 
Ng went to the Presidential Birthday fundraiser. Although Ng did not 
officially contribute any money to the event, and was in fact not 
legally eligible to contribute, he is listed as an ``Event Benefactor'' 
in the event program.77 According to internal DNC documents, 
``Event Benefactors'' were required to either contribute $10,000 or 
raise $25,000 for the event.78
---------------------------------------------------------------------------
    \73\ DNC Check Tracking Form for Contribution of Yah Lin Trie, Aug. 
1, 1994, DNC Document F0048754 (Exhibit 21).
    \74\ See Wire Transfer of $100,000 from Bank of China Macau to 
First Commercial Bank (Exhibit 22). See also Report, Senate Committee 
on Governmental Affairs, Investigation of Illegal or Improper 
Activities in Connection with 1996 Federal Election Campaigns, at 2527.
    \75\ Currency Transaction Report for Ng Lap Seng, July 31, 1994 
(Exhibit 23).
    \76\ WAVES records for Charlie Trie and Ng Lap Seng, Aug. 1, 1994.
    \77\ 1994 Presidential Birthday Celebration program, Aug. 2, 1994, 
DNC Document DNC 3390023 (Exhibit 24).
    \78\ President Clinton's Birthday Celebration Event Committee 
Requirements and Benefits, Ernest Green Document 000640 (Exhibit 25).
---------------------------------------------------------------------------
    It is unknown why Ng was listed as an ``Event Benefactor'' 
when he was ineligible to contribute, and according to FEC 
records, never directly contributed funds to the DNC or raised 
funds for the DNC. While it is clear that Ng was the source of 
many of Trie's DNC contributions, the DNC has claimed that it 
was not aware of this fact. Nevertheless, the fact that Ng was 
recognized as an ``Event Benefactor'' on a DNC program does 
raise serious questions as to whether the DNC was aware of Ng's 
role as the source of Trie's generous contributions to the DNC.
    Trie's contributions to the June and August events brought 
him far more than a seat at the President's table and 2 nights 
of contact with Democratic party donors. Shortly after the 
August 2 event, Trie made at least five requests of the DNC:
        (1) assistance in obtaining references for the 
        apartment at the Watergate that he was trying to 
        obtain;
        (2) a videotape of the Presidential Gala;
        (3) an invitation to sit on the DNC Finance Board of 
        Directors;
        (4) participation in the Department of Commerce trade 
        mission to China;
        (5) some kind of assistance regarding the Nam Van Lakes 
        real estate project in Macau.79
---------------------------------------------------------------------------
    \79\ Memorandum from David L. Mercer to Martha Shoffner, Aug. 22, 
1994, DNC Document DNC 1275756 (Exhibit 26).
---------------------------------------------------------------------------
    David Mercer, who was tasked with maintenance of high-
dollar donors, quickly went to work on these tasks. First, he 
prepared a letter of recommendation to the Watergate for Trie, 
and had Susan Lavine of the DNC and Richard Mays prepare 
similar letters as well.80 Mercer also spoke with 
Terry McAuliffe, DNC Finance Chairman, and had the invitation 
onto the Finance Board of Directors approved.81 
Trie's invitation onto the Finance Board of Directors required 
him to raise or write a total of $250,000 in contributions to 
the DNC over the coming year.82 Mercer also 
contacted Kathy Hoffman at the Department of Commerce, to see 
if Trie could participate in any of the Department of Commerce 
activities during the August-September 1994 trade mission to 
China.83 While Trie was not an official participant 
on the trade mission, Mercer does not recall whether he was 
ultimately successful in having Trie invited to trade mission 
activities in China.84 Finally, Mercer gathered 
information regarding a private business project that Trie and 
Ng Lap Seng were pursuing in Macau, the Nam Van Lakes real 
estate project, as a preliminary step to helping Trie find 
investors for the project.85 These actions by David 
Mercer were only the first of many to assist Charlie Trie with 
his political and private business dealings.
---------------------------------------------------------------------------
    \80\ Letter from David L. Mercer to Board of Directors, Watergate 
South, Aug. 18, 1994, DNC Document DNC 0045405 (Exhibit 27); Letter 
from Richard Mays to Board of Directors, Watergate South, Aug. 24, 
1994, Watergate South Document 006168 (Exhibit 28); Letter from Susan 
E. Lavine to Board of Directors, Watergate South, Aug. 18, 1994, 
Watergate South Document 006165 (Exhibit 29).
    \81\ Mercer Deposition I at 125.
    \82\ Id. at 122.
    \83\ Id. at 126.
    \84\ Id. at 130. See Doug Thompson, ``Expatriate Opening Trade 
Route to China,'' Arkansas Democrat-Gazette, Aug. 14, 1994, at 1G. In 
this news interview, Trie mentions that he plans to host a dinner in 
China for Secretary Brown. Moreover, Trie's American Express records 
indicate that he was in China in late Aug. 1994.
    \85\ Mercer Deposition I at 133.
---------------------------------------------------------------------------

3. San Kin Yip's $15,000 Contribution in October 20, 1994

    On October 19, 1994, Ng Lap Seng entered the country on his 
way from Macau to Washington, DC. Ng brought with him $25,000 
in cash.86 On October 20, Trie and Ng entered the 
White House for a 1:15 p.m. meeting with Mark 
Middleton.87 The same day, Trie and Ng attended a 
fundraising dinner hosted by Vice President Gore.88 
In connection with this event, the DNC received a check for 
$15,000 drafted on the account of San Kin Yip International 
Trading Co.89 San Kin Yip was an American trading 
company that shared a name with a Macau company owned by Ng. 
San Kin Yip had only been incorporated 9 days earlier, and all 
of the funds used to make the contribution came from Ng Lap 
Seng's overseas bank account.90 However, to the 
extent that the DNC and Charlie Trie have discussed this 
contribution publicly, they have attempted to make it appear 
that Trie made the contribution, and that the DNC accepted it 
from Trie without knowing the source of the money used to make 
the contribution. Before he fled the country in 1997, Trie told 
the Washington Post ``[i]n this case, I think somebody made a 
mistake.'' 91 Certain documents support this claim. 
For example, the DNC check tracking form was filled out by 
Richard Sullivan, and on that form, Sullivan listed himself as 
the solicitor of the contribution.92 Sullivan also 
wrote that the contact for the San Kin Yip contribution was 
Charlie Trie.93 In addition, after the San Kin Yip 
contribution was made, David Wilhelm wrote a letter to Trie, 
thanking him for the San Kin Yip contribution and participation 
in the DNC's Business Leadership Forum (``BLF'').94
---------------------------------------------------------------------------
    \86\ Currency Transaction Report for Ng Lap Seng, Oct. 19, 1994 
(Exhibit 30).
    \87\ WAVES records for Yah Lin Trie and Ng Lap Seng, Oct. 20, 1994.
    \88\ Guest list for Business Leadership Forum Dinner with Vice 
President Gore, Oct. 20, 1994, DNC Document DNC 1619277-82.
    \89\ DNC Check Tracking Form for Contribution of San Kin Yip 
International Trading Corp., Oct. 20, 1994, DNC Document DNC 1552787 
(Exhibit 31).
    \90\ Investigative Group International Document, HS 012504.
    \91\ Lena H. Sun, ``DNC Donor Admits `Mistake' ''; Fundraiser's Own 
Company Contributed Foreign-Generated Money, Washington Post, Dec. 7, 
1996 at A11.
    \92\ Exhibit 31. It should be noted that in his deposition before 
the Senate Committee on Governmental Affairs, Sullivan denied that he 
ever solicited contributions from Charlie Trie. Deposition of Richard 
Sullivan, Senate Committee on Governmental Affairs, June 4, 1997 
(``Sullivan Senate Deposition''), at 103. This DNC check tracking form 
contradicts Sullivan's sworn statement before the Senate.
    \93\ Exhibit 31.
    \94\ Letter from David Wilhelm to Charlie Trie, Oct. 25, 1994, DNC 
Document F 0010778.
---------------------------------------------------------------------------
    However, the Committee has located evidence which suggests 
that the facts regarding the San Kin Yip contribution may not 
be what Trie and the DNC have claimed them to be. First, the 
signature on the San Kin Yip check is that of Ng Lap Seng, not 
Charlie Trie.95 Second, DNC records indicate that 
the DNC knew that the check came from Ng Lap Seng, not Charlie 
Trie. A contribution list for the October 20 event credits Ng 
with this contribution.96 Finally, DNC documents 
show that Trie was already a member of the BLF before the 
October 20 event. Therefore, Wilhelm's October 25, 1994 letter 
to Trie was unnecessary, and was either mistaken, or was made 
with the purpose to distract from the fact that the $15,000 
contribution was from Ng Lap Seng, not Charlie Trie. The 
Committee has not received any explanation for why certain DNC 
records state that the October 20 contribution came from Trie, 
and other records state that it came from Ng. However, the 
facts show that in fact, the money used to make this 
contribution came from Ng, and that the check itself was signed 
by Ng. If, as documents suggest, DNC officials were aware that 
this contribution came from Ng Lap Seng, it raises important 
questions about what knowledge DNC officials had regarding 
foreign sources of funds.
---------------------------------------------------------------------------
    \95\ While the signature is in Chinese, it is the same as another 
signature identified as that of Ng Lap Seng. Compare Letter from Ng Lap 
Seng to Mayor Richard Riordan, Sept. 28, 1994, Maria Mapili Document 
009104 (Exhibit 32) with Exhibit 31 (showing identical signature is 
that of Ng Lap Seng).
    \96\ Contributions for Gore Dinner, Oct. 20, 1994, DNC Document DNC 
1619290 (Exhibit 33).
---------------------------------------------------------------------------

        B. Trie's Expanding Contacts with White House Intimates

    As a result of his contributions to the DNC, Trie had 
expanded opportunities for contact with high-level officials in 
the Administration. Beginning with his contributions to the 
DNC, Trie was a frequent guest of Special Assistant to the 
President Mark Middleton at the White House, and he met 
frequently with Commerce Deputy Assistant Secretary Jude 
Kearney and Presidential friend Ernie Green. Trie was able to 
use these contacts to advance his private business interests. 
In return, Trie was called upon to expand his relationship with 
the DNC.

1. Mark Middleton

    It is currently unknown how Charlie Trie met Mark 
Middleton. However, the two had extensive contact both during 
Middleton's tenure in the White House, and after Middleton 
moved to the private sector in February 1995. While Middleton 
was at the White House, Trie visited him 13 times, beginning in 
May 1994.97 In addition, Trie brought his benefactor 
Ng Lap Seng with him to a number of these meetings. Ng visited 
Middleton at the White House six times before Middleton's 
departure.98 Since both Trie and Middleton have 
invoked their Fifth Amendment rights, and Ng has refused to 
cooperate, we do not know what was discussed at these meetings.
---------------------------------------------------------------------------
    \97\ WAVES records of Yah Lin Trie.
    \98\ WAVES records of Ng Lap Seng.
---------------------------------------------------------------------------
    Currency Transaction Reports show that Ng imported large 
amounts of cash into the United States shortly before each of 
his meetings with Trie and Middleton. As described earlier, Ng 
brought over $200,000 into the United States prior to his 
meetings with Middleton on June 22, 1994 and August 1, 1994. 
However, Ng also brought $12,000 into the country 1 day before 
a February 16, 1995 meeting with Trie and Middleton in the 
White House.99 Ng continued his importation of cash 
in 1996, and brought $19,000 into the country on February 18, 
1996, 1 day before Ng visited the White House, and attended a 
major DNC fundraiser in Washington, DC.100 Finally, 
Ng's last major importation of cash into the United States 
occurred on August 17, 1996, when he brought $70,000 into the 
United States, 1 day before he attended the President's 
Birthday fundraiser in New York City.101
---------------------------------------------------------------------------
    \99\ Currency Transaction Report for Ng Lap Seng, Feb. 15, 1995 
(Exhibit 34).
    \100\ Currency Transaction Report for Ng Lap Seng, Feb. 18, 1996 
(Exhibit 35).
    \101\ Currency Transaction Report for Ng Lap Seng, Aug. 17, 1996 
(Exhibit 36).
---------------------------------------------------------------------------
    Middleton and Trie continued to share a close relationship 
after Middleton left the White House in February 1995. After a 
brief stint with International Realty Investors, Middleton 
opened an international consulting firm called Commerce Corp. 
International. Trie was a frequent visitor at Middleton's 
offices, and an occasional traveler with Middleton to Asia. As 
described below, Middleton and Trie worked together on a number 
of business projects, and had financial links with one another.

2. Jude Kearney

    Trie met Jude Kearney, the Deputy Assistant Secretary for 
Service Industries and Finance at the Commerce Department, in 
China in 1993. While Kearney has testified before the 
Committee, his recollection on all subjects relating to Trie 
was extremely poor. Kearney suggests that Trie merely called 
him and introduced himself as an American businessman who did 
business in China, and who wanted to meet him.102 
Kearney claimed that it was part of his job to meet individuals 
such as Trie, and he gladly did so. After Trie's call to 
Kearney, the two met in a hotel in Beijing while Kearney was 
touring China as part of his duties as a Deputy Assistant 
Secretary in the Department of Commerce. Kearney describes the 
meeting as a brief ``get-acquainted'' meeting in the lobby of 
Kearney's hotel in Beijing.103 However, Kearney 
later wrote a letter to Trie thanking him for his ``red carpet 
treatment'' during Kearney's trip.104 Kearney also 
wrote that it was ``very helpful to have someone around who 
knew the ropes--especially a fellow Arkansan.'' 105 
Kearney's letter appears to be inconsistent with his account of 
his meeting with Trie as being a ``get-acquainted'' meeting.
---------------------------------------------------------------------------
    \102\ Deposition of Jude Kearney, House Committee on Government 
Reform and Oversight, Feb. 16, 1998 (``Kearney Deposition''), at 14-15.
    \103\ Id. at 19.
    \104\ Letter from Jude Kearney to Yah Lin Trie, Oct. 1, 1993, 
Department of Commerce Document 01BA0469 (Exhibit 37).
    \105\ Id.
---------------------------------------------------------------------------
    Nevertheless, Trie's cold call to Kearney appears to have 
started a close relationship between 1993 and the end of 1996. 
Kearney met with Trie a number of times between January 1993 
and late 1994 and Kearney attended social events at Trie's 
Watergate apartment. Kearney also made an official request that 
Trie be included in the events held in connection with the 
Department of Commerce trade mission to China in August and 
September 1994.106 Kearney stated in his testimony 
that Trie expressed an interest in participating in the 
Secretary's trade mission in some way, and Kearney passed that 
request on to the responsible officials at the Department of 
Commerce, Melissa Moss and James Hackney.107 Kearney 
denied that he was doing Trie any special favor, and indicated 
that he would pass on similar requests made by 
anyone.108 Documents received by the Committee 
indicate that Trie made this same request of the DNC at the 
same time as Kearney made this request.109 However, 
Kearney denied that he ever discussed Trie's request with David 
Mercer or any other DNC official.110 Kearney also 
denied ever discussing political contributions with Trie. Trie 
did however, submit documents to Kearney indicating that he was 
a large donor to the DNC.111
---------------------------------------------------------------------------
    \106\ Memorandum from Jude Kearney to Jim Hackney and Melissa Moss, 
Aug. 10, 1994, Department of Commerce Document 01BA0470 (Exhibit 38).
    \107\ Kearney Deposition at 39-40.
    \108\ Id. at 39-40.
    \109\ See Exhibit 26.
    \110\ Kearney Deposition at 40-41.
    \111\ Exhibit 38 at 3.
---------------------------------------------------------------------------
    In addition to meeting with Trie and recommending him as a 
host for an event on the Department of Commerce trade mission 
to China, Kearney helped Trie in a number of other ways. First, 
he introduced him to a number of private business contacts. It 
appears that Kearney introduced Trie to: Elvin Moon, a 
construction contractor; Bill Sudow, a private lawyer in 
Washington, DC; Ernie Green, a DNC Managing Trustee and friend 
of Bill Clinton; and Lauri Fitz-Pegado, a high-ranking official 
in the Commerce Department.112 Kearney claims that 
his numerous introductions of Trie to other private businessmen 
was merely part of his job, trying to promote U.S. exports. 
However, it is unclear why Mr. Kearney devoted so much time 
trying to promote the private business interests of Charlie 
Trie, a person who, by all accounts, was a failure at every 
enterprise he attempted. In fact, Kearney himself admitted that 
he had no idea what Trie did for a living, and knew of no 
successful venture in which Trie was involved.113 
Nevertheless, he had at least 10 meetings with Trie between 
1994 and 1996, and introduced him to a number of high-level 
contacts in the public and private sectors.
---------------------------------------------------------------------------
    \112\ Kearney Deposition at 33, 48, 87, 53.
    \113\ Id. at 111-112.
---------------------------------------------------------------------------

3. Ernie Green

    Among the individuals Trie met as a result of his DNC 
support was Ernest G. Green. Green is a managing partner at 
Lehman Brothers Washington, DC, office, and is a close friend 
of President Clinton. Trie was introduced to Green by Jude 
Kearney, who thought that Green might be able to assist Trie 
with the financing for the Nam Van Lakes real estate project in 
Macau, which was owned by Ng Lap Seng, and which was being 
promoted by Trie. However, the testimony of the persons 
involved differ greatly on the details of the introduction of 
Green to Trie. Green states that Kearney introduced him to 
Trie, and set up a meal where Trie, Green, Kearney, David 
Mercer, and Ng Lap Seng were in attendance.114 
Kearney and Mercer, however, deny attending any introductory 
meeting between Green and Trie.115 Beginning with 
the Nam Van Lakes project discussed at the 1994 breakfast, 
Green and Trie would develop a close relationship involving 
travel, business, and political fundraising.
---------------------------------------------------------------------------
    \114\ Deposition of Ernest G. Green, House Committee on Government 
Reform and Oversight, Dec. 17, 1997 (``Green Deposition I'') at 47-48.
    \115\ See Deposition of David L. Mercer, House Committee on 
Government Reform and Oversight, Aug. 26, 1997, (``Mercer Deposition 
II'') at 11-12; Kearney Deposition at 49.
---------------------------------------------------------------------------

                      III. Trie's 1995 Activities

    The year started with Trie taking on a role reserved for 
only the top echelon of the DNC. Trie became a member of the 
prestigious DNC Finance Board of Directors, joining such other 
DNC powerhouses as Paul Montrone, CEO of Fisher Scientific, 
Edgar Bronfman, President of Seagram Brothers, and Fred Siegel 
of the Beacon Companies.116 As a member of the 
Finance Board of Directors, Trie obligated himself to raise 
$250,000 for the DNC, even though at the time, he could not 
even pay his credit card bills.117 Although Trie 
earned this post through his largess in 1994, his contributions 
and solicitations to the DNC decreased in 1995. Trie now began 
to cash in on political favors and pursue business ventures 
with friends he made through the DNC.
---------------------------------------------------------------------------
    \116\ Memorandum from David Mercer to Jason McIntosh, Aug. 31, 
1994, DNC Document DNC 3423804.
    \117\ Charlie Trie's American Express account was delinquent from 
October 1994 to February 1995. See American Express account records for 
Yah Lin Trie.
---------------------------------------------------------------------------
    In 1995, Mark Middleton and Ernie Green emerged as Trie's 
principal political and business confidants. Trie toured Asia 
with Green and Middleton, and introduced them to powerful 
business and political figures in an effort to promote their 
businessinterests in Asia. In return, Green and Middleton acted 
as Trie's Washington liaison. Both met frequently with Trie, made 
introductions for Trie, and accompanied Trie to political events.
    Also in 1995, Trie began to take full advantage of his 
status as a friend of Bill Clinton and major DNC supporter. 
Trie visited the White House frequently, approximately 15 times 
in 1995 alone.118 Some of these visits were for 
large events, but others were for private meetings with Mark 
Middleton. Trie's relationship with the President and his staff 
was apparent in other ways as well. Trie gave Nancy Hernreich, 
the Director of Oval Office Operations and one of the 
President's closest aides, a pearl necklace for 
Christmas.119 Trie also received access to the 
President's box at the Kennedy Center.120 Finally, 
Trie was able to call upon his status with the DNC to receive 
special White House tours for family and friends.121
---------------------------------------------------------------------------
    \118\ WAVES Records of Yah Lin Trie.
    \119\ Hernreich was prevented from accepting the necklace by White 
House ethics rules. Letter from Nancy Hernreich to Charlie Trie, Feb. 
6, 1995, White House Document EOP 000882 (Exhibit 39).
    \120\ Memorandum from Eric Sildon to Debi Schiff and Donald Dunn, 
Sept. 15, 1995, DNC Document DNC 1604112 (Exhibit 40).
    \121\ Memorandum from Shawn Covell to Susan Lavine, May 19, 1995, 
DNC Document F0011404 (requesting tour for Wang Mei Trie, Ng Lap Seng, 
Pun Nun Ho, Priscilla Wong, and Kathy Chiu) (Exhibit 41); Memorandum 
from Keshi Zhan to Susan Lavine, June 13, 1995, DNC Document F0011401 
(requesting tour for Keshi Zhan, Fan Zhan, Ying-Qun Ma, Chao-Chen Wang, 
Ying-Xian Shi, Xiao-Peng Yu, and You-Xuan Liu) (Exhibit 42).
---------------------------------------------------------------------------

                   A. Trie's Spring 1995 Trip to Asia

    By 1995, Trie's business activities were expanding in Asia 
and the United States. Trie's main company was Daihatsu 
International Trading, which he operated out of his Watergate 
apartment. Trie also operated San Kin Yip International, which 
had offices in Washington, DC, and Little Rock, and was 
affiliated with an Asian conglomerate of the same name operated 
by Ng Lap Seng in Macau. In February 1995, Trie's stature in 
Asia was enhanced when Ng Lap Seng and his friend and business 
associate, William Peh, named Trie as a Director of Peh's 
business, Consolidated Trust Company.122 Peh has 
asserted that he and Ng added Trie to Consolidated Trust's 
leadership because they believed his extensive connections on 
the China mainland would help them penetrate that 
market.123 In addition, Trie's U.S. ties were 
helpful to the company. On a CTC corporate fact sheet, Trie was 
listed as an ``Advisor to President Clinton.'' 124 
Trie brought many friends through the offices of Consolidated 
Trust, but no business opportunities developed.125 
Around the same time, Peh moved his business into Ng's office 
building in Hong Kong.126
---------------------------------------------------------------------------
    \122\ Interview of William Peh Kong Wan, Aug. 24, 1998 (``Peh 
Interview'').
    \123\ Id.
    \124\ Johnson Interview at 2.
    \125\ Peh Interview.
    \126\ Johnson Interview at 1.
---------------------------------------------------------------------------
    Just several weeks after Mark Middleton left his White 
House job in February 1995, Trie, Mark Middleton and his 
brother Larry Middleton traveled to Asia. In a 3 week period, 
Trie and Middleton visited China, Hong Kong, Taiwan, Macau, 
Jakarta, and Brunei.127 While in Hong Kong, 
Middleton visited Consolidated Trust Company, and told Peh and 
other CTC employees of his close relationship with the 
President and the fact that he had just left the White House to 
begin his own company.128 But in fact, Middleton had 
not quite severed all of his White House ties because as late 
as October 1996, more than 18 months after he left the White 
House, he still had a White House telephone number 
129 and he was passing out his White House business 
cards in Asia.130 In addition, a message on the 
White House voice mail system was left saying: ``[t]hank you 
for calling the White House. To reach Mack McLarty, please dial 
(202) 456-2000. To reach Mark Middleton, please dial (202) 737-
9305. . . . Again, thank you for calling the White House.'' 
131 The number left by Middleton was the number for 
his company, Commerce Corp. International. Yusuf Khapra, 
Middleton's former assistant, claimed that he put the message 
on the White House voicemail when Middleton left the White 
House.
---------------------------------------------------------------------------
    \127\ Facsimile from Jennifer Russell to Hsiao-I Zhou, Mar. 17, 
1995, Maria Mapili Document 009236 (Exhibit 43) (Translation by Frank 
Lee).
    \128\ Johnson Interview at 3.
    \129\ Memorandum from Jennifer Russell to Mark Jimenez, June 6, 
1995, Maria Mapili Document 008000 (Exhibit 44). But see Deposition of 
Yusuf Khapra, House Committee on Government Reform and Oversight, Aug. 
12, 1997 (``Khapra Deposition''), at 71. Khapra claimed that he left 
the message on the White House voice mail without informing Middleton.
    \130\ Johnson Interview at 4. It appears that Mark Middleton's 
personal assistant, Shawn Covell, sent a batch of Middleton's White 
House business cards to Larry Middleton, in preparation for Mark 
Middleton's trip to Asia. Larry accompanied Mark on the trip. 
Memorandum from Shawn Covell to Mark Middleton, Mar. 28, 1995, Noel 
Gould Document 0060 (Exhibit 45).
    \131\ White House Bulletin, Oct. 31, 1996; Khapra Deposition at 70-
71.
---------------------------------------------------------------------------
    Middleton was looking for business opportunities in Asia 
and he was particularly interested in real estate 
projects.132 One of the projects that Trie 
introduced him to was the Nam Van Lakes project in Macau. This 
project was co-owned by Ng Lap Seng and Macau's Ho brothers, 
and Trie had heavily promoted the project to others, including 
Ernie Green, David Mercer, and Jude Kearney. Middleton 
expressed interest in Nam Van Lakes, and mentioned that he 
might be able to secure funding for the project from the so-
called ``Green Fund,'' an investment fund managed by Steven 
Green, Middleton's boss at International Realty 
Investors.133 The Green Fund was intended to raise 
funds for projects in newly democratized countries. It was 
unlikely that a project in Macau would qualify for funding from 
the Green Fund, since Macau was not ``newly democratized,'' and 
in fact, was coming under the control of the People's Republic 
of China in the near future.134 However, according 
to one witness who was present during meetings with Middleton 
in Asia, Middleton told Ng and Peh that he would take care of 
it and make sure Macau qualified for funding.135
---------------------------------------------------------------------------
    \132\ Johnson Interview at 4.
    \133\ Id. at 3. The ``Green Fund'' was actually the Central and 
Eastern European Newly Independent States fund, or ``CEENIS Fund.'' 
Macau, a small island in Asia controlled by Portugal, and soon to come 
under the control of the People's Republic of China, did not qualify 
for support under the requirements of the fund.
    \134\ Id. at 3-4.
    \135\ Id. at 4. George Johnson is a former employee of William Peh 
at the Consolidated Trust Corp. In this capacity, he met Charlie Trie 
and Mark Middleton during their visits to Asia. Johnson is one of the 
only witnesses who has knowledge of Trie's travel to Asia who has 
cooperated with Committee investigators.
---------------------------------------------------------------------------

                     B. Trie's Fundraising in 1995

    Trie's fundraising activities continued in 1995, even 
though his own personal contributions decreased. Trie's first 
major event of the year was a DNC Finance Board dinner at the 
White House with the President and First Lady on February 16, 
1995.136 This was a small dinner for the highest 
level donors and fundraisers in the DNC. Trie and Ng Lap Seng 
attended, accompanied by Ernest Green, and Trie was accorded 
the special honor of sitting at the First Lady's 
table.137 Trie continued attending high-level events 
like this throughout the year.
---------------------------------------------------------------------------
    \136\ Memorandum from White House Social Office, Feb. 16, 1995, 
White House Document EOP 002306 (Exhibit 46). Customs Service documents 
also show Ng Lap Seng entered the country on Feb. 15, 1995, and 
declared that he was bringing $12,000 in cash into the United States 
Mark Middleton also attended the Feb. 15th dinner.
    \137\ Memorandum from Terry McAuliffe, Laura Hartigan, and Ari 
Swiller to Harold Ickes, Feb. 15, 1995, White House Document EOP 043683 
(Exhibit 47).
---------------------------------------------------------------------------
    In May 1995, Trie found another vehicle to increase his 
political standing with the founding of the Congressional Asian 
Pacific American Caucus Institute (``CAPACI''). Trie became a 
CAPACI board member and contributed $25,000.138 
President Clinton spoke at CAPACI's inaugural gala on May 18, 
1995. Trie attended CAPACI's inaugural, and brought a number of 
Asian business associates as guests, including Ng Lap Seng, his 
wife, Pun Nun Ho, Priscilla Wong, and Kathy Chio. While these 
individuals were in Washington, Trie arranged a number of other 
events to demonstrate his political connections: an Asian 
Pacific American breakfast meeting with Commerce Secretary Ron 
Brown in which John Huang gave a briefing; 139 lunch 
at the White House mess set up by the First Lady's office; 
140 and a White House tour.141 Mark 
Middleton initially requested that Trie and his guests be 
included in the President's Radio Address as well, but later 
dropped his request, because the same group had already met 
with the President at the CAPACI event.142
---------------------------------------------------------------------------
    \138\ Daihatsu International Trading Corp. check for $25,000, Apr. 
21, 1995.
    \139\ Department of Commerce briefing papers for Secretary Ron 
Brown for breakfast meeting with Asian Pacific American business 
leaders, May 18, 1995, 01CD0217 (Exhibit 48).
    \140\ Letter from Mark Middleton to Kelly Crawford, May 18, 1995 
(Exhibit 49).
    \141\ Memorandum from Shawn Covell to Susan Lavine, May 19, 1995 
(Exhibit 50).
    \142\ Letter from Mark Middleton to Kelly Crawford, May 19, 1995 
(Exhibit 51).
---------------------------------------------------------------------------
    In July 1995, Trie hired Antonio Pan to assist him in his 
various enterprises. Pan was a longtime employee of the Lippo 
Group in Hong Kong and in Arkansas. As a Lippo employee, Pan 
had a number of contacts with Presidential friend Joe Giroir. 
Infact, when he departed Lippo to work for Trie, Pan wrote a 
brief note to Giroir letting him know:

        A longtime friend of mine invited me to provide my 
        service to his company's investment in the Asian 
        region. After I obtained my current superior's 
        understand [sic] and concurrence, I will resign my 
        current position of Senior Vice President of marketing 
        from this company. Please continue to extend your 
        support to Lippo Group. . . .143
---------------------------------------------------------------------------
    \143\ Letter from Antonio Pan to Joe Giroir, July 18, 1995, 
Arkansas International Development Corp. Document AIDC 001094 (Exhibit 
52).

    While Pan stated that he was coming to help Trie with his 
investment activities, it is not clear what substantive 
business activities, if any, Pan was involved in. Throughout 
1995 and 1996, Pan was most prominently involved in 
orchestrating complex schemes to funnel illegal contributions 
to the DNC. As described below, in these schemes, Pan was often 
a key participant, personally delivering large amounts of cash 
to various straw donors.

                   C. Trie's Summer 1995 Trip to Asia

1. Travel with Mark Middleton

    In July 1995, Trie accompanied Mark Middleton on another 
trip to Asia. During this trip, Middleton met with Liu Tai-
ying, the chief financial manager of Taiwan's ruling Kuomintang 
party. It has been reported during this meeting that Liu 
offered the DNC a campaign contribution of $15 million after 
Middleton explained his White House connections.144 
Both Middleton and Liu have denied this report.145 
While no contributions from Liu have been traced to the DNC to 
date, Liu did develop a relationship with Middleton and Trie. 
On September 21, 1995, Middleton and Trie escorted Liu to a 
fundraiser in San Francisco where Liu met President Clinton and 
Vice President Gore.146 It is currently unclear how 
Trie and Middleton got Liu into the event. To date, there is no 
record of Liu making a contribution, direct or indirect.
---------------------------------------------------------------------------
    \144\ Sara Fritz and Rone Tempest, ``Ex-Clinton Aide Arranged for 
Taiwan Connection,'' Los Angeles Times, Oct. 30, 1996 at A1. The 
Committee has not been able to confirm this report, because Middleton 
has taken the fifth, and Liu refused to be interviewed by Committee 
investigators. After canceling his appointment with investigators, Liu 
described them to the press as ``dogs.''
    \145\ Michael Weisskopf and Keith B. Richburg, ``Taiwan, in 
Courting U.S. Officials, Reflects Yearning for Recognition,'' the 
Washington Post, Nov. 12, 1996 at A6.
    \146\  Id. See also photograph of President Clinton, Vice President 
Gore, Yah Lin Trie and Liu Tai-ying, Sept. 21, 1995 (Exhibit 53).
---------------------------------------------------------------------------

2. Travel with Ernie Green

    On August 2, 1995, the last day of meetings scheduled for 
Middleton in Taiwan, Ernie Green arrived in 
Taiwan.147 Green came to Asia at the invitation and 
expense of Charlie Trie and Ng Lap Seng.148 Green 
claims that he had been introduced to the Nam Van Lakes project 
almost 8 months earlier by Trie, and came to Asia to inspect 
the property to see if he could recommend it to his employer, 
Lehman Brothers, for financing.149 While on this 
trip, Green made a number of detours to pursue personal 
business interests. Green says that he started his trip in 
Taiwan, where he met with Taiwanese businessmen to pursue 
financial backing for a private telecommunications project that 
he was heading.150
---------------------------------------------------------------------------
    \147\ Passport of Ernest G. Green, Green Document 027124.
    \148\ Green Deposition I at 63.
    \149\ Id. at 63.
    \150\ Id. at 73.
---------------------------------------------------------------------------
    Green then traveled to Hong Kong and Macau to meet with Ng 
Lap Seng and inspect the Nam Van Lakes project. To this point, 
Green claims he had hesitated to lend his support to the 
project because Trie and Ng had not provided enough detailed 
information about it.151 In order to gain more 
information about the project, Green first visited Lehman 
Brothers' Hong Kong office to speak with Barry Gold, a Lehman 
executive who handled infrastructure projects in 
Asia.152 According to Green, they discussed the real 
estate market and development in Macau and the impact of Hong 
Kong's impending transition to Chinese rule.153 Gold 
has no recollection of this meeting, and states that he only 
saw Green once in Asia, during Green's second trip to Asia in 
October 1995.154 In addition, Gold said Lehman 
Brothers would not have any interest in Nam Van Lakes because 
it did not participate in real estate projects.155 
Gold's statements are clearly at odds with Green's testimony.
---------------------------------------------------------------------------
    \151\ Id. at 102.
    \152\ Id. at 97-98.
    \153\ Id. at 98.
    \154\ Interview of Barry Gold, Mar. 26, 1998, (``Gold Interview'') 
at 1.
    \155\ Gold Interview at 2.
---------------------------------------------------------------------------
    At the end of Green's trip to Asia, Trie raised with Green 
the possibility of pursuing a new business venture with him to 
manufacture and sell self-inflating novelty 
balloons.156 Green was soon intrigued by this idea, 
and by the following year, had gone into business with Trie to 
sell these balloons.
---------------------------------------------------------------------------
    \156\ Green Deposition I at 106.
---------------------------------------------------------------------------
    Green contends that his contacts with Trie never brought 
him into contact with another Trie associate, Mark Middleton. 
For example, even though Middleton was also in Taiwan on August 
2 and part of Middleton's trip concerned the Nam Van Lakes 
project in Macau, Green claims that he never saw Middleton in 
Taiwan, was unaware of Middleton's involvement with the Nam Van 
Lakes project, and did not know of any business dealings 
between Middleton and Trie.157 However, both Green 
and Middleton sent letters to Ng Lap Seng expressing their 
interest in pursuing the Nam Van Lakes project.158 
These letters are practically identical, and suggest that Green 
and Middleton may have had knowledge of the other's activities 
involving Nam Van Lakes. Green denies that he had any contact 
with Middleton while in Taiwan, but it should be noted that 
Trie was hosting them both at the same time.159
---------------------------------------------------------------------------
    \157\ Id. at 47, 73; Deposition of Ernest G. Green, Senate 
Committee on Governmental Affairs, June 18, 1997 (``Green Senate 
Deposition''), at 206-10.
    \158\ Letter from Mark Middleton to Ng Lap Seng, May 15, 1995 
(Exhibit 54); Letter from Ernest G. Green to Ng Lap Seng, June 16, 
1995, SCGA 006943 (Exhibit 55).
    \159\ Green Deposition I at 64.
---------------------------------------------------------------------------
    When Green and Trie returned from Asia, it appears that 
Green began to help Trie. Traveling with the First Lady to 
Beijing for the Fourth World Conference on Women in September 
1995 would allow Trie to showcase his connections to colleagues 
and potential business partners in that region of the world. 
Green launched the lobbying effort to put Trie on this trip on 
August 29 by calling Melanne Verveer in the First Lady's 
office, saying he was calling at Alexis Herman's suggestion, 
about ``trip to China and supporter from Arkansas, Charlie Tree 
[sic].'' 160 Green claims he has no recollection of 
this effort to help Trie.161 That same day, less 
than 3 hours later, Trie himself called Verveer and left a 
message stating: ``spoke with HRC in Little Rock about going to 
Beijing wants to know if he can go with her.'' 162 
Two days later, Trie had already left for China, and David 
Mercer of the DNC called Janice Enright at the White House and 
left a message stating ``Charlie Trie left for Beijing, hadn't 
heard from HI [Harold Ickes] or FLOTUS [First Lady].'' On this 
same slip, there is another message stating ``Ernie Green 
already contacted and he's happy!!'' 163 Despite the 
existence of these documents, Green denies that he made any 
effort to have Trie included in the Beijing Women's 
conference.164
---------------------------------------------------------------------------
    \160\ White House telephone message slip for Melanne Verveer, Aug. 
29, 1995, White House Document EOP 059100 (Exhibit 56).
    \161\ Green Deposition I at 116.
    \162\ White House telephone message slip for Melanne Verveer, Aug. 
29, 1995, White House Document EOP 059101 (Exhibit 57).
    \163\ White House telephone message slip for Janice Enright, Aug. 
31, 1995, White House Document EOP 059198 (Exhibit 58).
    \164\ Green Deposition I at 114-22.
---------------------------------------------------------------------------
    In his quest to be included in the Beijing Women's 
Conference, Trie also enlisted the aid of Jude Kearney. 
Kearney, asked that Trie and one other individual be included 
in the private sector events at the Conference.165 
Kearney acknowledged trying to help Trie be included in the 
Women's Conference, but testified that he was ``trying to 
support the businesspeople whom we came to know in foreign 
markets and who were very involved in our initiatives; and Mr. 
Trie and Mr. Soo fit that description.'' 166 
Documents received by the Committee show Trie returning to the 
United States from Asia 5 days after the Conference on Women 
began.167 The Committee has been unable to determine 
if Trie participated in any events connected with the 
Conference.
---------------------------------------------------------------------------
    \165\ Deposition of Jude Kearney, Senate Committee on Governmental 
Affairs, May 27, 1997 (``Kearney Senate Deposition''), at 60-63.
    \166\ Kearney Deposition at 61.
    \167\ Passenger Activity Report for Yah Lin Trie, U.S. Customs 
Service. The Beijing Conference on Women was held Sept. 8-15, 1995.
---------------------------------------------------------------------------

                   D. Trie's Fall 1995 Travel to Asia

1. Travel with Mark Middleton

    In the fall of 1995, Mark Middleton and Charlie Trie 
returned to Asia. At one point during this trip, Middleton took 
a suite at the Hong Kong Grand Hyatt, where, in the words of a 
witness who was there, Middleton ``held court.'' 168 
This witness, who worked with William Peh at Consolidated Trust 
Company, stated that Middleton had 8 to 10 businessmen and 
government officials from mainland China in his suite, all of 
whom were waiting to meet with Middleton.169 
Middleton was holding private meetings in a bedroom adjoining 
the suite.170 This witness also recalls that Trie 
and Ng were present during this episode.171 It is 
not known what Middleton was discussing with these visitors, 
but the episode provides a glimpse of the type of business that 
Middleton may have been pursuing with Chinese entities with the 
assistance of Trie and Ng.
---------------------------------------------------------------------------
    \168\ Johnson Interview at 4.
    \169\ Id. at 4.
    \170\ Id. at 4.
    \171\ Id. at 4.
---------------------------------------------------------------------------

2. Travel with Ernie Green

    In October 1995, Green returned to Asia, again at the 
expense of Ng Lap Seng.172 Green's second trip to 
Asia was a mix of business and a dinner with Commerce Secretary 
Ron Brown in Hong Kong. Green acknowledges that again he met 
with Ng regarding Nam Van Lakes, but still claims that he had 
not received the necessary information regarding the 
project.173 However, Green did develop an acute 
interest in Trie's pop-up balloon scheme. He visited the 
balloon manufacturer's Taiwan offices and the balloon factory 
in the People's Republic of China.174 After this 
tour, Green decided to begin investment in this project, and to 
then start a business with Trie to market the 
balloons.175
---------------------------------------------------------------------------
    \172\ Green Deposition I at 148.
    \173\ Id. at 160-61.
    \174\ Id. at 161.
    \175\ Id. at 161.
---------------------------------------------------------------------------

3. October 18, 1995 Dinner at the Shangri-La Hotel

    After Green's tours of the PRC and Taiwan, he returned to 
Hong Kong for the purpose of attending a dinner for Commerce 
Secretary Ron Brown. The dinner was held on October 18, 1995, 
at Hong Kong's Shangri-La Hotel, and is surrounded by 
controversy. The Committee has received contradictory testimony 
with respect to whoorganized the dinner, and what transpired at 
the dinner. Regardless of who actually planned the dinner, it is clear 
that there were four major personalities involved in the dinner: Ron 
Brown; Ernie Green; Charlie Trie; and Antonio Pan. At the very minimum, 
the dinner represented an unusual private event where the Secretary of 
Commerce was introduced to a number of foreign business leaders.
    Ernie Green testified that the Shangri-La dinner was 
organized by Trie and Ng Lap Seng, and he was merely invited to 
the dinner by Trie.176 Yet again, Green's sworn 
testimony is contradicted by other witnesses. Melinda Yee, who 
attended the event with Secretary Brown, testified before the 
Senate that Green hosted the event:
---------------------------------------------------------------------------
    \176\ Id. at 152.

    Question. Who did host that reception, do you know?
    Yee. As you said, Ernest Green.

           *       *       *       *       *       *       *

    Question. Do you recall the substance of your conversation 
[with Green at the reception]?
    Yee. No. Just thanked him for hosting the Secretary.
    Question. Do you know why he hosted this reception?
    Yee. He had just proposed hosting--he was with Lehman, 
Lehman Brothers, I believe . . . And they had a lot of business 
in Hong Kong and just suggested that it would be a nice thing 
to do if they could host a reception for the Secretary. So we 
thanked him. I thanked him for that.177
---------------------------------------------------------------------------
    \177\ Deposition of Melinda C. Yee, Senate Committee on 
Governmental Affairs, May 9, 1997, at 112, 114.

Yee's testimony regarding the event is confirmed by David 
Rothkopf, Acting Undersecretary for International Trade. 
Rothkopf testified that Green hosted the event, and also 
testified that he tried to prevent Brown from attending the 
---------------------------------------------------------------------------
event because of the appearance of impropriety that it created:

    Question. Did you have any substantive dealing with him 
[Ernie Green]?
    Rothkopf. I didn't have any substantive dealings with him. 
I recall an incident where there was some discussion about the 
Secretary in October of '95 going to a dinner party in Hong 
Kong on a trip that we were taking to China. Again, in one of 
those trip-planning meetings, somebody on the Secretary's 
behalf . . . said the Secretary has been invited to a dinner 
with Ernie Green in Hong Kong. And I looked--or Ginger Lew said 
something or I looked at Ginger Lew, but I remember that there 
was an interaction between me and her, and Ginger was kind of 
like he shouldn't do that. And I was like he shouldn't do that 
because this was a friend of the Secretary. Again, there was 
all the scrutiny, and the thought was, you know, the Secretary 
should not be lending his office to Lehman Brothers if Lehman 
Brothers is doing some dinner.

           *       *       *       *       *       *       *

    Rothkopf. . . . But, so the dinner was taken off the 
schedule for the trip, and I believe it was kept off the 
schedule because I remember going up in the elevator at the 
hotel in Hong Kong--
    Question. This is during the trip?
    Rothkopf. During the trip. And the Secretary turned to Bill 
Morton, who was the Deputy for Economic Development, sort of 
handled, coordinated the logistics of these trips. The 
Secretary said to Bill, I'll see you in 15 minutes. And I 
said--the Secretary got off, and I said, what are you doing? It 
says here, you know, rest of night in the hotel on the 
schedule. And he says, oh, the Secretary's going to do 
something personal. And it later turned out that it was the--he 
just kept the Ernie Green--you know, they just did this dinner, 
and then it turned out it was something with a bunch of these 
other characters also. But it was something that was 
consciously taken off the Secretary's schedule.

           *       *       *       *       *       *       *

    Question. Were you disappointed to learn that?
    Rothkopf. Disappointed? I was frustrated. You know, I mean, 
it's frustrating when you're trying to do something and help 
somebody to go in a certain direction and they ignore your 
advice.178
---------------------------------------------------------------------------
    \178\ Deposition of David J. Rothkopf, Senate Committee on 
Governmental Affairs, June 2, 1997, at 67-69.

    The ``other characters'' at the dinner referenced by 
Rothkopf included Charlie Trie, Ng Lap Seng, and Antonio Pan, 
who clearly had a role in organizing the dinner, based both on 
the fact that Trie spoke at the dinner, and that all three were 
prominently placed at the front of the greeting line for 
Secretary Brown and Ernie Green.179 Other guests at 
the dinner were a sampling of the business elite from Hong 
Kong, Macau, and the PRC. Green claims that most of the 
individuals who attended the event were invited to it by either 
Trie or Ng.180 Attendees at the meal included Eric 
and Patricia Hotung, Wang Jun of CITIC, Wong Xu, William Peh, 
Priscilla Wong, Yan Sheng Pan, Jie Liu, Trie, Ng, Antonio Pan, 
and representatives of Hong Kong and Macau tycoons Stanley Ho 
and Li-Ka-shing.181
---------------------------------------------------------------------------
    \179\ See Photographs of Shangri-La Dinner, Oct. 18, 1995 (Exhibit 
59).
    \180\ Id. at 147.
    \181\ Marcus W. Brauchli and Craig S. Smith, ``Democratic Fund-
Raising in Hong Kong?,'' the Wall Street Journal, Dec. 4, 1996 at A14.
---------------------------------------------------------------------------
    The dinner began with speeches by Brown, Trie, and 
Green.182 After that, Secretary Brown and Green were 
introduced to a number of guests, including Wang 
Jun.183 According to one press account of the 
dinner, Trie and Pan then solicited a number of the guests to 
contribute to the DNC.184 In addition, Green 
reportedly told guests at the dinner not to exchange business 
cards and to keep the event quiet.185 Green has 
denied this allegation.186 Eric and Patricia Hotung, 
whose $100,000 contribution to the DNC was questioned because 
of a possible link to a meeting with the National Security 
Council, also contributed $99,980 on two starter checks just 8 
days prior to the Shangri-La dinner.187 Other 
guests, including Ng Lap Seng, William Peh, Yan Sheng Pan, Jie 
Liu, Wang Jun, and Priscilla Wong, attended DNC fundraising 
events with Trie just months after this event. None were 
eligible to contribute to the DNC, and according to FEC 
records, none has directly contributed to the DNC. However, the 
Committee is investigating whether there is any connection 
between the appearance of these individuals at the Shangri-La 
dinner in October 1995 and their appearance at DNC fundraising 
events later in November 1995 and February 1996. The 
Committee's efforts to investigate this event, like many 
others, has been hampered by a lack of cooperation in obtaining 
visas for foreign travel by investigators as well as the many 
witnesses who have asserted their Fifth Amendment privileges.
---------------------------------------------------------------------------
    \182\ Green Deposition I at 155; Peh Interview at 2; Gold Interview 
at 1. In fact, Gold's impression was that Green and Trie were hosting 
the reception. Gold Interview at 1. See also Photographs of Shangri-La 
Event, Oct. 18, 1995 (Exhibits 60-62).
    \183\ See Photographs of Shangri-La Event, Oct. 18, 1995 (Exhibits 
63-71). Exhibit 63 shows Wang Jun, and Exhibit 64 shows Eric Hotung.
    \184\ Marcus W. Brauchli and Craig S. Smith, ``Democratic Fund-
Raising in Hong Kong?,'' the Wall Street Journal, Dec. 4, 1996 at A14. 
Green and Gold both claims that they did not witness any solicitations 
for the DNC which were made in English at the event. Neither speaks 
Chinese.
    \185\ Id. Green has denied that he told any guests to ``keep the 
event quiet.'' Green Deposition I at 157 (denying such statement).
    \186\ Green Deposition I at 155, 157.
    \187\ DNC Check Tracking Forms for Contribution of Patricia Ann 
Shea Hotung, Investigative Group International Documents HS 003003, HS 
003005.
---------------------------------------------------------------------------
    Trie and Green also pursued private business dealings at 
the Shangri-La dinner. First, Trie continued his efforts to 
entice Green and Lehman Brothers into involvement in the Nam 
Van Lakes real estate project. Trie, Ng, and Peh discussed the 
project with Green, as well as Green's Lehman associate, Barry 
Gold, who attended the dinner.188 In addition, Green 
continued his personal efforts to attract foreign investors to 
a PCS project that he was pursuing.189 Reportedly, 
Green discussed these efforts with Eric Hotung, but never was 
able to obtain Mr. Hotung's support.190
---------------------------------------------------------------------------
    \188\ Gold Interview at 1-2. This was the first time that Gold 
heard of the Nam Van Lakes project.
    \189\ Green Senate Deposition at 98-100.
    \190\ Id.
---------------------------------------------------------------------------

      E. ``The Trie Team''--The November 1995 Car Barn Fundraiser

    On November 8, 1995, the DNC held its top-level African-
American fundraiser at the Car Barn in Washington, DC. The main 
fundraisers working on this event were Ernie Green and Richard 
Mays.191 The main DNC staffer working on the event 
was David Mercer.192 Charlie Trie became involved in 
this fundraiser, raised money for it, and attended the event 
with a number of guests. DNC documents relating to the event 
indicate that Trie committed to raising $100,000 for the Car 
Barn event, a substantial portion of the $500,000 the event was 
intended to raise overall.193 The only funds that 
the Committee has found that Trie raised for the event, though, 
is $15,000 contributed by the CHY Corporation and Celia Chau. 
It is possible that Trie raised more money for the event, but 
the DNC has not provided any further check tracking forms 
crediting Trie for contributions made to this event.
---------------------------------------------------------------------------
    \191\ Green Deposition I at 165.
    \192\ Mercer Deposition II at 24.
    \193\ Facsimile from David Mercer to Ernest Green, Nov. 7, 1995, 
Ernest Green Document 000141 (Exhibit 72).
---------------------------------------------------------------------------
    Trie came to this event with a number of Asian guests, 
described by David Mercer as a ``boatload'' of 
visitors.194 None of these individuals appear on DNC 
guest lists for the event.195 Nevertheless, it 
appears that the DNC was prepared for their arrival, and had 
nametags printed for them.196 Trie and his guests 
attended a special private reception for the largest donors to 
the Car Barn event. A videotape belatedly produced by the White 
House Communications Agency records the President's 
introduction to Trie's group. First the President greeted Trie, 
saying ``Hey Charlie, how are you doing.'' 197 Then 
Trie introduced the President to Dr. Chun Hua Yeh, a Taiwanese 
businessman, and Jiongzhang Tang.198 Then, Ernie 
Green introduced the President to Ng Lap Seng.199 
Green noted that Ng hosted a reception for Secretary Brown in 
Hong Kong, and that he had been ``very helpful.'' 
200 Green also informed the President that Ng owned 
a golf course in Macau, and that the President should use it 
when he is in Macau.201
---------------------------------------------------------------------------
    \194\ Mercer Deposition II at 25. Mercer estimated that Trie 
brought 10-12 guests. Green remembered that Trie brought guests, but 
could not say how many. Green Deposition I at 166-67.
    \195\ See, e.g., Memorandum Regarding DNC African-American 
Leadership Forum Luncheon, Nov. 8, 1995, White House Document EOP 
058076; Attendee List, Nov. 8, 1995, DNC Document DNC 1181591.
    \196\ See Photographs of DNC Luncheon, Nov. 8, 1995 (Exhibits 73-
75).
    \197\ White House Communications Agency videotape No. 52, Nov. 
1995.
    \198\ Id.
    \199\ Id.
    \200\ Id.
    \201\ Id.
---------------------------------------------------------------------------
    Later, the President posed for photographs with Trie's 
group. The photographs were being taken by the event 
photographer, but also by Ernie Green's wife, Phyllis, and by 
Richard Mays.202 After several pictures were taken, 
Secretary Brown approached the group, and said ``look at the 
crowd you're with!'' 203 He then joined the group 
for photographs with the President. While the photographs were 
being taken, Brown told the President that ``big business helps 
us everywhere.'' 204 As the group was breaking up, 
Brown informed the President that ``this is part of the Trie 
Team.'' 205 The President answered ``yes.'' 
206 After the photographs were taken, Green, Mays, 
Brown, and the President formed a huddle and exchanged words 
for several moments. Neither Green nor Mays recalled what was 
discussed, but both deny that Trie or his associates were 
discussed.207
---------------------------------------------------------------------------
    \202\ Id.
    \203\ Id.
    \204\ Id.
    \205\ Id.
    \206\ Id.
    \207\ Green Deposition I at 179; Mays Deposition at 90.
---------------------------------------------------------------------------
    The remarks made by Green, the President, and Ron Brown at 
the Car Barn event remain cryptic. Green and Mays both denied 
that they ever heard the term ``Trie Team,'' other than this 
one time. Secretary Brown's comments indicate that he was 
familiar with Trie and his associates. At least two members of 
the ``Trie Team,'' Ng Lap Seng and Yan Sheng Pan, had attended 
the Shangri-La event with Brown. Brown also indicated no 
surprise at seeing these foreign businessmen at an event for 
DNC donors. Green and Mays also denied knowing what Secretary 
Brown meant by his comment that ``big business helps us 
everywhere.'' Despite the lack of helpful testimony from 
individuals familiar with this event, the tape of the Car Barn 
event raises a number of questions regarding the relationship 
between Trie, Ng, Ron Brown, Ernie Green, Richard Mays, and the 
President.

           IV. Trie's Appointment to the Bingaman Commission

    One of the most significant examples of Trie's access to 
the power of the White House is his appointment to the 
Commission on United States-Pacific Trade and Investment 
Policy, an elite commission formed by the President in 1996. 
The story of Trie's appointment though, demonstrates the 
lengths to which the Clinton Administration was willing to go 
to reward contributors to the DNC. In this case, the 
Administration appointed Trie to an expert trade panel despite 
the fact that he lacked any qualifications to serve. 
Administration officials appointed Trie even though one person 
involved in the appointment process, Senate aide Steve Clemons, 
objected repeatedly and vociferously to Trie's appointment, on 
behalf of Democratic Senator Jeff Bingaman of New Mexico. These 
objections were met with the response that Trie was a ``must 
appointment'' from ``the highest levels of the White House.'' 
208
---------------------------------------------------------------------------
    \208\ Interview of Steve Clemons, Dec. 5, 1997 (``Clemons Interview 
I'') at 3 (Exhibit 76).
---------------------------------------------------------------------------

                       A. The Appointment Process

    On June 21, 1995, President Clinton signed Executive Order 
12964 establishing the Commission on United States-Pacific 
Trade and Investment Policy.209 The purpose of the 
Commission was to study trade between the United States and 
Asian countries, and to recommend ways to improve access of 
American companies to those markets. The Commission was 
commonly referred to as the Bingaman Commission, in honor of 
Senator Jeff Bingaman of New Mexico. During the negotiations 
between the Senate and White House regarding the vote on GATT, 
Senator Bingaman told the President that he would vote in favor 
of GATT if the President established such a trade 
commission.210 Accordingly, Senator Bingaman and his 
staff had a great deal of input in the formation of the 
Commission.
---------------------------------------------------------------------------
    \209\ Executive Order 12964, June 21, 1995 (Exhibit 77).
    \210\ Clemons Interview I at 1.
---------------------------------------------------------------------------
    When Executive Order 12964 was originally signed, the 
Commission was to have 15 members, appointed by the President. 
The Office of the U.S. Trade Representative was given the 
responsibility of compiling the list of recommended appointees 
for the President's review. The USTR received recommendations 
for candidates for the Commission from a number of sources, 
including the office of Senator Bingaman.211
---------------------------------------------------------------------------
    \211\ Id.
---------------------------------------------------------------------------
    The first step in the process by which candidates for the 
Bingaman Commission were considered and appointed to the 
Commission required the compilation of the names of potential 
candidates by Phyllis Jones, the Assistant U.S. Trade 
Representative for Intergovernmental Affairs and Public 
Liaison. She received suggestions from a variety of sources, 
including the USTR, the National Economic Council, Congress, 
and the private sector. She discussed these candidates with 
interested parties at other government agencies and within the 
USTR.212 A list of recommended candidates then had 
to be cleared with Mickey Kantor, then the U.S. Trade 
Representative.213 After Kantor had cleared the 
recommended candidates, the list would be provided to the White 
House. The Office of Presidential Personnel would then review 
the list, and submit it to the President for his 
approval.214 According to one USTR official, the 
President was ``sometimes active and nixe[d] or change[d] 
names'' of candidates.215
---------------------------------------------------------------------------
    \212\ Deposition of Phyllis Jones, House Committee on Government 
Reform and Oversight, Feb. 11, 1998 (``Jones Deposition''), at 25.
    \213\ Id. at 32.
    \214\ Deposition of Charles Duncan, House Committee on Government 
Reform and Oversight, Aug. 29, 1997 (``Duncan Deposition''), at 115-16.
    \215\ Electronic Mail Message from Caroyl Miller to Jennifer 
Hillman, Apr. 25, 1995 (Exhibit 78).
---------------------------------------------------------------------------

1. The White House Used the Commission for Political Payoffs

    The office of Senator Bingaman was deeply involved in the 
appointment process for the Commission. Senator Bingaman's main 
staffer dealing with the Commission was Steve Clemons, Senior 
Trade Policy Advisor to the Senator.216 Clemons 
provided names of candidates for the Commission to Phyllis 
Jones, and he reviewed names that had been compiled by the 
USTR. Clemons was also in frequent contact with Charles Duncan, 
the Assistant Director of the Office of Presidential Personnel 
(``OPP''). Duncan was the main White House official dealing 
with the formation of the Bingaman Commission.
---------------------------------------------------------------------------
    \216\ The Committee interviewed Clemons twice at his workplace. 
Clemons cooperated extensively with the Committee, and during his 
second interview, confirmed the key points of his earlier testimony. 
The Committee called Clemons as a witness to a hearing on Feb. 25, 
1998, but his testimony was blocked by the Senate Office of Legal 
Counsel, which raised objections to Clemons testifying about his Senate 
duties. After the Committee released staff notes of interviews with 
Clemons, Clemons issued a press release objecting to unspecified 
``inaccuracies'' in the notes of his interviews. However Clemons made 
clear that the substance of the Committee notes was accurate. 
Additionally, Clemons has never specified how the Committee staff's 
notes are inaccurate, and he has never suggested any clarifications to 
the Committee. In light of this fact, and the fact that Clemons was 
interviewed twice about the identical subject matter, the Committee is 
satisfied with the accuracy of the notes of the staff's interview with 
Clemons.
---------------------------------------------------------------------------
    Most of the candidates recommended by Clemons were 
corporate CEOs or trade experts that he believed would make a 
substantive contribution to the Commission.217 Early 
in the process, though, Clemons found that it was difficult to 
have Senator Bingaman's candidates for the Commission 
considered by the White House and the USTR.218 
Clemons discussed this issue with Duncan, and Clemons has said 
that Duncan told him that he checked the names of all 
recommended candidates for the Commission against a list of 
donors to the DNC.219 Clemons objected to Duncan, 
expressing the sentiment that the Commission should be about 
appointing qualified individuals, and not making political 
payoffs.220 However, Duncan made it clear to him 
that he would follow this process for the appointments to the 
Bingaman Commission.221
---------------------------------------------------------------------------
    \217\ Clemons Interview I at 1.
    \218\ Id. The difficulty faced by Senator Bingaman's office is 
alluded to in a number of USTR documents. E-mail messages refer to 
efforts to keep Bingaman's staff from ``blowing up,'' Electronic Mail 
Message from Phyllis Jones to Jennifer Hillman, July 20, 1995, and the 
fact that the Bingaman office may need to be ``admitted to a therapy 
unit.'' Electronic mail message from Peter Scher to Nancy Leamond, Nov. 
14, 1995.
    \219\ Clemons Interview I at 1.
    \220\ Id. at 2.
    \221\ Id.
---------------------------------------------------------------------------
    In fact, Clemons informed the Committee that he became so 
desperate to have qualified candidates appointed to the 
Commission, that he contacted the DNC, and asked them to 
provide him with a list of large donors to the 
DNC.222 Clemons spoke with a DNC staffer named David 
Carroll, and explained that he had been working with the White 
House in trying to fill appointments for the 
Commission.223 Clemons told Carroll that he wanted 
to review a DNC donor list to see if he could find someone, ``a 
CEO who can pass the White House screeners.'' 224 
Clemons recalled that Carroll promised to send him something 
``discreetly.'' 225 Indeed, Clemons received the 
donor list, but was unable to find any qualified candidates on 
it that he could recommend to the White House.226
---------------------------------------------------------------------------
    \222\ Interview of Steve Clemons, Dec. 10, 1997 (``Clemons 
Interview II''), at 1-2 (Exhibit 79).
    \223\ Id. at 1.
    \224\ Id. at 2.
    \225\ Id.
    \226\ Id. During their interviews with Clemons, Committee staff 
requested Clemons to locate the donor list. Clemons later contacted 
Committee staff, and told them that he had located the list and would 
provide it to the Committee. However, before Clemons provided the 
document to the Committee, he became represented by the Office of 
Senate Legal Counsel. Morgan Frankel, Deputy Senate Legal Counsel, took 
possession of the donor list from Clemons, but refused to provide it to 
the Committee, basing his claim on the fact that Clemons obtained the 
donor list in the course of his Senate duties.
---------------------------------------------------------------------------
    Clemons' experience with the Office of Presidential 
Personnel is denied by Charles Duncan and the White House. 
Duncan provided sworn testimony to the Committee that he never 
checked the amounts that potential candidates to the Bingaman 
Commission, or any other position, had given to the DNC or the 
Clinton-Gore campaign.227 However, the Clemons 
testimony is confirmed by White House documents. Duncan has 
denied that he kept any donor lists in his office, and the 
White House has never produced any such lists in response to 
the Committee's subpoenas.228 However, the OPP 
computer contains a database that shows that OPP kept track of 
precisely this type of political fundraising information. The 
database contains the names of potential candidates for 
appointment to the Clinton Administration. Most of the 
information fields in the database contain technical 
information like address and telephone number.229 
The only field for substantive information appears to be the 
``classification'' field of the database.230 This 
field contains information relating to candidates' political 
activity. The only classifications the Committee has seen in 
this field are: ``DNC Trustee,'' ``DNC Key,'' ``C/G Trustee'' 
and ``C/G Key.'' 231 All of these classifications 
refer to levels of political contributions and support given to 
the Clinton-Gore campaign and the DNC. This database contains 
the names of Charlie Trie, John Huang, Charles DeQueljoe, all 
of whom are key figures in the campaign finance scandal, and 
all of whom received appointment to the Administration. Trie is 
listed in the database as a ``DNC Trustee.'' 232 The 
Committee has not received any information regarding how this 
donor data got onto the White House computers, but it is one 
obvious source for how Charles Duncan tracked the political 
contributions of potential candidates for appointment to the 
Clinton Administration.
---------------------------------------------------------------------------
    \227\ Charles Duncan's Responses to Interrogatories, Apr. 20, 1998 
(``Duncan Interrogatories'') at 1.
    \228\ See id.
    \229\ Database Printout, White House Document EOP 070826-070856 
(Exhibit 80).
    \230\ Id.
    \231\ Id.
    \232\ Id.
---------------------------------------------------------------------------

2. Charlie Trie is Considered for the Commission

    At some point in mid-1995, Charlie Trie told Ernie Green 
that he was interested in an appointment to a position in the 
Clinton Administration.233 Green then contacted 
Charles Duncan, who had been a friend of Green since the 1970s, 
and told him of Trie's interest in an 
appointment.234 White House records indicate that on 
September 14, 1995, Trie and Green went to the White House to 
visit Charles Duncan. While Green denies attending any meeting 
between Trie and Duncan, White House WAVES records clearly show 
that Green went to the White House, and entered and departed 
the Old Executive Office Building at exactly the same time as 
Charlie Trie.235 The interview between Duncan, Trie, 
and Green lasted approximately 30 minutes. Duncan denies that 
he ever discussed the DNC or the Presidential Legal Expense 
Trust during his meeting with Trie and Green.236 
Duncan has testified that he was interviewing Trie to try to 
determine the value that he would add to the 
Commission.237 However, when asked if he determined 
what value Trie would add to the Commission, Duncan answered as 
follows:
---------------------------------------------------------------------------
    \233\ Green Deposition I at 125.
    \234\ Id. at 127.
    \235\ WAVES records of Yah Lin Trie and Ernest Green, Sept. 14, 
1995 (Exhibit 81).
    \236\ Duncan Deposition at 88. Duncan does not recall if Green was 
present at this meeting.
    \237\ Id. at 88.


    Question. You stated something to the effect that the 
purpose of the interview was to evaluate Mr. Trie with regard 
to the commission. Did you make a determination with regard to 
his qualifications as a result of the interview?
    Duncan. I had begun to at that point in time.

           *       *       *       *       *       *       *

    Question. And what was that evaluation?
    Duncan. My initial evaluation was that he would add value 
to the commission.
    Question. And what was the basis for the beginning that you 
said of that judgment?
    Duncan. The criteria for the commission was knowledge of 
trade barriers with Asian countries. I felt at that time Mr. 
Trie did have knowledge. I felt he would add value to it. The 
President has been very strong on having an administration and 
appointments as diverse as America. Mr. Trie, I thought, added 
diversity to it, also. And I thought it was also important to 
have small business people on this commission, and Mr. Trie 
would have been a small business person.238
---------------------------------------------------------------------------
    \238\ Id. at 90-91.

    On September 15, 1995, the day following the meeting 
between Duncan, Trie, and Green, Green called Mickey Kantor, 
the U.S. Trade Representative.239 Green claims that 
he does not specifically remember the call, but is certain that 
it was not about Charlie Trie's appointment to the Bingaman 
Commission.240 Similarly, Ambassador Kantor does not 
recall having any involvement in Trie's 
appointment.241 It is noteworthy that the September 
15 call is the only call between Green and Kantor for which the 
Committee has any record. Also on September 15, Trie had the 
opportunity to see the President personally. Trie was one of 50 
guests at the White House for a dinner recognizing the DNC's 
top donors.242 However, it is not clear whether Trie 
discussed the possibility of his appointment to the Commission 
at this dinner.
---------------------------------------------------------------------------
    \239\ Mickey Kantor Phone Message, Sept. 15, 1995 (Exhibit 82).
    \240\ Green Deposition I at 136-37.
    \241\ Deposition of Mickey Kantor, House Committee on Government 
Reform and Oversight, Aug. 8, 1997 (``Kantor Deposition'') at 117-125.
    \242\ Memorandum from Ann Stock to the President and the First 
Lady, Sept. 15, 1995, White House Document EOP 058062. It is unknown 
whether Trie discussed his appointment to the Commission with the 
President or any other White House officials at this event. Trie also 
received two tickets to sit in the President's box at the Kennedy 
Center on this same evening. Exhibit 40. Given Trie's appearance at the 
White House dinner that evening, it appears the Kennedy Center tickets 
may have been used for guests of Trie.
---------------------------------------------------------------------------
    After his interview with Trie and Green, Duncan claims that 
he sought references for Trie. He called individuals ``from 
Little Rock who knew Mr. Trie,'' specifically, Ernie Green, Bob 
Nash, and Lottie Shackelford.243 However, Green was 
the person who introduced Trie to Duncan, so it was clear that 
he supported Trie's nomination. Also, Green had been 
extensively involved in Trie's DNC activities. Duncan also 
spoke to Shackelford, who was a DNC Vice-Chair, and who was 
aware of Trie's political activities.244 Shackelford 
told Duncan that she believed Trie was qualified for 
appointment to the Commission.245 However, 
Shackelford testified that Duncan never asked her about Trie's 
knowledge of international trade, and, by her own admission, 
Shackelford had never discussed business of any kind with 
Charlie Trie.246 Her contacts with him had come only 
through patronizing his restaurant in Little Rock, and more 
recently, from attending DNC fundraisers.247 Nash 
was Duncan's superior at the Office of Presidential Personnel. 
When Duncan asked him about Trie, Nash stated that he believed 
Trie was qualified for appointment to the 
Commission.248 Nash based his conclusion on the fact 
that Trie was ``involved in international trade'' and the fact 
that he had established a sister city relationship between 
Changchun City, China, and Little Rock.249
---------------------------------------------------------------------------
    \243\ Duncan Deposition at 96.
    \244\ Deposition of Lottie Shackelford, House Committee on 
Government Reform and Oversight, Apr. 14, 1998 (``Shackelford 
Deposition''), at 28.
    \245\ Id. at 53.
    \246\ Id. at 53.
    \247\ Id. at 21-22.
    \248\ Deposition of Bobby J. Nash, House Committee on Government 
Reform and Oversight, Sept. 4, 1997 (``Nash Deposition'') at 92.
    \249\ Id. at 92.
---------------------------------------------------------------------------
    By this point, Duncan says he had concluded that Trie would 
add value to the Commission, and decided to recommend his 
appointment to the Commission.250 Duncan had spoken 
with only three people with any knowledge of Trie. Of these 
three individuals, only one, Green, had any knowledge of Trie's 
business activities. The other two, Nash and Shackelford, knew 
Trie primarily as a restaurateur. Nevertheless, Duncan claims 
that based on this information, he had concluded that Trie was 
qualified, and was willing to recommend Trie for appointment to 
the Commission.
---------------------------------------------------------------------------
    \250\ Duncan Deposition at 90.
---------------------------------------------------------------------------
    On September 20, 1995, Duncan spoke to Phyllis Jones of the 
USTR to tell her that he wanted Trie added to the list of 
recommended candidates for the Commission.251 Duncan 
gave Jones three names that were not on the list given by USTR 
to the White House, but that he wanted to add. The three were 
Trie, Kenneth Lewis, who had been recommended by Senator 
Sarbanes, and a third individual who was never 
appointed.252 In an e-mail message sent to a USTR 
colleague after her conversation with Duncan, Jones described 
Trie as a ``DNC nominee:'' 253
---------------------------------------------------------------------------
    \251\ See Electronic Mail Message from Phyllis Jones to Jennifer 
Hillman and Peter Scher, Sept. 21, 1995 (Exhibit 83).
    \252\ Id.
    \253\ Id.

        Well, I spoke with Charles Duncan about Bingaman late 
        Wed. Here is the update. They have not bumped anyone 
        off of our list. However, they want to add 3 people--a 
        Senator Sarbanes person (Charles will let me know the 
        name), a DNC nominee Yah Lin Trie, President of 
        Daihatsu International, an international trading 
        company, and an Asian-American exec [sic] from Toys R 
---------------------------------------------------------------------------
        Us.

        Charles thinks the best thing to do is to get the exec 
        [sic] order amended so it can be increased. Jennifer, 
        how difficult is this to do? They are trying to push 
        this through but we need to get the question answered 
        about the commission size. Also we need to extend the 
        report due date. Thanks.254
---------------------------------------------------------------------------
    \254\ Id. (emphasis added).

However, in her deposition, Jones attempted to distance herself 
from her own e-mail, claiming that ``[t]he only thing that 
Charles told me about Mr. Trie was that he was a small business 
person that had done business in Asia.'' 255 She 
denied that Duncan told her anything about Trie's support for 
the Administration, or his friendship with the 
President.256 In addition, both Jones and Duncan 
deny that they discussed Trie's support of the DNC during their 
conversation.257 Jones was unable to explain why she 
referred to Trie as a ``DNC nominee'' if Duncan had never 
mentioned Trie's support of the DNC during their discussion:
---------------------------------------------------------------------------
    \255\ Jones Deposition at 59.
    \256\ Id. at 59-60.
    \257\ Id. at 60; Duncan Deposition at 106-07.

          Question. . . . You describe Yah Lin, that's Charlie 
        Trie, as a DNC nominee. What does that mean?
          Jones. I don't know.
          Question. Did Charles Duncan tell you that Trie was a 
        DNC nominee?
          Jones. I don't know why those choice of words were 
        used here. I don't recall.
          Question. Have you ever used the term ``DNC nominee'' 
        to describe any other potential appointee to any 
        commission?
          Jones. I don't remember using it.

The e-mail message, though, casts grave doubt on Duncan's claim 
that he had no knowledge of Trie's support of the DNC, and had 
never discussed it with Trie.
    It was during this September 20 discussion between Duncan 
and Jones that Duncan also recommended that the Commission be 
expanded past 15 members in order to accommodate Trie and the 
other new candidates.258 Therefore, Jones asked the 
USTR legal counsel to draft the required documents that would 
allow the President to issue a new Executive order expanding 
the Commission.259 On January 31, 1996, the 
President signed Executive Order 12987, which expanded the 
Commission from 15 to ``up to 20'' members.260 This 
Executive order allowed the President to appoint Charlie Trie 
to the Bingaman Commission.
---------------------------------------------------------------------------
    \258\ Exhibit 83.
    \259\ See id.
    \260\ Executive Order 12987, Jan. 31, 1996 (Exhibit 84).
---------------------------------------------------------------------------

3. Objections Are Raised to Trie's Appointment

    Shortly after the September 20 discussion between Jones and 
Duncan, Jones added Trie's name to the list of appointees for 
the Commission, and circulated the list among individuals at 
USTR.261 When he received Trie's name, Steve Clemons 
says he was immediately concerned.262 Trie was 
listed as working with Daihatsu International Trading Corp., 
and Clemons was concerned that Trie's company was affiliated 
with the Japanese conglomerate of the same name.263 
Therefore, Clemons called Trie, to try to confirm that he was 
not affiliated with the Japanese company.264 Clemons 
spoke to him, and confirmed that his company was not Japanese, 
but immediately developed a great concern that Trie was not 
qualified to be appointed to the Commission.265 
Clemons could tell after one brief conversation that Trie was 
not knowledgeable regarding trade issues.266 He was 
even more irritated that so many candidates who were more 
qualified had been rejected by Duncan, and for some reason, 
Duncan saw fit to recommend Trie.267 For example, 
Clemons had recommended Ed McCracken, Chairman of Silicon 
Graphics, Robert Galvin, the former Chairman of Motorola, 
Gordon Binder, Chairman of Amgen, and Steven Ballmer, president 
of Microsoft, and all had been rejected.268
---------------------------------------------------------------------------
    \261\ Jones Deposition at 64.
    \262\ Clemons Interview I at 2.
    \263\ Id.
    \264\ Id.
    \265\ Id.
    \266\ Id.
    \267\ Id.
    \268\ Letter from Senator Jeff Bingaman to President Clinton, July 
26, 1995 (Exhibit 85).
---------------------------------------------------------------------------
    Clemons was so angered by Trie's appointment to the 
Commission that he drafted a letter of protest for Senator 
Bingaman to send to President Clinton.269 Senator 
Bingaman initially signed the letter to Clinton, but then 
instructed Clemons not to send it, and to pursue his objections 
with the White House orally, rather than in writing, telling 
Clemons that ``this was not the kind of matter to commit to 
paper.'' 270 Clemons then began a series of 
telephone calls and e-mails to Phyllis Jones and Charles Duncan 
objecting to Trie's appointment. Clemons stated that he ``did 
everything he could'' to stop the appointment of Charlie Trie 
to the Commission.271 Clemons stated that Jones was 
generally receptive to his arguments, but told him that since 
Trie was a White House selection, there was little she could do 
to change their mind.272 Clemons also had a series 
of heated conversations with Charles Duncan about Trie. In 
these discussions, Duncan stated that Trie was an ``absolute 
must appointment'' whose name had come ``directly from the 
highest levels of the White House.'' 273 Duncan also 
referred to Trie's support of the Administration.274 
Duncan concluded by telling Clemons that Trie was not coming 
off of the Commission.275 Clemons also says he 
repeated all of these objections in e-mail messages to both 
Jones and Duncan.276
---------------------------------------------------------------------------
    \269\ Clemons Interview I at 2.
    \270\ Id. Clemons retained a copy of the draft letter from Senator 
Bingaman to President Clinton. However, before he could provide it to 
the Committee, he was instructed by the Senate Legal Counsel not to 
provide it, because it was prepared in the course of his official 
Senate duties. Therefore, the letter presumably still exists in 
Clemons' possession, and in the office of Senator Bingaman.
    \271\ Id. at 3.
    \272\ Id. at 2.
    \273\ Id. at 3.
    \274\ Id.
    \275\ Id.
    \276\ Id.
---------------------------------------------------------------------------
    When faced with Clemons' charges, Duncan denied them, and 
Jones claimed a lack of recall. Jones was questioned at length 
about Clemons' charges:

    Question. Other than that concern [that Trie's company was 
Japanese], do you recall anyone at USTR having any other 
concerns about Charlie Trie being appointed to the Commission?
    Jones. I don't know.
    Question. Did anyone in Senator Bingaman's office raise any 
concerns about Charlie Trie being appointed to the Commission?
    Jones. I just don't remember.

           *       *       *       *       *       *       *

    Question. Other than the issue about whether Mr. Trie's 
Daihatsu was the same as the Japanese car company Daihatsu, do 
you ever recall receiving any e-mails expressing concern about 
Charlie Trie being appointed to the Bingaman Commission?
    Jones. I don't recall.
    Question. Are you aware of any individuals expressing 
concern to Charles Duncan about Charlie Trie's appointment to 
the Bingaman Commission?
    Jones. I don't know.277
---------------------------------------------------------------------------
    \277\ Jones Deposition at 83-84.

Faced with Clemons' detailed charges, Jones' testimony is 
difficult to believe. Duncan, however, flatly denied Clemons' 
---------------------------------------------------------------------------
charges in sworn interrogatories:

          Interrogatory. Did anyone involved in the appointment 
        process for the Bingaman Commission, including, but not 
        limited to Steven C. Clemons, express any opposition to 
        the appointment of Mr. Trie?
          Duncan. No one expressed opposition, but the relative 
        strengths and weaknesses of each potential nominee or 
        potential appointment were discussed, including the 
        strengths and weaknesses of Charlie Trie.
          Interrogatory. Did you tell anyone involved in the 
        appointment process for the Bingaman Commission, 
        including, but not limited to Steven C. Clemons, that 
        Yah Lin ``Charlie'' Trie's name came from high levels 
        of the Administration?
          Duncan. No.
          Interrogatory. Did you tell anyone involved in the 
        appointment process for the Bingaman Commission, 
        including, but not limited to Steven C. Clemons that 
        Mr. Trie was a ``must appointment?''
          Duncan. No.278
---------------------------------------------------------------------------
    \278\ See Duncan Interrogatories.

    However, faced with the conflict in the testimony between 
that of Steve Clemons and that of Duncan and Jones, the 
Committee believes the Clemons testimony is more clear and 
accurate. Clemons has detailed recall of the events in 
question, and had no vested interest in the outcome of the 
investigation. Clemons, like the Committee, had an interest in 
seeing why the appointment process for the Bingaman Commission 
was so distorted. Jones and Duncan, on the other hand, have a 
vested interest in protecting the Clinton Administration from 
embarrassment. Jones served in the Clinton Administration, and 
Duncan continues to serve in the Office of Presidential 
Personnel. In addition, when the testimony of Duncan and Jones 
is reviewed, both had frequent lapses in memory, and both 
provided evasive answers.
    Senator Bingaman's office was additionally dismayed by the 
fact that the Commission was being expanded to accommodate 
Charlie Trie and one other political appointee. Months earlier, 
Senator Bingaman had recommended that the Commission be 
expanded to accommodate qualified candidates, including major 
corporate CEOs, but Duncan rejected this suggestion out of 
hand.279 Now, Clemons found that Senator Bingaman's 
suggestion was being followed, not to allow the appointment of 
Steven Ballmer or some other qualified individual, but to make 
room for Charlie Trie. At the very least, Senator Bingaman's 
office hoped that the expansion of the Commission from 15 spots 
to ``up to 20'' would allow some of their original suggested 
candidates to be appointed.280 But, in the end, 
Duncan would not allow any of these candidates to go through.
---------------------------------------------------------------------------
    \279\ In his deposition testimony, Duncan suggested that when he 
asked USTR to expand the Commission in September 1995, he was acting 
upon Senator Bingaman's recommendation to the President of July 1995. 
This suggestion was heartily endorsed by minority Committee counsel. 
Duncan Deposition at 108, 112. However, Clemons' testimony makes it 
clear that Duncan had earlier rejected Senator Bingaman's suggestion to 
expand the Commission. Rather, the expansion only took place to 
accommodate Charlie Trie and Kenneth Lewis.
    \280\ Clemons Interview I at 3.
---------------------------------------------------------------------------
    After the failure of Steve Clemons' attempt to derail the 
appointment of Charlie Trie, the White House moved forward with 
the appointment process. On November 9, 1995, Duncan drafted a 
decision memorandum for the Bingaman Commission which listed 
Yah Lin Trie as a ``White House selection'' for the 
Commission.281 Two weeks later, Duncan drafted 
another decision memorandum, which this time listed Trie as an 
``Ernie Green'' selection for the Commission.282 In 
the final decision memorandum, dated December 12, 1995, Trie 
was listed as being sponsored for appointment by Ernie 
Green.283 In his testimony before the Committee, 
Duncan indicated that he had erroneously listed Trie as a White 
House selection on the initial draft of the decision 
memorandum, and that he later corrected the 
error.284 Green testified that after he had 
initially recommended Trie for a position in the 
administration, Charles Duncan called him and asked if he would 
be ``a supporter of Trie's candidacy.'' 285 However, 
the fact that Trie was originally listed as a ``White House 
selection'' on the first White House document prepared about 
his selection supports the account of Steve Clemons, that Trie 
was a ``must appointment'' whose name had come ``from the 
highest levels of the White House.''
---------------------------------------------------------------------------
    \281\ Draft Memorandum from Bob J. Nash to President Clinton, Nov. 
9, 1995, White House Document EOP 002199 (Exhibit 86).
    \282\ Draft Memorandum from Bob J. Nash to President Clinton, Nov. 
22, 1995, White House Document EOP 002216 (Exhibit 87).
    \283\ Memorandum from Bob J. Nash to President Clinton, Dec. 12, 
1995, White House Document EOP 048649 (Exhibit 88).
    \284\ Duncan Deposition at 190-92.
    \285\ Green Deposition I at 140, 288. In a proffer that they gave 
to the Committee prior to Green's deposition, Robert Washington and 
James Christian, counsel for Mr. Green, asserted that Green had nothing 
to do with Trie's nomination for the Bingaman Commission. In this 
proffer, Washington and Christian suggested that a recommendation by 
Green would be unnecessary, because Trie had more extensive White House 
connections than Green. Green later contradicted the proffer offered by 
his attorneys, acknowledging that he did recommend Trie for a position 
on the Commission.
---------------------------------------------------------------------------

             B. Trie's Clearance to Serve on the Commission

    As part of his appointment to the Bingaman Commission, Trie 
had to prepare a number of documents, including a financial 
disclosure form. The form required Trie to disclose, inter 
alia, ``each asset or source of income . . . which generated 
over $200 in income during the reporting period.'' 
286 On this form, Trie indicated that he received a 
salary of $60,000 from San Kin Yip International Trading 
Corporation, and $37,500 from Daihatsu International Trading 
Corporation. He did not disclose on the form that he received 
hundreds of thousands of dollars from foreign sources, despite 
the fact that the form required such information to be 
disclosed. In addition, when Trie first turned in his form to 
USTR officials, he had failed to sign it.287 USTR 
and Commerce officials processing his appointment to the 
Commission repeatedly requested that he sign his form, and he 
did so only 1 day before the Commission's first 
meeting.288
---------------------------------------------------------------------------
    \286\ Executive Branch Confidential Financial Disclosure Report, 
Commerce Document 01CD0234 (Exhibit 89).
    \287\ Executive Branch Confidential Financial Disclosure Report, 
Department of Commerce Document 01CD0238 (Exhibit 90).
    \288\ Answers to Interrogatories of Michael Cannon, Nov. 21, 1997, 
at 4; see also Telephone Notes of Michael Cannon, Mar. 28, 1996.
---------------------------------------------------------------------------
    Even once Trie signed his financial disclosure form, 
questions remained regarding the nature of his business. In the 
spring of 1996, ethics officials at the Commerce Department and 
USTR prepared conflict of interest waivers for the members of 
the Commission. These waivers provided the members of the 
Commission with the necessary legal protection in case they did 
have some kind of conflict of interest. Laura Sherman, an 
attorney at the USTR, prepared Trie's waiver, stating that 
Trie's business interests gave him a ``disqualifying financial 
interest in the matter.'' 289 However, Sherman 
recommended that the U.S. Trade Representative, Charlene 
Barshefsky, grant the waiver because Trie ``possesse[d] special 
expertise vital to the work of the Commission and ha[d] 
substantial knowledge and/or experience regarding trade 
barriers restricting U.S. business access to Asian and Pacific 
markets.'' 290
---------------------------------------------------------------------------
    \289\ Memorandum from Laura Sherman to Charlene Barshefsky, May 9, 
1996, White House Document EOP 017887 (Exhibit 91).
    \290\ Exhibit 90 at 2.
---------------------------------------------------------------------------
    However, Ambassador Barshefsky refused to sign the waiver, 
stating that she had a concern that Trie's companies were 
foreign.291 Thereafter, Sherman interviewed Trie 
about his business. Trie told her that both Daihatsu and San 
Kin Yip were U.S. companies.292 Laura Sherman has 
also testified that Trie told her ``San Kin Yip was a joint 
venture with a Macao corporation that invests in the United 
States; [and] that he provided advice on those investments.'' 
293 Based on these statements, Sherman concluded 
that Trie would not have a conflict of interest in serving on 
the Commission. She then submitted the waiver to Barshefsky. 
However, the waiver form for Trie was never signed. In press 
reports about the affair, USTR sources stated that it simply 
``fell through the cracks.'' 294
---------------------------------------------------------------------------
    \291\ Answers to Interrogatories of Laura Sherman, Oct. 20, 1997 
(``Sherman Interrogatories'') at 2; see also Memorandum from Laura 
Sherman to Charlene Barshefsky, June 12, 1996, White House Document EOP 
017886 (Exhibit 92).
    \292\ Sherman Interrogatories at 3.
    \293\ Id.
    \294\ Glenn F. Bunting, ``White House Helped Boost Trie Onto Asia 
Trade Panel,'' Los Angeles Times, July 21, 1997.
---------------------------------------------------------------------------

                  C. Trie's Service on the Commission

    The fears of Ambassador Barshefsky regarding Charlie Trie's 
service on the Commission were well-founded. Trie used his 
position on the Commission to promote his business and 
political interests. At worst, Trie's actions on the Commission 
presented an illegal conflict of interest. At best, they 
represent the serious harm that can result when unqualified, 
unsavory candidates are appointed to Federal positions without 
adequate background checks.

1. Trie's ``Contributions'' to Commission Meetings

    Charlie Trie attended at least eight of the meetings of the 
Commission.295 These meetings largely consisted of 
high-level intellectual discussions between the various members 
of the Commission, many of whom had extensive academic or 
business experience with Asian trade. Charlie Trie did not 
speak very much at Commission meetings, and when he did, his 
comments often could not be deciphered by his colleagues. One 
of the Commission members remarked that Trie ``sat there like a 
bump on a log'' during the meetings, and believed that Trie's 
poor command of English caused him to be too embarrassed to 
speak.296 Trie brought with him to many Commission 
meetings an employee named Chu Lei. Chu Lei would often speak 
at meetings on Trie's behalf. One Commission member recalled 
that Chu Lei once made a ``stupid, indecipherable'' statement 
to the effect that the ``Chinese really like Americans, and 
cannot understand why Americans are so harsh with regard to 
trade.'' 297 Eventually, because of her frequent and 
strange comments at Commission meetings, the members asked the 
Chairman of the Commission, to bar Chu Lei from attending any 
more Commission meetings.298
---------------------------------------------------------------------------
    \295\ Trie's attendance is confirmed in a number of Commission 
memoranda. See EOP 015869, EOP 015364, EOP 015361, EOP 013303, EOP 
015401, EOP 015386, EOP 013277, EOP 015917.
    \296\ Interview of Meredith Woo-Cumings, Feb. 18, 1998 (``Woo-
Cumings Interview''), at 1.
    \297\ Id. at 2.
    \298\ The Committee has learned that in this same period of time, 
Chu Lei was a conduit contributor to the DNC, and also introduced Trie 
to the Suma Ching Hai Buddhist cult, which Trie used to funnel $700,000 
to the Presidential Legal Expense Trust.
---------------------------------------------------------------------------
    Trie also made several written submissions to the 
Commission. These documents further confirm the fact that Trie 
was unqualified to serve on the Commission. Trie made three 
separate submissions to the Commission: ``Proposal of the U.S.-
Asia Trading Partnership Program;'' 299 
``Recommendations for what we can do in U.S.-Asia Trade Policy 
Formulation;'' 300 and ``Some Recommendations Before 
the Asia Trip.'' 301 These documents are rife with 
grammatical and typographical errors, and are almost impossible 
to understand. After witnessing Trie's performance at 
Commission meetings and reviewing these documents, many 
Commission members thought it was strange that Trie was on the 
Commission, and even the USTR official in charge of the 
Commission concluded that ``I believe that more qualified 
members could have been found to participate, but believe that 
Mr. Trie tried to be a useful participant.'' 302
---------------------------------------------------------------------------
    \299\ Proposal of the U.S.-Asia Trading Partnership Program, May 
14, 1996 (Exhibit 93).
    \300\ Recommendations for what we can do in U.S.-Asia Trade Policy 
Formulation, Aug. 1, 1996 (Exhibit 94).
    \301\ Some Recommendations Before the Asia Trip, Aug. 25, 1996 
(Exhibit 95).
    \302\ Answers to Interrogatories of Nancy Adams, Feb. 23, 1998 
(``Adams Interrogatories'') at 20.
---------------------------------------------------------------------------
    However, a close examination of Trie's contributions to 
Commission meetings show that he was not merely unqualified to 
participate. Such an examination reveals a great deal about 
Trie's political loyalties, and indicates that he was 
apparently attempting to use his position on the Commission to 
promote strongly pro-China political views. One Commission 
member recalled that Trie and Chu Lei ``grew agitated'' when 
the Commission members were discussing China in a negative 
light.303 The Vice Chairman of the Commission stated 
that Trie was interested in promoting more friendly relations 
with China, and was ``terribly concerned'' regarding a possible 
confrontation between the United States and China over 
Taiwan.304 These sentiments are confirmed by Trie's 
recorded statements in the transcripts of Commission meetings. 
In a June 12, 1996 meeting, Trie stated:
---------------------------------------------------------------------------
    \303\ Interview of Jackson Tai, Feb. 18, 1998 (``Tai Interview''), 
at 1.
    \304\ Prestowitz Interview at 3.

        I feel this . . . human right [sic] issue, why we don't 
        listen the other side people [sic], what kind of 
        problems they have, what they judge about the U.S. . . 
        . I feel why we don't find some way to work with them 
        because potentially they will dominate whole Asia 
        [sic]? 305
---------------------------------------------------------------------------
    \305\ Transcript of Commission Meeting, June 12, 1996, at 227 
(Exhibit 96).

---------------------------------------------------------------------------
Later at that same Commission meeting, Trie remarked:

        Why don't they have human rights? What problems do they 
        have? How can we work out together [sic]? . . . We've 
        got a chance to do the business, but on the human 
        rights . . . human rights issue is a long way to 
        [sic]--I don't know. There's a different culture, 
        different country.306
---------------------------------------------------------------------------
    \306\ Id. at 228.

These sentiments were echoed in Trie's written submission to 
---------------------------------------------------------------------------
the Commission as well:

        There are a lot of territories that we forget to pay 
        attention to which might bring us advantages we need 
        such as in India, Southeastern Peninsula. If we work 
        harder with China (which is actually very friendly to 
        us) and the underdevelopped [sic] nations, we will find 
        alot [sic] of rooms [sic] there.307
---------------------------------------------------------------------------
    \307\ See, e.g., Recommendations for what we can do in U.S.-Asia 
Trade Policy Formulation, at 3.

    Beyond promoting China, Trie also used his appointment to 
the Commission to promote himself. He mentioned the fact that 
he served on the Commission to a number of 
individuals.308 Outside of the United States, and 
among less sophisticated individuals, where, perhaps, the role 
of the Bingaman Commission was not so well understood, Trie 
claimed that he served as an ``advisor to the President.'' 
309 Trie was even listed on the official letterhead 
of one Hong Kong company in this capacity.310
---------------------------------------------------------------------------
    \308\ Cardozo Senate Deposition I at 42; Mercer Deposition I at 77; 
Kearney Deposition at 64.
    \309\ Interview of Soo Jung Mok, Sept. 10, 1998; Johnson Interview 
at 2.
    \310\ Johnson Interview at 2.
---------------------------------------------------------------------------

2. Trie's Participation on the Commission Trip to Asia

    Trie also used his position on the Commission to promote 
his personal business interests. The vetting process that Trie 
went through before his appointment was intended to prevent 
this type of gain, but as described earlier, the process was 
entirely inadequate. In a document he sent to the Executive 
Director of the Commission, Trie recommended that the 
Commission meet with ``small and medium business owners who are 
the real contributors to Taiwan economics.'' 311 In 
the same document, Trie also recommended that the Commission 
meet with Wang Jun, the Director of CITIC.312 Of 
course, at the same time, Trie and Ernie Green were trying to 
arrange business deals with Wang Jun and CITIC.
---------------------------------------------------------------------------
    \311\ Exhibit 94.
    \312\ Id.
---------------------------------------------------------------------------
    During the Commission's September 1996 trip, Trie's 
behavior attracted the notice of many members of the 
Commission. One Commission member recalled that Trie had 
``lieutenants'' in many different Asian cities, who would meet 
him whenever the group arrived.313 Another recalled 
that Trie introduced him to a governmental official in 
Beijing.314 Upon his arrival with the delegation in 
Hong Kong, Trie was picked up by a limousine.315 
When the Commission met with James Riady in Jakarta, Trie made 
it clear that he was friends with Riady, and had known him 
since Riady had worked in Little Rock in the 
1980s.316 In Beijing, Trie took many Commission 
members to a restaurant where Trie clearly had great influence, 
and where he was greeted by a group that came and seemingly 
``paid homage'' to Trie.317 Another recalled that 
Trie traveled by chauffeur-driven limousine while in 
Beijing.318 By the end of the trip, the Commission 
members were ``amazed by [Trie's] ability to maneuver.'' 
319
---------------------------------------------------------------------------
    \313\ Tai Interview at 2.
    \314\ Prestowitz Interview at 4.
    \315\ Id. at 3.
    \316\ Id.
    \317\ Tai Interview at 2.
    \318\ Woo-Cumings Interview at 2.
    \319\ Tai Interview at 2.
---------------------------------------------------------------------------
    Shortly after the return of the Commission delegation to 
the United States, press stories broke regarding Trie's 
questionable fundraising practices. Trie stopped attending 
Commission meetings, and sent a letter of apology to the 
Commission members. In his letter, Trie apologized for missing 
Commission meetings, and proclaimed his innocence:

        However, I want to let you know and want you to have 
        confidence in me that I did not do anything that is 
        illegal to assist and to support the Democratic Party 
        and President Clinton in the campaign activities. I 
        actually felt proud of myself supporting President 
        Clinton, who, as you might have the same feeling as I, 
        is the real person wholeheartedly want to and able to 
        [sic] lead peacefully not only the United States, but 
        also the world to the 21st Century.320
---------------------------------------------------------------------------
    \320\ Letter from Charlie Trie to Nancy Adams and Commission 
Members, Jan. 1, 1997 (Exhibit 97).

    After stories about Trie's illegal fundraising had come to 
light, many Commission members questioned whether Trie should 
remain a member of the Commission.321 The Chairman 
of the Commission, Ken Brody, and the USTR decided that since 
Trie was a presidential appointee, it was the White House's 
decision whether to remove Trie as a member of the 
Commission.322 The President ended up leaving 
Charlie Trie on the Commission. Therefore, even after Charlie 
Trie had fled the country in January 1997, the Commission 
continued to fax him Commission documents at his Watergate 
apartment.323 The Commission staff faxed Trie drafts 
of the Commission report, and asked for his comments, even 
though they knew that he was embroiled in the fundraising 
controversy, and that he had fled the country. When the report 
was published in April 1997, Charlie Trie's name was on the 
cover as an official member of the Commission.324
---------------------------------------------------------------------------
    \321\ Adams Interrogatories at 33.
    \322\ Interview of Kenneth Brody, Feb. 19, 1998, at 2; see also 
Adams Interrogatories at 35.
    \323\ See, e.g., Memorandum from Nancy Adams to Lawrence Johnson, 
Kenneth Lewis, Harold Poling, Charlie Trie, et al., Mar. 3, 1997.
    \324\ Building American Prosperity in the 21st Century: U.S. Trade 
and Investment in the Asia Pacific Region, April 1997 (``Commission 
Report''). It should be noted that three members of the Commission 
filed dissenting views from the report. The dissenting members 
concluded that the ``report's conclusions are out of touch with the 
economic concerns of the majority of the American public.'' They also 
stated that ``the report fails to fulfill the President's mandate to 
recommend policies that would increase U.S. access to Asian markets 
``in such a way that a maximum number of high-wage jobs are created and 
maintained in the United States.'' See id. at 62.
---------------------------------------------------------------------------

                       V. Trie's 1996 Activities

    While Trie's career as a DNC fundraiser and Washington 
insider was to come crashing to a halt by the end of 1996, for 
most of the year, Trie enjoyed unprecedented access to the 
White House. Trie brought his friends and business associates 
to at least six different White House events, ranging from 
tours to arrival ceremonies for heads of state.325 
Trie himself visited the White House at least 11 times in 1996, 
visiting high-level White House officials such as Charles 
Duncan and Ben Johnson.326 Through his frequent 
contacts with these officials, Trie built up personal 
relationships with many of them. For example, Trie gave a 
Christmas gift to close Clinton advisor Mack McLarty, who wrote 
back to Trie thanking him, and including a handwritten 
acknowledgment in his letter.327
---------------------------------------------------------------------------
    \325\ See, e.g., Memorandum from Susan Lavine to ``WAVES,'' Feb. 
20, 1996, White House Document EOP 056859 (Exhibit 98); Memorandum from 
Susan Lavine to Melinda Bates, Jan. 29, 1996, White House Document EOP 
056851 (Exhibit 99).
    \326\ WAVES Records of Yah Lin Trie.
    \327\ Letter from Mack McLarty to Charlie Trie, Jan. 10, 1996, 
White House Document EOP 008589 (Exhibit 100).
---------------------------------------------------------------------------
    Trie's personal ties with White House and DNC officials 
also led him to host a number of parties at his Watergate 
apartment. A number of Administration and DNC officials have 
testified to attending multiple events at Trie's apartment. At 
various times, Trie's apartment served as a gathering place 
for: Mark Middleton,328 Ernie Green,329 
Charles Duncan, Associate Director of Presidential 
Personnel,330 Jude Kearney, Deputy Assistant 
Secretary of Commerce,331 Ben Johnson, Special 
Assistant to the President,332 Lottie Shackelford, 
Vice-Chair of the DNC,333 David Mercer, Deputy 
Finance Director of the DNC,334 and Susan Lavine, 
DNC White House Liaison.335
---------------------------------------------------------------------------
    \328\ Deposition of Robert Ben Johnson, House Committee on 
Government Reform and Oversight, Feb. 20, 1998 (``Johnson 
Deposition''), at 89.
    \329\ Green Deposition I at 57.
    \330\ Duncan Deposition at 183.
    \331\ Kearney Deposition at 46.
    \332\ Johnson Deposition at 88.
    \333\ Shackelford Deposition at 40.
    \334\ Mercer Deposition I at 114.
    \335\ Deposition of Susan Lavine, House Committee on Government 
Reform and Oversight, July 21, 1997 (``Lavine Deposition''), at 95.
---------------------------------------------------------------------------
    Charlie Trie was to capitalize on these ties throughout 
1996. First, he brought Wang Jun, Chairman of the China 
International Trust and Investment Corporation (``CITIC''), a 
Chinese government-controlled conglomerate, to the White House 
to meet President Clinton at a February 6, 1996, White House 
coffee. Trie made the introduction at the same time that Wang's 
company was under investigation for smuggling illegal machine 
guns into the United States. Also in 1996, Trie raised large 
sums of money for the DNC. Trie was prominently involved in 
raising funds for at least three major DNC events. Most of the 
funds raised by Trie have been determined to be illegal.

              A. The February 6, 1996, White House Coffee

    On February 6, 1996, Charlie Trie accompanied Chinese 
executive Wang Jun to a fundraising coffee held in the White 
House. Several weeks after the coffee, a subsidiary of Wang's 
company called Poly Technologies was discovered smuggling 
illegal machine guns to Los Angeles street gangs.336 
After learning late in 1996 who Wang was and which company he 
was affiliated with, President Clinton described Wang's 
presence at the coffee as ``clearly inappropriate.'' 
337 However, it appears that Wang's attendance at 
the coffee was not a simple mistake, but rather, was the result 
of a carefully orchestrated plan of Charlie Trie. It also 
appears that Trie had the cooperation and assistance of Ernie 
Green, the DNC, and the Clinton White House in getting Wang 
into the coffee.
---------------------------------------------------------------------------
    \336\ ``Report: Two Chinese Arms Company Representatives 
Arrested,'' Associated Press, May 22, 1996.
    \337\ Susan Schmidt and Lena H. Sun, ``Clinton Calls Wang Meeting 
`Inappropriate,' '' the Washington Post, Dec. 21, 1996 at A1.
---------------------------------------------------------------------------

1. Background of Wang Jun

    Wang Jun was known to American governmental officials 
before his appearance at the White House coffee. He had visited 
the United States, and he had also met with U.S. Governmental 
officials in China. It appears that Wang had somehow developed 
a relationship with officials in the Department of Commerce, 
most notably, Melinda Yee and Jude Kearney. In 1995, during 
Secretary Brown's October trade mission to China, Wang 
requested that he meet with Brown to discuss trade 
opportunities.338 Yee endorsed this request and 
forwarded it to Jude Kearney for action.339 It is 
unknown whether Wang gained an official audience with Ron Brown 
during the trade mission. However, at the end of the trade 
mission, Wang did meet with Brown in Hong Kong. Wang was 
invited to the October 18, 1995, dinner at the Hong Kong 
Shangri-La Hotel organized by Trie and Ng Lap Seng. Photographs 
of the event indicate that Wang was one of the approximately 20 
foreign business leaders invited by Trie and Ng.340
---------------------------------------------------------------------------
    \338\ Facsimile from Jude Kearney to Melinda Yee, Oct. 13, 1995, 
Commerce Document 10BA1259 (Exhibit 101).
    \339\ Id.
    \340\ Exhibit 63.
---------------------------------------------------------------------------
    At the Shangri-La dinner, Wang was introduced to Ernie 
Green, and according to Green, the two had a ``modest 
exchange.'' 341 Green also claims that he collected 
the business cards of Wang and an associate of Wang, Wong Xu of 
the Shezhen Bao Hua Trading Corporation, a subsidiary of CITIC 
involved in international investment.342 Shortly 
after the Shangri-La dinner, Green wrote to both Wang and Wong, 
inviting them to come to the United States later that year. 
Green wrote ``I enjoyed our discussions and feel there are many 
business opportunities we may pursue. If your schedule will 
allow, I would like to extend an invitation to you to visit the 
USA during the month of December.'' 343 Wang, Wong, 
and an entourage of CITIC officials used Green's letters of 
invitation to apply for a visa to visit the United States on 
January 22, 1996.344
---------------------------------------------------------------------------
    \341\ Green Deposition I at 155.
    \342\ Green Senate Deposition at 117.
    \343\ Letter from Ernest Green to Wang Jun, Nov. 6, 1995, Ernest 
Green Document 005044 (Exhibit 102); see also Letter from Ernest Green 
to Wong Xu, Nov. 6, 1995, Ernest Green Document 005045 (Exhibit 103).
    \344\ Visa Application to the U.S. Embassy in Beijing for Wang Jun 
and three other individuals.
---------------------------------------------------------------------------

2. Wang Jun's Invitation to the Coffee

    In January 1996, Charlie Trie began speaking to high-level 
DNC officials about arranging for Wang's attendance at a DNC 
coffee in the White House. Trie told David Mercer that he 
wanted to attend a DNC coffee, and bring Wang Jun with him as a 
guest.345 Mercer responded that his request to bring 
a guest was unusual, but requested Wang's biography so that the 
DNC and White House could process the request.346 
Mercer passed Trie's request on to Richard Sullivan. Sullivan 
recalls that Trie had expressed a strong desire to have Wang at 
the coffee, and mentioned his extensive fundraising activities 
for the DNC in the past, and his planned activities in 
connection with John Huang's February 19, 1996, fundraiser at 
the Hay-Adams Hotel.347 It appears that the DNC had 
several concerns about allowing Wang's attendance at the 
coffee. First, there was a DNC policy of not allowing donors to 
bring guests to White House coffees.348 Second, 
Richard Sullivan claims to have had concerns about the fact 
that Wang was a foreign national.349 Therefore, 
Sullivan asked Karen Hancox, Deputy Assistant to the President 
for Political Affairs, to conduct background research on Wang 
and CITIC.350 However, it is not clear whether 
Hancox did actually conduct any research regarding Wang before 
the coffee.351 Despite any concerns, the DNC and the 
White House allowed Wang to attend the coffee.
---------------------------------------------------------------------------
    \345\ Deposition of David Mercer, Senate Committee on Governmental 
Affairs, May 27, 1997 (``Mercer Senate Deposition''), at 139.
    \346\ Id.
    \347\ Sullivan Senate Deposition at 103.
    \348\ Mercer Senate Deposition at 142.
    \349\ Sullivan Senate Deposition at 108.
    \350\ Id.
    \351\ Deposition of Karen Hancox, Senate Committee on Governmental 
Affairs, June 9, 1997, (``Hancox Senate Deposition'') at 74-78. Hancox 
did testify, though, that she discussed Wang with Andrew Sens, a 
staffer at the National Security Council, after the coffee. Even after 
the coffee and the press reports regarding the fact that Wang Jun was 
in charge of a company found smuggling weapons into the United States, 
Sens still believed it was appropriate to host Wang at the White House.
---------------------------------------------------------------------------
    According to Ernie Green, in late January 1996, Green was 
informed by Charlie Trie that Wang Jun and his party would be 
coming to the United States. At this time, Green began making 
plans to entertain the group and introduce them to Lehman 
executives in Washington and New York City. He also requested 
that Trie provide him with biographical information for Wang 
and his party.352 While Green readily admits to 
planning for business meetings with Wang, he denies that he had 
any role in arranging for Wang's attendance at the February 6 
coffee.353 However, the records and testimony 
received by this Committee and the Senate Governmental Affairs 
Committee indicate that Green did have a role in planning 
Wang's attendance at the coffee. First, Richard Sullivan, the 
DNC Finance Director, stated that:
---------------------------------------------------------------------------
    \352\ Green Deposition I at 193.
    \353\ Id. at 196.

        I understood David Mercer telling Marvin Rosen and 
        myself, it was in the context of something that was 
        important to Ernie and Charlie . . . It was a mistake. 
        I was--it's obviously a mistake. It was something, as I 
        understood it, that was important that Ernie had this 
        guy in town doing business. Ernie had been a longtime 
        supporter and it was purely as a favor to 
        Ernie.354
---------------------------------------------------------------------------
    \354\ Senate Committee on Governmental Affairs, Hearing 105-300 pt. 
I at 132, July 9, 1997 (emphasis added).

In addition, it appears that when the DNC asked Charlie Trie to 
provide Wang Jun's resume in order to check his background, it 
was provided by Ernie Green, not Charlie Trie.355 
Green denies that he was involved in arranging Wang's 
attendance at the White House coffee, but is unable to explain 
why he faxed Wang's resume to the DNC.356
---------------------------------------------------------------------------
    \355\ Resume of Wang Jun, DNC Document 3043714 (containing a fax 
header indicating that it was faxed from Lehman Brothers to ``DNC 
Chairman'') (Exhibit 104). See also Green Senate Deposition at 171-74.
    \356\ Green Senate Deposition at 172-74.
---------------------------------------------------------------------------

3. Ernie Green's $50,000 Contribution

    The final, and most significant way that Green appears to 
have been involved in providing for Wang's attendance at the 
coffee is by making a large contribution to the DNC. Attendance 
at White House coffees usually required a sizable contribution 
to theDemocratic party by the person attending the coffee. 
However, neither Wang nor Trie contributed to attend the coffee. It 
appears, though, that Ernie Green made a sizable contribution in this 
period of time. On February 6, 1996, the day of the coffee, Green made 
a contribution of $50,000 to the DNC. The check he gave was signed by 
his wife, Phyllis Caudle-Green. Green has testified that he gave the 
$50,000 check to David Mercer at a breakfast on the morning of February 
6.357 Green also stated that he and his wife gave the 
contribution out of a long-standing feeling that they should give a 
large contribution to the DNC.358 Green adamantly denied 
that his $50,000 contribution was connected to Trie or Wang 
Jun.359
---------------------------------------------------------------------------
    \357\ Green Deposition I at 211.
    \358\ Id. at 208-09.
    \359\ Id. at 210.
---------------------------------------------------------------------------
    However, David Mercer denies that he received the $50,000 
check from Ernie Green.360 Mercer recalls that he 
received the check from Charlie Trie.361 Mercer's 
testimony is supported by the DNC check tracking form for 
Green's contribution. The form shows that Mercer credited 
Charlie Trie with soliciting the Green 
contribution.362 In addition to recognizing Trie as 
the solicitor of the Green contribution, Mercer credited the 
contribution to the February 6 coffee. Mercer's accreditation 
of the contribution to the coffee was reviewed by a number of 
DNC officials, including Marvin Rosen, Scott Pastrick, and 
Richard Sullivan.363 In light of this documentary 
evidence, it appears that Ernie Green not only helped arrange 
Wang's invitation to the White House coffee, but that he also 
may have made a $50,000 contribution to the DNC in connection 
with the coffee.
---------------------------------------------------------------------------
    \360\ Mercer Deposition II at 35.
    \361\ Id.
    \362\ Check Tracking Form for Contribution of Ernest G. Green and 
Phyllis Caudle-Green, Feb. 6, 1996, DNC Document DNC 3064259 (Exhibit 
105).
    \363\ Memorandum from David Mercer to Marvin Rosen et al., Feb. 6, 
1996, DNC Document DNC 3422907 (Exhibit 106).
---------------------------------------------------------------------------
    Records received by the Committee also indicate that in the 
2 month period surrounding the time that Green contributed 
$50,000 to the DNC, Green deposited over $38,000 cash he cannot 
account for into his bank accounts, and separately received 
$11,500 from Charlie Trie in travelers checks and a wire 
transfer.
            a. Ernie Green's Mysterious Cash Deposits
    Starting in December 1995, Green began a highly unusual 
pattern of banking activity in which he made a number of trips 
to the bank to deposit large amounts of cash. Green cannot 
account for any of these transactions. On December 15, 1995, 
Green deposited $4,000 cash into his NationsBank 
account.364 On January 23, 1996, Green deposited 
$2,000 cash at NationsBank,365 and $700 into his 
account at the Riggs Bank.366 Three days later, 
Green made two trips to NationsBank, depositing $300 and $1,000 
cash.367 On February 9, Green made four separate 
trips to two different banks. He made three trips to 
NationsBank, making cash deposits of $1,000, $3,000, and again 
$3,000.368 Then Green went to Riggs and deposited 
$1,000 cash.369 On February 21, Green made three 
trips to the bank, depositing $5,000 and then $3,000 cash at 
NationsBank,370 and then $2,500 at Riggs 
Bank.371 On February 22, Green deposited $3,000 cash 
at NationsBank.372 The following day, Green 
deposited $3,500 cash at Riggs Bank.373 On February 
28, Green deposited $5,400 cash at NationsBank.374 
Green's cash deposits are laid out in the following chart:
---------------------------------------------------------------------------
    \364\ Deposit Item, NationsBank Account of Ernest G. Green and 
Phyllis Caudle Green, Dec. 15, 1995.
    \365\ Deposit Item, NationsBank Account of Ernest G. Green and 
Phyllis Caudle Green, Jan. 23, 1996.
    \366\ Deposit Item, Riggs Bank, Ernest G. Green Travel Expenses 
Account, Jan. 23, 1996.
    \367\ Deposit Items, NationsBank Account of Ernest G. Green and 
Phyllis Caudle Green, Jan. 26, 1996.
    \368\ Deposit Items, NationsBank Account of Ernest G. Green and 
Phyllis Caudle Green, Feb. 9, 1996.
    \369\ Deposit Item, Riggs Bank, Ernest G. Green Travel Expenses 
Account, Feb. 9, 1996.
    \370\ Deposit Items, NationsBank Account of Ernest G. Green and 
Phyllis Caudle Green, Feb. 21, 1996.
    \371\ Deposit Item, Riggs Bank, Ernest G. Green Travel Expenses 
Account, Feb. 21, 1996.
    \372\ Deposit Item, NationsBank Account of Ernest G. Green and 
Phyllis Caudle Green, Feb. 22, 1996
    \373\ Deposit Item, Riggs Bank, Ernest G. Green Travel Expenses 
Account, Feb. 23, 1996.
    \374\ Deposit Item, NationsBank Account of Ernest G. Green and 
Phyllis Caudle Green, Feb. 28, 1996

------------------------------------------------------------------------
                Date                            Bank            Deposit 
------------------------------------------------------------------------
December 15, 1995...................  NationsBank............     $4,000
January 23, 1996....................  NationsBank............      2,000
January 23, 1996....................  Riggs Bank.............        700
January 26, 1996....................  NationsBank............        300
January 26, 1996....................  NationsBank............      1,000
February 9, 1996....................  NationsBank............      1,000
February 9, 1996....................  NationsBank............      3,000
February 9, 1996....................  NationsBank............      3,000
February 9, 1996....................  Riggs Bank.............      1,000
February 21, 1996...................  NationsBank............      5,000
February 21, 1996...................  NationsBank............      3,000
February 21, 1996...................  Riggs Bank.............      2,500
February 22, 1996...................  NationsBank............      3,000
February 23, 1996...................  Riggs Bank.............      3,500
February 28, 1996...................  NationsBank............      5,400
------------------------------------------------------------------------

    Green's banking activity during the 2 month period raises a 
number of questions. First, the volume of cash deposits, over 
$38,000, raises questions regarding the source of the money. 
The Committee asked Green, and he could not recall the source 
of any of this $38,000.375 Green merely speculated 
that it could have come from speaking engagements before 
churches and schools which paid him in cash.376 
However, when asked about each cash deposit individually, Green 
could not recall the source of any of the cash that he 
deposited into his bank accounts.377 Green denied 
that any of the money came from Trie or Trie's 
associates.378 The second question raised by Green's 
activity is the unusual pattern of deposits. At several points 
during January and February 1996, Green went to the bank 
multiple times in 1 day to deposit large amounts of cash. For 
example, on February 9, 1996, Green made four trips to the bank 
and deposited $8,000 cash. Also, in late February, Green went 
to the bank seven times in a 1 week period to deposit $24,400 
cash. This pattern suggests that Green may have been attempting 
to conceal the size of his deposits, and possibly avoid 
Currency Transaction reporting requirements. In his deposition 
before the Committee, Green denied that he was aware of, or 
attempting to avoid these reporting requirements.379 
The Committee invited Green to provide further information to 
the Committee explaining the source of the cash deposits, but 
thus far, he has not done so.
---------------------------------------------------------------------------
    \375\ Deposition of Ernest G. Green, House Committee on Government 
Reform and Oversight, Sept. 25, 1998, (``Green Deposition II'') at 20-
22.
    \376\ Id. at 16-17.
    \377\ Id. at 15-29.
    \378\ Id.
    \379\ Id. at 24.
---------------------------------------------------------------------------
            b. Ernie Green Received At Least $11,500 From Trie
    During this same period of time, Green received at least 
$11,500 from Trie. First, Trie wired $9,500 to the company run 
by Green and his wife to sell the self-inflating novelty 
balloons, the Green/McKenzie Group. In January 1996, Trie 
visited the family of his sister, Manlin Foung, in 
California.380 While he was there, Trie deposited a 
$30,000 cashier's check into his sister's bank account at the 
Travis Federal Credit Union.381 Then, several days 
later, Trie withdrew $15,000 in cash.382 On January 
19, Trie asked Foung to wire $9,500 of his remaining money to 
the NationsBank account for the Green/McKenzie 
Group.383 Before the Committee acquired proof that 
Green/McKenzie had received money from Trie, Green adamantly 
denied that he had received money from Trie in connection with 
the pop-up balloon venture:
---------------------------------------------------------------------------
    \380\ Interview of Manlin Foung, Sept. 22, 1998.
    \381\ Id.
    \382\ Id.
    \383\ Id.

          Question. Did Green McKenzie receive any funds from 
        any of Mr. Trie's companies that he was affiliated 
        with, be it Capitol Hill [Enterprises], Daihatsu or San 
        Kin Yip?
          Green. No. Any--are we speaking of direct 
        investments?
          Question. Yes.
          Green. No.
          Question. Did you or your wife receive personally any 
        money from Mr. Trie or any of his companies with 
        respect to the pop-up balloon venture?
          Green. No, we did not.384
---------------------------------------------------------------------------
    \384\ Green Deposition I at 145.

    However, in his second deposition, once he was shown 
evidence of a wire transfer for $9,500 to Green/McKenzie, Green 
admitted that Green/McKenzie did receive money from Charlie 
---------------------------------------------------------------------------
Trie for the pop-up balloon venture:

          Question. Under that agreement, do you know how much 
        money Green/McKenzie received from Mr. Trie?
          Green. I think this incoming wire was $9,500, and 
        that was the amount.
          Question. And that was all the money that you ever 
        received from Mr. Trie for the balloon project?
          Green. That is correct.385
---------------------------------------------------------------------------
    \385\ Green Deposition II at 37.

On this point, like many others, Green has offered 
contradictory testimony. This time, Green contradicted his own 
sworn statement in his first deposition. Especially alarming is 
the fact that Green flatly denied receiving money from Trie for 
Green/McKenzie in his first deposition, and then recalled with 
great precision the transfer of money from Trie to Green/
McKenzie in his second deposition. Green acknowledged receiving 
this money from Trie only after the Committee subpoenaed the 
bank records of Green/McKenzie.
    On February 27, 1996, Green deposited $2,000 at 
NationsBank.386 In his second deposition before the 
Committee, Green acknowledged that he received $2,000 in 
travelers checks from Trie and deposited them into his account:
---------------------------------------------------------------------------
    \386\ Deposit Item, NationsBank Account of Ernest G. Green and 
Phyllis Caudle Green, Feb. 27, 1996.

          Question. I would now like to show you Exhibit EG-16, 
        which indicates that you made a cash deposit of $2,000 
        into NationsBank, your account there, on February 27, 
        1996. Do you recall the form of that deposit, whether 
        it was cash or travelers checks?
          Green. I assume that this is a travelers check.
          Question. . . . Charlie Trie gave you these travelers 
        checks; is that correct?
          Green. Yes.

Green's explanation for receiving this money was that he had 
won a $2,000 bet on a basketball game with Trie.387 
However, Green's admission followed sworn testimony before the 
Senate Committee on Governmental Affairs wherein Green flatly 
denied ever receiving any money from Trie:
---------------------------------------------------------------------------
    \387\ Green Deposition II at 27-28.

          Question. Did you ever receive any money from Mr. 
        Trie?
          Green. No, I have not.388
---------------------------------------------------------------------------
    \388\ Green Senate Deposition at 192.

    Remarkably, Green was able to recall every minute detail of 
his $2,000 bet with Charlie Trie, while at the same time 
entirely forgetting the source of any of the $38,000 in cash he 
deposited between December and February 1996.389 
Green's selective memory on this point, as many others, 
suggests that his testimony before the Committee about why he 
received the $2,000 in travelers checks is not credible. 
Green's sworn statements, therefore, that he was never 
reimbursed for his $50,000 contribution to the DNC, similarly 
carry little weight.
---------------------------------------------------------------------------
    \389\ Green recalled his wager with Trie in great detail:

        Question. Why did Mr. Trie give you these travelers 
      checks?
        Green. We had a gentlemen's bet on a basketball game.
        Question. Which basketball game was that?
        Green. It was the Bulls playing--the Bulls were playing 
      Indiana. It was a Sunday game. I think it was on the 18th, 
      and the bet was that Michael Jordan would score 40 points 
      or better, and Charlie was not a big Michael Jordan fan so 
      he took the bet.
        Question. I take it you won this bet, is that correct?
        Green. I did. I think Michael Jordan scored 43 points.

Green Deposition II at 27. Green's detailed testimony regarding the 
Bulls-Pacers game followed half an hour of questioning in which he was 
not able to offer any testimony regarding any of 14 different cash 
banking transactions.

4. Wang Jun's Tour of Washington, DC

    Wang entered the United States at San Francisco on February 
1, 1996. It is unknown where Wang traveled between February 1 
and 5. On February 5, Charlie Trie scheduled a reception for 
Wang and other CITIC officials at his Watergate apartment. 
Little is known about this event or who attended, other than 
the fact that Jude Kearney was scheduled to 
attend.390 Kearney denied that he had any knowledge 
of Wang's attendance at the coffee, and also denied that he 
even knew of any connection between Charlie Trie and Wang Jun:
---------------------------------------------------------------------------
    \390\ Calendar for Jude Kearney, Feb. 5, 1996, Commerce Document 
02AB2576 (Exhibit 107).

          Question. Are you aware of any relationship between 
        Mr. Trie and CITIC?
          Kearney. Only what I have read in the 
        papers.391
---------------------------------------------------------------------------
    \391\ Kearney Deposition at 83.

    Despite the fact that Kearney testified that he was unaware 
of any relationship between Trie and CITIC, Kearney was 
scheduled to attend the CITIC reception at Trie's apartment. 
Kearney claimed to have no recollection of the reception, 
including whether he attended.392
---------------------------------------------------------------------------
    \392\ Id. at 84.
---------------------------------------------------------------------------
    The following day, February 6, Wang had three significant 
appointments. First, he met with Commerce Secretary Ron 
Brown.393 Wang and Brown had met earlier at least 
once at the Shangri-La dinner, and possibly during Brown's 1995 
trade mission to China. It is unknown how this meeting was 
arranged, or who specifically attended the meeting. Second, 
Wang met with Ernie Green and his Lehman Brothers associate at 
Green's offices. According to those present, several 
individuals attended the meeting, including Wang, his 
translator, Trie, and Ng Lap Seng.394 According to 
Green, the purpose of the meeting was to ``reintroduce'' CITIC 
to Lehman Brothers.395 At the end of the meeting, 
Trie mentioned that he and Wang were going to a White House 
coffee.396 It was at this time, Green claims, that 
he first learned that Trie and Wang were going to the White 
House.397 After the Lehman Brothers meeting, Trie 
and Wang went to the White House coffee. White House 
photographs indicate that Trie and Wang had a number of 
photographs taken with the President.398 However, 
other guests present at the coffee have informed the Committee 
that neither Trie nor Wang spoke at all during the 
event.399 Following the coffee, Trie took the CITIC 
delegation to New York, where Ernie Green had arranged a 
meeting with other Lehman Brothers officials.400 
Shortly after the coffee, Trie and Wang received autographed 
copies of the President's State of the Union 
address.401 Wang's copy read ``[t]o Wang Jun, with 
appreciation, Bill Clinton.'' 402
---------------------------------------------------------------------------
    \393\ Calendar for Secretary Ronald H. Brown, Feb. 5-11, 1996, 
Department of Commerce Document 10AK0081 (Exhibit 108).
    \394\ Green Deposition I at 202-03.
    \395\ Id. at 203.
    \396\ Id. at 204-05.
    \397\ As discussed earlier, Green's claims of ignorance conflict 
with several pieces of evidence: (1) the DNC check tracking form 
crediting his contribution to the coffee; (2) testimony of DNC 
officials acknowledging Green's involvement in arranging the coffee; 
and (3) the fact that Green had provided Wang's resume to the DNC.
    \398\ White House Communications Agency photographs, BUR 00554 
(Exhibits 109-110).
    \399\ Nash Deposition at 154. It is not surprising that Wang did 
not speak, as it appears that Wang cannot speak English.
    \400\ Green Deposition I at 225-226.
    \401\ State of the Union Address, Jan. 23, 1996, DNC Document DNC 
3059953 (Exhibit 111); State of the Union Address, Jan. 23, 1996, DNC 
Document DNC 3059706 (Exhibit 112).
    \402\ Exhibit 111.
---------------------------------------------------------------------------
    It has been suggested in the press that Wang may have used 
his visit to the United States in February 1996 as an 
opportunity to thwart the ongoing probe of CITIC's arms-
smuggling activity.403 Shortly after Wang's 
Washington tour and appearance at the White House, word of the 
Federal investigation into Poly Technologies was leaked to the 
press.404 This leak brought an early end to the 
sting operation run by the Customs Service. At the time of the 
leak, Customs officials were on the verge of arresting high-
ranking Chinese officials for arms smuggling.405 
After the leak, which came from ``diplomatic sources,'' the 
Customs officials were left only with low-level criminals to 
arrest. The Committee continues to review these matters.
---------------------------------------------------------------------------
    \403\ See generally Howard Blum, The Tail of the Dragon, Vanity 
Fair, December 1997.
    \404\ Id.
    \405\ Id.
---------------------------------------------------------------------------

                    B. February 19, 1996, Fundraiser

    After Wang's visit to the United States in February 1996, 
Trie focused on raising funds for the DNC's February 19, 1996, 
Asian-American fundraiser at the Hay-Adams Hotel. This event 
was the first major DNC event organized by John Huang, and 
Charlie Trie was a major part of Huang's fundraising plans for 
the event. However, a large part of the money that was raised 
for the event was raised from illegal sources.
    At this event, Trie and Ng Lap Seng were rewarded with a 
seat at the head table, next to President 
Clinton.406 On the other side of the President sat 
Pauline Kanchanalak and Ted Sioeng.407 Of the four 
individuals who sat around the President at the event, two, 
Trie and Kanchanalak, have been indicted, and two, Ng and 
Sioeng, have fled the country. Of these four individuals, only 
Trie was even able to legally contribute at any time. The 
following day, the participants in the February 19 dinner were 
invited to a breakfast with Vice President Gore. Trie, Ng, Pan, 
and a number of other guests had breakfast, as well as a number 
of photographs with the Vice President.408
---------------------------------------------------------------------------
    \406\ Photograph of Head Table, Feb. 19, 1996, (Exhibit 113); see 
also Photograph of Charlie Trie and President Clinton, Feb. 19, 1996 
(Exhibit 114); Photograph of Antonio Pan and President Clinton, Feb. 
19, 1996 (Exhibit 115); Photograph of Ng Lap Seng and President 
Clinton, Feb. 19, 1996 (Exhibit 116); Photograph of Pun Nun Ho and 
President Clinton, Feb. 19, 1996 (Exhibit 117).
    \407\ See Photograph of Head Table, Feb. 19, 1996 (Exhibit 118); 
see also Exhibit 113.
    \408\ Photograph of Charlie Trie and Vice President Gore, Feb. 20, 
1996 (Exhibit 119); Photograph of Ng Lap Seng and Vice President Gore, 
Feb. 20, 1996 (Exhibit 120); Photograph of Pun Nun Ho and Vice 
President Gore, Feb. 20, 1996 (Exhibit 121); Photograph of Antonio Pan 
and Vice President Gore (Exhibit 122).
---------------------------------------------------------------------------

1. Trie's Conduit Contributions

    Trie brought a number of guests to the event, and raised at 
least $230,000. Many of the contributions that Trie raised for 
the fundraiser were illegal.
            a. Manlin Foung and Joseph Landon
    In February 1996, Charlie Trie telephoned his sister, 
Manlin Foung, and requested that she and her friend, Joseph 
Landon, contribute $12,500 each to the DNC.409 Trie 
promised to reimburse both Foung and Landon 
fully.410 Foung and Landon agreed to contribute. On 
February 19, 1996, Foung and Landon each contributed $12,500 
via personal checks to the DNC 411 with the 
understanding that they would be reimbursed before their checks 
cleared their respective banks.412
---------------------------------------------------------------------------
    \409\ Foung Deposition at 40-41, 44-46; Deposition of Joseph 
Landon, House Committee on Government Reform and Oversight, Sept. 29, 
1996 (``Landon Deposition'') at 12-13.
    \410\ Foung Deposition at 44-46.
    \411\ DNC Check Tracking Form for Contribution of Manlin Foung, 
Feb. 19, 1996, DNC Document 000526 (Exhibit 123); DNC Check Tracking 
Form for Contribution of Joseph Landon, Feb. 19, 1996, DNC Document 
D0000350 (Exhibit 124).
    \412\ Foung Deposition at 40-41, 44-46; Landon Deposition at 13-14.
---------------------------------------------------------------------------
    Bank records indicate that on February 22, 1996, Antonio 
Pan opened a savings account at the Amerasia Bank in Flushing, 
New York, with an initial deposit of $25,200 
cash.413 Within minutes of the initial deposit, Pan 
withdrew $25,000 cash from the savings account 414 
and purchased five sequentially numbered $5,000 cashier's 
checks totaling $25,000 from Amerasia Bank.415 Three 
of the cashier's checks totaling $15,000 were made payable to 
Foung 416 and two totaling $10,000 were made payable 
to Landon.417 Pan then sent these checks to Foung 
via overnight mail. On February 23, 1996, Foung and Landon 
deposited these checks in their accounts.418
---------------------------------------------------------------------------
    \413\ Amerasia Bank Signature Card of Antonio Pan, Feb. 22, 1996; 
Amerasia Bank Personal New Account Application of Antonio Pan, Feb. 22, 
1996; Amerasia Bank Savings Account Statement of Antonio Pan, Mar. 31, 
1996; Amerasia Bank Savings Deposit Slip of Antonio Pan, Feb. 22, 1996.
    \414\ Amerasia Bank Savings Withdrawal Slip of Antonio Pan, Feb. 
22, 1996.
    \415\ Amerasia Bank Applications of Antonio Pan for three $5,000 
Cashier's Checks to Manlin Foung, Feb. 22, 1996; Amerasia Bank 
Applications of Antonio Pan for two $5,000 Cashier's Checks to Joe 
Landon, Feb. 22, 1996; three $5,000 Amerasia Bank Cashier's Checks to 
Manlin Foung, Feb. 22, 1996; two $5,000 Amerasia Bank Cashier's Checks 
to Joe Landon, Feb. 22, 1996.
    \416\ Three $5,000 Amerasia Bank Cashier's Checks to Manlin Foung, 
Feb. 22, 1996;
    \417\ Two $5,000 Amerasia Bank Cashier's Checks to Joe Landon, Feb. 
22, 1996.
    \418\ Travis Federal Credit Union Deposit Slip of Manlin Foung in 
the amount of $14,500, Feb. 23, 1996; three Deposited $5,000 Amerasia 
Bank Cashier's Checks to Manlin Foung, Feb. 22, 1996; Travis Federal 
Credit Union Posted Transaction Register for the Checking Account of 
Manlin Foung.
---------------------------------------------------------------------------
            b. Ming Chen and Yue Fang Chu
    On February 14, 1996, San Kin Yip Holdings Co. Ltd., a 
company controlled by Ng Lap Seng, wired $150,000 from the Bank 
of China, Hong Kong, to the joint account of Trie and Ng held 
at Riggs Bank, Washington, DC.419 At the time of the 
transfer, the account balance was $10,459.55.420 The 
wire transfer was received only 5 days before the February 19 
dinner. In the days following the wire transfer, four checks 
totaling $37,500 were issued by Trie's employee Keshi Zhan from 
Trie and Ng's joint account to individuals who subsequently 
contributed the same amount of money to the DNC. Zhan issued 
check number 382 dated February 19, 1996 to Ming Chen, an 
employee of Trie, in the amount of $12,500.421 Yue 
Fang Chu, an individual who shares an address and at least two 
joint bank accounts with Ming Chen, contributed $12,500 to the 
DNC the same day, February 19, 1996, from their joint account 
at Bank-Fund Staff Federal Credit Union.422
---------------------------------------------------------------------------
    \419\ Lap Seng Ng and Yah Lin Trie, Account Statement, Riggs 
National Bank, Washington, DC, Mar. 5, 1996; Lap Seng Ng and Yah Lin 
Trie, Wire Transfer Report, Riggs National Bank, Washington, DC, Feb. 
14, 1996.
    \420\ Lap Seng Ng and Yah Lin Trie, Account Statement, Riggs 
National Bank, Washington, DC, Mar. 5, 1996.
    \421\ Lap Seng Ng and Yah Lin Trie, Check No. 382, Riggs National 
Bank, Washington, DC, Feb. 19, 1996.
    \422\ DNC Check Tracking Form for Contribution of Yue Fang Chu, 
Feb. 19, 1996, DNC Document 000528 (Exhibit 125).
---------------------------------------------------------------------------
    Check number 383 dated February 19, 1996, in the amount of 
$7,500 was also issued to Ming Chen.423 That same 
day, Yue F. Chu issued a check in the amount of $7,500 to the 
DNC from one of her joint bank accounts with Chen held at the 
Chevy Chase Bank of Chevy Chase, Maryland.424 Chu 
was credited with both the $12,500 and the $7,500 contributions 
on the Federal Election Commission records.425
---------------------------------------------------------------------------
    \423\ Lap Seng Ng and Yah Lin Trie, Check No. 383, Riggs National 
Bank, Washington, DC, Feb. 19, 1996.
    \424\ DNC Check Tracking Form for Contribution of Yue Fang Chu, 
Feb. 19, 1996, DNC Document 000531 (Exhibit 126).
    \425\ FEC Website, www.tray.com/fecinfo.
---------------------------------------------------------------------------
            c. Zhengwei Cheng and Xiping Wang
    Keshi Zhan issued check number 384 dated February 19, 1996, 
to Zhengwei Cheng in the amount of $5,000.426 Xiping 
Wang, an individual who shares an address and a checking 
account at the Bank-Fund Staff Federal Credit Union with 
Zhengwei Cheng, contributed $5,000 to the DNC the same day, 
February 19, 1996, from that account.427 Xiping Wang 
was credited with the $5,000 contribution on the Federal 
Election Commission records.428
---------------------------------------------------------------------------
    \426\ Lap Seng Ng and Yah Lin Trie, Check No. 384, Riggs National 
Bank, Washington, DC, Feb. 19, 1996.
    \427\ DNC Check Tracking Form for Contribution of Xiping Wang/
Zhengwei Cheng, Feb. 19, 1996, DNC Document 000532 (Exhibit 127).
    \428\ FEC Website, www.tray.com/fecinfo.
---------------------------------------------------------------------------
            d. Keshi Zhan
    On February 9, 1996, Trie's assistant Keshi Zhan issued a 
check to herself from the joint bank account of Trie and Ng in 
the amount of $12,500.429 She then wrote a check to 
the DNC in the amount of $12,500.430 Both the check 
from Trie to Zhan and the check from Zhan to the DNC are dated 
February 9, 1996. However, Zhan did not deposit the check from 
Trie into her checking account until February 26, 
1996.431 Similarly, Ms. Zhan's check to the DNC did 
not clear her account until February 26, 1996.432 
Zhan's conduit contribution allowed her to attend the February 
19, 1996, dinner with President Clinton as well as the February 
20, 1996, breakfast with Vice President Gore and have her 
photograph taken with both.433 Ms. Zhan invoked the 
Fifth Amendment in response to Congressional requests for 
cooperation. Zhan received immunity from the Senate Committee 
on Governmental Affairs. However, Committee staff were 
convinced that Zhan was not being truthful in her testimony, 
and accordingly terminated her deposition, and sealed it so 
that she could be prosecuted.
---------------------------------------------------------------------------
    \429\ Lap Seng Ng and Yah Lin Trie, Check No. 385, Riggs National 
Bank, Washington, DC, Feb. 9, 1996.
    \430\ DNC Check Tracking Form for Contribution of Keshi Zhan, Feb. 
9, 1996, DNC Document 000530 (Exhibit 128).
    \431\ Keshi Zhan, Yongli Su, and Zhengkang Shao, Account Statement, 
Bank-Fund Staff Federal Credit Union, Washington, DC, Feb. 29, 1996.
    \432\ Id.
    \433\ Photograph of Keshi Zhan and President Clinton, Feb. 19, 1996 
(Exhibit 129); Photograph of Keshi Zhan and Vice President Gore, Feb. 
20, 1996 (Exhibit 130).
---------------------------------------------------------------------------
            e. Lei Chu
    Lei Chu, Trie's advisor on the Bingaman Commission, 
attended the February 19, 1996, fundraiser at the Hay-Adams 
Hotel with Charlie Trie.434 She also attended a 
breakfast with Vice President Gore the following day at the 
Hay-Adams.435 More importantly, Lei Chu made what 
appears to be a conduit contribution to attend the event. On 
February 20, 1996, Chu established a checking account at the 
Citizens Bank of Washington with an initial cash deposit of 
$12,520.00.436 On that same day, Chu issued starter 
check number 90--the first check ever written on that account--
in the amount of $12,500 to the DNC 437 in 
conjunction with the Hay-Adams fund-raiser.438 That 
check cleared Chu's account on February 26, 1996,439 
and was the sole check written from that account during the 
period February 1996-July 1996.440
---------------------------------------------------------------------------
    \434\ Photograph of Lei Chu and President Clinton, Feb. 19, 1996 
(Exhibit 131).
    \435\ Photograph of Lei Chu and Vice President Gore, Feb. 20, 1996 
(Exhibit 132).
    \436\ Citizens Bank Signature Card of Lei Chu; Citizens Bank 
Deposit Ticket of Lei Chu in the amount of $12,520, Feb. 20, 1996; 
Citizens Bank Cash In Ticket of Lei Chu; Citizens Bank Checking Account 
Statement of Lei Chu, Mar. 15, 1996; Currency Transaction Report by 
Form 4789 for Lei Chu.
    \437\ Citizens Bank Checking Account Statement of Lei Chu, Mar. 15, 
1996; Citizens Bank Check No. 90 from Lei Chu to the DNC in the amount 
of $12,500.
    \438\ DNC Check Tracking Form for Contribution of Lei Chu, Feb. 20, 
1996, DNC Document 000525 (Exhibit 133).
    \439\ Citizens Bank Checking Account Statement of Lei Chu, Mar. 15, 
1996.
    \440\ Citizens Bank Checking Account Statement of Lei Chu, Apr. 15, 
1996; Citizens Bank Checking Account Statement of Lei Chu, May 15, 
1996; Citizens Bank Checking Account Statement of Lei Chu, June 15, 
1996; Citizens Bank Checking Account Statement of Lei Chu, July 15, 
1996.
---------------------------------------------------------------------------
            f. J & M International
    On February 22, 1996, Antonio Pan was introduced to Jack 
Ho, a New York businessman. This is the same day that Pan sent 
$25,000 in cashier's checks to Manlin Foung and Joseph Landon. 
At this meeting, Pan asked Ho to contribute $25,000 to the DNC, 
and assured Ho that he would be reimbursed for this 
contribution. Ho agreed, andPan delivered to Ho 35 $1,000 Bank 
Central Asia travelers check totaling $35,000,441 all of 
which were purchased in Indonesia.442 Ho gave $10,000 cash 
over to Pan, and deposited the remainder in his bank 
account.443 Immediately after his deposit, Ho issued a check 
in the amount of $25,000 444 to the DNC in conjunction with 
the DNC's Asian Dinner fund-raiser at the Hay-Adams Hotel, a fund-
raiser that had been held 3 days prior.445 The fact that 
Trie and Pan received tens of thousands dollars in travelers checks 
from Indonesia raise questions about whether they received this money 
from the Lippo Group. As described earlier, both Trie and Pan had 
extensive ties with the Riadys dating to the 1980s.
---------------------------------------------------------------------------
    \441\ Bank Central Asia Travelers Checks Nos. 109 3255 610 009 
through 109 3255 610 043; see Citibank Checking Account Statement for J 
& M International, Feb. 23, 1996; Citibank Deposit Ticket and Deposited 
Items of J & M International in the amount of $5,000, Feb. 22, 1996; 
Citibank Deposit Ticket and Deposited Items of J & M International in 
the amount of $25,000, Feb. 22, 1996.
    \442\ Letter from Christopher M. Curran, Esq., Attorney for Bank 
Central Asia, to Committee Senior Investigative Counsel Tim Griffin, 
Esq., July 20, 1998.
    \443\ Interview of Jack Ho, July 30, 1998.
    \444\ Citibank Check No. 730 from J & M International to the DNC in 
the amount of $25,000, Feb. 23, 1996; Citibank Checking Account 
Statement of J & M International, Mar. 22, 1996.
    \445\ DNC Check Tracking Form for Contribution of J & M 
International, Feb. 23, 1996, DNC Document 000524 (Exhibit 134).
---------------------------------------------------------------------------

2. Ernie Green's $6,000 Contribution

    DNC documents indicate that Charlie Trie also solicited 
Ernie Green to give $6,000 to the DNC in connection with this 
event. Green gave a contribution to the DNC on March 8, 1996, 
and DNC records credit Trie with soliciting this contribution, 
and credit the contribution itself to the February 19, 1996, 
dinner at the Hay-Adams.446 However, Green denies 
that it was solicited by Charlie Trie or had any connection to 
the February 19, 1996, dinner.447 Green's denials 
bear great similarity to his denials surrounding the February 
6, 1996, White House coffee. Again, Green claims that his 
contribution was mistakenly credited to the wrong solicitor and 
the wrong event. Again, Green's denials are questionable. Not 
only do they appear to be contradicted by the documentary 
evidence regarding Green's contribution,448 but by 
Green's presence at the February 19, 1996, event.449
---------------------------------------------------------------------------
    \446\ DNC Check Tracking Form for Contribution of Ernest G. Green, 
Mar. 8, 1996, DNC Document D0000353 (Exhibit 135).
    \447\ Green Deposition II at 10-11. Both of Green's major 
contributions for the period between 1994 and 1996 are credited to 
Charlie Trie. Green denies that Trie solicited him to make either 
contribution, but cannot explain the documentary evidence to the 
contrary, or his seeming bad luck in having his contributions mis-
credited. Green is the only witness to come before the Committee to 
dispute the accuracy of solicitation information on a DNC Check 
Tracking Form.
    \448\ Exhibit 135; Finance System Source Detail Report, Feb. 19, 
1996, DNC Document DNC 3438334.
    \449\ See Photograph of Ernest G. Green and President Bill Clinton, 
Feb. 19, 1996 (Exhibit 136).
---------------------------------------------------------------------------
    Also of note, 2 days after the February 19 event, Green 
deposited $2,500 cash into his account at Riggs 
Bank.450 Two days later, he went back to Riggs and 
deposited another $3,500 in cash, making a total of $6,000 in 
cash deposits over the 4 days following the Hay-Adams 
event.451 Green denies that he received this money 
from Charlie Trie or that he was reimbursed for his 
contribution.452 However, Green lacks any 
explanation for where he received the $6,000, or why he 
deposited it in two separate trips to the bank.453
---------------------------------------------------------------------------
    \450\ Deposit Item, Riggs Bank, Ernest G. Green Travel Expenses 
Account, Feb. 21, 1996.
    \451\  Deposit Item, Riggs Bank, Ernest G. Green Travel Expenses 
Account, Feb. 23, 1996.
    \452\ Green Deposition II at 13-14.
    \453\ Id. at 12-13.
---------------------------------------------------------------------------

                         C. May 13, 1996 Event

    In May 1996, Trie was centrally involved in another major 
DNC Asian-American fundraiser. Trie gave $10,000 for this 
event, and sat at the head table with President 
Clinton.454 Moreover, Trie raised over $330,000 for 
this event, almost all of it from Yogesh Gandhi. Shortly before 
the fundraiser, Gandhi had attempted to gain access to the 
Clinton White House to present the ``Gandhi World Peace Award'' 
to President Clinton.455 The White House staff 
rejected Gandhi's offer, and decided not to admit him to the 
White House, in large part because of his questionable 
background.456 However, Trie told Gandhi that he 
could introduce him to the President, and give him the 
opportunity to present the Gandhi prize to the President. Trie 
asked Gandhi to give $325,000 to the DNC in exchange for the 
privilege of attending the meal and meeting the 
President.457 Gandhi was happy to oblige, in large 
part, because his contribution came not from his own money, but 
directly from Yoshio Tanaka, a Japanese 
industrialist.458 Gandhi had several tables at the 
May 13 event, and two members of his party sat at the head 
table with the President.459 One of these 
individuals, Teruyoshi Fukunaga was the head of a Japanese cult 
widely recognized as the source of widespread fraud in 
Japan.460 After the May 13 meal, Trie introduced 
Gandhi and his entourage to the President, and Gandhi presented 
the Gandhi Prize to the President.461
---------------------------------------------------------------------------
    \454\ DNC Check Tracking Form for Contribution of Yah Lin Trie, May 
12, 1996, DNC Document DNC 3687040 (Exhibit 137); Memorandum, Head 
Table, May 13, 1996, DNC Document DNC 1604073 (Exhibit 138).
    \455\ Letter from Yogesh K. Gandhi to President Bill Clinton, Feb. 
5, 1996.
    \456\ Notes of Ann Eder, White House Document EOP 001534; see also 
Letter from Stephanie S. Streett and Ann Walley to Yogesh K. Gandhi, 
Apr. 17, 1996, White House Document EOP 003401 (Exhibit 139).
    \457\ DNC Check Tracking Form for Contribution of Yogesh K. Gandhi, 
May 13, 1996, DNC Document DNC 0829404 (Exhibit 140).
    \458\ Citibank F.S.B. Wire Transfer for Yogesh Gandhi, May 20, 
1996, May 23, 1996, and May 29, 1996.
    \459\ Exhibit 138.
    \460\ Willis Witter, ``Japan Got a `Foot' in Fund-Raising Door; But 
Democrats Returned $325,000,'' the Washington Times, July 22, 1997 at 
A1.
    \461\ See Photograph of Presentation of Gandhi Bust, May 13, 1996 
(Exhibit 141-42). The photographs of the award presentation indicate 
that Craig Livingstone was involved in the presentation of the Gandhi 
Prize. See also Photograph of Charlie Trie and President Clinton, May 
13, 1996 (Exhibit 143); Photograph of Craig Livingstone and President 
Clinton, May 13, 1996 (Exhibit 144); Photograph of John Huang and 
President Clinton, May 13, 1996 (Exhibit 145).
---------------------------------------------------------------------------
    It was during this event that the President recalled his 
long friendship with Trie:

        Soon it will be twenty years that I had my first meal 
        with Charlie Trie. Almost twenty years, huh? Twenty 
        years in just a few months. At the time, neither of us 
        could afford a ticket to this dinner, it's fair to 
        say.462
---------------------------------------------------------------------------
    \462\ White House Communications Agency videotape No. 6, May 13, 
1996. Of course, Trie still could not afford the ticket to the May 13 
fundraiser, or any other DNC event that he attended without the 
assistance of foreign nationals.

However, at the time that Trie was raising massive funds for 
the DNC, and contributing $10,000 himself, Trie borrowed $5,000 
from Mark Middleton for his personal use.463 He also 
was named in a complaint in District of Columbia court for 
failing to pay his rent.464 This contradictory 
evidence raises many questions regarding Trie's finances, and 
helps confirm the fact that much of the money that Trie gave 
was not his own.
---------------------------------------------------------------------------
    \463\ Check from Commerce Corp. to Charlie Trie for $5,000, May 22, 
1996, Commerce Corp. Document CC-H-001147 (Exhibit 146).
    \464\ Complaint of NHP Property Management Inc. vs. Yah Lin Trie, 
Apr. 12, 1996 (Exhibit 147).
---------------------------------------------------------------------------

    D. Trie's Contributions to the Presidential Legal Expense Trust

    Charlie Trie did not limit his illicit fundraising 
activities to his work on behalf of the DNC. Trie also raised 
substantial sums of money for the Presidential Legal Expense 
Trust (``PLET''). The PLET was established by the President and 
First Lady to cover their expenses related to the Whitewater 
and Paula Jones matters. While the PLET initially raised large 
amounts of money, by early 1996, its fundraising had slowed to 
a trickle. It was at this time that Charlie Trie decided to 
start raising money for the PLET. It is unknown why Trie began 
raising money for the PLET, or if anyone encouraged him to do 
so.
    To raise money for the PLET, Trie sought the assistance of 
the Suma Ching Hai International Association, a Buddhist cult 
based in Taiwan. In March 1996, Trie met with the members of 
the Suma Ching Hai cult in New York City, and with the help of 
Suma Ching Hai, the leader of the cult, convinced many members 
to write checks to the PLET.465 All of them were 
reimbursed for their contributions by the cult.466
---------------------------------------------------------------------------
    \465\ Deposition of Zhi Hua Dong, Senate Committee on Governmental 
Affairs, June 17, 1997, at 68-91.
    \466\ Id. at 99-100.
---------------------------------------------------------------------------
    Shortly thereafter, on March 21, 1996, Charlie Trie visited 
the offices of Michael Cardozo, the head of the 
PLET.467 Shortly after his meeting with Cardozo 
started, Trie opened a manila envelope stuffed with hundreds of 
small checks totaling $380,000.468 Cardozo developed 
an immediate suspicion of the money delivered by Trie, based on 
the manner of their delivery, the fact that many of the 
cashier's checks and money orders were sequentially numbered, 
and that there were misspellings on a number of the 
checks.469
---------------------------------------------------------------------------
    \467\ Cardozo Senate Deposition I at 27-28.
    \468\ Id. at 34.
    \469\ Id. at 65.
---------------------------------------------------------------------------

1. Taiwan Strait Letter

    On March 21, 1996, after Trie delivered the checks to the 
PLET offices, he met with Mark Middleton and gave him a letter 
for delivery to the White House. The letter indicates that it 
was faxed first from ``P.E.C. Co.,'' on March 20.470 
The following day, after Middleton received it, he faxed it to 
the White House.471 The fact that the letter was 
faxed from ``P.E.C. Co.'' the day before it was delivered by 
Trie to Middleton raises some question as to whether the letter 
was written by Trie or some other individual. However, one 
witness informed the Committee that Trie was ``terribly 
concerned'' over possible incidents between the United States 
and China over Taiwan.472 According to this witness, 
Trie spoke of having talked to ``people in the White House and 
National Security Council about the danger of confronting China 
over Taiwan.'' 473 Middleton faxed Trie's letter to 
the White House, and on the cover page, informed the White 
House staff that ``[a]s you likely know, Charlie is a personal 
friend of the President from L.R. He is also a major supporter. 
The President sat beside Charlie at the big Asian fundraiser 
several weeks ago. Thanks for your always good assistance.'' 
474
---------------------------------------------------------------------------
    \470\ Letter from Charlie Y.L. Trie to the President, Mar. 21, 
1996, White House Document EOP 029284 (Exhibit 148).
    \471\ Id.
    \472\ Prestowitz Interview at 3.
    \473\ Id.
    \474\ Exhibit 147.
---------------------------------------------------------------------------
    The letter outlined a number of views regarding the Taiwan 
Strait crisis which was brewing at the time:

        Regarding the current situation in the Taiwan Strait 
        Crisis and also the U.S. aircraft carriers and cruisers 
        involvement, I would like to propose some important 
        points to you in order not to endanger the U.S. 
        interest based on the followings [sic]:
          1. Any negative outcomes of the U.S. decision in the 
        China Issue will affect your administration position 
        especially in this campaign year;
          2. Why U.S. has to send the aircraft carriers and 
        cruisers to give China a possible excuse of foreign 
        intervention and hence launch a real war? And, if the 
        U.S. recognized ``one China'' policy, don't [sic] such 
        conduct will cause a conflict for ``intervening China's 
        internal affairs?'' Therefore, won't the recent 
        inconsistent talks by the captains and some 
        governmental officials in the mass media cause problems 
        for the U.S. policy of not [sic] interference of 
        China's internal affairs?

           *       *       *       *       *       *       *

          7. Once the hard parties of the Chinese military 
        inclined [sic] to grasp U.S. involvement as foreign 
        intervention, is U.S. ready to face such challenge?
          8. It is highly possible for China to launch real 
        war, based on its past behavior in Sino-Vietnam War and 
        Zhen Bao Tao war with Russia. . . .475
---------------------------------------------------------------------------
    \475\ Id.

Trie's letter received a response from President Clinton just 1 
month later. The response, in relevant part, stated that the 
U.S. action ``was intended as a signal to both Taiwan and the 
PRC that the United States was concerned about maintaining 
stability in the Taiwan Strait region. It was not intended as a 
threat to the PRC.'' 476 Trie's letter and the 
Administration's response to it were handled by several high-
level national security staffers, including National Security 
Advisor Anthony Lake and staffer Robert 
Suettinger.477
---------------------------------------------------------------------------
    \476\ Letter from President Clinton to Charlie Y.L. Trie, Apr. 26, 
1996, White House Document EOP 029282 (Exhibit 149).
    \477\ Trie's letter was handled by National Security staffer Robert 
Suettinger, and National Security Advisor Anthony Lake. See Memorandum 
from Anthony Lake to President Clinton, Apr. 24, 1996, White House 
Document EOP 029283; Action Data Summary Report, White House Document 
EOP 029279.
---------------------------------------------------------------------------
    Several aspects of this episode are not yet clear and are 
still under investigation. First, it is not clear who drafted 
the letter, and why they drafted it. However, it is clear that 
Trie's status as a DNC supporter was helpful in having his 
letter read by top-level White House national security staff, 
and having it answered promptly.

2. Return of Trie's PLET Contributions

    After his receipt of Trie's checks, Cardozo immediately 
launched an internal investigation of the funds. Cardozo also 
visited the White House to inform the President and First Lady, 
the beneficiaries of the trust, about the Trie contributions. 
On April 4, 1996, Cardozo met with Hillary Clinton and Harold 
Ickes, and informed them that a businessman named Charlie Trie 
had delivered $380,000 in contributions to the PLET:

        I tried to get Mrs. Clinton to guess--I said a 
        substantial amount of money has been brought to the 
        trust by someone who says he knows you. Would you like 
        to try to guess who it is? And she said, well--she 
        tried. . . . And then I said, well, it's someone from 
        Arkansas. . . . And then, you know, finally I told her. 
        You know, she didn't--drew a blank. I mean, she just 
        did not recognize Charlie Trie's name at all. And then 
        after 30 seconds or a minute, she said ``Oh yeah, is he 
        the guy that owns the Chinese restaurant near the 
        Capitol?'' 478
---------------------------------------------------------------------------
    \478\ Cardozo Senate Deposition I at 71.

    During April 1996, private investigators hired by Cardozo 
investigated the contributions delivered by Trie to the PLET. 
On April 24, Trie returned to the PLET offices to contribute 
another $179,000 in checks from Suma Ching Hai 
devotees.479 By the end of the month, they had 
concluded that the contributions had been orchestrated by 
members of the Suma Ching Hai cult. Cardozo told the White 
House that he intended to return the Trie contributions at a 
meeting on May 9, 1996. This meeting was attended by high-level 
White House staffers including Bruce Lindsey, Harold Ickes, 
Cheryl Mills, and Maggie Williams. During this meeting, 
according to Cardozo, Bruce Lindsey stated that Trie was 
``involved with the Democratic Party.'' 480
---------------------------------------------------------------------------
    \479\ Id. at 83. In addition, Trie appeared at the PLET offices on 
a third occasion to contribute money, but his contributions were 
rejected by Cardozo. Id. at 188.
    \480\ Id. at 175.
---------------------------------------------------------------------------
    However, no one in the White House took any action to stop 
Trie's frequent visits to the White House or to warn the DNC 
about Trie's troubling fundraising practices. Bruce Lindsey and 
Harold Ickes both had direct knowledge of Trie's involvement in 
DNC fundraising activities. Both received a direct warning from 
Michael Cardozo about Trie's fundraising activities on behalf 
of the PLET. Nevertheless, neither warned the DNC until the eve 
of the 1996 general election. In the interim, between May 9, 
1996, and October 1996, Trie would raise hundreds of thousands 
of dollars for the DNC, most of it illegal,481 and 
would visit the White House six times.482
---------------------------------------------------------------------------
    \481\ Trie raised funds for two major DNC events between May 9, 
1996, and Oct. 1996: the May 13 DNC Fundraiser in Washington, DC, and 
the Aug. 18, 1996, Presidential Birthday Fundraiser in New York City. 
Trie's most significant solicitation at any of these events was the 
$325,000 he solicited from Yogesh Gandhi. This illegal contribution was 
returned by the DNC on Election Day, 1996.
    \482\ See WAVES Records of Yah Lin Trie.
---------------------------------------------------------------------------

                     E. August 18, 1996, Fundraiser

    On August 18, 1996, the DNC held a massive fundraiser in 
honor of President Clinton's birthday. Charlie Trie and Ng Lap 
Seng attended this event, and Trie was also heavily involved in 
raising funds for the event as well.483 Trie raised 
at least $30,000 in conduit contributions for this event.
---------------------------------------------------------------------------
    \483\See Photograph of Ng Lap Seng and President Clinton, Aug. 18, 
1996 (Exhibit 150).
---------------------------------------------------------------------------

1. Manlin Foung

    On or about August 15, 1996, Trie telephoned his sister, 
Manlin Foung, and requested that she contribute $10,000 to the 
DNC.484 Trie promised to reimburse her 
fully.485 On August 15, 1996, 3 days before 
President Clinton's birthday party in New York City, Trie's 
company, San Kin Yip, sent a $10,000 wire transfer to Manlin 
Foung's checking account at the Travis Federal Credit Union in 
Vacaville, California.486 On August 18, 1996, 
approximately 1 week later, Foung contributed $10,000 to the 
DNC Birthday Victory Fund from that same account.487
---------------------------------------------------------------------------
    \484\ Foung Deposition at 60.
    \485\ Id. at 61.
    \486\ Riggs Bank Wire Transfer Report of Ng Lap Seng and Yah Lin 
Trie, Aug. 15, 1996; Travis Federal Credit Union Account Statement of 
Manlin Foung, Aug. 31, 1996. Immediately before the transfer, Foung's 
checking account balance was $2,146.63, and her savings account balance 
was $5,378.95. Travis Federal Credit Union Account Statement of Manlin 
Foung, Aug. 31, 1996.
    \487\ DNC Check Tracking Form for Contribution of Manlin Foung, 
Aug. 15, 1996, DNC Document DNC 1821214 (Exhibit 151); see also FEC 
website, www.tray.com/fecinfo.
---------------------------------------------------------------------------

2. David Wang and Daniel Wu

    David Wang testified that on the morning of August 16, 
1996, John Huang and Antonio Pan visited David Wang at his used 
car dealership in order to solicit a contribution to the 
DNC.488 Huang asked Wang if he knew of any friends 
who might like to contribute.489 Wang suggested 
Daniel Wu, a Taiwanese citizen who was living in 
Taiwan.490 Wang agreed to contribute $5,000 to the 
DNC and also agreed to contribute $5,000 in Wu's name using 
Wu's checking account.491 Huang or Pan then 
indicated that he might be able to reimburse both Wang and Wu 
for their contributions.492
---------------------------------------------------------------------------
    \488\ Personal Journal of David Wang (Exhibit 152); Deposition of 
David Wang, House Committee on Government Reform and Oversight, Oct. 6, 
1997 (``Wang Deposition''), at 16. Whether or not Huang actually 
appeared at Wang's place of work is in dispute. Wang has offered sworn 
testimony that Huang was there, but Huang's attorney has disputed 
Wang's claim, stating that Huang was in New York at the time.
    \489\ Wang Deposition at 39.
    \490\ Id.
    \491\ Id. at 70.
    \492\ Id. at 43.
---------------------------------------------------------------------------
    That same morning Wang and Wu each contributed $5,000 to 
the DNC totaling $10,000--Wang contributed $5,000 from his 
personal checking account and $5,000 from Wu's personal 
checking account over which Wang held power of 
attorney.493 DNC records indicate that the 
contributions were in conjunction with the DNC's birthday party 
fundraiser held for President Clinton in New York City on 
August 18, 1996.494
---------------------------------------------------------------------------
    \493\ Id. at 70; DNC Check Tracking Form for Contribution of David 
Wang, Aug. 16, 1996, DNC Document D0000323 (Exhibit 153); DNC Check 
Tracking Form for Contribution of Daniel Wu, Aug. 16, 1996, DNC 
Document DNC 1803086 (Exhibit 154); Bank of Canton of California 
Account Statement of Daniel Wu, Feb. 12, 1997; Bank of Canton of 
California Statement of Power of Attorney.
    \494\ Exhibit 153; Exhibit 154.
---------------------------------------------------------------------------
    In the afternoon of August 16, 1996, Pan returned to Wang's 
car dealership unaccompanied by Huang and delivered $6,000 cash 
to Wang, $3,000 for Wang and $3,000 for Wu.495 Wang 
recorded the receipt of these funds in his personal 
journal.496 This delivery of cash by Pan partially 
reimbursed Wang and Wu. Wang deposited $3,000 into his personal 
checking account 497 and $3,000 in Wu's 
account.498 On August 20, 1996, Pan returned to 
Wang's car dealership unaccompanied by Huang and delivered 
$4,000 cash to Wang, $2,000 for Wang and $2,000 for 
Wu.499 Wang again recorded the receipt of these 
funds in his journal.500 Wang deposited $2,000 into 
his personal checking account and $2,000 in to Wu's personal 
checking account.501 This delivery of cash by Pan 
completed the reimbursement of Wang and Wu. DNC records 
indicate that it received Wang and Wu's contributions on August 
20, 1996.502
---------------------------------------------------------------------------
    \495\ Wang Deposition at 44.
    \496\ Exhibit 152.
    \497\ See Trans National Bank Account Statement of David Wang, Aug. 
16, 1996.
    \498\ See Bank of Canton of California Account Statement of Daniel 
Wu, Apr. 14, 1997.
    \499\ See Trans National Bank Account Statement of David Wang, 
Sept. 17, 1996; Bank of Canton of California Account Statement of 
Daniel Wu, Apr. 14, 1997; see also Exhibit 152.
    \500\ Exhibit 152.
    \501\ Trans National Bank Account Statement of David Wang, Sept. 
17, 1996; Bank of Canton of California Account Statement of Daniel Wu, 
Apr. 14, 1997.
    \502\ Exhibit 153; Exhibit 154.
---------------------------------------------------------------------------

3. Kimmy Young

    In August 1996, Antonio Pan solicited Kimmy Young, of Ohio, 
to contribute $10,000 to the DNC in connection with the 
President's birthday fundraiser. Young wrote a check for 
$10,000 to the DNC on August 16, 1996.503 Pan 
subsequently reimbursed Young in cash for her 
contribution.504
---------------------------------------------------------------------------
    \503\ DNC Check Tracking Form for Contribution of Kimmy Young, Aug. 
16, 1996, DNC Document D0000320 (Exhibit 155).
    \504\ See Cash Deposit, Bank One Account 984111998, Sept. 19, 1996; 
see also Indictment of Yah Lin ``Charlie'' Trie and Yuan Pei 
``Antonio'' Pan, Jan. 1998 (listing the Young contribution as one of 
Trie's many illegal contributions).
---------------------------------------------------------------------------

                               CONCLUSION

    Finally, in October 1996, shortly before the election, 
Harold Ickes warned the DNC about Charlie Trie. In mid-October 
1996, B.J. Thornberry called Ickes about her concerns regarding 
John Huang's fundraising activities. During that conversation, 
Ickes told Thornberry, ``well, if you're concerned about Huang, 
you better look at Charlie Trie.'' 505 While this 
warning represented the beginning of the end of Charlie Trie's 
fundraising career, Trie would continue to visit the White 
House until mid-December.506 Trie visited the White 
House for a Christmas party in December 1996, and spoke with 
the President, apologizing to him for the embarrassment he had 
caused him.507 After his apology, Trie left the 
party.508 According to aide Bruce Lindsey, the 
President was saddened by Trie's travails:
---------------------------------------------------------------------------
    \505\ Deposition of Betty Jane Thornberry, House Committee on 
Government Reform and Oversight, July 22, 1997, at 71.
    \506\ See WAVES Records of Yah Lin Trie.
    \507\ Deposition of Bruce Lindsey, House Committee on Government 
Reform and Oversight, Apr. 29, 1998, at 24-25.
    \508\ Id.

          Question. And what was the President's reaction to 
        that?
          Lindsey. I think he felt sad, because I think, that 
        Charlie Trie was sorry that he had caused the President 
        the embarrassment; and the fact that he then left, you 
        know, I think reflected on that, and I think he was sad 
        about it.
          Question. Was the President at all concerned that he 
        was at the event or how he got there, given the 
        situation at that time?
          Lindsey. If he was, he didn't reflect that with 
        me.509
---------------------------------------------------------------------------
    \509\ Id.

    This report represents just one part of the story regarding 
Charlie Trie. While most of Trie's actions are known, the 
motives behind them are not known. The full truth regarding 
Trie's relationship with the Clinton White House will not be 
known until Trie cooperates with the Committee. Only then will 
the Committee know the reason he illegally gave hundreds of 
thousands of dollars to the DNC, and solicited hundreds of 
thousands more in illegal contributions. Only then will it be 
known why the Clinton Administration appointed Trie to an 
Administration post, and gave him wide-ranging access to the 
White House.
    The evidence collected by the Committee to date shows a 
disturbing pattern of conduct by the White House and the close 
associates of the President. This evidence demonstrates that 
political contributions were collected from Trie with little 
regard to their legality. It also demonstrates that the White 
House continued to allow the DNC to accept contributions from 
Trie, even though it knew that Trie was engaged in suspect 
fundraising practices with respect to the PLET. This evidence 
also shows that Trie received special treatment from the White 
House and DNC, culminating in an appointment to a Presidential 
commission, with little regard for Trie's suspect background.
    [Supporting documentation follows:]





=======================================================================


                           CHAPTER IV, PART C

  UNPRECEDENTED INFUSION OF FOREIGN MONEY INTO THE AMERICAN POLITICAL 
                                SYSTEM:

 JOHNNY CHUNG: HIS UNUSUAL ACCESS TO THE WHITE HOUSE AND HIS POLITICAL 
                               DONATIONS

=======================================================================

      
 JOHNNY CHUNG: HIS UNUSUAL ACCESS TO THE WHITE HOUSE AND HIS POLITICAL 
                               DONATIONS

                                Overview

    In an interview with the Los Angeles Times in July 1997, 
California entrepreneur Johnny Chien Chuen Chung captured the 
essence of the campaign fundraising scandal when he observed: 
``I see the White House is like a subway--you have to put in 
coins to open the gates.'' \1\ Johnny Chung was a frequent 
passenger on this subway.
---------------------------------------------------------------------------
    \1\ William Rempel and Alan Miller, ``First Lady's Aide Solicited 
Check to DNC, Donor Says,'' the Los Angeles Times, July 27, 1997 
(Exhibit 1).
---------------------------------------------------------------------------
    Between 1994 and 1996, Chung visited the White House 49 
times.\2\ His visits to the White House coincided with a large 
volume of donations to the Democratic National Committee. In 
total, Chung contributed over $366,000 over the same time 
period.\3\
---------------------------------------------------------------------------
    \2\ White House WAVES Records (Exhibit 2).
    \3\ FEC Internet Records www.tray.com/fecinfo/. (Exhibit 3).
---------------------------------------------------------------------------
    In the course of its investigation, the Committee has 
learned that Chung frequently sought access to senior Clinton 
Administration officials on behalf of high-level Chinese 
business associates, often with specific objectives. On almost 
every occasion, those meetings were facilitated by senior DNC 
officials, and often coincided with large political 
contributions.
    The Committee has also learned that much of the money 
contributed by Chung originated overseas. Despite clear 
indications that some officials at the DNC were concerned about 
the origins of Chung's money as early as February 1995, DNC 
officials continued to solicit and accept contributions from 
him for another year-and-a-half. In late February 1997, a full 
2 years after DNC Finance Director Richard Sullivan first 
raised concerns about Chung, the DNC announced its intention to 
return all of his contributions.\4\
---------------------------------------------------------------------------
    \4\ Sharon Lafraniere and Lena Sun, ``DNC Returns Another $1.5 
Million,'' the Washington Post, Mar. 1, 1997 (Exhibit 4).
---------------------------------------------------------------------------
    On March 16, 1998, Johnny Chung pled guilty to multiple 
campaign-related charges, including making conduit 
contributions to Clinton/Gore '96 and the campaign of Senator 
John F. Kerry (D-MA), and tax evasion.\5\
---------------------------------------------------------------------------
    \5\ Associated Press, ``Fund-raiser Chung Pleads Guilty,'' the 
Washington Post, Mar. 17, 1998 (Exhibit 5).
---------------------------------------------------------------------------
    Shortly thereafter, the New York Times reported that Chung 
told Justice Department investigators that $80,000 that he 
donated to the DNC in 1996 was given to him by a Lieutenant 
Colonel in China's People's Liberation Army.\6\ According to 
the Times account, the money came from Liu Chao-Ying, a senior 
aerospace industry executive and the daughter of retired PLA 
General Liu Huaqing.\7\
---------------------------------------------------------------------------
    \6\ David Gerth, David Johnston and Don Van Natta, ``Democrat Fund-
Raiser Said to Detail China Tie,'' the New York Times, May 15, 1998 
(Exhibit 6).
    \7\ Id.
---------------------------------------------------------------------------

                               Background

    Johnny Chung was born in Taiwan in 1954 and moved to Costa 
Rica at the age of 12 with his Presbyterian missionary 
parents.\8\ He returned to Taiwan to attend college, where he 
earned a degree in American literature from Fu-Jen Catholic 
University.\9\ He then immigrated to the United States, and 
later became a citizen in 1988.\10\
---------------------------------------------------------------------------
    \8\ Anne Rackham, ``Chung can send fax to thousands at same time--
but who wants to listen?'' Los Angeles Business Journal, Week of Mar. 
28-Apr. 3, 1994, DNC 3233807-808 (Exhibit 7).
    \9\ Id.; DNC 3363002 (Exhibit 8).
    \10\ Anne Rackham, ``Chung can send fax to thousands at same time--
but who wants to listen?'' Los Angeles Business Journal, Week of Mar. 
28-Apr. 3, 1994, DNC 3233807-808 (Exhibit 7).
---------------------------------------------------------------------------
    Chung also attended the University of California, Los 
Angeles, where he took graduate courses in electrical 
engineering.\11\ He started Iris Data Computer, Inc. in 1979 
and Telform Inc. in 1992.\12\ Telform Inc. later evolved into 
Automated Intelligent Systems, Inc. (AISI), in January 1993. 
The company brochure states:
---------------------------------------------------------------------------
    \11\ DNC 3363002 (Exhibit 8).
    \12\ Id.

        Automated Intelligent Systems, Inc. provides its 
        clients with state-of-the-art communications services. 
        The company, originally known as Telform Inc. in 1992, 
        was formed to develop AISI's current fax broadcast 
        system. Recognizing the challenges of rapid 
        technological growth, Chairman and C.E.O., Mr. Johnny 
        Chung spent 8 years in designing and developing an 
        advance [sic] technology that brings a new dimension to 
        the world of faxing. Today, it is a fast growing 
        company with its corporate office in Torrance, 
        California and our branch offices in Washington, D.C., 
        Hong Kong and China.\13\
---------------------------------------------------------------------------
    \13\ AISI Brochure, DNC 3233800-817 at 3233809 (Exhibit 9).

    According to the Los Angeles Business Journal, Chung first 
---------------------------------------------------------------------------
appears to have approached the Clintons in the fall of 1992:

        [W]hile watching a debate between George Bush and Bill 
        Clinton on television, it came to him--political 
        candidates and governments send out more faxes than 
        private companies. . . . Chung called Clinton's mansion 
        and offices in Arkansas non-stop and finally he flew to 
        Little Rock, where he said he banged on the door of the 
        then-governor's home. He was fortunate enough to meet 
        Hillary Rodham Clinton and hand her some 
        information.\14\
---------------------------------------------------------------------------
    \14\ Anne Rackham, ``Chung can send fax to thousands at same time--
but who wants to listen?'' Los Angeles Business Journal, Week of Mar. 
28-Apr. 3, 1994, DNC 3233807-808 (Exhibit 7).

    The story goes on to relate that Chung received a letter 
from Mrs. Clinton in April 1993, following the election. The 
---------------------------------------------------------------------------
letter states:

        Thank you for your letter and my apologies for not 
        getting back to you sooner. It appears from the 
        correspondence you have had with federal and state 
        officials, and with the private sector, that you are 
        already on the right track. Nevertheless, I wish you 
        good luck with your innovative system.\15\
---------------------------------------------------------------------------
    \15\ AISI brochure, DNC 3233803 which includes an Apr. 26, 1993 
letter to Johnny Chung from Hillary Rodham Clinton, F 0018591. [Note: 
The Committee has not received from the White House the original letter 
from Chung to Mrs. Clinton, but this Apr. 26, 1993 letter appears to be 
the first White House contact with Chung on record.] (Exhibit 9).

    Chung apparently used this letter from the First Lady to 
approach Governor Pete Wilson's office in Sacramento. The 
Governor's office became Chung's first client.\16\ The article 
further discusses Chung's plans to branch out into government 
document services, and Chung's discussions with the Centers for 
Disease Control in Atlanta to discuss taking over the faxing of 
health-hazard updates to travel agents, communicable disease 
reports to health-care providers, and HIV newsletters to 
various agencies.
---------------------------------------------------------------------------
    \16\ Anne Rackham, ``Chung can send fax to thousands at same time--
but who wants to listen?'' Los Angeles Business Journal, Week of Mar. 
28-Apr. 3, 1994, DNC 3233807-808 (Exhibit 7).
---------------------------------------------------------------------------
    According to his company brochure which Chung sent to the 
DNC in the spring of 1995, the ``Government Division'' of AISI 
served 48 state government offices and Federal agencies. Chung 
also claims to have expanded his services into the Fortune 500 
companies.\17\
---------------------------------------------------------------------------
    \17\ DNC 3233809 (Exhibit 9).
---------------------------------------------------------------------------

         Chung's Early Contacts at the White House and the DNC

    The White House's ``Workers and Visitors Entry System'' 
(WAVES) records indicate that Chung's first visit to the White 
House was on February 2, 1994.\18\ According to the WAVES 
records, Chung met with Brian Foucart, who was at that time 
working in the White House administrative offices under David 
Watkins.\19\ Chung's next recorded visit is on July 22, 
1994.\20\
---------------------------------------------------------------------------
    \18\ EOP 008708 (Exhibit 2).
    \19\ Id.
    \20\ EOP 008700 (Exhibit 2).
---------------------------------------------------------------------------
    It appears that Chung's initial interest in the White House 
was as a potential client for AISI. In documents produced by 
the White House, it appears that the White House was comparing 
AISI with other companies to contract with for fax broadcast 
services.\21\ These documents also make it clear that Chung's 
entreaties were being heard at the highest levels, including 
the First Lady and Deputy Chief of Staff Harold Ickes. Included 
in these White House documents is a page with handwritten notes 
that appears to set forth details about AISI, including names 
of employees.\22\ It also contains the following notation: 
``First Lady--if we don't use Johnny Chung, we're in trouble.'' 
\23\
---------------------------------------------------------------------------
    \21\ EOP 070626-634 (Exhibit 10); 070636-637 (Exhibit 11); 070648-
662 (Exhibit 12); 070679-680 (Exhibit 13).
    \22\ EOP 070635 (Exhibit 14).
    \23\ Id.
---------------------------------------------------------------------------
    On March 21, 1995, White House aide Brian Bailey prepared a 
memorandum for Erskine Bowles regarding ``fax issues.'' \24\ 
The memo states: ``If we are going to use AISI, we need to do 
so at the DNC. Using this company in the White House would 
raise legal concerns.'' \25\ The memo continues with: ``Even if 
we consider other vendors, we still should avoid housing the 
operation in the White House.'' \26\
---------------------------------------------------------------------------
    \24\ EOP 070638 (Exhibit 15).
    \25\ Id.
    \26\ Id.
---------------------------------------------------------------------------
    A July 17, 1995 memorandum from Deputy White House Chief of 
Staff Harold Ickes to DNC Executive Director Bobby Watson 
``strongly urges'' the DNC to obtain broadcast fax capability:

        We understand that Johnny Chung's firm has such 
        capability which should be negotiated at a reasonable 
        price. Erskine Bowles has looked into this and it is 
        his understanding that once names and addresses are 
        provided to Mr. Chung's company, as many as 30,000 
        pages per hour could be faxed at an approximate cost of 
        $0.17 per page.\27\
---------------------------------------------------------------------------
    \27\ EOP 070607 (Exhibit 16).

    However, months earlier, Chung had already tried to 
contract with the DNC. On March 6, 1995, Richard Sullivan wrote 
a memo to ``Bobby'' [Watson, DNC Executive Director at the 
---------------------------------------------------------------------------
time] regarding ``AISI Faxcast,'' which stated:

        Johnny Chung, Torrance, CA, CEO of Automated 
        Intelligent Systems, contributed $94,000 to the DNC in 
        1994 and raised an additional $20,000. Johnny's 
        company, AISI is a faxcast company with many political 
        clients including Gov. Chiles, Sen. Kennedy and others. 
        Johnny would like to get some of our business. Art 
        Liang, managing director of the company will be in town 
        on Wednesday and Thursday and would like to meet with 
        the appropriate person at the DNC. He has said that he 
        would beat the price of the company we are currently 
        using. Please advise.\28\
---------------------------------------------------------------------------
    \28\ DNC 1096986, Mar. 6, 1995 memo to Bobby Watson from Richard 
Sullivan (Exhibit 17).

    Although Chung failed to win a contract from either the 
White House or the DNC, he put his contacts to work in other 
ways to benefit his company. During his numerous visits to the 
White House, he obtained numerous photos with the First Lady, 
the President, the Vice President, and various other White 
House officials. Chung developed a brochure for his company 
which included all of these pictures.\29\ Since this brochure 
was produced by the White House, presumably White House 
officials were well aware of Chung's promotional and commercial 
uses of his relationship with the President and the First Lady.
---------------------------------------------------------------------------
    \29\ EOP 018020-38 (Exhibit 18).
---------------------------------------------------------------------------

   Chung's Contributions to the DNC and Additional White House Visits

    Chung's first large contributions to the DNC appear to have 
resulted from his involvement in the President's August 2, 1994 
birthday party event, which was held at the Sumner Wells estate 
in Maryland and was chaired by long-time Presidential friend 
and DNC Managing Trustee Ernie Green.\30\ Chung is listed as a 
co-chair and bringing 10 guests, along with Charlie Trie.\31\ 
The event reportedly raised $1.2 million. Approximately 1,500 
people attended the dinner, with an additional 200-250 
attending a reception. The reception cost $1,000 per couple and 
the dinner cost $10,000 per couple. FEC records show that Chung 
donated $11,000 to the DNC that week.\32\
---------------------------------------------------------------------------
    \30\ DMC 1786472-81 (Exhibit 19).
    \31\ Id.
    \32\ FEC Internet Records--www.tray.com/FECinfo/ (Exhibit 3).
---------------------------------------------------------------------------
    Earlier that same day, Chung entered the White House for a 
visit with a staff person named ``Lewis'' at the exact same 
time that John Huang entered the White House for a visit with 
``Lewis.'' \33\ After Mr. Chung's participation in the 
President's birthday event, he became a more frequent visitor 
to the White House. In August 1994 alone, Chung visited the 
White House six times.\34\
---------------------------------------------------------------------------
    \33\ WAVES at EOP08698 (Exhibit 2).
    \34\ Id.
---------------------------------------------------------------------------
    On December 3, 1994, Chung and his wife attended an 
intimate DNC luncheon for the First Lady which included 37 
guests.\35\ This event was held by the DNC in California.
---------------------------------------------------------------------------
    \35\ F0038495 (Exhibit 20).
---------------------------------------------------------------------------
    By the end of 1994, Chung had contributed in excess of 
$90,000 to the DNC. In December 1994, he made two separate 
$40,000 contributions.\36\
---------------------------------------------------------------------------
    \36\ FEC Internet Records-www.tray.com/FECinfo/. (Exhibit 3).
---------------------------------------------------------------------------

      Foreign Funds Paid to Chung and His Political Contributions

    Between 1994 and 1996, he contributed $366,000 to the DNC. 
Over that same time period, he and his company received wire 
transfers from outside the country in excess of $2.4 million. 
The following table lists foreign wire transfers received by 
Chung and contributions made by him in chronological order:

----------------------------------------------------------------------------------------------------------------
                      Payment Received      Amount                          Political         Recipient of      
       Date                 From           Received   Origin of Transfer  Contribution        Contribution      
----------------------------------------------------------------------------------------------------------------
1994:                                                                                                           
  7/12/94.........  [Unknown]...........   $100,000  Hong Kong..........  ............  ........................
  8/9/94..........  ....................  .........  ...................       $1,000   DNC                     
  8/9/94..........  ....................  .........  ...................       10,000   DNC                     
  11/4/94.........  Yi Chen Liu.........    220,000  California.........  ............  ........................
  12/6/94.........  ....................  .........  ...................       40,000   DNC                     
  12/22/94........  ....................  .........  ...................       40,000   DNC                     
1995:                                                                                                           
  1/9/95..........  Yi Chen Liu.........     20,000  New York...........  ............  ........................
  3/17/95.........  ....................  .........  ...................       50,000   DNC                     
  4/8/95..........  Yi Chen Liu.........    100,000  California.........  ............  ........................
  4/8/95..........  ....................  .........  ...................      125,000   DNC                     
  4/21/95.........  Gold Treasure, Ltd..    234,985  Canada/Bank of       ............  ........................
                                                      China.                                                    
  7/5/95..........  Strong Ever Inv.,        99,985  Bank of China NYC/   ............  ........................
                     Ltd.                             Hong Kong.                                                
  9/14/95.........  China Nationalities      49,985  Bank of China/NYC..  ............  ........................
                     Int'l Trust & Inv.                                                                         
  9/21/95.........  ....................  .........  ...................       20,000   Clinton/Gore '96        
  10/12/95........  Gold Treasure, Ltd..     69,984  Hong Kong Bank of    ............  ........................
                                                      Canada.                                                   
  10/19/95........  Brilliance Fin Co       129,985  Bank of China NYC/   ............  ........................
                     Ltd, HK.                         Hong Kong.                                                
  10/19/95........  ....................  .........  ...................       25,000   Africare                
1996:                                                                                                           
  2/1/96..........  Chan Koon Wai.......    199,985  Hong Kong..........  ............  ........................
    ..............  ....................  .........  ...................       25,000   Back to Business        
  2/7/96..........  Sundart Engr Ltd-        19,985  China..............  ............  ........................
                     Beijing.                                                                                   
  6/3/96..........  Zhen Fa Intl' Inv...    101,985  Chase Bank New York  ............  ........................
  6/10/96.........  Johnny Chung (HK)...     24,980  Standard Chartered   ............  ........................
                                                      Bank Hong Kong.                                           
  6/14/96.........  ....................  .........  ...................       20,000   DNC                     
  6/30/96.........  ....................  .........  ...................        2,000   John F. Kerry (D-MA)    
  7/15/96.........  Johnny Chung (HK)...    190,000  Standard Standard    ............  ........................
                                                      Chartered Bank                                            
                                                      Hong Kong.                                                
  7/25/96.........  ....................  .........  ...................       20,000   DNC.                    
  7/19/96.........  ....................  .........  ...................       25,000   DNC.                    
  8/19/96.........  Johnny Chung (HK)...     19,980  Standard Chartered   ............  ........................
                                                      Bank Hong Kong.                                           
  8/15/96.........  Johnny Chung (HK)...     79,980  Standard Chartered   ............  ........................
                                                      Bank Hong Kong.                                           
  8/23/96.........  HOMKO Intl Finance       99,988  Shanghai Commerce    ............  ........................
                     (Holdings).                      Bank.                                                     
  8/29/96.........  Bu Ming Trading.....     99,990  Hong Kong..........  ............  ........................
  9/6/96..........  ....................  .........  ...................        1,000   Loretta Sanchez (D-CA-  
                                                                                         46)                    
  9/12/96.........  ....................  .........  ...................       10,000   John F. Kerry (D-MA)    
  9/24/96.........  ....................  .........  ...................       10,000   DNC                     
  9/24/96.........  ....................  .........  ...................       20,000   DNC                     
  9/24/96.........  ....................  .........  ...................        5,000   DNC                     
  9/27/96.........  ....................  .........  ...................       10,000   DSCC                    
  9/30/96.........  New Silver Eagle         80,000  New York...........  ............  ........................
                     Holdings, Ltd.                                                                             
  10/4/96.........  Johnny Chung........    150,000  China..............  ............  ........................
  10/4/96.........  Johnny Chung........    170,000  Standard Chartered   ............  ........................
                                                      Bank Hong Kong.                                           
----------------------------------------------------------------------------------------------------------------

    White House/DNC Contacts and Johnny Chung's Business Associates

    At some point during the months of late 1994 and early 
1995, Chung's political activities took on a new focus. He 
began to spend less time attempting to line up clients for his 
blastfax business and more time trying to help business and 
political leaders from the People's Republic of China make 
political connections in the United States. Chung began to 
develop relationships with numerous prominent Chinese figures, 
the first of which was the Chairman of the Haomen Group--Shi 
Zeng Chen.
    Chung formed several corporations in Los Angeles with his 
Chinese associates. Documents produced by Chung show that he 
formed no fewer than eight companies with six prominent Chinese 
nationals in 1995 and 1996. These individuals include Shi Zeng 
Chen of the Haomen Beer Company and Liu Chao-Ying of China 
Aerospace.
    Financial records from most of those entities do not 
indicate significant financial activity typical of an ongoing 
concern. In fact, these companies appear to have engaged in no 
business activity whatsoever. Testimony from one of Chung's 
employees, Irene Wu, indicates that these companies had an 
entirely different purpose. According to Ms. Wu, they were 
created not to do business, but rather to help Chung's 
associates obtain visas to visit the United States. When 
questioned about the purpose of one of these companies, Wu 
stated the following:

        The same purpose like I said earlier, for the three 
        reasons that they form companies. It was Johnny's way 
        of talking to those people, for them to form a company 
        so it would be easier if they want to come and visit. 
        So it's all for the same reasons. There was no business 
        conducted in any of those companies at all.\37\
---------------------------------------------------------------------------
    \37\ Deposition of Irene Wu, 7/28/98, pp. 228-29.

    During questioning about the company Chung formed with Liu 
Chao-Ying of China Aerospace, Wu suggested that Chung's 
business partners even hoped to obtain permanent residence in 
---------------------------------------------------------------------------
the United States through these companies:

        To my knowledge, all of these companies that were set 
        up was because, first of all, it was easier for them to 
        come and visit if they have a company here. They could 
        come and visit. And secondly, eventually, it would be 
        easier for them to get residency here in the United 
        States. That's my understanding of forming all those 
        companies. And also if there are any business 
        potential.\38\
---------------------------------------------------------------------------
    \38\ Id.

    Wu did not have direct knowledge that Liu Chao-Ying or any 
of Chung's other overseas associates were actually seeking 
permanent residency.\39\ However, she testified that Chung 
frequently wrote letters of invitation to his Chinese 
associates to assist them in getting visas to come to the 
United States:
---------------------------------------------------------------------------
    \39\ Id.

          Q. Did Johnny Chung ever mention needing to write 
        letters to overseas individuals in order to assist with 
        their acquiring visas?
          A. Invitation letters. We did a lot of invitation 
        letters.\40\
---------------------------------------------------------------------------
    \40\ Id. p. 214.

    Documents produced to the Committee by the U.S. State 
Department verify that Chung's associates in China, including 
Liu Chao-Ying of China Aerospace, did indeed bring these 
letters to U.S. consulates to acquire visas.\41\
---------------------------------------------------------------------------
    \41\ DOS 013146 (Exhibit 21); 013140 (Exhibit 22); 013143 (Exhibit 
23); 013154 (Exhibit 24).
---------------------------------------------------------------------------

                   Shi Zeng Chen and the Haomen Group

    Among the earliest instances of Johnny Chung leading 
overseas businessmen into the White House was Shi Zeng Chen of 
the Haomen Group Company. The Haomen Group is the second 
largest beer manufacturer in China. Irene Wu, Johnny Chung's 
main assistant at AISI, said that Shi Zeng Chen was one of 
Johnny Chung's first contacts in China. She said:

        I would know, like Haomen--the President of Haomen. I 
        know he's one of the first persons that Johnny met in 
        China, and through him, Johnny met a lot of other 
        people. . . . How they met, I would not have any 
        idea.\42\
---------------------------------------------------------------------------
    \42\ Deposition of Irene Wu at p. 121.

    According to an article in the China Youth Journal, Chung 
met Shi Zeng Chen through Haomen's U.S. Representative, Ms. 
Yao, who had met a Los Angeles immigration attorney and AISI 
shareholder Larry Liou after Haomen opened an office in Los 
Angeles.\43\
---------------------------------------------------------------------------
    \43\ Hsu Chang-Yin, ``President of Haomen Group,'' China Youth 
Journal, Feb. 8, 1995 (Exhibit 25).

1. The White House Holiday Reception

    Shi Zeng Chen and Haomen Assistant President Yei Jun He 
attended a White House holiday reception along with Johnny 
Chung on December 20, 1994.\44\ They met the President and the 
First Lady and had their pictures taken with them.\45\
---------------------------------------------------------------------------
    \44\ EOP004738-9 (Exhibit 26).
    \45\ EOP018036 (Exhibit 27).
---------------------------------------------------------------------------
    Chung had initially requested, in a December 14, 1994 
letter to DNC Finance Director Richard Sullivan, that Shi Zeng 
Chen and Yei Jun He be admitted to the President's radio 
address on December 17 and lunch at the White House mess. In 
his letter, which he appears to have written from Taiwan, he 
states cryptically:

        He [Shi Zeng Chen] will play an important role in our 
        future party functions.\46\
---------------------------------------------------------------------------
    \46\ DNC 3233321 (Exhibit 28).

    Sullivan testified that he did not assist Chung in getting 
into the White House, but referred him to Eric Sildon, the 
Director of National Membership Services at the DNC.\47\ Sildon 
wrote to David Leavy, Staff Assistant to the Press Secretary at 
the White House, requesting that ``Mr. Johnny Chung, a DNC 
Managing Trustee from Los Angeles and his guest'' be provided 
two spots at the December 17 radio address.\48\ Sildon wrote, 
``Chung was extremely supportive of our recent event in 
California with Mrs. Clinton and will be meeting with Debra 
DeLee, Chair of the DNC, on Monday to reiterate his commitment 
for strong future support of the party.\49\
---------------------------------------------------------------------------
    \47\ Deposition of Richard Sullivan, pp. 158-159.
    \48\ F0038495 (Exhibit 20).
    \49\ Id.
---------------------------------------------------------------------------
    Chung did not get the invitation to the President's radio 
address on the 17th, as he had requested. Instead, according to 
the China Youth Journal article, Shi Zeng Chen and Yei Jun He 
were scheduled to visit the White House on Sunday, December 18. 
However, that visit was postponed after a pedestrian fired 
shots at the White House.\50\
---------------------------------------------------------------------------
    \50\ Hsu Chang-Yin, ``President of Haomen Group,'' China Youth 
Journal, Feb. 8, 1995 (Exhibit 25). See also, Karen De Witt, ``Several 
Gunshots Are Fired at the White House as the President and His Family 
Sleep,'' the New York Times, Dec. 18, 1998 (Exhibit 29).
---------------------------------------------------------------------------
    On the morning of Monday, December 19, Chung and the Haomen 
Group delegation went to DNC headquarters to meet with DNC 
Chairwoman Debra DeLee.\51\ FEC records show that Chung made a 
$40,000 donation to the DNC through AISI at around the same 
time.\52\
---------------------------------------------------------------------------
    \51\ Id.
    \52\ FEC Internet Records www.tray.com/fecinfo/ (Exhibit 3).
---------------------------------------------------------------------------
    That afternoon, Chung and the group went to the White House 
for lunch at the White House mess. WAVES records show that 
Chung was cleared into the White House at 12:30 p.m.\53\ The 
author of the China Youth Journal article accompanied the 
group, concealing his identity as a reporter for the Xinhua 
News Agency by posing as an assistant to Shi Zeng Chen.\54\ He 
reported that Chung and the group were met at the White House 
gate by White House aide Lenore Lewis and bypassed some 
security measures.\55\ Shi Zeng Chen brought a 6-pack of Haomen 
beer into the White House, which the group thought would be 
prohibited. After lunch, they toured the White House.\56\
---------------------------------------------------------------------------
    \53\ WAVES at EOP005040 (Exhibit 2).
    \54\ Hsu Chang-Yin, ``President of Haomen Group,'' China Youth 
Journal, Feb. 8, 1995 (Exhibit 25).
    \55\ Id.
    \56\ Id.
---------------------------------------------------------------------------
    Later that Monday afternoon, the Haomen delegation visited 
the Commerce Department. A week earlier, on the same day that 
Chung wrote to Richard Sullivan about visiting the White House, 
he also wrote to Mark Harris, Deputy Chief of Staff at the 
Commerce Department, seeking a meeting for Shi Zeng Chen.\57\ 
The date on the letter is December 14, 1995 instead of 1994, 
but this appears to be an error.
---------------------------------------------------------------------------
    \57\ JCH15036 (Exhibit 30).
---------------------------------------------------------------------------
    According to the China Youth Journal article:

        In the afternoon, Yei Jun He joined us and went to many 
        Department of Commerce offices for meetings and the 
        U.S. officials indicated that they were willing to help 
        him push for the sale of Haomen Beer in this 
        country.\58\
---------------------------------------------------------------------------
    \58\ Hsu Chang-Yin, ``President of Haomen Group,'' China Youth 
Journal, Feb. 8, 1995 (Exhibit 25).

    The Haomen delegation was apparently scheduled to return to 
the White House to see the President during the day on Tuesday, 
December 20, but there were several delays.\59\ According to 
the China Youth Journal:
---------------------------------------------------------------------------
    \59\ Id.

        [i]t later turned out that President Clinton's advisors 
        were split in their opinion whether to receive Chen. 
        Some said that Clinton should not receive a member of 
        the Communist Party. Others disagreed. Finally, Clinton 
        decided that if the United States wants to do business 
        in China, he must receive Communist Party members since 
        most Chinese business officials are Communist Party 
        Members. . . . [Chen] is a 3rd generation Communist 
        Party member.\60\
---------------------------------------------------------------------------
    \60\ Id.

    That evening, Chung escorted Shi Zeng Chen and Yei Jun He 
to the holiday reception in the White House residence.\61\ The 
President and Mrs. Clinton received the Haomen executives 
privately before the reception and had photos taken with 
them.\62\ The Haomen executives reportedly used the photos with 
the President and the First Lady in advertisements in 
China.\63\ It has also been reported that the ad promoted other 
Chinese officials to call on Chung, leading to the ``China 
Delegation'' that attended the President's Radio Address in 
March 1995.\64\
---------------------------------------------------------------------------
    \61\ White House WAVES records, EOP 005040 (Exhibit 2).
    \62\ Hsu Chang-Yin, ``President of Haomen Group,'' China Youth 
Journal, Feb. 8, 1995 (Exhibit 25).
    \63\ Liu, Melinda ``The portrait of a hustler; inside Johnny 
Chung's mad scramble to the top,'' Newsweek, Mar. 31, 1997 (Exhibit 
31).
    \64\ Id.
---------------------------------------------------------------------------

2. Shi Zeng Chen's Son

    As a favor to Shi Zeng Chen, Chung gave his son, David 
Chen, a job with AISI.\65\ Chung gave David Chen the title of 
``Special Assistant to the Chairman,'' and put in charge of 
AISI's Beijing office. However, David Chen's business card has 
the same address as the headquarters of Haomen Group in 
Beijing.\66\ According to Ms. Wu's testimony, David Chen's 
title was for show, and he did not actually perform any work 
for AISI:
---------------------------------------------------------------------------
    \65\ Deposition of Irene Wu, p. 105.
    \66\ Business cards--GR001, Exhibit 32, Deposition of Gina 
Ratliffe.

          The office--the real AISI office in Beijing was set 
        up much later, 1996. The card you show me, two offices 
        with David Chen's business card, that wasn't really an 
        office. It was just a title given to David and, you 
        know, for show purpose. That was not a real office.\67\
---------------------------------------------------------------------------
    \67\ Deposition of Irene Wu, July 28, 1998, p. 185.

    David Chen was present when the ``China Delegation'' 
visited the White House in March 1995 and attended President 
Clinton's Radio address.\68\ His presence raises important 
questions about the involvement of the Haomen Group in these 
events.
---------------------------------------------------------------------------
    \68\ DNC3233326-3233332 (Exhibit 33).
---------------------------------------------------------------------------

3. Joint Companies in California

    Subsequent to these events at the White House, Chung formed 
two companies in Los Angeles with President Shi Zeng Chen and 
Assistant President Yei Jun He of the Haomen Group.
    On April 21, 1995, Johnny Chung and Shi Zeng Chen formed 
Yuangao International, Inc. in Artesia, California.\69\ On 
October 27, 1995, the company issued 9,900 shares to Beijing 
Gaoyuan Trading Company.\70\ According to Irene Wu, Gaoyuan is 
a company controlled by Haomen's Yei Jun He.\71\ Johnny Chung 
received 100 shares on the same date.\72\
---------------------------------------------------------------------------
    \69\ Corporate filings, California Secretary of State (Exhibit 34).
    \70\ JC 1271 (Exhibit 35).
    \71\ Deposition of Irene Wu, July 28, 1998, p. 130.
    \72\ JC 1270 (Exhibit 36).
---------------------------------------------------------------------------
    Yuangao's 1995 Federal tax return indicates that the 
company had no income and incurred a net loss of $35,617.\73\ 
The return lists Beijing Gaoyuan Trading Company as a foreign 
entity that owned more than 25 percent of Yuangao's voting 
shares.\74\ Yuangao's bank account indicates few transactions 
over $1,000, and little activity.\75\
---------------------------------------------------------------------------
    \73\ JC 1446-51.
    \74\ Id.
    \75\ JC 1460-92 (Exhibit 37).
---------------------------------------------------------------------------
    On June 1, 1995 Johnny Chung and the two Haomen officials 
formed Sino-American Economic Development, Inc. (``SAED'').\76\ 
California State filings list Chung and Shi Zeng Chen as 
officers and directors of the corporation.\77\ The filings also 
indicate that the purpose of SAED is import/export, general 
trading, and telecommunications.\78\ SAED issued 10,000 shares 
of stock, split in the following manner: Shi Zeng Chen (3,000 
shares/$15,000), Johnny Chung (3,500 shares/$17,500), and Jun 
Yei He (3,500 shares/$17,500).\79\ Statements from SAED's bank 
account indicate incoming wire transfers totaling $20,000 from 
Sundart Engineering, Ltd. of Beijing in April 1996.\80\
---------------------------------------------------------------------------
    \76\ JCH13202 (Exhibit 38).
    \77\ JCH13200 (Exhibit 39).
    \78\ Id.
    \79\ JCH13202 (Exhibit 38); JCH13204-6 (Exhibit 40).
    \80\ JCH13229 (Exhibit 41).
---------------------------------------------------------------------------
    Shi Zeng Chen and Yei Jun He were Chung's guests at a 
Clinton/Gore '96 fund-raiser on September 21, 1995.\81\ The 
event was a southern California Presidential Gala held in 
Century City. Chung squired a delegation of 24 people to the 
dinner, many of whom were Chinese nationals. Chung used his 
employees and their friends as straw donors to illegally 
contribute $20,000 in connection with the event. Those 
contributions were among the charges to which Chung pled guilty 
in March 1998.\82\
---------------------------------------------------------------------------
    \81\ JCH15023 (Exhibit 42).
    \82\ Associated Press, ``Fund-raiser Chung Pleads Guilty,'' 
Washington Post, Mar. 17, 1998 (Exhibit 5).
---------------------------------------------------------------------------

                          The China Delegation

    In February 1995, Chung began to petition the White House 
and the DNC to get a meeting with the President for what came 
to be known as the ``China delegation.'' A February 2, 1995 e-
mail from Calvin Mitchell at the National Security Council 
indicates that Chung had met with him to discuss the impending 
visit of one member of this ``China delegation.'' In his e-mail 
to his NSC colleagues Roseanne Hill, Stanley Roth, and Robert 
Suettinger, Mitchell mentioned that he had met ``several 
times'' with Johnny Chung, ``who is a big Clinton supporter. He 
has told me that Mr. Zheng Hongye, Chairman, China Chamber of 
International Commerce, China Council for the Promotion of 
International Trade, the China Member Committee of the Pacific 
Basin Economic Council, will be traveling to the U.S. sometime 
this spring. If Johnny contacts me again to meet this guy, I'll 
let you all know.'' \83\
---------------------------------------------------------------------------
    \83\ EOP 039319 (Exhibit 43).
---------------------------------------------------------------------------

1. Seeking Access

    Instead on contacting Mitchell, Chung contacted DNC Finance 
Director Richard Sullivan. In a letter faxed to Sullivan on 
February 27, 1995, Chung wrote:

        I am going to need your help again. I am bringing with 
        me the delegation from China. This is a group of very 
        important and powerful business leaders from China. 
        They will be in D.C. from 3/7 to 3/11 and will be 
        staying at J.W. Marriott. . . . Enclose [sic] please 
        find the name list and their personal information. As I 
        have mentioned on the phone, their main purpose would 
        be as follows:
        1) Meet President Clinton
        2) Meet Vice President Al Gore
        3) Have lunch at the Mess (White House)
        4) Tour the White House
        5) Meet Secretary Ron Brown
        Please help me make arrangements accordingly. Thank you 
        in advance for all your help. I will see you soon.\84\
---------------------------------------------------------------------------
    \84\ DNC 323326 (Exhibit 33), Feb. 27, 1995 letter from Johnny 
Chung to Richard Sullivan at the DNC sent via fax.

    At the bottom of the letter, there is a handwritten note 
that states: ``Meet Don Fowler.'' Sullivan testified that it 
was his handwriting, and that either Chung or his assistant, 
Irene Wu, called to request that meeting.\85\ Sullivan passed 
along the request and Chung's delegation did meet with 
Fowler.\86\
---------------------------------------------------------------------------
    \85\ Deposition of Richard Sullivan, pp. 177-178.
    \86\ Id. pp. 181-82.
---------------------------------------------------------------------------
    Attached to the letter was a list of names of the 
delegation, with their biographies. They included:

          Zheng Hongye. Member of the Seventh and Eighth 
        Chinese People's Political Consultative Conference, 
        Chairman of the China International Economic and Trade 
        Arbitration Commission, Chairman of the China Maritime 
        Arbitration Commission, Chairman of the Economic and 
        Trade Coordination Committee for the Two Sides of the 
        Straits, Chairman of the Association of China Foreign 
        Service Trade and a concurrent professor of Xiamen 
        University. He also is Chairman of the China Committee 
        of the International Chamber of Commerce.
          Sheng Huaren. President of China Petro-Chemical 
        Corporation, Chairman of China International United 
        Petroleum and Chemicals Co. Ltd, and concurrently Vice 
        Chairman of China-Korea Economic Council.
          Huang Jichum. Director and Vice President of China 
        International Trust and Investment Corporation (CITIC) 
        in charge of investment and trade both at home and 
        abroad as well as enterprise management.
          Wang Renzhong. Shanghai Vice Chairman, President of 
        Shanghai AJ Corporation.
          James J. Sun. President of Xinjiang Taihe Enterprise 
        Group Co. Ltd. The Taihe Group also consists of Taihe 
        Real Estate Company.\87\
---------------------------------------------------------------------------
    \87\ DNC 323326-3233332 (Exhibit 33).

    When the delegation arrived in Washington, Sheng Huaren of 
China Petrochemical was not among the group. In his place, he 
sent his Vice President, Yan Sanzhong.
    Testimony received by the Committee suggests that Zheng 
Hongye of the China Chamber of International Commerce was the 
most influential member of the delegation. Gina Ratliffe, who 
worked as an assistant for Chung and who traveled to China with 
him a month later, described Zheng as ``the political link.'' 
\88\ She stated:
---------------------------------------------------------------------------
    \88\ Deposition of Gina Ratliffe, p. 102.

        The Chamber of Commerce dude seemed to be, and I could 
        be wrong, but he seemed to be the link between the 
        higher-up officials.\89\
---------------------------------------------------------------------------
    \89\ Id. p. 101.

        We spent a lot of time with him (Zheng). We went to his 
        home one afternoon.\90\
---------------------------------------------------------------------------
    \90\ Id. p. 100.

    On February 28, 1995, Chung also wrote to Ann McCoy in the 
---------------------------------------------------------------------------
White House visitors' office to reinforce his request:

        How are you? We would like to request for your 
        assistance again. I am bringing with me the delegation 
        from China. This is a group of very important and 
        powerful business leaders from China. They will be in 
        DC from 3/7 to 3/11, and as usual, please arrange for a 
        tour of the White House. I have asked Mr. Richard 
        Sullivan, Mr. Eric led [sic] of DNC and Mr. Mark 
        Middleton to assist me in arranging a meeting with 
        President Clinton, Vice President Al Gore and a lunch 
        at the Mess in the White House. It would be ideal if 
        you could arrange a tour either before or after the 
        lunch at the Mess.\91\
---------------------------------------------------------------------------
    \91\ JCH 15011 (Exhibit 44). Note that this document of a letter to 
the White House from Chung was NOT produced by the White House but was 
only produced by Johnny Chung.

    On March 1, 1995, Richard Sullivan and Ari Swiller, 
Director of the DNC's Trustees Program, wrote a memo to DNC 
Chairman Don Fowler's office requesting a meeting on March 8th 
for Chung and his associates from China with Fowler. The memo 
discussed Chung's contributions of ``94,000 to the DNC'' and 
the fact that he had raised an additional $40,000.\92\ The memo 
stated that ``$60,000 of this was for a DNC fundraising 
luncheon with the First Lady in Los Angeles on December 3rd, 
our first fundraiser after the November elections.'' The memo 
mentioned, ``Johnny also does a great deal of business/trade 
with China'' and stated that his group ``will be meeting with 
Secretary Brown earlier in the day.'' Sullivan and Swiller 
enclosed the list of names and their biographies for Fowler.
---------------------------------------------------------------------------
    \92\ F 0017561 (Exhibit 45).
---------------------------------------------------------------------------

2. Sullivan's Doubts

    Although Sullivan had apparently assisted Chung in getting 
the officials from the Haomen Group into the White House Mess 
in December 1994, Sullivan testified that he did not assist him 
with these Chinese nationals in February 1995. Sullivan told 
the Senate in a sworn deposition:

        Johnny had showed up at the DNC . . . said that he 
        would make a contribution to us of $50,000 if I would 
        get he and five members of his entourage into a radio 
        address with the President. . . . I think he had 
        contributed about $100,000 to that point over the past 
        year, and the fact that--him showing up with these five 
        people from China . . . I had a sense that he might be 
        taking money from them and then giving it to us, you 
        know. That was my concern. So I said, I said, I said I 
        wouldn't do it.\93\
---------------------------------------------------------------------------
    \93\ Deposition of Richard Sullivan (Senate), pp. 228-229.

    In his deposition with the Government Reform and Oversight 
Committee, Sullivan amplified these concerns. He testified that 
he suggested to Fowler that DNC officials review Chung's 
---------------------------------------------------------------------------
contributions to make sure they were legal:

        In March of 1995, . . . after Johnny had contributed 
        approximately about $90,000 to date, I asked--and when 
        Don Fowler gave me a $50,000 contribution from Johnny 
        that he made in March, I suggested to him that I 
        thought it would be wise for him to have a conversation 
        with Joe Sandler [DNC Counsel] in regards to taking 
        more money from Johnny Chung.\94\
---------------------------------------------------------------------------
    \94\ Deposition of Richard Sullivan (House), p. 186.

        I didn't get a fog horn and shout, ``Don't take Johnny 
        Chung's money,'' I just suggested to Don Fowler that he 
        have a conversation with Joe Sandler.\95\
---------------------------------------------------------------------------
    \95\ Id. p. 191.

    Fowler has denied receiving such a warning from Sullivan, 
stating that, ``I have no memory of that. It's all news to 
me.'' \96\ However, Sullivan's attorney, Bob Bauer, told the 
Washington Post that Sullivan stands by his recollection of 
events.\97\
---------------------------------------------------------------------------
    \96\ George Lardner, ``Chung Secured Treasury Meeting For Chinese 
Petrochemical Firm,'' Washington Post, July 2, 1998 (Exhibit 46).
    \97\ Id.
---------------------------------------------------------------------------
    Despite his evident concerns, Sullivan did assist Chung in 
getting the China delegation in to see Fowler. Fowler welcomed 
them and posed for pictures with an arm around Chung's 
shoulder.\98\
---------------------------------------------------------------------------
    \98\ William Rempel and Alan Miller, ``First Lady's Aid Solicited 
Check to DNC,'' Los Angeles Times, July 27, 1997 (Exhibit 1).
---------------------------------------------------------------------------

3. The Haomen Beer Connection

    While Shi Zeng Chen of the Haomen Group was not included in 
this delegation, his son, David Chen, did travel with them.\99\ 
Three days prior to the group's arrival in Washington, the 
Haomen Group transfered $150,000 to Johnny Chung's bank 
account. The money was transfered through the Bank of China and 
a company listed as ``Winlick Investments, Ltd.'' \100\
---------------------------------------------------------------------------
    \99\ DNC 3233326-3233332 (Exhibit 33).
    \100\ Deposition of Irene Wu, July 28, 1998.
---------------------------------------------------------------------------
    The wire transfer carried the following notation: ``Payment 
for goods--Haomen.'' However, testimony from Chung's employees 
casts doubt as to whether Haomen owed Chung money for any work 
he performed. Chung's office manager, Irene Wu, testified that 
she was not aware of any payment Chung received for goods or 
services he provided to Haomen.\101\ His bookkeeper, Nancy Lee, 
testified in a similar vein:
---------------------------------------------------------------------------
    \101\ Id. p. 132.

          Q. Are you aware of a $150,000 payment from the 
        Haomen Group to Johnny Chung in March of 1995?
          A. I don't remember.
          Q. Are you aware of any invoices sent to the Haomen 
        Group?
          A. No.
          Q. Do you know of any services provided by Johnny 
        Chung to the Haomen Group?
          A. I don't know.\102\
---------------------------------------------------------------------------
    \102\ Deposition of Nancy Lee, p. 63.

    Given the proximity of this wire transfer to the $50,000 
contribution Chung gave to the DNC, and given the presence of 
Zhi Zeng Chen's son in the delegation, it is reasonable to 
conclude that this money was sent to Chung to enable him to 
make this contribution so that the requested meetings could be 
obtained. Prior to the transfer, Chung's bank account did not 
contain sufficient funds for him to make the contribution,\103\ 
which he presented to the First Lady's Chief of Staff, Margaret 
Williams, on March 9, 1995. The Committee has been unable to 
question Mr. Chung about this matter due to his assertion of 
his Fifth Amendment rights. The Committee has also been refused 
visas by the Chinese government and has been unable to travel 
to China to interview representatives of the Haomen Group.
---------------------------------------------------------------------------
    \103\ JCH16554 (Exhibit 47).
---------------------------------------------------------------------------

4. $50,000 ``Opens the Gates''--Meeting with the First Lady

    Having failed to get his requests filled through the DNC, 
Chung apparently turned to the First Lady's Office on March 8, 
1995. Up until this time, according to WAVES records, Chung had 
little contact with the First Lady's Office. Evan Ryan, the 
assistant to the First Lady's Chief of Staff, Margaret 
Williams, has testified that she recalls meeting him at some 
point in the Old Executive Office Building when he stopped by 
her office, but she does not remember when. She says she 
learned that he was a trustee of the DNC and that he was from 
Los Angeles and ran a fax business.\104\ It should be noted 
that none of the WAVES records indicate that Ryan WAVED in 
Chung until March 9, 1995. After that, Ryan WAVED in Chung 
almost 20 times.\105\ In fact, after March 9, 1995, Chung was 
admitted to the White House almost exclusively by Ryan. Prior 
to this, Chung was WAVED in by various White House employees.
---------------------------------------------------------------------------
    \104\ Deposition of Evan Ryan, p. 96.
    \105\ White House WAVES Records (Exhibit 2).
---------------------------------------------------------------------------

5. Johnny Chung's Account

    In a Los Angeles Times article on July 27, 1997, Johnny 
Chung provided the following account of how he came to give 
$50,000 to the DNC in March 1995. Chung claims he was seeking 
``VIP treatment for a delegation of visiting Chinese 
businessmen when he was asked to help the First Lady defray the 
cost of White House Christmas receptions billed to the 
Democratic National Committee.'' \106\ ``I see the White House 
is like a subway: You have to put in coins to open the gates,'' 
Chung has said.\107\ In this interview, Chung says he felt he 
had a special relationship with Hillary Clinton because he says 
he had met her years earlier at the governor's mansion in 
Little Rock, Arkansas, while touting his new fax service. Since 
then, according to the Times, Chung was photographed with Mrs. 
Clinton on about a dozen occasions.\108\
---------------------------------------------------------------------------
    \106\ William Rempel and Alan Miller, ``First Lady's Aide Solicited 
Check to DNC,'' Los Angeles Times, July 27, 1997 (Exhibit 1).
    \107\ Id.
    \108\ Id.
---------------------------------------------------------------------------
    As reported in the Los Angeles Times, Chung went to the 
First Lady's Office on March 8, 1995, and was greeted by Evan 
Ryan, then a staff assistant in the First Lady's Office. He 
showed her the business cards of his Chinese companions and 
asked if arrangements could be made for them to eat lunch in 
the White House mess and meet Hillary Clinton. Chung also asked 
if there was anything he could do to help the White House. 
After speaking with Maggie Williams, Ryan returned saying: 
``Maybe you can help us.'' \109\
---------------------------------------------------------------------------
    \109\ Id.
---------------------------------------------------------------------------
    Ryan explained that ``the first lady had some debts with 
the DNC'' from expenses associated with White House Christmas 
parties.\110\ Chung believes that Ryan mentioned a figure of 
around $80,000. Ryan told him that she was relaying the request 
on behalf of Williams, who hoped Chung could ``help the first 
lady'' defray those costs.\111\
---------------------------------------------------------------------------
    \110\ Id.
    \111\ Id.
---------------------------------------------------------------------------
    ``Then a light bulb goes on in my mind, I start to 
understand,'' Chung said.\112\ ``I said I will help for 
$50,000.'' \113\ After making that commitment, Chung left the 
White House confident that his wish list would be substantially 
fulfilled.
---------------------------------------------------------------------------
    \112\ Id.
    \113\ Id.
---------------------------------------------------------------------------
    The next morning, Chung went back to the White House and 
was escorted to Ryan's desk in the reception area of the First 
Lady's Office. He said he gave her an unsealed envelope. 
According to Chung, Ryan lifted the flap and examined the 
contents. Inside was his check \114\ and a note to Williams, 
which he recalled said something like: ``To Maggie--I do my 
best to help. Johnny Chung.'' \115\
---------------------------------------------------------------------------
    \114\ JCH795 (Exhibit 48).
    \115\ William Rempel and Alan Miller, ``First Lady's Aid Solicited 
Check to DNC,'' Los Angeles Times, July 27, 1997 (Exhibit 1).
---------------------------------------------------------------------------
    A short time later, Williams joined them and Ryan handed 
the envelope to her, according to Chung. Williams led him into 
her office and called to reserve a table for the Chinese 
delegation at the White House Mess. Williams has since told 
congressional investigators that she never looked at the check. 
Chung said there was no need for her to look inside the 
envelope. ``I know she knew what was inside, because to me it 
was her idea to help,'' he said.\116\
---------------------------------------------------------------------------
    \116\ Id.
---------------------------------------------------------------------------
    Before the delegation convened for lunch in the White House 
Mess, Chung was advised that another wish list item had been 
granted. The First Lady could see them before addressing a 
teachers' group that afternoon. ``Maggie set up everything,'' 
Chung said.\117\
---------------------------------------------------------------------------
    \117\ Id.
---------------------------------------------------------------------------
    Later, waiting for Hillary Clinton in a White House 
reception room, Chung said he asked if the First Lady had been 
informed of his donation and Ryan responded, ``Yes, she 
definitely knows.'' \118\ According to Chung, when the First 
Lady met the delegation, she declared to Chung: ``Welcome to 
the White House, my good friend.'' \119\
---------------------------------------------------------------------------
    \118\ Id.
    \119\ Id.
---------------------------------------------------------------------------

6. Evan Ryan's Account

    Ryan cannot identify exactly when she met Chung and her 
testimony is not clear whether she had met Chung prior to March 
8, 1995, when she confirms he did stop by the First Lady's 
Office. On March 8, 1995, Chung had been WAVED into the Old 
Executive Office Building by Brian Bailey from Erskine Bowles' 
office.\120\ Ryan testified that Chung ``showed up'' in her 
office that day unannounced.\121\ Chung told her that he had 
this delegation visiting from China and ``he would like to see 
if he could get them a tour of the White House, to the White 
House Mess, if he could get them into the President's radio 
address and if he could get a photo with Mrs. Clinton.'' \122\ 
Chung also mentioned to Ryan that while he was in town, he 
would be donating money to the DNC.\123\
---------------------------------------------------------------------------
    \120\ WAVES at EOP008683 (Exhibit 2).
    \121\ Deposition of Evan Ryan, p. 106.
    \122\ Id. p. 105.
    \123\ Id. pp. 105, 107-08.
---------------------------------------------------------------------------
    According to Ryan's testimony, while Chung was still in the 
reception room, she went to speak with Maggie Williams about 
Chung's requests.\124\ Ryan told Williams that ``Johnny Chung 
was here and he had some businessmen from China here and he was 
hoping to get the tour, the radio address, the Mess and the 
photo with Mrs. Clinton, and he was also going to be donating 
money to the DNC while he was here.'' \125\ Williams told her 
that they would see what they could arrange for him and ``that 
it was helpful to know about his donation because then maybe 
that would enable the DNC to pay off some of their debts.'' 
\126\ Williams never mentioned to her an amount that Chung 
could donate, and, according to Ryan, Ryan never mentioned to 
Chung a bill of $80,000 that the DNC owed to the White 
House.\127\ Ryan then returned to Chung and told him that they 
would try to set up some of these requests.\128\ Chung was 
``very pleased'' and ``said he hoped that Maggie got credit for 
his donation.'' \129\
---------------------------------------------------------------------------
    \124\ Id. pp. 108-09.
    \125\ Id. p. 109.
    \126\ Id. p. 110.
    \127\ Id. pp. 110-11.
    \128\ Id. p. 111.
    \129\ Id.
---------------------------------------------------------------------------
    By the end of the day, each of Chung's requests, with the 
exception of the radio address, had been scheduled. Ryan 
testified that she contacted the Visitor's Office about the 
tour and contacted the Mess about lunch.\130\ Ryan also stated 
that Williams set up the photo with the First Lady.\131\ Ryan 
believes Chung contacted her later that day and she then 
informed him that each of his requests had been scheduled.\132\
---------------------------------------------------------------------------
    \130\ Id. p. 114.
    \131\ Id.
    \132\ Id.
---------------------------------------------------------------------------
    The following day, March 9, 1995, Chung and his guests 
arrived at the Old Executive Office Building and Ryan escorted 
them to the Mess for lunch.\133\ After their lunch, Ryan 
believes that Ann McCoy, from the Visitor's Office, took them 
on their tour.\134\ From the WAVES records, Ryan believes that 
Chung and his guests left the White House and returned later 
that day.\135\ Ryan recalls that they were late for their photo 
with the First Lady.\136\ As soon as they arrived, Ryan 
escorted them to the Map Room for their photo.\137\ Ryan 
testified that Mrs. Clinton gave a general greeting to Chung, 
not the ``welcome, my good friend'' that Chung has 
claimed.\138\
---------------------------------------------------------------------------
    \133\ Id. p. 115.
    \134\ Id.
    \135\ Id.
    \136\ Id. p. 116.
    \137\ Id. p. 117.
    \138\ Id. pp. 121-22.
---------------------------------------------------------------------------
    Ryan further testified that Chung did not hand her the 
envelope containing his donation. ``I remember that Mr. Chung 
was insistent that he wanted to hand this envelope directly to 
Maggie Williams. I remember he really wanted to see her and 
hand the envelope to her.'' \139\ Chung and his delegation of 
Chinese businessmen returned to the Old Executive Office 
Building. Ryan told Williams that Chung was there and he wanted 
to speak with her. Ryan said Williams seemed ``confused'' at 
``why he was delivering a donation to the DNC through her.'' 
\140\ Ryan brought Mr. Chung to Williams' office, where he 
handed the envelope to Williams. Ryan explained that she was 
standing near the door and does not remember hearing Chung say 
anything to Williams.\141\ Ryan testified that Chung never 
asked her whether the First Lady was aware of his contribution, 
so she never told him that she was.\142\
---------------------------------------------------------------------------
    \139\ Id. p. 117.
    \140\ Id. p. 118.
    \141\ Id. p. 119.
    \142\ Id. p. 125.
---------------------------------------------------------------------------

7. Maggie Williams' Account

    Williams does not remember the events of these 2 days as 
occurring all at once.\143\ She remembers this sequence of 
events as ``separate occasions.'' \144\ Williams does not 
recall Chung wanting to get his friends into the White House on 
that particular day. She recalls Ryan asking her if she should 
arrange a photo for Chung and Williams told her that she 
should.\145\ Williams also recalls Chung requesting the use of 
her Mess account on a couple of occasions, which she 
allowed.\146\ Williams testified that Chung had used her Mess 
account prior to receiving his donation.\147\
---------------------------------------------------------------------------
    \143\ Deposition of Maggie Williams, p. 247.
    \144\ Id. p. 240.
    \145\ Id. p. 241.
    \146\ Id. pp. 241-42.
    \147\ Id. p. 242.
---------------------------------------------------------------------------
    Williams testified that Chung often asked her how he could 
give to the First Lady. Williams responded that he could not 
give to the First Lady, but could give to the DNC.\148\ As to 
Chung handing her the check, Williams testified that she was:
---------------------------------------------------------------------------
    \148\ Id. p. 240.

        [L]eaving the office and coming out into the vestibule, 
        at which point Mr. Chung enthusiastically said, I give 
        to the First Lady, I give to the First Lady. I said 
        something to the effect of, Johnny, I have told you 
        that you cannot give money to the First Lady, you can 
        give to the DNC, and I believe I told him that again 
        and he said, I am giving to the DNC, I am giving 
        through you, I give through you, I give through the 
        First Lady's office. I told him again that he should 
        just give it to the DNC. He continued to be somewhat 
        insistent. I wanted out. I said, you know, I will take 
        it, I will give it to the DNC, and I think our 
        encounter was, I don't even know if it was a minute or 
        a minute and a half.\149\
---------------------------------------------------------------------------
    \149\ Id. pp. 240-41.

    Williams stated that she never looked at the check, and did 
not even know it was in the amount of $50,000 until she read 
about it in the newspapers.\150\ She then placed the check in 
her out basket and assumed that Ryan or someone else would get 
the check to the DNC.\151\ Williams is not aware of anyone in 
the First Lady's office telling Chung about DNC bills for 
Christmas parties.\152\
---------------------------------------------------------------------------
    \150\ Id. p. 248.
    \151\ Id. p. 249.
    \152\ Id. pp. 250-51.
---------------------------------------------------------------------------

8. Comparison of Accounts

    The principal conflicts between these three accounts center 
around the alleged solicitation of Chung's contribution in the 
First Lady's office and the delivery of his check the next day.
    Regarding Chung's donation, Ryan claims that Chung 
volunteered to her unsolicited that he would be donating to the 
DNC while he was in town.\153\
---------------------------------------------------------------------------
    \153\ Deposition of Evan Ryan, pp. 107-08.
---------------------------------------------------------------------------
    Chung claims that after he made his request for assistance, 
Ryan left for about 15-20 minutes. She returned saying she had 
spoken with Williams and said ``maybe you can help us.'' Chung 
has stated that Ryan told her that the First Lady had some 
debts with the DNC from expenses associated with White House 
Christmas parties. Chung believes Ryan mentioned a figure of 
$80,000.\154\ Chung also claims that Ryan told him that the 
request was on behalf of Williams, who hoped he could help the 
First Lady.\155\ Chung states that it was at this point that he 
offered to contribute $50,000.\156\
---------------------------------------------------------------------------
    \154\ William Rempel and Alan Miller, ``First Lady's Aide Solicited 
Check to DNC,'' Los Angeles Times, July 27, 1997 (Exhibit 1).
    \155\ Id.
    \156\ Id.
---------------------------------------------------------------------------
    Ryan testified that she did leave Chung to speak with 
Williams about the requests, and mentioned that Chung told her 
he would be donating to the DNC.\157\ According to Ryan, 
Williams told her that they would see what they could arrange 
for him, and that perhaps his donation would enable the DNC to 
pay off their debts to the White House.\158\ Ryan stated that 
she never told Chung about the debts the DNC owed the White 
House, nor did she ever mention a figure of $80,000.\159\
---------------------------------------------------------------------------
    \157\ Deposition of Evan Ryan, pp. 108-09.
    \158\ Id. pp. 109-110.
    \159\ Id. pp. 110-11.
---------------------------------------------------------------------------
    Williams has testified that she recalls Ryan asking if she 
could set up the requests for Chung.\160\ However, Williams 
states that she never mentioned to Ryan what Chung's donation 
to the DNC would be used for.\161\
---------------------------------------------------------------------------
    \160\ Deposition of Maggie Williams, pp. 241-42.
    \161\ Id. p. 258.
---------------------------------------------------------------------------
    It is unlikely that Chung would have been aware of DNC 
debts to the White House unless he had been informed of them by 
someone who worked there. Given that Ryan recalls Williams 
discussing the DNC debt with her, and that Chung recalls Ryan 
discussing the debt with him, it is reasonable to conclude that 
the DNC debts to the White House were discussed with Chung at 
the First Lady's office. However, without sworn testimony from 
Chung, it is not possible to determine if this occurred before 
or after he offered his contribution.
    Internal memoranda demonstrate that the First Lady's office 
was being kept appraised of the unpaid debts for the holiday 
receptions. White House records of reimbursable political 
events held at the White House in December 1994 show a bill of 
$236,060.90 for various Christmas Holiday Receptions.\162\ 
These records indicate that the billing date for these 
receptions was February 23, 1995 and the bill was paid in July 
1995.\163\ A March 24, 1995 memo for Maggie Williams from the 
Chief White House Usher, Gary Walters, addressed the issue of 
unpaid bills for collection ``issued by the Executive Residence 
at the White House for fiscal years 1994 and 1995.'' \164\ The 
memo stated: ``It is very obvious that unpaid bills are 
attributed to the DNC.'' \165\ Mr. Walters' memo at this time 
notes various ``Holiday events'' in 1994 as being $41,291 and 
``partially paid by the DNC.'' \166\ At this time Walters noted 
that there was $135,345.25 to be paid by the DNC for fiscal 
year 94.\167\ In the memo, Walters noted that there was a 
``partial payment of $198,714.56'' paid on March 15, 1995.\168\
---------------------------------------------------------------------------
    \162\ Fiscal year 1998 Treasury Postal Appropriations Hearing held 
on Mar. 11, 1997.
    \163\ Id.
    \164\ DNC 3078128-30 (Exhibit 49).
    \165\ Id.
    \166\ Id.
    \167\ Id.
    \168\ Id.
---------------------------------------------------------------------------
    Regarding the delivery of the check, Chung claims that he 
returned the next day and presented Ryan with an unsealed 
envelope.\169\ According to Chung, Ryan examined the contents 
of the envelope. There was a note inside the envelope that 
stated: ``Maggie--I do my best to help. Johnny Chung.'' \170\ A 
short time later, Williams joined them and Ryan handed her the 
check.\171\ Ryan has testified that Chung insisted that he give 
the check to Williams, and that she arranged for him to do 
so.\172\ Williams has testified that Chung did hand her an 
envelope, but she never looked at the contents.\173\ Williams 
does not recall Chung handing her any note.\174\
---------------------------------------------------------------------------
    \169\ William Rempel and Alan Miller, ``First Lady's Aide Solicited 
Check to DNC,'' Los Angeles Times, July 27, 1997 (Exhibit 1).
    \170\ Id.
    \171\ Id.
    \172\ Deposition of Evan Ryan, p. 117.
    \173\ Deposition of Maggie Williams, pp. 240-41, 248.
    \174\ Id. p. 296.
---------------------------------------------------------------------------
    Chung also stated that he asked Ryan if the First Lady was 
aware of his donation and she replied that she knew.\175\ 
According to Ryan's testimony, Chung never asked her if the 
First Lady was aware of his donation, and further, he had not 
handed Williams the check until after his photo with the First 
Lady.\176\
---------------------------------------------------------------------------
    \175\ William Rempel and Alan Miller, ``First Lady's Aide Solicited 
Check to DNC,'' Los Angeles Times, July 27, 1997 (Exhibit 1).
    \176\ Deposition of Evan Ryan, pp. 117-18, 125.
---------------------------------------------------------------------------

9. The President's Radio Address

    It appears that the First Lady's office was able to fulfill 
all of Chung's requests, as outlined in his February 27 letter, 
except for the most important--an invitation to the President's 
radio address. During his testimony before the Senate 
Governmental Affairs Committee on September 9, 1997, DNC Co-
Chairman Don Fowler was questioned about his knowledge of how 
Johnny Chung and his Chinese delegation were able to attend the 
radio address. Mr. Fowler testified that he did not become 
aware of Chung's attendance at the radio address until sometime 
after the election. His assistant, Carol Khare, was involved 
with this, and he questioned her about it. Ms. Khare told Mr. 
Fowler:

        She received a call from Mr. Chung and he asked her if 
        he could attend the radio address. This was a 
        relatively short period of time after we had come to 
        Washington. She did not know anything about the process 
        or procedures for arranging such a visit. And, so, she 
        walked out into this area where three or four people 
        who work in my office were sitting and just posed the 
        general question, does anybody know how you get into 
        the President's radio address?

        And one the people there said, a friend of mine who 
        works in the White House arranged for people to get in 
        to those addresses. And, so, Mrs. Khare asked this 
        person to call her friend and make the inquiry. This 
        person did make that call and the word back was that 
        her friend, unnamed, and I do know that persons' name, 
        said that he or she would arrange if it [sic] possible. 
        She reported that back to Mrs. Khare, and Mrs. Khare 
        called Johnny Chung back and gave him that 
        information.\177\
---------------------------------------------------------------------------
    \177\ Fowler Senate Governmental Affairs testimony, Sept. 9, 1997 
at p. 209.

    Fowler testified that Ceandra Scott was the person who 
contacted a friend at the White House.\178\ Mr. Fowler did not 
know the person contacted at the White House.
---------------------------------------------------------------------------
    \178\ Id. p. 210.
---------------------------------------------------------------------------
    During her deposition, Ms. Khare explained that Chung had 
contacted her by phone and asked for help.\179\ Khare was not 
aware at the time that people attended the radio 
addresses.\180\ Khare asked the staff assistants if they know 
whether they could get people into the radio address.\181\ 
Ceandra Scott said that she knew someone at the White House who 
handled the addresses and would call them.\182\ According to 
Khare, Ms. Scott called her contact immediately.\183\ Scott 
returned to Khare and told her that Chung and the delegation 
could attend the radio address.\184\
---------------------------------------------------------------------------
    \179\ Khare deposition at p. 34.
    \180\ Id.
    \181\ Id.
    \182\ Id. pp. 34-35.
    \183\ Id. p. 37.
    \184\ Id. p. 39.
---------------------------------------------------------------------------
    Using the number that Chung had provided, Khare contacted 
Chung at the First Lady's office. Khare explained that she knew 
it was the First Lady's office because they answered the phone, 
``Office of the First Lady.'' \185\
---------------------------------------------------------------------------
    \185\ Testimony of Ceandra Scott, House Committee on Government 
Reform and Oversight, p. 177.
---------------------------------------------------------------------------
    Ceandra Scott recalled contacting the First Lady's office 
late Friday afternoon to try to get Chung and the delegation 
into the radio address. Scott was not certain if she spoke with 
Williams or someone else.\186\ Shortly thereafter, she got a 
call back from the First Lady's office and was told that Chung 
and the delegation could attend.\187\
---------------------------------------------------------------------------
    \186\ Id. p. 211.
    \187\ Id.
---------------------------------------------------------------------------
    Chung and the delegation did attend the radio address on 
March 11, 1995. At the conclusion of the address, Chung 
introduced the President to his Chinese associates. Pictures 
were taken with the President and each delegation member. In 
addition, the delegation presentedthe President with a large 
heart-shaped piece of jade.\188\ All of this was captured on videotape 
by the White House photographer's office.
---------------------------------------------------------------------------
    \188\ EOP 063827 (Exhibit 50).
---------------------------------------------------------------------------

10. National Security Council Staffers Raise Concerns About Chung

    According to Nancy Hernreich's Senate deposition, the 
President become concerned about the delegation after having 
had his picture taken with them:

          A. As I recall it, the President said to me, ``You 
        shouldn't have done that,'' or we shouldn't have done 
        that.''
          Q: Done what? Help me.
          A: Well, the Chinese, have the Chinese at that radio 
        address.
          Q: Why not?
          A: I don't know. He didn't say.
          Q: Did you have any understanding of what he was 
        talking about?
          A: Yes, generally.
          Q: What was your understanding?
          A: Well, that these were foreign, either officials 
        or, you know, inappropriate foreign people. This was my 
        understanding of that.\189\
---------------------------------------------------------------------------
    \189\ Hernreich Senate deposition, June 20, 1997, at pp. 67-68.

    At this point, the National Security Council was brought 
into the picture. White House aide Kelly Crawford testified in 
her deposition that she has a vague recollection that the 
President asked either Hernreich or herself who the delegation 
was, where their request came from and why they were 
there.\190\ The President also inquired as to whether anyone at 
the National Security Council knew that the delegation was 
attending the radio address.\191\ Crawford has a vague 
recollection that she took the list of names of the delegation 
to Nancy Soderberg or to Tony Lake's office to have them 
determine if there was a ``problem'' with any of the 
names.\192\
---------------------------------------------------------------------------
    \190\ Deposition of Kelly Crawford, p. 50.
    \191\ Id. p. 51.
    \192\ Id. p. 54.
---------------------------------------------------------------------------
    As the NSC's Director for Asian Affairs, Robert Suettinger 
was the logical choice to vet Johnny Chung's guests. 
Suettinger, a CIA detailee to the NSC and an expert on Asian 
affairs, evidently was contacted by Brooke Darby--an assistant 
to NSC Staff Director Nancy Soderberg--about Chung's request 
that the White House release photographs of the President with 
the China delegation.\193\
---------------------------------------------------------------------------
    \193\ EOP005438 (Exhibit 51).
---------------------------------------------------------------------------
    Darby's e-mail to Suettinger was on behalf of Presidential 
assistant Nancy Hernreich, who was ultimately responsible for 
deciding whether or not to release the photographs to Chung. 
The e-mail was also sent to Stanley Roth, the Senior Director 
for Asian Affairs, and another NSC staffer, Roseanne Hill. 
According to Darby:

        An odd situation on which I need some guidance for the 
        President's office asap:

        A couple of weeks ago . . . the head of the DNC asked 
        the President's office to include several people in the 
        President's Saturday Radio Address. They did so, not 
        knowing anything about them except that they were DNC 
        contributors.

        It turns out that they are various Chinese gurus and 
        the POTUS \194\ wasn't sure we'd want photos of him 
        with these people circulating around. Johnny Chung, one 
        of the people on the list, is coming in to see Nancy 
        Hernreich tomorrow and needs to know urgently whether 
        or not she can give him the pictures. Could you please 
        review the list ASAP and give me your advice on whether 
        we want these photos circulating around? (FYI--These 
        people are major DNC contributors and if we can give 
        them the photos the President's office would like to do 
        so.) \195\
---------------------------------------------------------------------------
    \194\ President of the United States.
    \195\ EOP005438 (Exhibit 51).

    Suettinger did not object to releasing the photographs to 
Chung, but he issued an explicit warning about him for future 
---------------------------------------------------------------------------
reference. His reply by e-mail is worthy of lengthy quotation:

        The joys of balancing foreign policy considerations 
        against domestic politics . . . I don't see any lasting 
        damage to U.S. foreign policy from giving Johnny Chung 
        the pictures. And to the degree that it motivates him 
        to continue giving to the DNC, who am I to complain? 
        Neither do I see any unalloyed benefit either. But as 
        far as the Chinese on the list are concerned, they all 
        seem to be bona fide (present or former) Chinese 
        officials, with the possible exception of James Y. Sun, 
        ``young entrepreneur and self made millionaire.'' Got 
        some doubts there. Notwithstanding that, these guys 
        will all hang the pictures on the wall and feel 
        grateful for the memory.

        But a caution--a warning of future deja vu. Having 
        recently counseled a young intern from the First Lady's 
        office who had been offered a ``dream job'' by Johnny 
        Chung, I think that he should be treated with a pinch 
        of suspicion. My impression is that he's a hustler, and 
        appears to be involved in setting up some kind of 
        consulting operation that will thrive by bringing 
        Chinese entrepreneurs into town for exposure to high 
        level U.S. officials. My concern is that he will 
        continue to make efforts to bring his friends into 
        contact with POTUS and FLOTUS \196\--to show one and 
        all that he is a big shot, thereby enhancing his 
        business ventures. I'd venture a guess that not all of 
        his business ventures--or those of his clients would be 
        ones that the President would support. I also predict 
        that he will become a royal pain, because he will 
        expect to get similar treatment for future visits. He 
        will be persistent.\197\
---------------------------------------------------------------------------
    \196\ First Lady of the United States.
    \197\ EOP005439 (Exhibit 52).

    Suettinger was interviewed by the Committee on August 20, 
1997. When asked about the aforementioned correspondence about 
Chung, he stated that Darby was acting on behalf of Nancy 
Soderberg. Darby wanted Suettinger to determine who Chung's 
``Chinese gurus'' were and whether the release of the photos 
would embarrass the President.\198\ He stated that he was not 
asked to vet these individuals prior to their invitation to the 
President's radio address, but after he received Darby's 
request, he checked his handbook of Chinese officials. After 
determining that the release of the photographs would not harm 
U.S. foreign policy, he claimed that in addition to warning 
Darby about Chung being a ``hustler,'' he also warned Stanley 
Roth.\199\ Suettinger was concerned that because of Chung's 
status as a DNC trustee he would get ``carte blanche'' 
treatment at the White House.\200\
---------------------------------------------------------------------------
    \198\ Committee interview of Robert Suettinger, Aug. 20, 1997.
    \199\ Senior Director for Asian Affairs at the NSC and Suettinger's 
direct superior.
    \200\ Committee interview of Robert Suettinger, Aug. 20, 1997.
---------------------------------------------------------------------------
    Even after Suettinger's warning, Chung was still permitted 
to visit the White House 23 times.\201\ When asked about 
Chung's many White House visits after the ``hustler'' warning, 
Suettinger expressed personal dismay. He stated to Committee 
investigators that his initial concerns about Chung were based 
on his knowledge of PRC and Taiwanese business practices, 
evidently referring to widespread influence peddling. 
Suettinger feared what he referred to as Chung's ``own agenda'' 
and felt that it was his responsibility to protect the 
President.\202\
---------------------------------------------------------------------------
    \201\ White House WAVES records (Exhibit 2).
    \202\ Committee interview of Robert Suettinger, Aug. 20, 1997.
---------------------------------------------------------------------------
    Darby was also interviewed by the Committee. Even though 
Suettinger did not recommend against releasing the pictures, 
Darby informed the President's staff that they should not 
release the photos.\203\
---------------------------------------------------------------------------
    \203\ Committee interview of Melanie Brooke Darby, August 1997.
---------------------------------------------------------------------------

11. The Spielberg Fundraiser--Chung Gets His Pictures

    Chung vigorously pursued the release of the radio address 
photos with the President through his numerous contacts. On 
April 5, 1995, Chung wrote to Maggie Williams, requesting her 
assistance in having the photos released before his upcoming 
trip to China.\204\ Chung wrote, ``I have learned from Richard 
Sullivan of DNC that the National Security Council is holding 
on to those pictures.'' \205\ However, the photos were not 
released until after Chung contributed an additional $125,000 
at an April 8 DNC fundraiser at the home of Director Steven 
Spielberg.
---------------------------------------------------------------------------
    \204\ JCH15013 (Exhibit 53).
    \205\ Id.
---------------------------------------------------------------------------
    It appears that this donation, by far the biggest Chung 
ever gave, was at least partially underwritten by AISI 
shareholder Yi Chen (George) Liu. According to AISI records, 
Liu purchased $100,000 of AISI stock on July 12, 1994.\206\ He 
purchased another $150,000 worth of stock on November 4, 
1996.\207\ Liu's business card describes him as ``Special 
Assistant to the Chairman, AISI,'' and lists AISI's California 
and Taiwan offices.\208\ Liu and his father toured the White 
House in 1995 and attended a Kathleen Brown for Governor event 
in San Francisco.\209\
---------------------------------------------------------------------------
    \206\ JCH13699 (Exhibit 54).
    \207\ Id.
    \208\ Documents produced by Gina Ratliffe.
    \209\ JCH13699 (Exhibit 54).
---------------------------------------------------------------------------
    Liu accompanied the ``China Delegation'' to the White House 
in March 1995.\210\ He also accompanied Chung on his April trip 
to China,\211\ the trip for which Chung was desperate to 
acquire these photos. On April 8, 1995, Liu paid Chung 
$100,000.\212\ That same day, Chung contributed $125,000 to the 
DNC in order to attend a fund-raiser at Steven Spielberg's 
home.\213\ Liu accompanied Chung to the event.\214\
---------------------------------------------------------------------------
    \210\ DNC3233326-3233332 (Exhibit 33).
    \211\ Deposition of Gina Ratliffe, p. 118.
    \212\ N0209 (Exhibit 55).
    \213\ JCH797 (Exhibit 56).
    \214\ JCH13699 (Exhibit 54).
---------------------------------------------------------------------------
    In her deposition, Chung's assistant, Gina Ratliffe, 
describes Liu in this way: ``George had a ton of money of his 
own . . . George just seemed to have fun with life.'' \215\
---------------------------------------------------------------------------
    \215\ Deposition of Gina Ratliffe, p. 119.
---------------------------------------------------------------------------
    On April 11, 1995, 3 days after the Spielberg event, Chung 
received a fax from Carol Khare in Don Fowler's office: ``The 
White House assures me that you now have the pictures--Hurray! 
If you don't, give me a call. Have a good trip.'' \216\
---------------------------------------------------------------------------
    \216\ JCH15021 (Exhibit 57).
---------------------------------------------------------------------------
    Both Hernreich and Crawford testified at the Committee's 
November 13 hearing that they believed the photos were not 
released to Chung. However, Gina Ratliffe, a former intern in 
the First Lady's office who went to work for Chung, testified 
that she went to the White House to pick up the photos prior to 
her departure to China with Chung.\217\
---------------------------------------------------------------------------
    \217\ Deposition of Gina Ratliffe, pp. 62, 70.
---------------------------------------------------------------------------
    Chung was accompanied on his subsequent trip to China by 
his assistant, Ratliffe. She was an intern in the First Lady's 
office when Chung hired her to handle logistics and social 
arrangements for groups that he brought to Washington. They 
left for China on April 12, 1995, and returned on April 
25.\218\
---------------------------------------------------------------------------
    \218\ Id. p. 92.
---------------------------------------------------------------------------
    Ratliffe states in her deposition that they spent a great 
deal of time with officials from the Haomen Group and China 
Petrochemical.\219\ She also states that James Sun, the Chinese 
entrepreneur who attended the Radio Address at the White House, 
came to Beijing to meet them.\220\ During the trip, Chung's 
group visited the Forbidden City to visit Vice Premiere 
Lee.\221\
---------------------------------------------------------------------------
    \219\ Id. pp. 97, 100.
    \220\ Id. p. 121.
    \221\ Id. pp. 101-102.
---------------------------------------------------------------------------

              Chung Tries To Assist in Releasing Harry Wu

    Chung's actions in the summer of 1995 indicate that 
Suettinger's concerns about his personal White House ``agenda'' 
were well founded. On July 25, Chung's assistant at AISI, Irene 
Wu, faxed a letter on Chung's behalf to Presidential aide Betty 
Currie requesting that President Clinton write a ``credential 
letter'' for Chung's forthcoming trip to China.\222\ On the 
same day, Chung also faxed Currie on the same subject,\223\ 
enclosing a letter he received from DNC Chairman Don Fowler 
that commended Chung for his efforts ``to build a bridge 
between the people of China and the United States'' and for 
being ``a friend and a great supporter of the DNC.''\224\
---------------------------------------------------------------------------
    \222\ JCH 466 (Exhibit 58).
    \223\ JCCH 467 (Exhibit 59).
    \224\ EOP005057 (Exhibit 60).
---------------------------------------------------------------------------
    Chung planned to use his trip to China in late summer 1995 
to play the role of unofficial White House envoy in 
facilitating the release of imprisoned human rights activist 
Harry Wu. Wu, a Chinese-born American human rights activist, 
was arrested and detained in Wuhan Province \225\ earlier in 
the summer by PRC authorities when he attempted to enter China 
secretly.\226\ His detainment caused an uproar in the 
international community; California Senator Diane Feinstein and 
her husband Richard Blum--both of whom have high-level Chinese 
contacts--traveled to Beijing to aid in the Wu 
negotiations.\227\ The arrest and outcry presented Chung with 
an opportunity to raise his profile with Beijing and the White 
House by attempting to portray himself as the President's 
personal envoy in seeking Wu's release.
---------------------------------------------------------------------------
    \225\ Rone Tempest, ``U.S. citizen detained by China,'' Los Angeles 
Times, June 27, 1995 (Exhibit 61).
    \226\ ``Do Human Rights Change with Political Agendas?'' The 
Columbus Dispatch,  Sept. 1, 1995 (Exhibit 62).
    \227\ Elaine Sciolino, ``Summit in Washington: The Politics; A 
Chinese Visitor Comes Between Longtime California Allies,'' New York 
Times, Oct. 30, 1997 (Exhibit 63).
---------------------------------------------------------------------------
    Troubled by Wu's arrest, Chung sought to talk to the 
President at a DNC reception in California in July 1995. When 
he spoke to the President in the receiving line, Chung told him 
of his intention to use his own contacts in China to press for 
Wu's release.\228\ Chung recalls that the President encouraged 
him, jabbing the air with his finger and saying that he should, 
``Tell them they have no right to arrest U.S. citizens.'' 
According to Chung, the President said, ``We have enough 
problems between our countries. We don't need any more.'' Chung 
recalls that as he stepped away, Clinton called him back, 
pointing a finger at Chung's heart and repeating: ``Johnny--
tell them.'' \229\
---------------------------------------------------------------------------
    \228\ William Rempel, ``How Big Clinton Contributor Turned into 
Freelance Envoy,'' Los Angeles Times, Mar. 2, 1997 (Exhibit 64).
    \229\ Id.
---------------------------------------------------------------------------
    Chung left the reception convinced that he was an envoy 
representing the interests of the President of the United 
States, charged with obtaining the release of Harry Wu.
    On July 24, 1995, Janice Enright, Assistant to Deputy Chief 
of Staff Harold Ickes, sent a memorandum to National Security 
Advisor Anthony Lake documenting a telephone call she had with 
the Executive Director of the DNC, Bobby Watson, concerning 
Chung. Watson had alerted Enright about Chung's plans to visit 
China to negotiate for Wu's release on behalf of the 
President.\230\ The memo stated:
---------------------------------------------------------------------------
    \230\ 003626 (Exhibit 65).

        Apparently, Johnny Chung, A DNC Trustee, is traveling 
        with a group of people to China and meeting with the 
        President of China this week. His mission is to 
---------------------------------------------------------------------------
        negotiate the release of Harry Woo.

        2Mr. Watson wanted to alert us that Mr. Chung plans to 
        represent to the President of China that he is 
        sanctioned by President Clinton in his efforts to get 
        Mr. Woo released. He bases this representation on the 
        fact that he recently saw the President during his trip 
        to California and mentioned to him (I believe on a 
        photo line) what he was doing in this regard. 
        Apparently, the President was supportive. To what 
        extent, is unclear but nevertheless, it is being 
        construed as a validation and will be represented that 
        way to the President of China.\231\
---------------------------------------------------------------------------
    \231\ Id.

    The NSC's Robert Suettinger was tasked to investigate the 
---------------------------------------------------------------------------
matter and concluded that:

        Johnny Chung's attempt to get Harry Wu released is very 
        troubling, in part because I was not able to contact 
        the DNC in time to get them to discourage Chung from 
        involving himself in this diplomatically difficult and 
        high stakes issue.\232\
---------------------------------------------------------------------------
    \232\ Committee interview of Robert Suettinger, Aug. 20, 1997.

    While Chung was unsuccessful in getting a credential letter 
from the President, he did receive something similar from DNC 
Co-Chairman Don Fowler, a matter of some concern at the NSC. 
Suettinger stated that ``the credential letter that the DNC 
provided was one thing and all we can do is hope that the 
Chinese recognize that his message should be treated with 
caution.'' \233\
---------------------------------------------------------------------------
    \233\ Id.
---------------------------------------------------------------------------
    According to the Los Angeles Times, in the summer of 1995, 
the Chairman of China Petrochemical, Huaren Sheng, arranged for 
Chung to meet with a senior official from the Chinese foreign 
ministry in Beijing to discuss the detention of Wu.\234\ At 
this point, the Committee is unable to determine what if any 
impact Chung's meddling in this tense situation might have had. 
However, it is troubling that, when so many people at the DNC 
and the White House had been put on notice that Chung was 
preparing to intrude into a sensitive diplomatic matter, nobody 
intervened.
---------------------------------------------------------------------------
    \234\ William Rempel and Alan Miller, ``Donor's Claim of Altered 
O'Leary Letter Investigated,'' Los Angeles Times, Sept. 22, 1997 
(Exhibit 66).
---------------------------------------------------------------------------

                      The Century City Fundraiser

    September 1995 brought the political event that would 
eventually prove to be Johnny Chung's legal undoing. Chung 
brought a large group of Chinese associates to a Clinton/Gore 
'96 fundraising dinner in Century City, California on September 
21. He attempted to pay for his guests with a large, soft money 
contribution to the DNC. However, Clinton/Gore could not 
legally accept contributions in excess of $1,000 from a single 
individual. The next day, Chung enlisted his employees to 
generate a series of $1,000 conduit contributions to pay for 
the event. This scheme was the certerpiece of the criminal 
information filed by the Justice Department to which Chung pled 
guilty in March 1998.\235\
---------------------------------------------------------------------------
    \235\ Associated Press ``Fund-Raiser Chung Pleads Guilty,'' the 
Washington Post, Mar. 17, 1998 (Exhibit 5).
---------------------------------------------------------------------------
    In 1995, Chung became a member of the Clinton/Gore '96 
Southern California Finance Council by making a commitment to 
Clinton/Gore National Finance Chairman Terry McAuliffe to raise 
$100,000 for the campaign.\236\ Chung was later pressed to 
fulfill his commitment. He received an August 5 form letter 
from the campaign urging him to line up guests for the Century 
City dinner.\237\ As the September 21 dinner approached, Chung 
was contacted by Kimberly Ray, Deputy Finance Director for 
Southern California for Clinton/Gore '96. Ms. Ray wrote, 
``Please send list of names for seating arrangements . . . 
Johnny, I'm not showing any individual commitments or 
contributions toward your 100K commitment you made to Terry. 
Time is running out. Please advise.'' \238\
---------------------------------------------------------------------------
    \236\ JCH12214 (Exhibit 67).
    \237\ Id.
    \238\ JCH12220 (Exhibit 68).
---------------------------------------------------------------------------

1. The Guest List

    On September 19, 1995, Chung faxed a guest list of 24 
people to Karen Sternfeld, Clinton/Gore `96 Deputy Finance 
Director for southern California.\239\ The list included 
himself and his wife, his parents, and several AISI employees 
and stockholders. It also included a dozen Chinese nationals 
who were not eligible to contribute to Clinton/Gore. Prominent 
on the list were the President and Assistant President of the 
Haomen Group, Shi Zeng Chen and Yei Jun He. According to 
testimony from Chung's assistant, Irene Wu, most of the 
remaining overseas guests were friends and associates of Mr. 
He.\240\ As noted earlier, Wu has testified that the Haomen 
Beer officials were Chung's first substantial contacts in 
China, and that they introduced Chung to many other people.
---------------------------------------------------------------------------
    \239\ JCH15023 (additional information is italicized) (Exhibit 42).
    \240\ Deposition of Irene Wu, pp. 34-36.
---------------------------------------------------------------------------
    Chung went on to develop business relationships with 
several of these individuals, including Bin Liu, who has been 
identified as the son of a high-ranking Chinese general.\241\ 
The list includes two other Chinese nationals with whom Chung 
went on to form companies in Los Angeles: Mr. Shijin Yu of 
Honestwin Limited, and Bao Jian Cui of the Great Wall 
International Culture Company. These relationships will be 
detailed in a later section of this chapter.
---------------------------------------------------------------------------
    \241\ Id. p. 225.
---------------------------------------------------------------------------
    According to Karen Sternfeld, Johnny Chung brought a 
$25,000 check made out to the Democratic National Committee 
(``DNC'') to the Century City event.\242s\ Sternfeld later 
explained to Chung that contributions to Clinton/Gore '96 were 
limited to $1,000 per individual for the primary election, and 
that his $25,000 check to the DNC was not acceptable.\243\
---------------------------------------------------------------------------
    \242\ Deposition of Karen Sternfeld, Mar. 10, 1998, p. 40.
    \243\ Id.
---------------------------------------------------------------------------

2. Arranging Straw Donors

    The following morning, Sternfeld phoned Irene Wu at the 
AISI offices. She informed Wu that she had Chung's check, but 
that she could not accept it. She told Wu that they could only 
accept checks of up to $1,000. Wu informed Sternfeld that most 
of Chung's guests had already left, and it would be difficult 
for her to get individual checks. Accordicng to Wu, Sternfeld 
told her that the individuals who contributed did not 
necessarily have to be the same individuals who attended the 
event.\244\
---------------------------------------------------------------------------
    \244\ Deposition of Irene Wu, pp. 41-42.
---------------------------------------------------------------------------
    Sternfeld told Wu that she and her colleagues from the 
campaign would be at a restaurant that evening, and that Wu 
could deliver the checks to her there.\245\
---------------------------------------------------------------------------
    \245\ Id. pp. 78-79.
---------------------------------------------------------------------------
    When Chung arrived at the AISI offices, he entered Wu's 
office and asked her to help him enlist people to write checks 
to Clinton/Gore '96 in return for cash. According to Wu:

        When he walked in, we knew we had to take care of this, 
        so we started talking about it, what needs to be done. 
        And so he said, ``we have to find the individual 
        checks.'' And I understood it as part of my job in 
        assisting him that I would have to call around and get 
        the checks together.\246\
---------------------------------------------------------------------------
    \246\ Id. p. 40.

    When Ms. Wu was initially contacted by Committee 
investigators in October 1997, she asserted her Fifth Amendment 
right to remain silent and declined to be interviewed. The 
Committee voted to immunize Wu and co-worker Nancy Lee on June 
23, 1998. Wu and Lee were deposed in California by Committee 
staff on July 28 and July 29, 1998, respectively.
    Wu said that she and other AISI employees assisted Chung in 
distributing $1,000 cash payments to friends and co-workers in 
return for $1,000 checks made payable to Clinton/Gore '96.\247\ 
Committee investigators have interviewed 20 individuals, 
including Wu and Lee, who wrote those checks in exchange for 
cash. Though their accounts vary somewhat as to what day they 
made their contributions, they acknowledge doing so shortly 
after the date of the event.
---------------------------------------------------------------------------
    \247\ Id.
---------------------------------------------------------------------------
    The testimony of Sternfeld's supervisor, Clinton/Gore '96 
Southern California Finance Director Kimberly Ray, is 
essentially consistent with that of Sternfeld.\248\ Both Ray 
and Sternfeld deny having any knowledge that Chung reimbursed 
anyone for their contributions to Clinton/Gore '96.\249\
---------------------------------------------------------------------------
    \248\ See generally, deposition of Kimberly Ray, July 30, 1998.
    \249\ Deposition of Kimberly Ray p. 41; deposition of Karen 
Sternfeld pp. 43, 62.
---------------------------------------------------------------------------

3. Nancy Lee and Maxtech

    After writing a check of her own for $1,000 to the Clinton/
Gore campaign and being reimbursed by Chung, Irene Wu phoned 
Nancy Lee.\250\ Lee worked as a part-time bookkeeper for AISI 
in the evenings. During the day, she worked for Maxtech, a 
computer peripheral manufacturer in Los Angeles. Wu asked Lee 
to write a check to Clinton/Gore, which she did, and to get 
similar checks from as many coworkers as possible. All of the 
donors would be reimbursed that day.\251\
---------------------------------------------------------------------------
    \250\ Deposition of Irene Wu, pp. 38-39, 45.
    \251\ Deposition of Nancy Lee, pp. 34, 27-29.
---------------------------------------------------------------------------
    Lee secured $1,000 checks from five coworkers at Maxtech; 
Kathy Chiang, Brenda Hwang, Joyce Tsao, Anna Kulesza, and Mike 
Wang.\252\ Later that day, she received cash to reimburse her 
coworkers from Johnny Chung's wife, Katherine.\253\
---------------------------------------------------------------------------
    \252\ Id. pp. 35-40.
    \253\ Deposition of Irene Wu, pp. 47-49. Wu stated that she 
overheard Johnny Chung ask his wife to deliver the money to Lee.
---------------------------------------------------------------------------
    In late October 1997, Committee investigators interviewed 
Anna Kulesza, Joyce Tsao, and Mike Wang at the offices of 
Maxtech. All three confirmed that they were separately asked by 
co-worker Nancy Lee to write $1,000 checks to Clinton/Gore '96, 
and that they were reimbursed in cash. Ms. Kulesza also told 
investigators that Ya-Hui Kao (Brenda) Hwang, who also had 
contributed $1,000 to Clinton/Gore '96, passed away in early 
1996. They said that they had never made political 
contributions and explained that they wrote the checks as a 
favor to Nancy Lee. They said that they did not know the legal 
implications of being reimbursed for their contributions.\254\
---------------------------------------------------------------------------
    \254\ Staff interview of Anna Kulesza, Hsi-chun Tsao Kang, Yen-Wen 
Wang, Jan. 27, 1998.
---------------------------------------------------------------------------
    In January 1998, Committee investigators interviewed Kathy 
Chiang at the Maxtech offices. Like the others, she confirmed 
that Nancy Lee asked her to write a $1,000 check to Clinton/
Gore '96 in exchange for cash. Ms. Chiang said that she did not 
have sufficient funds in her checking account to cover the 
check. Ms. Chiang filled out a deposit slip, and Nancy Lee 
deposited the cash into her account.\255\
---------------------------------------------------------------------------
    \255\ Staff interview of Li-Chuan ``Kathy'' Chiang, Oct. 23, 1997.
---------------------------------------------------------------------------
    None of the Maxtech employees who made conduit 
contributions to Clinton/Gore '96 attended the September 1995 
Century City fund-raising event.

4. Woody Hwang and Victoria Financial Services

    Irene Wu also enlisted the aid of her ex-husband, Woody 
Hwang, in securing checks for the event. Through his attorney, 
Woody Hwang asserted his Fifth Amendment right to remain silent 
on January 27, 1998, and declined to speak with Committee 
investigators. Through interviews and depositions, the 
Committee has learned that Hwang secured seven $1,000 checks, 
including his own, to the Clinton/Gore campaign, and delivered 
them to Wu in exchange for an equal amount of cash.\256\
---------------------------------------------------------------------------
    \256\ Deposition of Irene Wu, pp. 62-71.
---------------------------------------------------------------------------
    In late January 1998, committee investigators visited the 
offices of Victoria Financial Services (formerly Amazon 
Financial). They interviewed employee Chun Ju Cheng about 
contributions that she and other employees of that company made 
to Clinton/Gore '96. Ms. Cheng said that Irene Wu used to work 
for Pacific Title Company, which conducted business with 
Victoria Financial. Ms. Cheng said that she and other Victoria 
employees met Woody Hwang through Irene Wu.
    Ms. Cheng said that Woody Hwang came to the offices of 
Victoria Financial and asked several employees to write 
contribution checks in exchange for cash. Ms. Cheng said that 
she and the others agreed to do so in order to assist a friend. 
She said that Mr. Hwang reimbursed the contributors with cash 1 
or 2 days later.
    Ms Cheng said that she wrote two checks. One on her 
account, and another on an account that she shares with her 
mother-in-law; Meng Eng Sun. Ms. Cheng said that her sister-in-
law, Yen Ling Shao, also wrote a check at Woody Hwang's 
request. Ms. Cheng said that Shao is 62 years of age, never 
worked for Victoria Financial, and is currently residing in 
either China or Taiwan.
    Ms. Cheng and a co-worker named Serena Cheng, who did not 
make a contribution to Clinton/Gore '96, witnessed Woody 
Hwang's solicitation of Susan Tan, who also wrote a check. 
Susan Tan did not work for Victoria Financial. They said that 
Tan was visiting the United States and is currently overseas. 
Serena Cheng and Chun Ju Cheng said they do not know another 
contributor named William Cheng, who also listed Victoria 
Financial as his employer when he contributed $1,000 to 
Clinton/Gore '96.
    Ms. Cheng said that neither she nor the others who 
exchanged checks for cash were aware that such action was 
illegal at the time that the exchanges were made. None of the 
employees attended a fund-raising event for Clinton/Gore '96 in 
connection with their contributions.\257\
---------------------------------------------------------------------------
    \257\ Staff interview of Chun Ju Cheng and Serena Cheng, Jan. 23, 
1998.
---------------------------------------------------------------------------

5. Steven Lin, Chin Lin, and Annie Ho

    Committee investigators also interviewed Steven Lin in late 
January 1998. He said that his wife, whose maiden name is Annie 
Ho, used to work part-time at AISI.
    Steven Lin said that Annie Ho asked him and his sister, 
Chin Lin, to write a check with the understanding that they 
would be reimbursed. Steven Lin, Annie Ho and Chin Lin each 
wrote a $1,000 check to Clinton/Gore '96. Lin said that another 
AISI employee picked up the checks from Ms. Ho at the office of 
her other part-time employer. Ms. Ho reimbursed Steven Lin and 
Chin Lin the next day in cash.\258\
---------------------------------------------------------------------------
    \258\ Staff interview of Steven Lin, Jan. 27, 1998.
---------------------------------------------------------------------------
    Shortly after speaking to Steven Lin, committee 
investigators contacted Annie Ho at her home by telephone. Ms. 
Ho confirmed that she asked Steven Lin and his sister to write 
checks to Clinton/Gore '96 in exchange for cash, but could not 
remember whether it was Irene Wu or Nancy Lee who asked her to 
make that request.\259\
---------------------------------------------------------------------------
    \259\ Staff interview of Annie Ho, Feb. 2, 1998.
---------------------------------------------------------------------------

6. Xiaodong Shan and Tina Wang

    Committee investigators also interviewed El Camino Junior 
College professor Xiaodong (David) Shan in late January 1998. 
When asked about a $1,000 check that he wrote to Clinton/Gore 
'96, Mr. Shan said that he wrote the check at the request of a 
friend named Tina Wang, who worked for Johnny Chung. He said 
that Ms. Wang immediately reimbursed him for his check with 
cash. He said that he never attended a party or political event 
for Clinton/Gore '96 in connection with the check and was 
unaware that it is unlawful to be reimbursed for political 
contributions.\260\
---------------------------------------------------------------------------
    \260\ Staff interview of David Shan, Jan. 28, 1998.
---------------------------------------------------------------------------
    A few days later, Committee investigators interviewed Tina 
Wang by telephone. She said that Irene Wu asked her and other 
AISI employees to write checks to Clinton/Gore '96 in exchange 
for cash. Ms. Wang said that she did not write a check because 
she did not have any with her at the time. Instead, she asked 
her friend, David Shan, to do so because he worked near her 
office in Torrance. Wang said that she did not attend a fund-
raising event in connection with Shan's contribution.\261\
---------------------------------------------------------------------------
    \261\ Staff interview of Tina Wang, Feb. 5, 1998.
---------------------------------------------------------------------------

                 China Petrochemical Company (SINOPEC)

1. Introduction

    By the fall of 1995, Chung's reputation in China for having 
access to the White House and the top levels of the Clinton 
Administration was well established. At this point, according 
to Chung, he was asked by the Chairman of the China 
Petrochemical Company (SINOPEC), Huaren Sheng, to set up 
meetings for him with President Clinton and Secretary of Energy 
Hazel O'Leary.\262\
---------------------------------------------------------------------------
    \262\ William Rempel and Alan Miller, ``Donor's Claim of Altered 
O'Leary Letter Investigated.'' Los Angeles Times, Sept. 22, 1997 
(Exhibit 66).
---------------------------------------------------------------------------
    Huaren Sheng had originally been scheduled to visit 
Washington with the ``China Delegation'' that Chung brought to 
the President's radio address in March 1995. However, he sent 
SINOPEC Vic President Yan Sanzhong in his place.
    According to the Los Angeles Times, Sheng had arranged in 
the summer of 1995 for Chung to meet with a senior official 
from the Chinese foreign ministry in Beijing to discuss the 
detention of human rights activist Harry Wu.\263\
---------------------------------------------------------------------------
    \263\ Id.
---------------------------------------------------------------------------
    One Energy Department memo described China Petrochemical, 
otherwise known as SINOPEC, as China's largest petrochemical 
company. The memo states that SINOPEC produces 90 percent of 
China's petrochemical products.\264\ A letter from Chung to 
Treasury Secretary Robert Rubin states that SINOPEC has 80 
subsidiaries and employs 700,000 people.\265\
---------------------------------------------------------------------------
    \264\ DOE00465 (Exhibit 69).
    \265\ Treasury 00000199 (Exhibit 70).
---------------------------------------------------------------------------
    In mid-October 1995, Huaren Sheng led a 10-person 
delegation from China Petrochemical to the United States 
apparently seeking to explore cooperative agreements with U.S. 
companies. According to a briefing paper prepared for Energy 
Secretary O'Leary, the delegation had planned to meet with 
officials from ``ARCO, AMOCO, DuPont, Dow, Honeywell and 
Phillips.'' \266\
---------------------------------------------------------------------------
    \266\ DOE00465 (Exhibit 69).
---------------------------------------------------------------------------
    Documents produced to the Committee, as well as depositions 
of officials at the Treasury Department who met with Sheng, 
indicate the purpose of the trip. SINOPEC was making plans to 
expand its purchases of high-sulfur crude oil from Saudi Arabia 
in the coming years, but it lacked refining capacity to process 
the oil. The SINOPEC executives were seeking long-term 
financing or cooperative agreements to expand their capacity.
    China Petrochemical's plight was spelled out in a letter 
Chung received from Yao Mu-Chao of SINOPEC's Planning and 
Research Division in December 1995:

        We have received your Nov. 21 letter to our President 
        Mr. Sheng and he had asked me to be in charge of this 
        issue to discuss with you the processing of crude oil 
        from the Saudi Arabia.

        As you are aware of, the resources of crude oil from 
        China is not sufficient for China's growing demand. For 
        the next several years, we would still need to purchase 
        crude oil from other countries. With reasonable terms 
        and conditions, we would like to steadily purchase from 
        Saudi Arabia. The only concern is that Saudi Arabia 
        crude oil contains a high volume of sulfur that we 
        would need to special process before it can be used by 
        our refineries. At the moment, SINOPEC's refineries are 
        not equipped to process a large volume of crude oil.

        According to our initial calculation, it is possible 
        for us to process eighty million tons of crude oil 
        within ten years. We wish to make arrangements such 
        that for the first 5 years of purchase, SINOPEC can 
        delay payment on one million tons of crude oil purchase 
        every year. SINOPEC will use the capital to concentrate 
        on developing and reconstructing a few refineries. . . 
        . We would like to thank you again for your help and 
        hard work on bridging SINOPEC and the US 
        businesses.\267\
---------------------------------------------------------------------------
    \267\ JCH13935 (Exhibit 71).

    Following a familiar pattern, Chung went to the DNC to try 
to arrange high-level meetings at the White House, the Energy 
Department, and the Treasury Department. As in previous 
instances, DNC Chairman Donald Fowler and DNC Finance Director 
Richard Sullivan were aggressive in helping Chung arrange these 
meetings. At this point, Chung had given more than $260,000 to 
the DNC.\268\
---------------------------------------------------------------------------
    \268\ FEC Internet Records--www.tray.com/fecinfo/ (Exhibit 3).
---------------------------------------------------------------------------
    On Tuesday, October 17, Chung appeared at DNC headquarters 
armed with copies of China Petrochemical's annual report.\269\ 
He also brought with him personal letters to Energy Secretary 
Hazel O'Leary and Treasury Secretary Robert Rubin asking them 
to meet with Mr. Sheng. The same day, the DNC faxed letters 
from Don Fowler to O'Leary and Rubin, calling Chung ``one of 
the top supporters of the Democratic National Committee,'' and 
asking them to meet with Huaren Sheng.\270\ Despite Richard 
Sullivan's stated reservations in March about helping Chung set 
up meetings for Chung's Chinese associates, the fax cover sheet 
to the Treasury Department bears Sullivan's name.\271\
---------------------------------------------------------------------------
    \269\ Deposition of Wilson Golden, pp. 11-12.
    \270\ JCH517 (Exhibit 72); Treasury 00000166-168 (Exhibit 73); 
DOE00375 (Exhibit 74).
    \271\ Treasury 00000166-168 (Exhibit 73).
---------------------------------------------------------------------------
    Chung also sought a meeting with Education Secretary 
Richard Riley, but was unsuccessful. Riley wrote to Chung on 
October 17, explained that he was unable to meet with Sheng, 
but offered a meeting with Undersecretary Mike Smith in his 
place.\272\
---------------------------------------------------------------------------
    \272\ JCH13055 (Exhibit 75).
---------------------------------------------------------------------------
    Ultimately, Chung secured a meeting for the Sheng 
delegation with Secretary O'Leary and the White House tour on 
October 19, a brief meeting with the President for the SINOPEC 
delegation that evening at the Africare dinner, and a meeting 
with Deputy Secretary of the Treasury Lawrence Summers on 
October 23. The trip to the Energy Department ignited a 
controversy over whether access to Secretary O'Leary had been 
exchanged for a $25,000 contribution to her favorite charity, 
Africare.

2. Hazel O'Leary, Africare, and the U.S. Department of Energy

    On Tuesday, October 17, while Chung was at the DNC 
enlisting Don Fowler's assistance for the China Petrochemical 
delegation, he had a chance meeting with lobbyist Wilson 
Golden.\273\ Golden was a consultant for ICF Kaiser, an 
international engineering firm with large contracts with the 
Department of Energy. Golden had been asked by Secretary 
O'Leary on October 5 to help raise money for the upcoming 
Africare dinner.\274\ O'Leary was an honorary chairwoman of the 
dinner, and was being pressed by its organizers to help raise 
funds for it.\275\ Golden and Chung met later that day at the 
Army-Navy Club. The sequence of events that followed led to a 
flurry of accusations of selling access to Secretary O'Leary 
and spawned a Justice Department investigation.
---------------------------------------------------------------------------
    \273\ Deposition of Wilson Golden, pp. 10-11.
    \274\ Id. pp. 21-24.
    \275\ DOE00483 (Exhibit 76); DOE00259 (Exhibit 77).
---------------------------------------------------------------------------
    On August 19, 1997, NBC Nightly News and Dateline NBC aired 
an interview of Chung by Tom Brokaw. Brokaw questioned Chung 
about his efforts to get a meeting with then Secretary O'Leary.

          Brokaw. You had some other Chinese friends come who 
        were in the petrochemical business.
          Chung. Yes, sir.
          Brokaw. You wanted to see Hazel O'Leary, who was then 
        the Energy Secretary.
          Chung. Yes, sir.
          Brokaw. You had a chance encounter with a lobbyist, 
        who--someone who was working with Ms. O'Leary.
          Chung. Yes, sir.
          Brokaw. And they knew that she had a favorite 
        charity. It's Africare, is that the name of it?
          Chung. Yes, sir.
          Brokaw. So what did they suggest to you?
          Chung. They can set it up, a meeting, for us. It 
        would be nice if you make a donation to Africare.
          Brokaw. Were you surprised when someone could get you 
        in to see Hazel O'Leary if you would write a check to 
        her favorite charity?
          Chung. I begin to understand a little bit, but I am 
        still a little bit surprised.
          Brokaw. Yeah. Who picked up the check?
          Chung. There's one gentleman, present himself as the 
        Energy Department official, and said I'm here to pick 
        it up, the $25,000 check.
          Brokaw. This is the check?
          Chung. This is the check.
          Brokaw. To Africare?
          Chung. To Africare.
          Brokaw. A charity that the Energy Secretary supports, 
        she sends over somebody from the Energy Department to 
        pick it up, and you get a meeting with her with a very 
        prominent Chinese petrochemical official.
          Chung. Yes.276
---------------------------------------------------------------------------
    \276\ NBC News Transcripts, NBC Nightly News, Aug. 19, 1997 
(Exhibit 78).

    Chung repeated the allegation to the Los Angeles Times. In 
an interview, Chung told the Times that Golden referred him to 
the Director of the Energy Department's Office of Economic 
Impact and Diversity, Corlis Moody. Chung told the Times that 
Moody agreed to set up the meeting with Secretary O'Leary, and 
---------------------------------------------------------------------------
asked him to contribute $25,000 to Africare in return:

        In Moody's office Chung asked to arrange a Sheng-
        O'Leary meeting and said that he was told ``no 
        problem.''

        In an interview with the Times last month, Chung said 
        Moody immediately added: ``It would be nice if you 
        provide a donation to Africare.'' Although Chung was 
        not familiar with the charity, he said he was willing 
        to donate if it meant he could confirm a meeting for 
        the visiting Chinese oilmen.

        ``I asked, how much? and she said $25,000 for a table'' 
        at a fund-raising dinner the next night, Chung 
        said.277
---------------------------------------------------------------------------
    \277\ William Rempel and Alan Miller, ``Donor's Claim of Altered 
O'Leary Letter Investigated,'' Los Angeles Times, Sept. 22, 1997 
(Exhibit 66).

    When Golden and Chung met at the Army-Navy Club, Golden was 
most interested in setting up a meeting between ICF Kaiser, his 
client, and SINOPEC.278 However, according to 
Golden, Chung was most interested in talking about himself and 
showing pictures.279 Golden was able to briefly 
discuss the Africare dinner, and mentioned that the event would 
cost $25,000 per table. He told Chung that both O'Leary and 
President Clinton would be there.280 Golden then 
gave Chung the name and phone number of Corlis Moody, and told 
him to contact her.281 Golden contacted Moody after 
his meeting to tell her to expect a call from 
Chung.282
---------------------------------------------------------------------------
    \278\ Deposition of Wilson Golden, p. 17.
    \279\ Id. pp. 19-20.
    \280\ Id. p. 27.
    \281\ Id.
    \282\ Id. at p. 26.
---------------------------------------------------------------------------
    Moody testified that she had two phone conversations with 
Chung that afternoon. She believes that she was first contacted 
by Chung about an hour after her call from 
Golden.283 Moody denies that she asked Chung to 
contribute to the Africare dinner. She stated that Chung 
volunteered to buy a table for the Africare dinner and asked 
that she help him make the arrangements. Chung also asked for a 
meeting with Secretary O'Leary.284 Moody told Chung 
that she would work on both requests.285
---------------------------------------------------------------------------
    \283\ Deposition of Corlis Moody, p. 54.
    \284\ Id. pp. 54-55.
    \285\ Id. p. 57.
---------------------------------------------------------------------------
    An hour or two later, Moody received another phone call 
from Chung. Chung wanted to know whether the meeting with the 
Secretary had been scheduled. Moody told him it had not. Chung 
also told her that he needed a formal, signed letter confirming 
the meeting with the Secretary. Moody testified that she tried 
to explain to Chung that he could not get a letter that night 
confirming a meeting that had not been scheduled.286
---------------------------------------------------------------------------
    \286\ Id. pp. 60-61.
---------------------------------------------------------------------------
    Moody described the conversation as being very long, 
starting when the sun was up, and ending after the sun had gone 
down. She stated that Chung was agitated and 
persistent.287 The SINOPEC delegation was in 
Houston, with plans to travel to Chicago. Chung was seeking a 
firm commitment of a meeting before asking the group to change 
their travel plans.288
---------------------------------------------------------------------------
    \287\ Id. pp. 61-62.
    \288\ Id. William Rempel and Alan Miller, ``Donor's Claim of 
Altered O'Leary Letter Investigated,'' Los Angeles Times, Sept. 22, 
1997 (Exhibit 66).
---------------------------------------------------------------------------
    In the end, Moody says that she agreed to fax a draft 
letter to Chung. She typed a letter while she was on the phone 
with him and faxed it to him.\289\ The contents of this letter 
have been hotly disputed, and have become the subject of a 
Justice Department investigation into possible evidence 
tampering.\290\
---------------------------------------------------------------------------
    \289\ Deposition of Corlis Moody, pp. 61-62.
    \290\ William Rempel and Alan Miller, ``Donor's Claim of Altered 
O'Leary Letter Investigated,'' Los Angeles Times, Sept. 22, 1997 
(Exhibit 66).
---------------------------------------------------------------------------
    According to Chung, the letter was a draft letter with 
three paragraphs from O'Leary to Huaren Sheng. It welcomed him 
to the United States, invited him to a meeting with her at the 
Energy Department, and included a paragraph inviting him and 
his delegation to the Africare dinner, where they could meet 
the President.\291\
---------------------------------------------------------------------------
    \291\ Id.
---------------------------------------------------------------------------
    Such a letter would have run afoul of the rules governing 
the conduct of executive branch employees. Such officials may 
not use official resources to promote charitable activities, 
and may not use official letterhead to promote non-official 
events.\292\
---------------------------------------------------------------------------
    \292\ DOE00013-14 (Exhibit 79).
---------------------------------------------------------------------------
    Moody's testimony about the letter is confused, at best. In 
her deposition, she recalls writing a letter from herself to 
Chung, not a letter from O'Leary to Sheng.\293\ Later, when 
Justice Department investigators asked her to search her 
computer files for the letter, she was unable to locate it. 
Eventually, her secretary located a disk in her office which 
contained a letter, but is was a letter to Huaren Sheng, 
unsigned, from Secretary O'Leary.\294\
---------------------------------------------------------------------------
    \293\ Deposition of Corlis Moody, p. 67.
    \294\ Id. p. 68.
---------------------------------------------------------------------------
    The accounts of Chung and Moody about what happened the 
next day again conflict.
    Chung told the Los Angeles Times that he called Moody early 
the next morning, requesting a formal, signed version of the 
letter, and it was faxed to him about 9:30 a.m.\295\
---------------------------------------------------------------------------
    \295\ William Rempel and Alan Miller, ``Donor's Claim of Altered 
O'Leary Letter Investigated,'' Los Angeles Times, Sept. 22, 1997 
(Exhibit 66).
---------------------------------------------------------------------------
    Documents produced by the Department of Energy tend to 
corroborate Chung's assertion. The Department produced a copy 
of an autopen authorization form dated October 18, 1995.\296\ 
At the top of the document, there is a handwritten note with 
the number assigned to this request and ``9:00 a.m.'' \297\ 
This time is consistent with when Chung claims to have received 
the fax.
---------------------------------------------------------------------------
    \296\ DOE0058-59 (Exhibit 80).
    \297\ Id.
---------------------------------------------------------------------------
    Chung went on to state that later that morning, while he 
was still in his bathrobe, an Energy Department employee 
arrived at his apartment. Chung stated that the employee 
requested the check for the Africare dinner, and both faxes 
Chung had received.\298\ The employee told Chung that the 
Energy Department's General Counsel considered the letter 
improper.\299\ Chung said that he gave the courier the check 
for $25,000 and both faxes, saying, ``I don't care, as long as 
my guy gets his meeting.'' \300\
---------------------------------------------------------------------------
    \298\ William Rempel and Alan Miller, ``Donor's Claim of Altered 
O'Leary Letter Investigated,'' Los Angeles Times, Sept. 22, 1997 
(Exhibit 66).
    \299\ Id.
    \300\ Id.
---------------------------------------------------------------------------
    According to Moody, Chung arrived unannounced at the Energy 
Department that morning to ask if the final letter from O'Leary 
was ready yet. Moody informed Chung that it was not. Chung 
asked if he could wait for it, but Moody advised him that he 
should not and that she would contact him when the letter was 
done.\301\
---------------------------------------------------------------------------
    \301\ Deposition of Corlis Moody, pp. 73-75.
---------------------------------------------------------------------------
    Moody stated that Johnny Chung called her again later that 
day, still inquiring about the status of the letter. However, 
she said that during this call, Chung insisted that she help 
him get the SINOPEC delegation into the White House to meet the 
President, and that if she did not, he would not make the 
Africare contribution. This made Moody angry, they argued, and 
she eventually hung up on him.\302\
---------------------------------------------------------------------------
    \302\ Id. pp. 81-83.
---------------------------------------------------------------------------
    Department of Energy employee Howlie Davis was in Moody's 
office at the time of this conversation. At this point, they 
discussed getting the faxed letter back from Chung:

    A. I think Mr. Davis and I both looked at each other. I 
mean, he's watching me on the phone the whole time, he can hear 
my side of the conversation. And I think we both went, this 
guy, we can't deal with this guy. We need to get that letter 
back, because Howlie was with me the night when I faxed the 
letter.\303\
---------------------------------------------------------------------------
    \303\ Id. p. 92.

           *       *       *       *       *       *       *

---------------------------------------------------------------------------
    Q. And why did you feel like you needed to get that letter 
back?
    A. Well now, I think that I'm recognizing that Mr. Chung is 
not who we think Mr. Chung is. I'm thinking Mr. Chung is a DNC 
trustee interested in facilitating an arrangement for a Chinese 
delegation to meet with the Secretary of Energy, to go to an 
Africare dinner; and at this point, having just had that 
conversation, I'm not sure who I'm dealing with. And I am 
already--I have sent him a letter in writing suggesting that 
I'm working on getting him both of his requests, and this guy 
is not who I thought he was.\304\
---------------------------------------------------------------------------
    \304\ Id. p. 93.

    Later that afternoon, Chung called Moody back to apologize, 
and she accepted his apology. She agreed to continue working to 
arrange the meeting with O'Leary.\305\ At this point, the 
SINOPEC delegation had received the two faxed versions of the 
letters from Chung, and was en route to Washington.\306\
---------------------------------------------------------------------------
    \305\ Id. pp. 84-85.
    \306\ William Rempel and Alan Miller, ``Donor's Claim of Altered 
O'Leary Letter Investigated,'' Los Angeles Times, Sept. 22, 1997 
(Exhibit 66).
---------------------------------------------------------------------------
    Moody further testified that Howlie Davis told her that he 
had gone to pick up the $25,000 check for Africare, as well as 
the letter that Moody faxed to Chung. However, Davis said that 
he did so the morning of Thursday, October 19, not Wednesday, 
October 18, as alleged by Chung.\307\
---------------------------------------------------------------------------
    \307\ Id. pp. 122-124.
---------------------------------------------------------------------------
    The letter produced to the Committee in response to its 
subpoena is an October 18 letter from O'Leary to Shen. It has 
only two paragraphs, and there is no mention of the delegation 
joining O'Leary and the President at the Africare dinner.\308\ 
According to the Los Angeles Times,  Chung told Justice 
Department investigators that the letter was altered from the 
version he received.\309\
---------------------------------------------------------------------------
    \308\ DOE 00059 (Exhibit 80).
    \309\ William Rempel and Alan Miller, ``Donor's Claim of Altered 
O'Leary Letter Investigated,'' Los Angeles Times, Sept. 22, 1997 
(Exhibit 66).
---------------------------------------------------------------------------
    On December 4, 1997, the Committee deposed Hazel O'Leary. 
O'Leary testified that she did not solicit the $25,000 
contribution from Chung. She explained that it was not until 
August 1997, almost 2 years later, that she even knew Chung was 
involved in any way with the meeting with Huaren Sheng, whom 
she had met once before in China.\310\
---------------------------------------------------------------------------
    \310\ Deposition of Hazel O'Leary, pp. 78-88.
---------------------------------------------------------------------------
    In August 1997, O'Leary learned that NBC Nightly News was 
preparing a story about her and Chung's $25,000 donation to 
Africare. O'Leary then contacted Moody, who informed her about 
Chung, the donation to the Africare event and his connection 
with Huaren Sheng.\311\ Prior to this conversation with Moody, 
O'Leary said that she was not aware that Chung had contributed 
$25,000 to the Africare event. She stated that the letter to 
Huaren Sheng was autopenned, and that she had not seen it at 
the time.\312\
---------------------------------------------------------------------------
    \311\ Id.
    \312\ Id. pp. 94-95.
---------------------------------------------------------------------------
    O'Leary also testified during her deposition that, when 
interviewed by the Department of Justice, she was shown a draft 
of a letter from her to Huaren Sheng. She stated that the 
letter welcomed him to the United States and invited him to 
meet with her at the Department of Energy.\313\ She then 
stated:
---------------------------------------------------------------------------
    \313\ Id. pp. 98-99.

        It went on in very bizarre language to say I am 
        inviting you to attend a, I can't remember, an event at 
---------------------------------------------------------------------------
        the hotel with the President of the United States.

        Now, I want to be clear there was no mention of 
        Africare and there was no mention of the sum $25,000 in 
        this draft letter that was shown to me.\314\
---------------------------------------------------------------------------
    \314\ Id.

    Hauren Sheng and the SINOPEC delegation arrived at the 
Energy Department and met with O'Leary between 3:30 and 3:45, 
according to O'Leary's schedule.\315\ By all accounts, the 
meeting was unremarkable.
---------------------------------------------------------------------------
    \315\ DOE00437-438 (Exhibit 81).
---------------------------------------------------------------------------
    The delegation then went on to the White House for a White 
House tour. White House WAVES records indicate that Chung 
entered the White House at 4:30 p.m. He was admitted by Evan 
Ryan, the assistant to the First Lady's Chief of Staff.\316\ 
While they were there they were introduced to Presidential aide 
George Stephanopoulos.\317\
---------------------------------------------------------------------------
    \316\ WAVES at EOP 005032 (Exhibit 2).
    \317\ William Rempel and Alan Miller, ``Donor's Claim of Altered 
O'Leary Letter Investigated,'' Los Angeles Times, Sept. 22, 1997 
(Exhibit 66).
---------------------------------------------------------------------------
    By the time the SINOPEC delegation arrived at the Africare 
dinner, Chung still had not arranged for them to meet the 
President. According to Moody, Chung encountered her at the 
reception and pleaded with her to help him get to see the 
President. Moody was not able to assist him.\318\ Chung also 
encountered lobbyist Wilson Golden, who had first mentioned the 
Africare dinner to him at the beginning of the week. Chung also 
enlisted Golden's help. Golden introduced Chung to a DNC 
employee by the name of Carol Willis, whom he asked to help 
Chung. In his deposition, Golden said, ``I basically sort of 
turned it over to Carol, who apparently arranged the meeting.'' 
\319\
---------------------------------------------------------------------------
    \318\ Deposition of Corlis Moody, pp. 109-110.
    \319\ Deposition of Wilson Golden, p. 37.
---------------------------------------------------------------------------
    According to the Los Angeles Times, Chung pushed his way to 
the front of a receiving line and asked the President to meet 
the delegation.\320\ A private meeting was arranged in a 
deserted ballroom where there was only a handful of 
presidential aides, security personnel, and a White House 
photographer.\321\ Chung recalls Clinton saying ``Johnny is a 
good friend [who has been] doing good things for the United 
States and China.'' The President also thanked Sheng, for what 
Chung believes was his help to Chung in his efforts to free 
Harry Wu. Pictures were taken and the brief encounter was 
over.\322\
---------------------------------------------------------------------------
    \320\ William Rempel and Alan Miller, ``Donor's Claim of Altered 
O'Leary Letter Investigated,'' Los Angeles Times, Sept. 22, 1997 
(Exhibit 66).
    \321\ Id.
    \322\ Id.
---------------------------------------------------------------------------
    The Chinese delegation left before the dinner to depart for 
Chicago.\323\ According to Chung, O'Leary later came by his 
table to thank him for his support.\324\ At one point during 
the dinner, Chung stopped at the table where Corlis Moody was 
sitting. He was elated. Moody described the encounter this way:
---------------------------------------------------------------------------
    \323\ Id.
    \324\ Id.

        He comes up to my table and again grabs me. This time I 
        am sitting. He kisses me on the cheek and says, thank 
        you, thank you. . . . I said, you are welcome. I am so 
        glad everything worked out, that sort of thing. He says 
        to my husband, you have the best wife in the world. She 
        has done this wonderful thing for me, and on and on and 
        on. . . . Then he goes and sits down. I never see him 
        again.\325\
---------------------------------------------------------------------------
    \325\ Deposition of Corlis Moody, p. 111.

    On December 2, the Justice Department terminated its 
preliminary investigation to determine if an independent 
counsel should be appointed for Mrs. O'Leary. In her 
announcement, Attorney General Reno stated, ``The investigation 
developed no evidence that Mrs. O'Leary had anything to do with 
the solicitation of the charitable donation.'' \326\
---------------------------------------------------------------------------
    \326\ Department of Justice, ``Notification to the Court of Results 
of Preliminary Investigation,'' Dec. 2, 1997 (Exhibit 82).
---------------------------------------------------------------------------
    The Attorney General's notice to the court also stated 
that, ``These circumstances, and whether there may have been 
some unlawful conduct by some participants, warrant further 
investigation by the Department of Justice.'' \327\
---------------------------------------------------------------------------
    \327\ Id.
---------------------------------------------------------------------------

3. U.S. Department of the Treasury

    On Monday, October 23, 1995, the China Petrochemical 
delegation returned to Washington for a meeting at the Treasury 
Department and a U.S.-China Business Council lunch.\328\ 
Despite DNC Co-Chairman Don Fowler's letter to Secretary Robert 
Rubin, Rubin was apparently unable to meet with Sheng.\329\ On 
Friday, October 20, Fowler sent a letter to then-Under 
Secretary for International Affairs Lawrence H. Summers, asking 
Summers to meet with Sheng.\330\ Summers agreed.
---------------------------------------------------------------------------
    \328\ Treasury 00000199 (Exhibit 70).
    \329\ DNC 1786470 (Exhibit 83).
    \330\ DNC 1786467 (Exhibit 84).
---------------------------------------------------------------------------
    Summers was joined at the Monday morning meeting by Todd W. 
Crawford, then the Director of the Office of East and South 
East Nations, Todd T. Schneider, who was at the time an 
international economist for the Department, and James H. Fall, 
then the Deputy Assistant Secretary for Developing Nations. 
Schneider, Fall, Crawford, and Summers were deposed by the 
Committee in December 1997.
    At the meeting, Sheng inquired about receiving long-term, 
low-interest loans from the U.S. Government to finance energy 
development projects. Schneider recalls Chung pulling him aside 
before the meeting and informing him that Sheng wanted to ask 
for ``a concessional loan from the Treasury Department to 
finance energy development projects in west to northwest 
China.'' \331\
---------------------------------------------------------------------------
    \331\ Deposition of Todd Schneider, p. 22.
---------------------------------------------------------------------------
    Schneider recalls the meeting this way:

        I believe Mr. Sheng was talking about the need for 
        energy in the context of China's growing economy and at 
        some point Mr. Sheng raised the issue or made the 
        request of a loan from the Treasury Department to 
        finance these energy development projects in west to 
        northwest China.

        I don't recall the exact words. Mr. Summers' response 
        was that the Treasury Department did not make loans of 
        this kind; that we had no funds for this purpose and it 
        wasn't the function of the Treasury Department in the 
        U.S. to make these kind of loans.\332\
---------------------------------------------------------------------------
    \332\ Id. pp. 23-24.

    Notes taken by Crawford during the meeting reflect the 
conversation: ``during next 5 year plan--will expand factories. 
Wants l-t low i. loan.'' \333\
---------------------------------------------------------------------------
    \333\ Treasury 00000197 (Exhibit 85).
---------------------------------------------------------------------------
    Schneider also recalls that either Sheng or Chung asked 
Summers if the Treasury Department could use its influence with 
U.S. banks to convince them to make such loans to SINOPEC. 
Summers informed them that the Treasury Department did not do 
that.\334\
---------------------------------------------------------------------------
    \334\ Deposition of Todd Schneider, p. 24.
---------------------------------------------------------------------------
    One official present at the meeting recalled it being 
suggested that Sheng contact the U.S. Export-Import Bank for 
financial assistance.\335\ Mr. Crawford's notes indicate that 
someone at the Treasury Department attempted to set up a 
meeting for the delegation with the Chairman of the Export-
Import Bank, but that he was not in town.\336\
---------------------------------------------------------------------------
    \335\ Id. pp. 24-28.
    \336\ Treasury 00000197 (Exhibit 85).
---------------------------------------------------------------------------

4. Lynn Cutler and the Back to Business Committee

    In February 1996, Chung was still attempting to help 
SINOPEC in its efforts to import more Saudi Arabian oil.
    According to press reports, Chung was referred to former 
DNC Vice-Chairwoman Lynn Cutler by Maggie Williams in December 
1995.\337\ He chatted with her at a White House Christmas 
party, and on February 2, 1996, Chung contributed $25,000 to 
the ``Back to Business Committee,'' an organization run by Lynn 
Cutler.\338\ The mission of the Committee was to launch a media 
campaign to defend the President and First Lady against 
Whitewater-related charges.\339\
---------------------------------------------------------------------------
    \337\ William Rempel and Alan Miller, ``Donor Speaks Out on Clinton 
Group Fund-Raising: Private committee did favors, had White House ties, 
Chung's lawyer says.'' Los Angeles Times, Aug. 9, 1997 (Exhibit 86).
    \338\ BTB 00614 (Exhibit 87).
    \339\ William Rempel and Alan Miller, ``Donor Speaks Out on Clinton 
Group Fund-Raising: Private Committee did favors, had White House ties, 
Chung's lawyer says.'' Los Angeles Times, Aug. 9, 1997 (Exhibit 86).
---------------------------------------------------------------------------
    Chung also claims that he used his relationship with Cutler 
to gain a meeting with a Commerce Department official, who 
discouraged him from investing in a petroleum business 
venture.\340\
---------------------------------------------------------------------------
    \340\ Id.
---------------------------------------------------------------------------
    On February 7, 1996, Chung sent a letter to Lynn Cutler 
apologizing for the delay in his support for President Clinton 
and the First Lady.\341\ He enclosed a copy of his 
correspondence with SINOPEC and requested a series of favors 
indicating that he was still hard at work on SINOPEC's behalf. 
He requested:
---------------------------------------------------------------------------
    \341\ BTB00563 (Exhibit 88).

        (1) a meeting with Ron Brown,
        (2) a meeting with the U.S. Ambassador and other 
        officials in Saudi Arabia, and
        (3) that Cutler discuss the oil issue with the 
        President.\342\
---------------------------------------------------------------------------
    \342\ Id.

    In the letter, Chung referred to a discussion with the 
President about his efforts on behalf of SINOPEC during the 
White House Holiday Reception.\343\
---------------------------------------------------------------------------
    \343\ Id.
---------------------------------------------------------------------------
    Chung also used his relationship with Ms. Cutler to 
schedule a meeting in Beijing with Former Senator Jim Sasser 
(D-TN), now the ambassador to the People's Republic of China. 
On March 8, 1996, Ambassador Sasser sent a fax to Lynn Cutler 
at the Kamber Group. He said that Chung visited his office when 
he was not available. He informed Cutler that he was searching 
Beijing hotels for Chung in an effort to set up a meeting.\344\
---------------------------------------------------------------------------
    \344\ JCH13433 (Exhibit 89).
---------------------------------------------------------------------------

5. Conclusion

    On October 13, 1997, SINOPEC announced ``an agreement with 
Exxon and Aramco of Saudi Arabia for a joint feasibility study 
for a refinery and petrochemical complex in East China's 
coastal province of Fujian which will involve a total 
investment of three billion U.S. dollars.'' \345\ A Xinhua News 
Agency article continued: ``After completing the project, 
Fujian will become a 10-million-ton refinery center for 
processing high-sulfur crude oil with an annual capacity of 
manufacturing 600,000 tons of Ethylene.'' \346\ There are 
apparently two other joint ventures planned between SINOPEC and 
Exxon.\347\
---------------------------------------------------------------------------
    \345\ ``Chinese Vice Premier, Exxon CEO Discuss Petrochemical 
Pact,'' Xinhua News Agency, Oct. 17, 1997 (Exhibit 90).
    \346\ Id.
    \347\ Id.
---------------------------------------------------------------------------

        Liu Chao-Ying and China Aerospace International Holdings

1. Introduction

    On May 15, 1998, the New York Times reported that Chung 
admitted to Justice Department investigators that, ``a large 
part of the nearly $100,000 he gave to Democratic causes in the 
summer of 1996--including $80,000 to the Democratic National 
Committee--came from China's People's Liberation Army through a 
Chinese Lieutenant Colonel and aerospace executive'' named Liu 
Chao-Ying.\348\ This appears to be the first time that a major 
figure in the campaign finance scandal has agreed to cooperate 
with the Justice Department. It also appears to be the first 
time that a high-profile witness has provided corroboration of 
Chinese government efforts to influence U.S. elections.
---------------------------------------------------------------------------
    \348\ Jeff Gerth, David Johnston, and Don Van Natta, ``Democratic 
Fund-Raiser Said to Detail China Tie,'' New York Times, May 15, 1998 
(Exhibit 6).
---------------------------------------------------------------------------
    Documents and testimony obtained by the Committee indicate 
that Liu traveled to the United States twice in 1996 in 
coordination with Chung. The Committee's investigation has 
determined that there were at least two areas where Chung was 
attempting to assist Liu; 1) meeting with representatives of 
the U.S. aerospace industry to discuss the purchase of aircraft 
parts, and 2) raising capital in U.S. financial markets. 
Whether they had anything to show for their efforts will remain 
an open question until either Chung or Liu agrees to cooperate 
with the Committee's investigation.
    Liu Chao-Ying is the Vice President of China Aerospace 
International Holdings, Ltd., a Hong Kong-based subsidiary of 
China Aerospace Corporation.\349\ China Aerospace is a Chinese 
government-owned corporation that deals in satellite 
technology, missile sales, and satellite launches. A second 
business card produced to the Committee lists Liu as President 
of CASIL Import & Export Co., Ltd.,\350\ a Hong Kong subsidiary 
of China Aerospace. She is the daughter of retired People's 
Liberation Army (PLA) General Liu Huaqing.\351\ In 1996, 
General Liu was the Vice Chairman of the Central Military 
Commission, and reportedly oversaw the Chinese army's 
modernization program. He was also a member of the Standing 
Committee of the Politburo of the Communist Party.'' \352\
---------------------------------------------------------------------------
    \349\ JCH14321 (Exhibit 91).
    \350\ Id.
    \351\ Jeff Gerth, David Johnston, and Don Van Natta, ``Democratic 
Fund-Raiser Said to Detail China Tie,'' New York Times, May 15, 1998 
(Exhibit 6).
    \352\ Id.
---------------------------------------------------------------------------
    Another subsidiary of China Aerospace, China Great Wall 
Industries, is involved in the commercial launch of satellites 
aboard Chinese-built rockets.\353\ China Great Wall is at the 
center of a growing controversy over whether U.S. ballistic 
missile technology was illegally transferred to China.
---------------------------------------------------------------------------
    \353\ CRS Report 98-485, p. 2.
---------------------------------------------------------------------------
    In February 1996, a March III rocket built by China Great 
Wall Industries exploded shortly after lift-off, destroying a 
commercial communications satellite built by Loral Space 
Systems.\354\ The resulting review of the crash by U.S. 
aerospace companies led to accusations of an unauthorized 
transfer of missile technology to China that is now the subject 
of a criminal investigation.
---------------------------------------------------------------------------
    \354\ Associated Press, ``Defective Guidance System Caused 
Satellite Explosion,'' Mar. 2, 1996 Exhibit 92.
---------------------------------------------------------------------------
    This matter is also under investigation by the House Select 
Committee on U.S. National Security and Military/Commercial 
Concerns with the People's Republic of China.

2. Overseas Wires and Contributions

    Chung's bank accounts and his record of contributions to 
the DNC tend to corroborate the account first published by the 
New York Times. In July and August 1996, Chung received three 
wire transfers from Hong Kong totaling $290,000. Between July 
and September 1996, Chung contributed a total of $90,000 to the 
DNC.
    The wire transfers initiated from a Hong Kong bank account 
controlled by Chung. They arrived in the following order:

July 15, 1996...........................................  \355\ $190,000
August 15, 1996.........................................    \356\ 20,000
August 15, 1996.........................................    \357\ 80,000
      Total.............................................         290,000
---------------------------------------------------------------------------
    \355\ N0220 (Exhibit 93).
    \356\ Sumitomo 001 (Exhibit 94).
    \357\ CalFed 001 (Exhibit 95).

    Due to a lack of cooperation from the Chinese government, 
the Committee has been unable to determine how these funds 
initially arrived in Chung's Hong Kong account. This is one of 
a number of examples of how the lack of cooperation by foreign 
governments, especially China, has stymied the Committee in its 
efforts to uncover the true origins of millions of dollars that 
were wired into the United States and linked to political 
contributions.
    Chung's donations to the DNC \358\ over the same time 
period follow:
---------------------------------------------------------------------------
    \358\ FEC Internet Records--tray.com/fecinfo/ (Exhibit 3).

July 19, 1996.................................................   $20,000
July 19, 1996.................................................    25,000
Sept. 24, 1996................................................    10,000
Sept. 24, 1996................................................    20,000
Sept. 24, 1996................................................     5,000
Sept. 27, 1996................................................    10,000
                    --------------------------------------------------------------
                    ____________________________________________________

      Total...................................................    90,000

    Chung's relationship with Liu Chao-Ying followed a familiar 
pattern. He wrote a letter of invitation to facilitate the 
acquisition of a visa. He formed a company with her that never 
appeared to do any business. He made contributions to open 
doors. He escorted her to fundraisers and meetings with Federal 
officials.

3. July 1996--The Eli Broad Fundraiser

    It is not known when Chung and Liu first met. Her first 
known visit with him in the U.S. came in July 1996. She was 
Chung's guest at a July 18 DNC fundraiser at the home of Los 
Angeles real estate magnate Eli Broad. President Clinton was in 
attendance. Chung listed Liu among his guests in a July 16, 
1996 letter to the DNC.\359\ Chung brought another Chinese 
businessman to the same event--Yat Hung Yiu, President of China 
Medical Development and New Silver Eagle Holdings, Inc.\360\
---------------------------------------------------------------------------
    \359\ JCH15017 (Exhibit 96).
    \360\ Id.
---------------------------------------------------------------------------
    A second DNC fundraiser was held that night in Los Angeles 
at the Beverly Hilton. Chung's correspondence with Karen 
Sternfeld at the DNC shows that he brought a larger group of 
Chinese and Chinese-American associates to this reception.\361\
---------------------------------------------------------------------------
    \361\ Id.
---------------------------------------------------------------------------
    It is instructive, but not conclusive, that Chung received 
a $190,000 wire from Hong Kong 3 days before the event, and 
contributed $45,000 to the DNC 1 week after the event. Until 
the Committee is able to interview Chung and Liu, it will be 
unable to determine conclusively if the wire from Hong Kong was 
intended for political contributions.
    During the July trip, Chung also arranged for Liu, as part 
of a larger group of people, to have lunch in New York with the 
Executive Vice President of the Federal Reserve Bank of New 
York--Israel Sendrovic.\362\ Sendrovic said that Chung 
introduced Liu as the daughter of ``the head of'' the People's 
Liberation Army, but did not recall discussing business matters 
with her.\363\
---------------------------------------------------------------------------
    \362\ Deposition of Israel Sendrovic, May 5, 1998, pp. 40-41.
    \363\ Id. pp. 38-39.
---------------------------------------------------------------------------

4. August 1996--Liu's Second Trip

    In August, Liu returned to the United States at Chung's 
invitation. On August 18, 1996, Chung wrote Liu, inviting her 
to visit the U.S. As Chung's assistant Irene Wu testified, 
Chung frequently wrote letters of invitation to his Chinese 
associates to assist them in getting visas to come to the 
United States.\364\
---------------------------------------------------------------------------
    \364\ Deposition of Irene Wu, p. 214.
---------------------------------------------------------------------------
    The August 18 letter reads:

        I would like to invite you to visit the United States 
        again regarding a couple of issues that we discussed 
        before. First, I've made arrangement with the Federal 
        Stock Exchange Commission and a professional investment 
        broker to discuss the promotion of your company in the 
        U.S. stock exchange. Since your last meeting with Mr. 
        Sendrovic, Vice President of the Federal Reserve Bank 
        of New York, I had several follow up conversations with 
        him. He had also mentioned that he wished to meet with 
        you again.

        Second, I have contacted Boeing and McDonald (sic) 
        Douglas regarding your interest of purchasing aircraft 
        miscellaneous parts. They have agreed to meet with you 
        and as soon as you inform me of your schedule, I will 
        be able to make the appointment. Looking forward to 
        seeing you again.\365\
---------------------------------------------------------------------------
    \365\ DOS 013146 (Exhibit 21).

    Irene Wu met Liu at the airport in Los Angeles to drive her 
to her hotel. She said that Liu mentioned her interest in 
meeting with U.S. aerospace companies for the purpose of 
purchasing aircraft parts.\366\ Wu said that Liu Chao-Ying 
thought that Johnny Chung had connections at those 
companies.\367\
---------------------------------------------------------------------------
    \366\ Deposition of Irene Wu, July 28, 1998, pp. 217-18.
    \367\ Id.
---------------------------------------------------------------------------
    Wu also testified that Chung mentioned to her that he 
intended to help Liu list her company on a U.S. stock 
exchange.\368\
---------------------------------------------------------------------------
    \368\ Id. pp. 218-219.
---------------------------------------------------------------------------

5. Senator Kerry and the SEC

    Shortly thereafter, Chung and Liu traveled to Washington 
and met with Senator John Kerry. Senator Kerry had contacted 
Chung ``numerous times that summer because they were nearing 
the end of a tough campaign.'' \369\ According to press 
reports, Chung ``was interested in learning how to clear the 
way for Chinese companies to get listed on U.S. stock 
exchanges.\370\
---------------------------------------------------------------------------
    \369\ William Rempel and Alan Miller, ``Senator Received $10,000 
After Aiding DNC Donor,'' Los Angeles Times, Dec. 24, 1997 (Exhibit 
97).
    \370\ Id.
---------------------------------------------------------------------------
    Chung visited Kerry's office in late August and met the 
Senator with ``businessmen and several associates.'' \371\ 
Chung asked for Kerry's assistance in setting up a meeting at 
the Securities and Exchange Commission. Chung claims that a 
letter was faxed to the SEC from Kerry's office while Chung was 
present.\372\ That afternoon, he and his guests met with Brian 
Lane, Director of the SEC's Corporation Finance Division, and 
his deputy, Meredith Cross.
---------------------------------------------------------------------------
    \371\ Id.
    \372\ Id.
---------------------------------------------------------------------------
    Lane and Cross did not remember what company those present 
at the meeting represented, but the SEC produced a Christmas 
card from Liu Chao-Ying of China Aerospace International 
Holdings, Ltd.\373\ Lane suspects that the card was sent by one 
of the meeting attendees.\374\ Both Lane and Cross recalled 
that the executives, at least one of whom was female,\375\ were 
interested in listing a Chinese company on U.S. stock 
exchanges. They asked about filing requirements, particularly 
whether they needed to file complicated ``U.S. Generally 
Accepted Accounting Principals'' (``GAAP'') reconciliation 
statements, which often show a company to be less profitable 
than other accounting methods.\376\ While the Chinese 
executives were interested in avoiding GAAP filing 
requirements, Lane and Cross agree that they did not 
specifically ask for a formal waiver.\377\
---------------------------------------------------------------------------
    \373\ SEC 1-2.
    \374\ Deposition of Brian J. Lane, pp. 13-15.
    \375\ Deposition of Meredith B. Cross, p. 15.
    \376\ Deposition of Meredith B. Cross at pp. 19-21; 36-37; 
Deposition of Brian J. Lane at p. 17.
    \377\ Deposition of Meredith B. Cross at pp. 36-37; Lane at p. 17.
---------------------------------------------------------------------------
    According to the Los Angeles Times, a Kerry aide called 
Chung a week after the SEC meeting and asked Chung to arrange a 
fundraising reception for Kerry.\378\ However, documents 
produced by Johnny Chung include a July 31, 1996 fax from 
Barbara Kaltenbach of the Kerry Committee to Johnny Chung, 
which reads as follows:
---------------------------------------------------------------------------
    \378\ ``Senator Received $10,000 After Aiding DNC Donor'' Los 
Angeles Times, Dec. 24, 1997 (Exhibit 97).

        The following are two ways in which you could be 
        helpful to John:
            1) Host an event in LA on Saturday Sept. 9th.
            2) Contribute to the Massachusetts State Party.
        Please contact me tomorrow and we can discuss it.\379\
---------------------------------------------------------------------------
    \379\ JCH15005-7 (Exhibit 98).

    The reception was coordinated by Irene Wu and held on 
September 9, 1996 at the Peninsula Hotel in Beverly Hills.\380\ 
According to the story, ``about a dozen people attended.'' 
\381\ The guests included four professional fundraisers, Chung, 
and a few of Chung's employees and business associates.\382\
---------------------------------------------------------------------------
    \380\ JCH09631 (Exhibit 99), JCH09735-8 (Exhibit 100).
    \381\ William Rempel and Alan Miller, ``Senator Received $10,000 
After Aiding DNC Donor,'' Los Angeles Times, Dec. 24, 1997 (Exhibit 
97).
    \382\ Id.
---------------------------------------------------------------------------
    Chung reimbursed three of his employees for their 
contributions, actually writing ``SJ Kerry'' on one of the 
reimbursement checks.\383\ Irene Wu testified that Chung asked 
her just before the event to write a $2,000 check to Senator 
Kerry's campaign, and he reimbursed her with a check.\384\ In 
Wu's presence, Chung asked two other employees, Michael Lin and 
Steve Huang, to write checks for $2,000. He reimbursed them as 
well.\385\
---------------------------------------------------------------------------
    \383\ JCH18180-90 (Exhibit 101).
    \384\ Deposition of Irene Wu, pp. 104-105.
    \385\ Id. pp. 106-108.
---------------------------------------------------------------------------
    A shareholder in Chung's company, Ernest Lee, also 
contributed $2,000 to Kerry's campaign at the reception. 
Chung's bank records indicate that he reimbursed Lee the $2,000 
on the same day.\386\
---------------------------------------------------------------------------
    \386\ JCH18180-90 (Exhibit 101).
---------------------------------------------------------------------------
    In his March 16, 1998 guilty plea, Johnny Chung admitted to 
making illegal conduit payments to Senator Kerry's 
campaign.\387\
---------------------------------------------------------------------------
    \387\ Associated Press, ``Fund-Raiser Chung Pleads Guilty,'' the 
Washington Post, Mar. 17, 1998 (Exhibit 5).
---------------------------------------------------------------------------

6. Marswell Investment, Inc.

    On August 9, 1996, Johnny Chung and Liu Chao-Ying formed 
Marswell Investment, Inc. in the State of California.\388\ Of 
100,000 shares, Chung received 20,000 and Liu received 
30,000.\389\ The company lists the same Torrance, California 
address as Johnny Chung's ``blastfax'' business, AISI.\390\ 
Public records indicate that a Certificate of Amendment was 
filed on June 4, 1997.\391\
---------------------------------------------------------------------------
    \388\ California corporate filings.
    \389\ JC1272-3 (Exhibit 102).
    \390\ California corporate filings.
    \391\ Id.
---------------------------------------------------------------------------
    Documents produced by Chung to the Committee include a June 
25, 1996 letter from a Los Angeles attorney regarding the 
incorporation of Marswell, indicating that Chung and Liu Chao-
Ying were discussing the company prior to Liu's July and August 
1996 visits to the United States.\392\
---------------------------------------------------------------------------
    \392\ JCH13105 (Exhibit 103).
---------------------------------------------------------------------------
    The company's bank account records, also produced by Chung, 
indicate minimal activity from September 1996 through January 
1997.\393\ That is consistent with Irene Wu's testimony that 
the companies formed by Johnny Chung and his overseas partners 
did not conduct business. Wu said that the purpose of those 
companies was to assist Chung's associates in procuring visas 
to enter the United States.\394\
---------------------------------------------------------------------------
    \393\ JC1356-1364 even numbered pages only (Exhibit 104).
    \394\ Deposition of Irene Wu, July 28, 1998, pp. 215, 220-21, 228-
29, 248-49, 258-59.
---------------------------------------------------------------------------
    Documents from Chung's blastfax business, AISI, indicate 
that Liu was an AISI shareholder. While the notes on the 
document are confusing, they appear to indicate that Liu owned 
30 shares in the company valued at $300,000.\395\ Whether this 
is part of the $315,000 wired to Chung from Hong Kong in the 
summer of 1996 remains unclear.
---------------------------------------------------------------------------
    \395\ JCH13704 (Exhibit 105).
---------------------------------------------------------------------------

               Yat Hung Yiu and New Silver Eagle Holdings

    When Johnny Chung escorted Liu Chao Ying to the July 18, 
1996, DNC fundraiser at Eli Broad's house in Los Angeles, he 
was also accompanied by a second prominent Chinese national--
Yat Hung Yiu.\396\ Like Liu Chao-Ying, it appears that Yat Hung 
Yiu was interested in raising capital on U.S. stock exchanges.
---------------------------------------------------------------------------
    \396\ JCH15017 (Exhibit 96).
---------------------------------------------------------------------------
    Yat Hung Yiu is the president of China Medical Development, 
a Chinese company that sought to establish a chain of drug 
stores across China. According to witness interviews,\397\ Yiu 
was interested in listing his company's stock on U.S. stock 
exchanges in order to raise capital.\398\
---------------------------------------------------------------------------
    \397\ Staff interviews of Andrew Hanlon and Barry Sendrovic, Feb. 
24, 1998.
    \398\ Id.
---------------------------------------------------------------------------
    China Medical Development merged with a British Virgin 
Island company called Beautimate, which then merged with 
Natural Way Technologies, a U.S. company that already traded on 
the NASDAQ Electronic Bulletin Board.\399\
---------------------------------------------------------------------------
    \399\ Staff interview of Andrew Hanlon, Feb. 24, 1998.
---------------------------------------------------------------------------
    Yat Hung Yiu is also the president of a New York company 
named New Silver Eagle Holdings.\400\ New Silver Eagle Holdings 
is named as a ``related party'' to Natural Way Technologies in 
an Arthur Anderson audit of Natural Way Technologies.\401\ Both 
companies share common directors.\402\ On September 30, 1996, 
New Silver Eagle Holdings paid Johnny Chung $80,000.\403\ A New 
Silver Eagle Holdings employee recalled that Johnny Chung 
billed the company for translation and touring services.\404\
---------------------------------------------------------------------------
    \400\ JCH15030 (Exhibit 106); JCH13426 (Exhibit 107).
    \401\ Hanlon 039114 (Exhibit 108).
    \402\ Id.
    \403\ CitiBank 1 (Exhibit 109).
    \404\ Staff interview of Fang Fang Miao, May 1, 1998.
---------------------------------------------------------------------------
    Chung also escorted Yat Hung Yiu to the President's 
Birthday Party fundraiser at Radio City Music Hall in New York 
on August 18, 1996.\405\ Another of Chung's guests at this 
fundraiser was Israel Sendrovic, the executive vice president 
of the Federal Reserve Bank of New York.
---------------------------------------------------------------------------
    \405\ JCH15030 (Exhibit 106).
---------------------------------------------------------------------------
    Yiu's company, New Silver Eagle Holdings,\406\ employed 
Sendrovic's son, New York attorney Barry Sendrovic, to help the 
company raise capital.\407\
---------------------------------------------------------------------------
    \406\ CitiBank pp. 2-4 (Exhibit 110).
    \407\ Staff interview of Barry D. Sendrovic, Feb. 25, 1998.
---------------------------------------------------------------------------
    Documents produced by a former New Silver Eagle Holdings 
employee include a ``business introduction'' that lists, as one 
of the company's strengths, Jiang Zeren as a ``Senior 
Consultant'' and ``financial consultant.'' \408\ Jiang is 
identified as, ``the cousin of Communist Party Chairman Jiang 
Zemin.'' Other senior consultants include Qian Xinzhong, ``a 
former head of the Ministry of Health'' \409\ and Lin Minxue, 
``former head of the Ministry of Industry and Commerce.'' \410\
---------------------------------------------------------------------------
    \408\ Hanlon 039150 (Exhibit 111).
    \409\ Id.
    \410\ Hanlon 039153 (Exhibit 112).
---------------------------------------------------------------------------
    In February 1997, Natural Way Technologies was featured in 
``Financial Discoveries,'' a promotional magazine. In one 
section, entitled, ``Jackie Yiu: A Man With A Destiny,'' Yiu is 
pictured with President Clinton.\411\ The text reads, ``Yiu 
travels in the highest circles and was chosen to deliver a 
greeting from the Chinese people to Clinton on his 50th 
birthday.'' \412\ Another page of the magazine features a 
picture of Yiu with Hillary Clinton.\413\
---------------------------------------------------------------------------
    \411\ Hanlon 039177 (Exhibit 113).
    \412\ Id.
    \413\ Hanlon 039105 (Exhibit 114).
---------------------------------------------------------------------------
    Chung's correspondence to Mr. Yiu's office indicates that 
Yiu is based in Hong Kong.\414\ In an August 12, 1996 letter to 
Yiu's secretary, Chung states that he has arranged for Yiu to 
attend the President's 50th birthday party celebration, as well 
as meeting the next day with Israel Sendrovic. Chung also 
states that he has set up meetings with unnamed individuals at 
the Departments of Commerce and Agriculture.\415\ The letter 
refers to previous meetings arranged by Chung with the 
Secretary of Agriculture and Sendrovic.\416\
---------------------------------------------------------------------------
    \414\ DOS 013139 (Exhibit 115); DOS 013140 (Exhibit 116).
    \415\ Id.
    \416\ Id.
---------------------------------------------------------------------------
    In his deposition, Sendrovic confirmed that he met Yiu and 
Chung at his office on August 19, 1996.\417\ Sendrovic said 
that Chung offered to bring pictures of Sendrovic taken at the 
President's birthday event the previous evening.\418\ Sendrovic 
said that Yiu accompanied Johnny Chung and discussed his 
intention to open an office in the World Trade Center.\419\ 
Sendrovic denied having any knowledge of Yiu meeting anyone at 
the Departments of Commerce or Agriculture.\420\
---------------------------------------------------------------------------
    \417\ Deposition of Israel Sendrovic p. 31.
    \418\ Id.
    \419\ Id.
    \420\ Id.
---------------------------------------------------------------------------
    On October 5, 1996, Johnny Chung again wrote to Yiu's 
secretary in Hong Kong, referring to previous meetings between 
Yiu and Sendrovic and Yiu and Transportation Secretary 
Pena.\421\ The letter indicates that Chung planned the 
following events for Mr. Yiu:
---------------------------------------------------------------------------
    \421\ DOS 013140 (Exhibit 116).

        October 20--To join the party at New York with 
---------------------------------------------------------------------------
        President Clinton.

        October 22--Meeting with Mr. Israel Sendrovic (Federal 
        Reserve Bank) at New York.

        October 25--Department of Transportation and Federal 
        Commission Exchange at D.C.\422\
---------------------------------------------------------------------------
    \422\ Id.

    Sendrovic testified that he did not remember meeting Yiu on 
October 22.\423\ He also denied any knowledge of meetings 
between Yiu and Secretary Pena or anyone at the Department of 
Transportation or the Securities and Exchange Commission 
(presumably what Chung referred to as the ``Federal Commission 
Exchange'').\424\
---------------------------------------------------------------------------
    \423\ Deposition of Israel Sendrovic p. 33.
    \424\ Id.
---------------------------------------------------------------------------
    The same AISI shareholder report that mentions Liu Chao-
Ying of China Aerospace also mentions ``Y.F. Yao, who is the 
same person as Yat Hung Yiu.425 The shareholder 
report states that Yiu purchased 10 shares of stock in AISI for 
$100,000 in October 1996. It also mentions a personal loan of 
$200,000 to Chung, and suggests that Yiu plans to purchase more 
stock in 1997.426
---------------------------------------------------------------------------
    \425\ Staff Interview Andrew Hanlon, June 10, 1998.
    \426\ JCH13704 (Exhibit 106).
---------------------------------------------------------------------------
    The shareholder report states that Yiu has a 10-year visa 
to visit the United States, which may offer an explanation as 
to why he and Chung never established a company together in Los 
Angeles. The report also states that Chung helped Yiu open his 
company in New York: ``He owns a U.S. company that is publicly 
traded on the stock exchange. Interested in promoting large 
firms from China to be traded in U.S. stock. Wants to bring 
Disney World to China.'' 428
---------------------------------------------------------------------------
    \428\ Id.
---------------------------------------------------------------------------
    The stockholder reports for Liu Chao-Ying and Yat Hung Yiu 
suggest that Chung used $200,000 he received from them to repay 
a debt he owned to another Chinese company, the Great Wall 
International Culture Company. The report attributes $100,000 
of that payment to New Silver Eagle Holdings/Yat Hung Yiu and 
the remainder to Liu Chao-Ying of China 
Aerospace.429
---------------------------------------------------------------------------
    \429\ Id.
---------------------------------------------------------------------------

              The Great Wall International Culture Company

    According to AISI records, a company called Great Wall 
International Culture Co., Ltd. (``GWICC'') purchased 20 shares 
of AISI stock for $200,000 on February 10, 1996. A letter from 
Johnny Chung to GWICC was sent to the ``Great Wall Organization 
Building'' in Beijing.430
---------------------------------------------------------------------------
    \430\ JCH13739 (Exhibit 117).
---------------------------------------------------------------------------
    The Vice Chairman of the Board and General Manager of GWICC 
is Cui Baojian,431 who was Johnny Chung's guest at a 
September 21, 1995 Clinton/Gore fund-raising event in Los 
Angeles.432 Chung's assistant, Irene Wu, testified 
that Chung was introduced to Cui by Yei Jun He of the Haomen 
Beer Group.433 Johnny Chung contributed $20,000 in 
connection with that event, using his employees and their 
friends as conduits in order to avoid ``hard money'' 
restrictions placed on the event.
---------------------------------------------------------------------------
    \431\ JCH13739 (Exhibit 117); JCH14312 (Exhibit 118). Documents 
JCH14312 (Exhibit 118) and JCH14313 (Exhibit 119) also include business 
cards of Qian Chunyuan, Assistant to Chairman of the Board, GWICC; Chai 
Feng, GWICC and Cui Senmao, Chairman of the Board and General Manager 
of GWICC and Great Wall International Advertising Co., Ltd.
    \432\ JCH15023 (Exhibit 42).
    \433\ Deposition of Irene Wu, p. 35.
---------------------------------------------------------------------------
    The exact date of an agreement between AISI and GWICC is 
unclear. While AISI shareholder records indicate that the 
$200,000 payment was made by GWICC in February 1996, a letter 
from GWICC to Chung refers to the signing of a cooperation 
agreement and a $200,000 payment from Hong Kong in November 
1995.434 A letter from Chung to GWICC refers to a 
December 1, 1995 contract.435
---------------------------------------------------------------------------
    \434\ JCH13742 (translation by GROC staff) (Exhibit 120).
    \435\ JCH13739 (Exhibit 117).
---------------------------------------------------------------------------
    Documentary evidence indicates that the relationship had 
gone sour by the end of 1996, and GWICC was seeking to have its 
money returned. Documents produced by Chung include a letter 
from a GWICC representative dated November 30, 
1996.436 The letter's unknown author expresses 
regret for a lack of contacts between the companies for almost 
a year and notifies Chung that GWICC intends to cancel their 
agreement.437 The letter explains that GWICC formed 
a business relationship with an American company called BOSSCO 
Unlimited and authorizes that company's representative, Peter 
Chang, to collect the $200,000 that GWICC initially invested in 
AISI.438
---------------------------------------------------------------------------
    \436\ JCH 13744-5 (translation by GROC staff) (Exhibit 121).
    \437\ Id.
    \438\ Id.
---------------------------------------------------------------------------
    On December 26, 1996, Chung received another letter from 
GWICC, again authorizing Peter Chang to collect GWICC's 
$200,000 investment in AISI.439 The second letter 
threatens that Peter Chang is also authorized, ``. . . if 
necessary, to file complaints [sic] the appropriate agencies of 
the U.S. Government in order to protect our company's 
interests.'' 440
---------------------------------------------------------------------------
    \439\ JCH13743 (Translation by GROC staff) (Exhibit 122).
    \440\ Id.
---------------------------------------------------------------------------
    Finally, on January 12, 1997, GWICC wrote to Chung 
expressing its intent to cancel its agreement with 
AISI.441 Chung responded the next day, referring to 
the three letters from GWICC and a meeting with Peter Chang on 
January 10, 1997.442 Chung agreed to return GWICC's 
investment in four monthly installments of 
$50,000.443 Included in AISI documents are copies of 
four $50,000 checks from AISI to GWICC and Peter Chang and a 
receipt signed by Peter Chang.444
---------------------------------------------------------------------------
    \441\ JCH13742 (Translation by GROC staff) (Exhibit 120).
    \442\ JCH13739 (Exhibit 117).
    \443\ Id.
    \444\ JCH13740-1 (Exhibit 123).
---------------------------------------------------------------------------
    In depositions, AISI employees Irene Wu and Nancy Lee 
testified that Peter Change made threatening phone calls to 
Chung, and that Chung feared that Chang was involved in 
organized crime.445 Wu stated that Chung was afraid 
of Chang, and would not take his calls. She added that she 
would end up talking to Chang on the phone, and that Chang was 
very threatening:
---------------------------------------------------------------------------
    \445\ Deposition of Irene Wu, p. 198.

          A. If Johnny doesn't come up with the money, then he 
        knows where Johnny lives, and he'll make sure--he'll 
        show Johnny. . . . He threatened that if Johnny doesn't 
        come up with the money, that he knows where Johnny 
        lives. He knows where his family and his daughters are, 
        and he knows what Johnny's doing, and he--he'll tell 
        other [sic] what Johnny's doing.
          Q. Did he threaten Johnny's life?
          A. Yes.
          Q. Or the lives of his family members?
          A. Yes.446
---------------------------------------------------------------------------
    \446\ Id. pp. 199-200.

    Peter Chang was contacted by Committee investigators in 
August 1998. He confirmed that he collected $200,000 from 
Johnny Chung, but denied making any threats to do 
so.447 Mr. Chang said that Cui Baojian is a personal 
friend from China who owed him money.448 Chang said 
that Johnny Chung owed Mr. Cui $200,000, and that Mr. Cui 
authorized Mr. Chang to collect the funds to be applied to Mr. 
Cui's debt to Mr. Chang.449
---------------------------------------------------------------------------
    \447\ Staff interview of Peter Chang, Aug. 14, 1998.
    \448\ Id.
    \449\ Id.
---------------------------------------------------------------------------
    Mr. Chang said that he does not know anything about Great 
Wall International Culture Company, other than knowing that his 
friend, Mr. Cui, is employed there.\450\ Mr. Change denied 
having any involvement in organized crime.\451\
---------------------------------------------------------------------------
    \450\ Id.
    \451\ Id.
---------------------------------------------------------------------------

                   Bin Liu & C.L. International, Inc.

    Testimony from Chung's staff indicates that Chung had a 
relationship with more than one well-placed child of a Chinese 
general. It has been widely reported that Chung was associated 
with Liu Chao-Ying, the daughter of retired General Liu 
Huaqing. In her deposition testimony, Irene Wu stated that Bin 
Liu, a Chinese National whom Chung also escorted to DNC 
fundraisers, was also a General's son. She did not know the 
name of his father, but she said that Bin Liu was not related 
to Liu Chao-Ying.\452\
---------------------------------------------------------------------------
    \452\ Deposition of Irene WU, pp. 225-226.
---------------------------------------------------------------------------
    Business cards produced by Johnny Chung indicate that Bin 
Liu is the Vice Chairman of Yip's International Investment 
Holdings, Ltd., Hotel Investor S.A., and Y&D International 
Investment (Hong Kong), Ltd.\453\ Liu's office is located in 
Hong Kong.\454\
---------------------------------------------------------------------------
    \453\ JCH14345 (Exhibit 124), See also, JCH14286 (Exhibit 125), 
JCH14342-4 (Exhibit 126) and JCH14346-7 (Exhibit 127) for additional 
business cards with identical logo.
    \454\ Id.
---------------------------------------------------------------------------
    According to Irene Wu, Bin Liu is a friend of Yei Jun He of 
the Haomen Group.\455\ Wu said that Bin Liu owns nightclubs and 
hotels in China, and is involved with the entertainment 
industry.\456\
---------------------------------------------------------------------------
    \455\ Deposition of Irene Wu, July 28, 1998, pp. 34-35.
    \456\ Id. pp. 225-226.
---------------------------------------------------------------------------
    Bin Liu attended the Clinton/Gore `96 fundraiser in Century 
City, California on September 21, 1995 with Chung's 
delegation.\457\ Bin Liu is also listed as one of Chung's 
guests for a DNC reception at the Beverly Hilton on July 18, 
1996.\458\ Chung's other guests included Liu Chao-Ying of China 
Aerospace International Holdings, Ltd. and Yat Hung Yiu of 
China Medical Development Company.\459\
---------------------------------------------------------------------------
    \457\ JCH15023 (Exhibit 42).
    \457\ JCH15017 (Exhibit 96).
    \459\ Id.
---------------------------------------------------------------------------
    According to records obtained by the Committee, Chung and 
Bin Liu formed C.L. International on July 26, 1996.\460\ The 
company's stated principal activity is international 
trade.\461\ CL International issued 100,000 shares at $1 per 
share.\462\ Chung received 30,000 shares.\463\ Liu received 
70,000 shares.\464\
---------------------------------------------------------------------------
    \460\ JCH13077 (Exhibit 128); JCH13079 (Exhibit 129); But see 
JC1289 (Exhibit 130) (``start date'' listed as 11/1/96).
    \461\ JC 1289 (Exhibit 130).
    \462\ JC 1290 (Exhibit 131); JC 1297-98 (Exhibit 132); JCH13077 
(Exhibit 128).
    \463\ JC 1287 (Exhibit 133).
    \464\ JC 1288 (Exhibit 134).
---------------------------------------------------------------------------
    On December 23, 1996, Chung sent notice to interested 
parties that he was resigning from his position at C.L. 
International. In his letter to Bin Liu, Chung said the 
following:

        As we have discussed during your visit in November, I 
        am hereby resigning . . . . I have assisted in the 
        initial set up of your company but you have not kept 
        your promise on the investment capital nor have I seen 
        any business being conducted during the last six months 
        . . ..\465\
---------------------------------------------------------------------------
    \465\ JCH13088 (Exhibit 135).

    Another December 23, 1996 letter from Chung to his attorney 
refers to the resignation letter to C.L. International and asks 
the attorney to remove Chung's name from corporate 
records.\466\ A travel itinerary for Liu indicates that he left 
Los Angeles on December 2, 1996, and arrived in Beijing the 
next day.\467\
---------------------------------------------------------------------------
    \466\ JC 1286 (Exhibit 136).
    \467\ JC 127-8 (Exhibit 137).
---------------------------------------------------------------------------
    Bank records for C.L. Information indicate that Bin Liu was 
bouncing large checks on the company's account. The company's 
account statements indicate that two checks totaling $7,000 
were written to cash on November 19 and 20, 1996.\468\ Three 
$50,000 checks were returned for insufficient funds in December 
1996.\469\ A $70,000 check was returned on January 27, 
1997.\470\
---------------------------------------------------------------------------
    \468\ JC 1599-1602 (Exhibit 138).
    \469\ JC 1597 (Exhibit 139).
    \470\ JC 1610 (Exhibit 140); JC 1619-20 (Exhibit 141).
---------------------------------------------------------------------------
    Irene Wu stated the following about Bin Liu:

          Q. Did he mention what type of trouble Bin Liu was 
        in?
          A. First of all, Bin Liu--he didn't pay all the 
        attorney fees that was owed to Winny Yang, and Johnny 
        wasn't going to pay the attorney fee, so nobody was 
        paying. I don't even know if CL International was 
        officially formed or not. I wasn't sure because he 
        disappeared for a long time and we couldn't find him. 
        So Johnny felt he wanted to disassociate with him, and 
        he felt he might be in some kind of financial trouble.
         A. Also, Johnny, being an officer with the company, he 
        didn't want any liability and responsibility, so he 
        resigned from CL.
          Q. It (the bank statement for C.L. Intl.) says check 
        108, 109, 110 were all for $50,000. They were returned 
        for insufficient funds in December 1996. Do you have 
        any knowledge about those checks?
          A. No. I think this is the trouble that Johnny was 
        talking about, because we got the bank statement and 
        saw the record, so Johnny figured he's writing checks. 
        He's in financial trouble. He's writing checks and 
        there's no money in the account.\471\
---------------------------------------------------------------------------
    \471\ Deposition of Irene Wu, pp. 231-233.
---------------------------------------------------------------------------

                   The Homko Group and Honestwin, Ltd

1. C.M. Information, Inc.

    Johnny Chung formed two companies with individuals 
connected to Homko International Finance (Holdings), Ltd. 
(``Homko''). Homko is reportedly a real estate development firm 
with projects in Shanghai and Hainan Province, as well as a $25 
million luxury villa project in Beijing.\472\ Documents 
produced by Johnny Chung include several business cards from 
individuals related to Homko.\473\
---------------------------------------------------------------------------
    \472\ China Daily, June 7, 1993.
    \473\ JCH14272-73 (Exhibit 142); JCH17318 (Exhibit 143); JCH17342 
(Exhibit 144).
---------------------------------------------------------------------------
    On September 21, 1995, Chung brought several guests to a 
Clinton/Gore '96 fund-raiser. Chung's guests included Chinese 
Nationals Shi Jin Yu, Jian Qia Wei, and Hui Jie Li of a Hong 
Kong company called Honestwin, Ltd. (``Honestwin''). Documents 
produced by Johnny Chung include several business cards from 
individuals related to Honestwin.\474\
---------------------------------------------------------------------------
    \474\ JCH14276; JCH14340 (Exhibit 145); JCH14344 (Exhibit 146); 
JCH14354 (Exhibit 147).
---------------------------------------------------------------------------
    On December 27, 1995, Johnny Chung and Shi Jin Yu 
incorporated C.M. Information.\475\ The company issued 100,000 
shares of stock at $1 per share. Chung received 30,000 shares. 
Honestwin received 70,000 shares.\476\
---------------------------------------------------------------------------
    \475\ JCH13173-5 (Exhibit 148); JCH13169 (Exhibit 149).
    \476\ Id.
---------------------------------------------------------------------------
    On July 3, 1996, Johnny Chung wrote an invitation letter to 
Hui Jie Li, ``Director and Manageress'' of Honestwin Limited in 
Hong Kong.\477\ He referred to an earlier visit to the U.S. by 
Li, and wanted, ``to discuss further the possibility of 
bringing AISI's telecommunication system to Hong Kong.'' \478\
---------------------------------------------------------------------------
    \477\ DOS 013154 (Exhibit 24).
    \478\ Id.
---------------------------------------------------------------------------
    On July 18, 1996 Shi Jin Yu accompanied Chung to a DNC 
fund-raising event at the Beverly Hilton.\479\ Also present 
were executives from China Aerospace Holdings and New Silver 
Eagle Holdings.\480\ Bin Liu, who formed C.L. International 
with Chung, also attended the event as Chung's guest.\481\
---------------------------------------------------------------------------
    \479\ JCH15017 (Exhibit 96).
    \480\ Id.
    \481\ Id.
---------------------------------------------------------------------------
    On September 15, 1996 Yu purchased 20 shares of AISI for 
$100,000 using funds wired to Chung from Homko.\482\ According 
to an AISI shareholder report, Shi Jin Yu toured the White 
House, met Maggie Williams, met President Clinton in July 1996, 
and attended the Democratic National Convention in 1996 as 
Chung's guest.\483\
---------------------------------------------------------------------------
    \482\ JCH13705-6 (Exhibit 150).
    \483\ Id.
---------------------------------------------------------------------------
    Wei Jian Qiao of Honestwin, Ltd. visited the United States 
in January 1997. Documents received by the Committee include a 
letter to Qiao from Yan Xie of CM Information, Inc.\484\ The 
letter mentions business discussions concerning ``the project 
of importing 50,000 MT fishmeal from South America in 1997.'' 
\485\
---------------------------------------------------------------------------
    \484\ DOS 013137 (Exhibit 151).
    \485\ Id.
---------------------------------------------------------------------------
    On February 17, 1997, Yan Xie of C.M. Information wrote to 
Shi Jin Yu at Honestwin, Ltd. Yu and an Honestwin accountant 
were invited to visit C.M. Information for the following 
reason:

        [F]or the business discussion . . . of setting up a 
        fuel station at China's sea and cooperation in this 
        project with partners. Now we are making contact with 
        COSTCO about setting up a warehouse supermarket in 
        Dalian, China. COSTCO would like to meet the President 
        of C.M. Information for further discussion.\486\
---------------------------------------------------------------------------
    \486\ DOS 013158 (Exhibit 152).
---------------------------------------------------------------------------

2. The Homlyn Group, Inc.

    In August, 1996, Chung set up a second California company 
with his associates from Honestwin. The Homlyn Group was 
incorporated on August 29, 1996.\487\ A November 29, 1996 
California State filing lists Chung and Jing Wei Li as officers 
and directors of the corporation.\488\ The form indicates that 
the nature of the company's business is international trading, 
real estate investment, and investment development.\489\ C.M. 
Information and the Homlyn Group share office space in Los 
Angeles.\490\
---------------------------------------------------------------------------
    \487\ JCH13181 (Exhibit 153); JCH13178 (Exhibit 154).
    \488\ JCH13179 (Exhibit 155).
    \489\ JCH13179 (Exhibit 155). See also, JCH13182 (Exhibit 156).
    \490\ Investigation by Committee staff on Jan. 23, 1998.
---------------------------------------------------------------------------
    The Homlyn Group authorized the issuance of $100,000 shares 
of stock at $1,000 per share.\491\ Chung received 1,000 
shares.\492\ Homko International Finance (Holdings), Ltd. 
purchased 60,000 shares.\493\ Yen Su, Huan-Lian Tung and Yu-Bao 
Chiang purchased 1,000 shares each.\494\ A business card 
produced by Johnny Chung identifies Jing Wei Li as Chairman of 
the Homko Group.\495\
---------------------------------------------------------------------------
    \491\ JCH13180 (Exhibit 157); JCH13181 (Exhibit 153); JCH13182 
(Exhibit 156).
    \492\ JCH13181 (Exhibit 153); JCH13187 (Exhibit 158). See 
generally, materials relating to Homlyn's incorporation, JCH13183-88 
(Exhibit 159).
    \493\ Id.
    \494\ Id.
    \495\ JCH14318 (Exhibit 160).
---------------------------------------------------------------------------
    Records obtained by the Committee include a letter from Don 
Fowler inviting Jing Wei Li of Homko to attend the Democratic 
National Convention.\496\
---------------------------------------------------------------------------
    \496\ DOS 013143 (Exhibit 23).
---------------------------------------------------------------------------
    On March 10, 1997, Johnny Chung wrote to Jing Wei Li 
resigning his position as Vice President and Director of the 
Homlyn Group.\497\ In another letter to Shi Jin Yiu dated the 
same day, Chung resigned his position of Director and Vice 
President of C.M. Information.\498\
---------------------------------------------------------------------------
    \497\ JCH15039 (Exhibit 161).
    \498\ JCH15042 (Exhibit 162).
---------------------------------------------------------------------------

 Chunn Fat Leung, Z.F. Fortune, Inc., and Education Secretary Richard 
                                 Riley

    Johnny Chung formed a company called Z.F. Fortune, Inc. 
with a Chinese national named Chun Fat Leung. Chung brought 
Leung to a DNC fund-raiser and attempted to secure a meeting 
with Education Secretary Richard Riley.
    Chun-Fat Leung is the Chairman of the Zhen Fa Group.\499\ 
On June 3, 1996, Zhen Fa wired $101,985 from Hong Kong to 
Chung's company, AISI.\500\ On June 10, 1996, Chung brought 
Leung and his wife to a DNC fund-raiser at the Los Angeles home 
of Edie and Lew Wasserman.\501\ FEC records indicate that Chung 
made a $20,000 contribution to the DNC at that time.\502\ 
Records produced by the DNC include letters from Kimberly Ray, 
DNC Southern California Finance Director, to Leung ``c/o Johnny 
Chung'' at Chung's Torrance, California address.\503\
---------------------------------------------------------------------------
    \499\ JCH12202 (Exhibit 163). See also, JCH14320 (Exhibit 164); 
JCH14331 (Exhibit 165) (business cards from Zhen Fa Group).
    \500\ N0218 (Exhibit 166).
    \501\ JCH12203 (Exhibit 167).
    \502\ FEC Internet Records--www.tray.com/fecinfo/ (Exhibit 3).
    \503\ DNC 1915241 (Exhibit 168). See also, DNC 1915193 (Exhibit 
169); DNC 1915211 (Exhibit 170).
---------------------------------------------------------------------------
    On June 11, 1996, immediately following the fundraiser, 
Chung's assistant, Irene Wu, wrote to Education Secretary 
Richard Riley's assistant, Sandy Rinck.\504\ The letter said, 
``Per our conversation, I am sending you the biography of Mr. 
Leung and a list of names who will be meeting with Secretary 
Riley.'' \505\
---------------------------------------------------------------------------
    \504\ JCH12202 (Exhibit 163).
    \505\ Id. Note: Documents produced by Chung did not include Chun 
Fat Leung's biography, referred to in Irene Wu's letter.
---------------------------------------------------------------------------
    On June 12, 1996, Chung wrote a letter to Sandy Rinck as 
follows:

        I want to inform you of a misunderstanding between Ms. 
        Rita Lewis of the DSCC and I. Since I became the #1 
        contributor [to] the DNC in 1995, I get a lot of calls 
        from everyone for donations. But as much as I tried my 
        best, I can not satisfy everyone . . .. I believe [Mr. 
        Leung] deserves the honor of meeting with our Secretary 
        Riley.

        Other than the DNC, I am also trying my best to support 
        the DSCC whenever I can but sometimes it's quite 
        difficult. I hope you understand and will not let other 
        issues come between our relationship. I am totally 
        committed to the Democratic Party and to our 
        president.\506\
---------------------------------------------------------------------------
    \506\ JCH12203 (Exhibit 167).

    On June 19, 1996, DNC Southern California Finance Director 
Kimberly D. Ray wrote the following letter to Johnny Chung. She 
sent identical letters to Chun-Fat Leung and his assistant S.B. 
---------------------------------------------------------------------------
Fu ``care-of'' Johnny Chung.

        Thank you for your help in making the event at Edie and 
        Lew Wasserman's home such a success. President Clinton 
        truly appreciated you coming out and showing your 
        support for the Administration and the Democratic 
        National Committee.

        Your assistance will contribute greatly to our efforts 
        to reelect the President and Vice President, take back 
        control of Congress, and elect Democrats in California 
        and nationwide.

        Again, thank you for your participation. If you have 
        any questions, please call me at: 310-445-6825. I look 
        forward to working with you during the coming 
        months.\507\
---------------------------------------------------------------------------
    \507\ DNC1915193 (Exhibit 169); DNC1915211 (Exhibit 170); 
DNC1915241 (Exhibit 168).

    On June 21, 1996, Chung and Leung formed ``Z.F. Fortune, 
Inc.'' \508\ Records indicate that the corporation engages in 
``international trade.'' \509\ One hundred thousand shares of 
stock were issued at $1 per share.\510\ Chung received 40,000 
shares.\511\ Chun Fat Leung received 60,000 shares.\512\ Chun 
Chau and Shu Bai Fu are listed in AISI documents as Secretary 
and Treasurer, respectively, of ZF Fortune.\513\
---------------------------------------------------------------------------
    \508\ JCH13301 (Exhibit 171); JCH13306 (Exhibit 172). See also, 
JCH13299-13333 (Z.F. Fortune corporate records).
    \509\ JCH13301 (Exhibit 171); JCH13331 (Exhibit 173).
    \510\ JCH13305 (Exhibit 174).
    \511\ JCH13302 (Exhibit 175); JCH13306 (Exhibit 172).
    \512\ JCH13303 (Exhibit 176); JCH13306 (Exhibit 172).
    \513\ Id.
---------------------------------------------------------------------------
    This was not Chung's first contact with Secretary Riley. In 
a May 1, 1995 letter to the Secretary, Chung recalls meeting 
him at the DNC fund-raiser at Steven Spielberg's home in Los 
Angeles.\514\ In the letter, Chung said, ``I met with Vice 
Premier Lee and with your permission, I have invited him to 
visit the U.S.'' \515\
---------------------------------------------------------------------------
    \514\ See the section of this report that discusses Yi Chen Liu 
(JCH13073).
    \515\ Id.
---------------------------------------------------------------------------
    On May 26, 1995, Riley wrote two letters: one to Chung and 
one to Zhu Kaixuan, Minister of China's Education Commission in 
Beijing.\516\ Riley thanked Chung for visiting him and for an 
``ornate knife'' that Chung gave him.\517\ He enclosed a copy 
of his letter to Zhu, which declined an invitation to visit 
China, instead inviting Zhu to visit Washington.\518\
---------------------------------------------------------------------------
    \516\ JCH12189-90 (Exhibit 177).
    \517\ Id.
    \518\ Id.
---------------------------------------------------------------------------
    Chung also requested but failed to get a meeting with Riley 
for Sheng Huaren of China Petrochemical.\519\
---------------------------------------------------------------------------
    \519\ JCH13055 (Exhibit 74). See also, the portion of this report 
pertaining to China Petrochemical.
---------------------------------------------------------------------------

                              Conclusions

1. Immigration Fraud

    The Committee views with great concern the ease with which 
Johnny Chung was able to manipulate the system to obtain visas 
for foreign nationals. In 1995 and 1996, Chung formed seven 
companies in Los Angeles with seven Chinese nationals.\520\ All 
of them attended DNC and Clinton/Gore fundraisers with Chung at 
which the President made appearances. Most of them sent Chung 
large sums of money.
---------------------------------------------------------------------------
    \520\ Sino-American Development Corp., Yuangao International, C.M. 
Information, Z.F. Fortune, C.L. International, the Homlyn Group and 
Marswell International.
---------------------------------------------------------------------------
    The testimony of Irene Wu, Chung's top assistant, indicates 
clearly that these companies were set up for fraudulent 
purposes. According to Ms. Wu, the companies were never 
intended to do business, they were front companies designed to 
enable Chinese nationals to obtain visas to come to the United 
States.\521\ The lack of financial activity reflected in the 
bank records of these companies, along with invitation letters 
from Chung delivered to U.S. consulates in China to obtain 
visas, support this testimony. Furthermore, Wu suggested that 
some of Chung's associates may have hoped to gain permanent 
residence in the United States through these companies.\522\
---------------------------------------------------------------------------
    \521\ Deposition of Irene Wu, pp. 228-229.
    \522\ Id. p. 220.
---------------------------------------------------------------------------
    The thread that connects all of Chung's Chinese associates 
is that they all came to the United States to attend high-
profile political fundraisers and meet with senior government 
officials--including the President. The fact that Johnny Chung 
could bring a Lt. Colonel in the People's Liberation Army and a 
senior aerospace executive like Liu Chao-Ying to the United 
States to attend a major DNC fundraiser without anyone knowing 
her identity is troublesome. The fact that Chung could bring 
her to meetings with government officials such as Senator Kerry 
and officials at the Securities and Exchange Commission without 
anyone knowing her identity is disturbing.
    When asked by the Washington Post about Chung's scheme, 
Immigration and Naturalization Service spokesman Russ Bergeron 
identified this area as a ``growing fraud,'' involving ``all 
kinds of scams.''\523\ Bergeron identified such fraudulent 
practices as using bogus business cards, letterheads for 
nonexistent companies, phony tax returns and fake photos of 
business locations.\524\ When we find such practices being 
employed by the well-connected offspring of senior Chinese 
generals, possibly with an eye to gaining a U.S. green card, it 
becomes clear that this is an area that demands further 
scrutiny by Congress and the executive branch.
---------------------------------------------------------------------------
    \523\ George Lardner, ``Fund-Raiser Set Up Fake Firms for 
Chinese,'' the Washington Post, Sep. 21, 1998 (Exhibit 178).
    \524\ Id.
---------------------------------------------------------------------------

2. Foreign Money for Contributions

    The documentary evidence accumulated to date supports the 
conclusion that, on at least four occasions, Chung received 
large sums of money from his associates overseas and used that 
money to make political contributions for DNC fundraisers. In 
each of these four instances, he then took those associates to 
the fundraisers, or in the first instance, a meeting with the 
President.

                           The Radio Address

    On March 6, 1995, Chung received a $150,000 wire transfer 
from the Haomen Group of China.\525\ At the time, the balance 
in Chung's account was only $9,860.\526\ On March 9, Chung made 
a $50,000 contribution to the DNC from the same bank 
account.\527\ On March 11, Chung escorted the son of the Haomen 
Group, David Chen, along with a number of Chinese dignitaries, 
to the President's Radio Address, for which the $50,000 
contribution paved the way.
---------------------------------------------------------------------------
    \525\ Wire Transfer, Deposition of Irene Wu.
    \526\ JCH16554 (Exhibit 47).
    \527\ JCH796; 797 (Exhibit 56).
---------------------------------------------------------------------------

                        The Spielberg Fundraiser

    On April 8, 1995, George Liu, Chung's business associate 
from Taiwan, wrote Chung a check for $100,000.\528\ At the 
time, the balance in Chung's account was $45,971.\529\ That 
same day, from the same account, Chung wrote a check to the DNC 
for $125,000.\530\ That evening, Chung and Liu attended the DNC 
fundraiser at Steven Spielberg's home.\531\ This contribution 
paved the way for Chung to secure the photos of the President 
with the ``China delegation'' from the March 10 radio 
address.\532\
---------------------------------------------------------------------------
    \528\ N 0209 (Exhibit 55).
    \529\ JCH16547 (Exhibit 179).
    \530\ JCH794-795 (Exhibit 48).
    \531\ JCH13699 (Exhibit 54).
    \532\ JCH464, JCH465 (Exhibit 180).
---------------------------------------------------------------------------

                             chun fat leung

    On June 3, 1996, Chung received at $102,000 wire transfer 
from the Zhen Fa group in Hong Kong.\533\ Zhen Fa is owned by a 
Chinese national named Chun Fat Leung. On June 10, Chung 
escorted Chung Fat Leung to a DNC fundraiser at the California 
home of Lew and Edie Wasserman.\534\ On June 14, Chung wrote a 
$20,000 check to the DNC.\535\
---------------------------------------------------------------------------
    \533\ N0218 (Exhibit 181).
    \534\ JCH12203 (Exhibit 167).
    \535\ FEC Internet Records--www.tray.com/fecinfo/ (Exhibit 3).
---------------------------------------------------------------------------

                             liu chao-ying

    According to the New York Times, Chung received $300,000 
from China Aerospace executive Liu Chao-Ying in the summer of 
1996.\536\ Chung reportedly has told the Justice Department 
that he donated up to $80,000 of those funds to the DNC.\537\ 
Chung's bank records tend to corroborate these statements. On 
July 15, 1996, Chung received a $190,000 wire transfer from 
Hong Kong.\538\ Prior to receiving this money, his account had 
a balance of only $5,720.\539\ On July 18, Chung escorted Liu 
Chao-Ying to a high-dollar DNC fundraiser at the Los Angeles 
home of Eli Broad.\540\ On July 19, the next day, he wrote two 
checks to the DNC totaling $45,000.\541\
---------------------------------------------------------------------------
    \536\ David Gerth, David Johnston, and Don Van Natta, ``Democrat 
Fund-Raiser Said to Detail China Tie,'' the New York Times, May 15, 
1998 (Exhibit 6).
    \537\ Id.
    \538\ N0220 (Exhibit 91).
    \539\ JCH 16327 (Exhibit 182).
    \540\ JCH15017 (Exhibit 96).
    \541\ JCH16303 (Exhibit 183); JCH16306 (Exhibit 184).
---------------------------------------------------------------------------

3. The DNC's Knowledge

    On July 2, 1998 DNC spokesman Rick Hess told the Washington 
Post, ``at the time (October 1995) the DNC had no reason to 
suspect Mr. Chung or the source of this funds.'' \542\ Such 
claims should be taken with a healthy dose of skepticism.
---------------------------------------------------------------------------
    \542\ George Lardner, ``Chung Secured Treasury Meeting for Chinese 
Petrochemical Firm,'' the Washington Post, July 2, 1998 (Exhibit 46).
---------------------------------------------------------------------------
    Richard Sullivan, the DNC's Finance Director, has said 
consistently that he had doubts about the sources of Chung's 
contributions as early as February 1995.\543\ In his Senate 
deposition, he clearly stated:
---------------------------------------------------------------------------
    \543\ Sullivan Deposition (Senate), pp. 228-229; Sullivan 
Deposition (House), p. 186.

        I think he had contributed about $100,000 to that point 
        over the past year, and the fact that--him showing up 
        with these five people from China . . . I had a sense 
        that he might be taking money from them and then giving 
        it to us, you know.\544\
---------------------------------------------------------------------------
    \544\ Sullivan Deposition (Senate), pp. 228-229.

    Sullivan said that he suggested to DNC Chairman Don Fowler 
that they review Chung's contributions, though Fowler denies 
this happened.\545\ Did Sullivan have reason to be concerned? A 
letter Sullivan received from Chung in December 1994 suggests 
that he did. In the letter, Chung is seeking Sullivan's help in 
getting the Chairman of the Haomen Group, Shi Zeng Chen, into 
the White House. In the letter, Chung is fairly blunt: ``He 
(Shi Zeng Chen) will play an important role in our future party 
functions.'' \546\
---------------------------------------------------------------------------
    \545\ George Lardner, ``Chung Secured Treasury Meeting for Chinese 
Petrochemical Firm,'' the Washington Post, July 2, 1998 (Exhibit 6).
    \546\ DNC 3233321 (Exhibit 28).
---------------------------------------------------------------------------
    Despite Sullivan's doubts, the DNC went on to accept 
another $225,000 in contributions from Chung.\547\ In October 
1995, DNC documents show that Sullivan faxed a letter to the 
Treasury Department seeking a meeting for Chung and his Chinese 
associates from the China Petrochemical Company.\548\
---------------------------------------------------------------------------
    \547\ FEC Internet Records--www.tray.com/fecinfo/ (Exhibit 3).
    \548\ Treasury 00000167-168 (Exhibit 73).
---------------------------------------------------------------------------
    Did Fowler have any reason to suspect that Chung was 
funneling Chinese money to the DNC? He met frequently with 
Chung's Chinese guests. His correspondence is instructive:
    In April 1995, Chung wrote to Fowler, telling that him the 
National Security Council was holding onto the pictures of his 
``China delegation'' and the President, and pleading for help 
to get the pictures released: ``I am going to China next week 
and I do need to bring those pictures with me. I have run out 
of excuses to tell them why the pictures are taking forever.'' 
\549\
---------------------------------------------------------------------------
    \549\ DNC 3102463 (Exhibit 185).
---------------------------------------------------------------------------
    In July 1995, Fowler wrote to Chung and said, ``Best of 
luck on your trip to China. I enjoyed meeting your friend who 
is the wife of the Chief of Staff of the Chinese Army.'' \550\
---------------------------------------------------------------------------
    \550\ DNC 3102487 (Exhibit 186).
---------------------------------------------------------------------------
    In September 1995, Fowler wrote to China Petrochemical's 
Huaren Sheng in Beijing, at Johnny Chung's request, to invite 
him to come to a meeting at the DNC. He went on to write to the 
Secretaries of Energy and Treasury to ask them to meet with 
Chung and Sheng.
    In August 1996, Fowler wrote to Chung's associate Jing Wei 
Li at the Homko Group in Hong Kong to invite him to the 
Democratic Convention. The letter had to be addressed ``via 
facsimile,'' \551\ because there was no U.S. address.
---------------------------------------------------------------------------
    \551\ DOS 013143 (Exhibit 23).
---------------------------------------------------------------------------
    Fowler's assistants were instrumental in getting Chung and 
his ``China delegation'' into the President's radio 
address.\552\ Chung showed up at two high-profile Democratic 
fundraisers in 1995 and 1996 with large delegations of Chinese 
nationals.\553\
---------------------------------------------------------------------------
    \552\ Fowler Senate Governmental Affairs testimony, Sep. 9, 1997, 
p. 209.
    \553\ The Sept. 21, 1995 Century City dinner, and the July 18, 1996 
fundraiser at the home of Eli Broad.
---------------------------------------------------------------------------
    If DNC officials did not suspect that Chung's money was 
coming from China, it is only because they were looking the 
other way. The aggressive solicitation of Chung by the DNC 
makes it clear that they were intent on raising as much money 
as possible without looking too carefully at where it was 
coming from. A November 10, 1995 memo from the DNC's Ari 
Swiller, asking Fowler to call Chung, captures the hard sell 
tactics used by DNC employees, and to which Chung apparently 
responded:

        Johnny committed to contribute $75,000 to the DNC 
        reception in Los Angeles on September 21. He has still 
        not sent his contribution. Tell him if he does not 
        complete his commitment ASAP bad things will 
        happen.\554\

    [Supporting documentation follows:]
---------------------------------------------------------------------------
    \554\ DNC 3353903 (Exhibit 187).





=======================================================================


                           CHAPTER IV, PART D

  UNPRECEDENTED INFUSION OF FOREIGN MONEY INTO THE AMERICAN POLITICAL 
                                SYSTEM:

           THE SIOENG FAMILY'S CONTRIBUTIONS AND FOREIGN TIES

=======================================================================

      
           THE SIOENG FAMILY'S CONTRIBUTIONS AND FOREIGN TIES

                          I. Executive Summary

    The Committee's investigation of the political 
contributions and related activities of Ted Sioeng and his 
family was remarkable both for the extraordinary number of 
obstacles it encountered and for the information it developed 
in spite of these difficulties. Sioeng, his family, and his 
business associates made political contributions of nearly 
$600,000 overall in 1995 and 1996, including $400,000 to the 
Democratic National Committee and $182,500 to Republican 
candidates and organizations. The Committee's attempts to 
determine the sources of these contributions and the 
motivations behind them were met with a series of hurdles set 
in place by Sioeng's family, associates, and attorneys.
    The most persistent and crippling obstacle was the number 
of persons the Committee sought to interview or depose who 
asserted their privileges against self-incrimination, fled the 
country, or otherwise refused to cooperate with the 
investigation. Attached to this report is a chart listing 28 
persons the Committee tried but was unable to speak 
to.1 They include every member of Sioeng's extended 
family that the Committee attempted to contact, plus a number 
of close business and personal associates.
---------------------------------------------------------------------------
    \1\ Chart Entitled ``28 Unavailable Sioeng Witnesses.'' Exhibit 1.
---------------------------------------------------------------------------
    The Committee voted to immunize one of Ted Sioeng's 
business associates, Kent La, but ultimately could not make 
public any of his testimony because of Justice Department 
concerns that to do so ``would compromise [its] pending 
criminal investigation.'' 2 Curiously, after having 
been made aware of the Justice Department's decision reflecting 
the sensitivity of La's testimony, Ranking Minority Member 
Henry Waxman stated in an August 4, 1998 hearing that La said 
nothing relevant to the Committee's investigation of campaign 
finance abuses.3 Not only is this statement 
contradicted by the Justice Department's abject refusal to 
allow the Committee to make public any of Kent La's testimony, 
but, at the time he made the statement, Representative Waxman 
had neither heard Kent La's testimony nor read the deposition 
transcript.
---------------------------------------------------------------------------
    \2\ Letter from L. Anthony Sutin to Chairman Burton, Aug. 28, 1998. 
Exhibit 2. Letter from Mark M. Richard to Chairman Burton memorializes 
the Committee's agreement with the Justice Department concerning the 
testimony of Kent La, Apr. 22, 1998. Exhibit 3. Letter from Mark M. 
Richard to Chairman Burton, Aug. 3, 1998. Exhibit 4.
    \3\ At an Aug. 4, 1998 Committee hearing, Ranking Minority Member 
Henry Waxman stated the following:

      We recall we were told that if we didn't grant immunity to 
      the four witnesses, we would never know from those people 
      who have direct knowledge about how the Chinese Government 
      made illegal campaign contributions in an attempt, apparent 
      attempt to influence our policy. We granted immunity. We 
      have taken those depositions. . . . The four witnesses, I 
      believe, don't know anything about transferring technology 
      to China. They don't know anything about possible campaign 
      contributions from the Chinese Government. And they don't 
      know anything that is of relevance to this committee's 
---------------------------------------------------------------------------
      investigation.

Note that one of the ``four witnesses'' referred to above was Kent La. 
A copy of the hearing transcript is maintained by the Committee.
    A second obstacle was the Sioeng-family attorneys, who 
orchestrated a sweeping effort to prevent the Committee from 
learning the truth about the family's political contributions 
and activities. Prominent in the family lawyers' arsenal of 
dilatory and obstructionist tactics was their deliberate 
failure to comply with Committee subpoenas.
    The Committee twice issued subpoenas to three of the Sioeng 
family's businesses in the United States, Panda Estates 
Investment, Inc., Panda Industries, Inc., and Panda Hotel 
Investment, Inc. The first subpoenas were issued in March and 
early April and carried early- and mid-April return dates. Two 
weeks after productions were due, the Sioeng-family lawyers 
objected to the subpoenas on various grounds and produced only 
31 pages of unremarkable documents. In June, the Committee 
issued new subpoenas seeking documents from the same three 
companies. This time, the subpoenas had been narrowed 
considerably to reflect concerns expressed by the family 
lawyers at a May 15, 1998 meeting called by majority staff to 
the Committee. These subpoenas were ignored completely.
    The Sioeng-family lawyers also managed to upset an 
agreement the Committee had reached with Donald Lam, the 
accountant for Sioeng's businesses in the United States. The 
Committee subpoenaed Lam in January 1998 and Lam agreed to 
produce documents and appear for a deposition in mid-February. 
The information sought from Lam related to the income of Panda 
Estates and Panda Industries, both of which made political 
contributions. Those contributions are accounted for on the 
``Reconciliation of Income (Loss) per Books With Income per 
Return'' section of the corporate tax form 1120. That section 
reconciles a corporation's taxable income with its book income 
by, among other things, accounting for expenses--like political 
contributions--recorded on books but not deducted from taxes.
    In short, the Committee sought financial information to 
help it determine the sources of over $250,000 in political 
contributions the two companies made in 1995 and 1996. The 
information represented one of the Committee's only 
opportunities to trace these sources outside U.S. borders.
    The Sioeng-family lawyers instructed Donald Lam not to 
comply with the Committee'ssubpoena despite the fact that they 
did not represent him and, in fact, represented parties that had 
conflicting or substantially different interests than his. Lam never 
produced the tax records sought by the Committee.4
---------------------------------------------------------------------------
    \4\ Letters by the Sioeng-family lawyers to Chairman Burton 
eventually objected to the Committee's subpoena, Feb. 13 and 17, 1998. 
Exhibit 5. A letter from Chairman Burton to the Sioeng-family lawyers 
rejected the objections and ordered that Donald Lam produce the 
subpoenaed documents, Feb. 20, 1998. Exhibit 6. Nevertheless, the 
documents were never produced.
---------------------------------------------------------------------------
    The Sioeng-family lawyers also impeded the investigation's 
progress by pledging cooperation with the Committee then 
failing to make good on their promises. At a meeting with 
Committee staff on January 20, 1998, the family lawyers offered 
to answer factual questions posed by Committee staff about the 
Sioeng family and its businesses. Committee staff accepted the 
lawyers' invitation by a letter dated 2 days later.5 
Among other things, the letter asked for information about 
foreign businesses used by Sioeng to fund political 
contributions and other activities in the U.S. Because the 
letter went unanswered, Committee staff again wrote the Sioeng-
family lawyers on May 22, 1998.6 This letter also 
was ignored.
---------------------------------------------------------------------------
    \5\ Letter from Richard D. Bennett to Steven R. Ross and Mark J. 
MacDougall, Jan. 22, 1998. Exhibit 7.
    \6\ Letter from Richard D. Bennett to Steven R. Ross and Mark J. 
MacDougall, May 22, 1998. Exhibit 8.
---------------------------------------------------------------------------
    In spite of these obstacles, the Committee developed a 
substantial amount of disturbing information on Sioeng and his 
political activities in this country. The Committee found that 
approximately three-quarters of the $400,000 in Sioeng-related 
political contributions made in 1995 and 1996 can be traced to 
foreign money. Many of these contributions are probably 
illegal, though the information needed to make an authoritative 
determination was withheld from the Committee by the Sioeng-
family's lawyers.
    Moreover, the Committee found close and enduring ties 
between Ted Sioeng and the government of the People's Republic 
of China (PRC). Sioeng's business empire is heavily reliant 
upon partnerships with the Chinese government. These ties 
support the Senate Committee on Governmental Affairs' 
conclusion that ``Sioeng worked, and perhaps still works, on 
behalf of the Chinese government.'' 7 These ties, 
combined with the foreign sources of many Sioeng-related 
political contributions and the Sioeng-family's refusal to 
provide information on its foreign businesses and accounts, 
strongly suggests that the contributions were illegal and 
raises serious questions about the motives behind Sioeng's 
sudden immersion into United States politics in 1995 and 1996. 
Even the Senate minority concluded, ``The Committee found 
evidence that suggests that Sioeng may have participated in 
directing political contributions made by his daughter 
[Jessica] Elnitiarta,'' which ``raised serious questions about 
the ultimate source of the contributions,'' and ``further 
investigation by law enforcement authorities into these issues 
is clearly warranted.'' 8
---------------------------------------------------------------------------
    \7\ Senate Committee on Governmental Affairs, Investigation of 
Illegal or Improper Activities in Connection with the 1996 Federal 
Election Campaigns, S. Rept. No. 167, 105th Congress, 2d sess. 2505 
(1998). Hereinafter ``Senate Campaign Finance Report.''
    \8\ Senate Campaign Finance Report at 5584.
---------------------------------------------------------------------------
    Ted Sioeng and his daughter, Jessica Elnitiarta, have 
stated through the family's attorneys that the political 
contributions were ``lawful and properly documented,'' that 
``Sioeng is not, and has not been, a political agent of the 
Chinese or any other government,'' and that Sioeng's 
``activities in Southern California, and those of his family, 
are an effort to support the Asian-American community and are 
not part of any plot by the Chinese government to influence 
American politics.'' 9 Yet Sioeng and his daughter 
have offered no factual counter to the information developed by 
the Committee.
---------------------------------------------------------------------------
    \9\ Statement on Behalf of Jessica Elnitiarta and Ted Sioeng, May 
29, 1997. Exhibit 9.
---------------------------------------------------------------------------
    Sioeng's implicit denial of his PRC government ties is 
unpersuasive. The conclusions of the Senate Committee on 
Governmental Affairs were based virtually exclusively on 
highly-classified material that cannot be made 
public.10 Yet information developed by this 
Committee is not classified, can be shared publicly, and is 
discussed later in this chapter. This information includes 
accounts of Sioeng's ties to high-level Chinese government 
officials in the United States and China, his status as an 
advisor to Chinese provincial governments, his frequent trips 
to Beijing, and his business ventures with the PRC government. 
Information developed by the Committee on this latter subject 
is particularly significant, as it points to a probable PRC 
government tie to the Sioeng family's campaign contributions 
and, more generally, to its various activities in this country.
---------------------------------------------------------------------------
    \10\ Senate Campaign Finance Report at 2501.
---------------------------------------------------------------------------
    The connection is straightforward. Sioeng financed many of 
the family's activities in this country--including its 
political contributions--through transfers of money from 
businesses in Hong Kong and China. Sioeng transferred some $2.7 
million from one such business, R.T. Enterprises Limited. 
Although Sioeng's family has refused to provide any information 
to the Committee on this company, one document obtained by the 
Committee from another source provides a telling clue to the 
activities of R.T. Enterprises. The document shows a wire 
transfer from R.T. Enterprises to Loh Sun International Inc. in 
the amount of $97,555.11 Loh Sun is owned by 
Sioeng's friend and business associate Kent La, who distributes 
Hongtashan cigarettes manufactured by Sioeng in Singapore. As 
discussed later in this chapter, the Hongtashan brand name is 
owned by the government of China, which has granted Sioeng 
rights to manufacture and distribute its cigarettes in 
different parts of the world.
---------------------------------------------------------------------------
    \11\ Wire transfer from R.T. Enterprises to Loh Sun International 
in the amount of $97,555, July 24, 1996. Exhibit 10.
---------------------------------------------------------------------------
    The $97,555 wire transfer states that it is ``for 
Hongtashan Advertising.'' \12\ The Committee has learned that 
Loh Sun advertises Hongtashan cigarettes in various U.S. 
publications, including the International Daily News, the 
newspaper Sioeng bought and transformed into a PRC-friendly 
daily.\13\ The Committee believes it is likely that R.T. 
Enterprises, which appears to have reimbursed Loh Sun for 
Hongtashan advertisements it placed in U.S. publications, is 
part of Sioeng's foreign tobacco empire, and may be owned or 
funded in part by the PRC government. It, of course, would make 
sense for Sioeng and the Chinese government, partners in the 
manufacture and distribution of Hongtashan cigarettes, to fund 
attempts to establish a U.S. market for their product. That 
appears to be what was done through R.T. Enterprises.
---------------------------------------------------------------------------
    \12\ Id.
    \13\ Invoice from International Daily News to Loh Sun International 
for $35,000, Feb. 7, 1996. Exhibit 12.
---------------------------------------------------------------------------
    The Committee's belief is further supported by the fact 
that the International Daily News stood to benefit from 
Hongtashan advertising placed in the paper. Hence, if indeed 
R.T. Enterprises was owned or funded in part by the Chinese 
government, then, through R.T. Enterprises, the PRC would have 
been financially assisting Sioeng's PRC-friendly publication. 
The Committee notes that the Senate Committee on Governmental 
Affairs concluded the International Daily News was purchased by 
Sioeng at the direction of or with encouragement from the PRC 
government.
    The balance of this chapter describes in detail Sioeng's 
business interests and relationships, and the political 
contributions he, his family, and his business associates made 
in 1995 and 1996. Of necessity, the Sioeng family's finances 
are discussed in significant detail. All told, the chapter 
provides a glimpse of the Sioeng family's sudden and complete 
immersion into political finances, and the extraordinary 
secrecy in which it cloaked these contributions once they were 
called into question by this Committee and the Senate.

                             II. Background

                               A. Summary

1. Method and Complications

    The Committee's investigation of Ted Sioeng, his family and 
business associates involved subpoenas to more than 80 bank 
accounts, 50 of which were held by businesses. Committee 
investigators also obtained information from various Federal 
law enforcement agencies, as well as public databases. The 
Committee deposed 13 individuals and interviewed 21 others 
regarding the political connections of Ted Sioeng, his family, 
and business associates.
    The investigation was seriously hampered by 28 witnesses 
who asserted their Fifth Amendment privilege against self-
incrimination, fled the country, or simply refused to be 
interviewed in their home countries. The Committee also 
received incomplete or illegible bank records, and, despite 
numerous requests for bank records, the government of the 
People's Republic of China refused to cooperate.

2. Ted Sioeng, his Family and Associates

    Sioeng holds a Belize passport. He has a house in Hong Kong 
and maintains a business address in Beijing. Ted Sioeng is 
married to Sundari Elnitiarta, an Indonesian national. They 
have two sons and three married daughters. The children all use 
their mother's maiden name of Elnitiarta. Laureen Elnitiarta, 
youngest of the Sioeng's daughters, is married to Subandi 
Tanuwidjaja, the son of a powerful Indonesian family. The 
Sioeng family also has business connections to the Tanuwidjaja 
family.
    The Committee learned that, during the period under 
investigation, the Sioeng family regularly received money from 
overseas through U.S. bank accounts held by his sister, Yanti 
Ardi, an Indonesian resident. Jessica Elnitiarta, Sioeng's 
daughter, holds a power of attorney over Ardi's bank accounts. 
She also held power of attorney over a number of other family 
bank accounts. The Committee has determined that Yanti Ardi's 
accounts were used as a ``clearing account'' by the Sioeng 
family and their businesses.
    Another Sioeng associate is Kent La, a U.S. permanent 
resident and owner of Loh Sun International, a corporation 
headquartered in Los Angeles. Sioeng and La are co-founders of 
the Alliance of Chinese-American Groups of USA.

         B. Investigation Scope, Methodology, and Complications

1. Scope

    The Committee's investigation of campaign finance abuses 
inevitably lead to an examination of Ted Sioeng, his family 
members, and business associates. The Committee's interest in 
Sioeng was sparked by the large amounts of contributions made 
by Sioeng, his relatives, and business partners; the fact the 
Senate Campaign Finance Report accused Sioeng of working for 
the benefit of the PRC government, and allegations by both the 
press and senators that there was a so-called ``Chinese plan'' 
to influence U.S. elections.\14\ As a result of those 
allegations, Committee investigators examined Ted Sioeng's 
political contributions and funding sources, and his foreign 
business interests and activities, including connections to 
foreign governments.
---------------------------------------------------------------------------
    \14\ See Investigation on Illegal or Improper Activities in 
Connection with the 1996 Federal Election Campaign--Part I, Hearings 
before the Committee on Governmental Affairs, U.S. Senate, 105th Cong., 
1st sess. at 1.
---------------------------------------------------------------------------
    Initially, the investigation into Sioeng's political 
contributions and funding focused on all contributions made 
between March 1992 through January 1997. Committee 
investigators noted that contributions of $10,000 or more 
increased significantly during 1995 and 1996. Thus, later 
investigative efforts focused on these large contributions 
which coincided with state and localpolitical campaigns in 
California during 1995, and the Presidential election in 1996.
    The investigation of business interests and activity 
covered the period from January 1994 through January 1997, and 
included efforts to identify connections with officials of the 
governments of the PRC and Cambodia.

2. Methodology

    The Committee's investigation of Ted Sioeng began in 
earnest in May 1997. Committee investigators subpoenaed bank 
records, obtained information from Federal, state, and local 
governmental agencies, searched public databases, and conducted 
interviews and depositions.
    More than 80 bank accounts were subpoenaed, which involved 
over 50 business entities operating in the United States and 
seven other countries. As a result, Committee investigators 
reviewed and analyzed more than 30,000 pages of canceled 
checks, electronic fund transfers, deposits, account 
statements, and supporting loan documents.
    Committee investigators obtained information from the 
Departments of Justice, including the Immigration and 
Naturalization Service; State Department; and Treasury 
Department, including the U.S. Customs Service, and Bureau of 
Alcohol, Tobacco, and Firearms.
    Through public databases, Committee investigators obtained 
published articles and corporation registrations in California, 
Hong Kong, Singapore, Indonesia, and Belize. Information on 
contributions was obtained from the Federal Election 
Commission, the Republican and Democratic National Committees, 
various state election offices, and the National Policy Forum.
    Finally, information was obtained from 21 interviews and 13 
depositions 15 of various individuals.
---------------------------------------------------------------------------
    \15\ See ``People Deposed by Government Oversight and Reform 
Committee.''
---------------------------------------------------------------------------

3. Complications

    The Committee's investigation was complicated by several 
major problems involving bank records, a lack of cooperation 
from the Chinese government, and the absence of witnesses.
    The investigation of bank records was slowed by many 
transfers between accounts that appeared to constitute 
deliberate efforts to conceal the ultimate funding sources. 
Further, Committee investigators were unable to determine the 
business purpose for many transactions, including a number of 
checks made payable to cash. This was partially due to the lack 
of cooperation from Sioeng's accountant, Donald Lam. 
Additionally, banks could not locate all records the Committee 
requested and many copies of documents the Committee received 
were of very poor quality. However, the Committee's greatest 
obstacle was its inability to subpoena records for bank 
accounts maintained outside the United States, and no 
assistance from the Administration to force this issue.
    The Chinese government also denied Committee investigators 
travel visas to enter Hong Kong and China. As a result, the 
Committee was unable to examine the source of millions of 
dollars that flowed from Hong Kong and Chinese bank accounts 
into U.S. bank accounts held by Sioeng family members and 
associates, and to interview witnesses residing in Hong Kong or 
the PRC. This impasse continues to this day, and makes it 
difficult to determine whether the Chinese government attempted 
to influence the outcome of U.S. elections.
    Finally, 28 people either asserted their Fifth Amendment 
privileges against self-incrimination, fled the country, or 
simply refused to be interviewed, while remaining beyond the 
reach of Committee subpoenas.
    One witness, Kent La, was granted congressional immunity 
and provided the Committee with a deposition. That testimony 
was subject to review and release by the U.S. Department of 
Justice (DOJ). Based upon their review, DOJ has indicated that 
the release of the deposition or testimony would compromise an 
ongoing criminal investigation.16
---------------------------------------------------------------------------
    \16\ See Exhibit 4.
---------------------------------------------------------------------------

                      C. Ted Sioeng and his Family

    Ted Sioeng, a foreign national,17 is also known 
as Sioeng San Wong,18 or by his Chinese name, Hsiung 
De-Lueng.19 Sioeng was born in Indonesia in 
1945.20 He has stated that he is of Indian and 
Indonesian descent but was raised by an ethnic Chinese family 
and considers himself Chinese.21 Along with his 
native Indonesian, he speaks three Chinese dialects and a 
limited amount of English.22 Several persons 
confirmed that Ted Sioeng could carry on a small conversation 
in English if it was spoken slowly and a lot of syllables 
weren't used, but that he preferred to use an interpreter for 
more technical conversations.23
---------------------------------------------------------------------------
    \17\ Letter from Ann M. Harkins, Acting Assistant Attorney General, 
to Chairman Burton, May 1, 1998. Exhibit 11.
    \18\ Grand National Bank signature card, Sioeng San Wong, Feb. 3, 
1992. Exhibit 13.
    \19\ Business card of Ted Sioeng. Exhibit 14.
    \20\ See Exhibit 13.
    \21\ K. Connie Kang and David Rosenzweig, Entrepreneur Formed Ties 
with China, Then Politicians; Finances: Records, Interviews Show He 
Benefited from Beijing Business, Later Gained Access to Clinton, 
Gingrich, L.A. Times, May 18, 1997, part A, p. 1.
    \22\ Id.
    \23\ Deposition of Glenville Stuart, Feb. 18, 1998, at 59 
[hereinafter Stuart Depo.]; Deposition of Robert Jack Prins, Jan. 27, 
1998, at 49 [hereinafter Prins Depo.]; Deposition of Governor Gary 
Locke, July 7, 1998, at 65 [hereinafter Locke Depo.].
---------------------------------------------------------------------------
    In 1989, through the Belize Economic Citizenship Investment 
Program, Sioeng became a Belize citizen.24 After 
generous contributions to Iowa Wesleyan College,25 
Sioeng received an honorary degree of Doctor of Business 
Administration in 1993.26 Thus, he is frequently 
referred to as Dr. Sioeng. He has a house in Hong Kong 
27 and a prestigious office address in Beijing where 
the Chinese government welcomes foreign 
dignitaries.28 Sioeng also travels extensively to 
the PRC and Southeast Asia.29
---------------------------------------------------------------------------
    \24\ Stuart Depo. at 21-23.
    \25\ Prins Depo. at 12, 16.
    \26\ Facsimile from Robert J. Prins, president, Iowa Wesleyan 
College, to David Rosenzweig, Los Angeles Times, Sept. 2, 1993. Exhibit 
15.
    \27\ Personal financial statement of Wong Sioeng San and Sundari 
Elnitiarta, Sept. 29, 1993; Grand National Bank commercial credit 
commitment report, Feb. 12, 1993. Exhibit 16.
    \28\ Interview with Tei Fu Chen, president and CEO, Sunrider 
International, July 17, 1998.
    \29\ James Risen, FBI Said to Suspect Donor as Agent for China, 
L.A. Times, May 12, 1997, part A, p. 1.
---------------------------------------------------------------------------
    Ted Sioeng is married to an Indonesian citizen, Sundari 
Elnitiarta, and they have two sons and three married daughters. 
According to Indonesian custom, the children use their mother's 
last name of Elnitiarta.30 Sioeng's daughter, 
Laureen Elnitiarta, is married to Subandi 
Tanuwidjaja,31 a DNC contributor 32 and 
the son of Sioeng business associate, Susanto 
Tanuwidjaja.33
---------------------------------------------------------------------------
    \30\ Interview with Jessica Elnitiarta conducted by U.S. Senate 
Committee on Governmental Affairs, Special Investigation, June 19, 
1997, [hereinafter Elnitiarta interview].
    \31\ Bruce Gilley, A Democratic Donor's Cambodian Connection, Wall 
Street Journal, Jan. 13, 1998.
    \32\ See ``Democratic Contributions,'' this chapter.
    \33\ Interview of Margaret Ng, July 23, 1998.
---------------------------------------------------------------------------
    Sioeng's sister is Yanti Ardi.\34\ Committee investigators 
traced Ardi to her home outside Jakarta, Indonesia, but were 
unable to persuade Ardi to submit to an interview.35
---------------------------------------------------------------------------
    \34\ Elnitiarta Interview.
    \35\ Photographs of Yanti Ardi's home in Jakarta, Indonesia, 
Exhibit 17.
---------------------------------------------------------------------------
    Sioeng and his family emigrated to California in 
1986.36 However, Sioeng has spent only brief periods 
in the United States. Except for Ted Sioeng, most of his family 
are U.S. legal permanent residents.37
---------------------------------------------------------------------------
    \36\ Elnitiarta interview.
    \37\ INS records and Grand National Bank signature card for account 
of Sundari, Sandra, and Laureen Elnitiarta, Apr. 12, 1993. Exhibit 18.
---------------------------------------------------------------------------
    The following table shows the Sioeng family members' date 
and country of birth, citizenship status, and, to the best of 
the Committee's knowledge, present location.

       TABLE 1.--SIOENG FAMILY MEMBERS' DATE AND COUNTRY OF BIRTH, CITIZENSHIP STATUS AND PRESENT LOCATION      
----------------------------------------------------------------------------------------------------------------
                                        Date and Country of                                                     
            Family Member                      Birth              Citizenship Status        Present Location    
----------------------------------------------------------------------------------------------------------------
Ted Sioeng..........................  11/16/45 Indonesia.....  Belize.................  Hong Kong/Asia.         
Sundari Elnitiarta..................  10/12/46 Indonesia.....  Indonesia/U.S. Legal     Hong Kong.              
                                                                Permanent Resident.                             
Jessica Elnitiarta..................  3/28/67 Indonesia......  Indonesia/U.S. Legal     California.             
                                                                Permanent Resident.                             
Sandra Elnitiarta...................  3/30/72 Indonesia......  Indonesia/U.S. Legal     Hong Kong.              
                                                                Permanent Resident.                             
Laureen Elnitiarta..................  9/27/73 Indonesia......  Indonesia/U.S. Legal     Hong Kong/Indonesia.    
                                                                Permanent Resident.                             
Yaohan Elnitiarta...................  7/5/75 Indonesia.......  Indonesia/U.S. Legal     New York.               
                                                                Permanent Resident.                             
Yopie Elnitiarta....................  7/18/76 Indonesia......  Indonesia/U.S. Legal     Hong Kong.              
                                                                Permanent Resident.                             
Ridwan Dinata.......................  2/9/66 Indonesia.......  Indonesia/U.S. Legal     California.             
                                                                Permanent Resident?*.                           
Didi Kurniawan......................  11/19/67 Indonesia.....  Indonesia/U.S. Legal     Hong Kong.              
                                                                Permanent Resident?*.                           
Subandi Tanuwidjaja.................  5/13/65 Indonesia......  Indonesia/U.S. Legal     Hong Kong/Indonesia.    
                                                                Permanent Resident.                             
Yanti Ardi..........................  8/30/35 China..........  Indonesia..............  Indonesia.              
----------------------------------------------------------------------------------------------------------------
*The Immigration and Naturalization Service has been unable to confirm immigration status.                      

    As indicated above, most of the Sioeng family has left the 
United States. The three family members remaining here have 
indicated through their attorney that, if forced to testify 
before this Committee, they will assert their Fifth Amendment 
privilege against self incrimination.38
---------------------------------------------------------------------------
    \38\ Letter from Mark H. MacDougall to Chairman Burton, Apr. 23, 
1998. Exhibit 19. Letter from Thomas P. McLish to Michael D. Bopp, Mar. 
10, 1998. Exhibit 20. Letter from Mark J. MacDougall to Richard D. 
Bennett, Feb. 16, 1998. Exhibit 21.
---------------------------------------------------------------------------

           D. Sioeng's Connections to the Tanuwidjaja Family

    The Sioeng family is related to the powerful Tanuwidjaja 
family of Indonesia through marriage and millions of dollars in 
business transactions. The Tanuwidjaja family is headed by 
patriarch Susanto Tanuwidjaja, whose Susanto Group includes 
Sino Bank, as well as textile, umbrella, and apparel factories 
in Indonesia.39 The Tanuwidjajas also have 
businesses in Hong Kong, including a controlling interest in 
the Millennium Group (formerly Allied Industries 
International).40 Millennium Group, which is listed 
on the Hong Kong Stock Exchange, has many investments in the 
PRC.41 By April 1998, the Millennium Group had 
acquired 100 percent of Sioeng's Worldwide Golden 
Leaf.42
---------------------------------------------------------------------------
    \39\ Sino Bank Web site, , Exhibit 22.
    \40\ Denise Tsang New-look Allied to Ease Burden, S. China Morn. 
Post, Apr. 19, 1997.
    \41\ Id.
    \42\ Bruce Gilley, Hong Kong: Nicotine Fix, Far East Econ. Rev., 
Apr. 2, 1998.
---------------------------------------------------------------------------
    Another Tanuwidjaja business in Hong Kong is Dragon Union, 
Ltd., of which Susanto's son Subandi is the sole corporate 
director.43 The Committee found that the 
Tanuwidjajas have paid $23 million in vendor invoices on behalf 
of Sioeng's World Seal operations in mainland China, primarily 
through the Tanuwidjajas and Dragon Union.44 In late 
1996, the Susanto Group closed its only active U.S. business in 
California, CAS, a clothing manufacturer, importer, and 
distributor.45
---------------------------------------------------------------------------
    \43\ Dragon Union Limited notice of change of directors, Jan. 27, 
1997. Exhibit 23.
    \44\ Invoices from World Seal Limited to Sunrider Manufacturing, 
L.P., July 11, 1996 to Jan. 24, 1997. Exhibit 24.
    \45\ The Ta, Tanuwidjaja Donations Came in Fall, Dow Jones News, 
Aug. 10, 1997.
---------------------------------------------------------------------------
    Margaret Ng, the former senior vice president and general 
manager of CAS stated the company had an ongoing business 
relationship with Dragon Union.46 She further stated 
that Dragon Union served as CAS's agent in Hong Kong, and that 
they placed orders for goods for CAS in Asia.47 
According to Ng, it was not unusual for money to flow from CAS 
to Dragon Union; however, it was very odd to find such large 
amounts of money flowing from Dragon Union to CAS.48 
Ng explained that CAS was one of Dragon Union's biggest 
customers, therefore, the size of Dragon Union was directly 
related to the amount of business CAS gave it.49 Ng 
stated that CAS did very little business with Dragon Union in 
1996, in fact, Ng claimed that CAS's business with Dragon Union 
had dropped to ``almost none.'' 50
---------------------------------------------------------------------------
    \46\ Interview of Margaret Ng, July 23, 1998, [hereinafter Ng 
Interview].
    \47\ Id.
    \48\ Id.
    \49\ Id.
    \50\ Id.
---------------------------------------------------------------------------
    Besides the business relationships with Ted Sioeng, the 
Tanuwidjajas have a personal one. Subandi Tanuwidjaja married 
Sioeng's youngest daughter, Laureen Elnitiarta, in Hong Kong in 
November 1996.51 Subandi Tanuwidjaja left the United 
States in early 1997, a year after his sister, Suryanti, had 
moved to Singapore.52 They, therefore, are not 
available to provide further information on their political 
contributions and ties with Ted Sioeng or his 
family.53
---------------------------------------------------------------------------
    \51\ Bruce Gilley, A Democratic Donor's Cambodian Connection, Wall 
Street Journal, Jan. 13, 1998.
    \52\ Ng Interview.
    \53\ The Ta, Tanuwidjaja Donations Came in Fall, D. J. News, Aug. 
10, 1997.
---------------------------------------------------------------------------

                   E. Sioeng's Connections to Kent La

    Kent La is a U.S. legal permanent resident and is also 
known by his Chinese name, Lo Wen Zheng.54 La is 
President of Loh Sun International in California which is the 
U.S. distributor for Hongtashan cigarettes.55 Ted 
Sioeng's connections to Kent La include the Alliance of 
Chinese-American Groups and the sale of Hongtashan cigarettes. 
In addition to their ties through cigarettes, La and Sioeng may 
be involved in other business ventures. For example, Committee 
investigators found that $1.8 million of invoices for Sioeng's 
World Seal operations in China were paid in January 1997 from a 
Hong Kong bank account in the name of Kent La and Yopie 
Elnitiarta.56
---------------------------------------------------------------------------
    \54\ Kent La Welcome to the Hong Ta Shan Badminton Invitational. 
Exhibit 25.
    \55\ Id. See also Elnitiarta interview.
    \56\ Wire transfer from Kent La and Yopie Elnitiarta to Sunrider 
Manufacturing in the amount of $1,830,039, Jan. 22, 1997. Exhibit 26.
---------------------------------------------------------------------------
    In addition, Sioeng and La started and funded the Alliance 
of Chinese-American Groups of USA. The Alliance is pro-China 
and Kent La serves as its President.57 The Committee 
has subpoenaed records from the Alliance, but to date has 
received nothing.58
---------------------------------------------------------------------------
    \57\ Alliance of Chinese-American Groups of USA, California 
Secretary of State registration, incorporated Feb. 1, 1996. Exhibit 27.
    \58\ Subpoena issued by the Committee on Government Reform and 
Oversight to the Alliance of Chinese-American Groups of USA, Apr. 1, 
1998. Exhibit 28.
---------------------------------------------------------------------------
    On its third attempt, in June 1998, the Committee granted 
Kent La immunity in order to ask him about the political 
contributions and business activities as a close associate of 
Ted Sioeng and his family.59 However, La's 
deposition remains under seal, as the Department of Justice has 
determined that the release of the transcript and/or public 
testimony would compromise an ongoing Federal criminal 
investigation.60
---------------------------------------------------------------------------
    \59\ Letter from Chairman Burton to Laura S. Shores, June 23, 1998. 
Exhibit 29.
    \60\ See Exhibit 4.
---------------------------------------------------------------------------

                   F. The Yanti Ardi Clearing Account

    Most of the foreign money the Committee identified flowed 
into two personal bank accounts in the name of Ted Sioeng's 
sister, Yanti Ardi, a foreign national who resides in 
Indonesia.61 These accounts, maintained at the Grand 
National Bank, which is 18 percent owned by the Sioeng 
family,62 are primarily controlled by Jessica 
Elnitiarta through a power of attorney.63 Based upon 
an extensive review of bank records, Committee investigators 
determined that Yanti Ardi's accounts were used by the Sioeng 
family as a clearing account. The account's incoming deposits 
were primarily wire transfers from foreign accounts, which 
Jessica Elnitiarta quickly disbursed to Sioeng family members 
and businesses based upon cash needs or instructions from her 
father.
---------------------------------------------------------------------------
    \61\ Grand National Bank signature card and passport of Yanti Ardi 
with power of attorney over account by Jessica Elnitiarta, Oct. 10, 
1991. Exhibit 30.
    \62\ Grand National Bank shareholder list, June 30, 1997. Exhibit 
31.
    \63\ Grand National Bank Durable Power of Attorney, Dec. 20, 1995. 
Exhibit 32.
---------------------------------------------------------------------------
    The table below summarizes the sources and uses of deposits 
and disbursements of $1,000 or more for Yanti Ardi's two Grand 
National Bank accounts over the 3 year period endingDecember 
31, 1996. As the table indicates, about $26.5 million was deposited and 
disbursed from the two accounts. The primary source of account deposits 
was about $19.7 million of wire transfers from foreign bank accounts, 
mainly in Hong Kong or China. About $5.3 million came from various 
family businesses and personal bank accounts in California. The primary 
account disbursements were about $14.3 million to various family 
business and personal bank accounts and about $6.8 million to repay 
bank loans. About $3.6 million of account disbursements were wire 
transfers to foreign bank accounts, mainly in Hong Kong or China.

TABLE 2.--YANTI ARDI DEPOSITS AND DISBURSEMENTS ($1,000 OR MORE) FOR THE
         3 YEARS ENDING DECEMBER 31, 1996 (DOLLARS IN MILLIONS)         
------------------------------------------------------------------------
              Source/use of funds                Deposits  Disbursements
------------------------------------------------------------------------
Foreign accounts from/to......................      $19.7          3.6  
Sioeng family businesses from/to..............        4.4          9.3  
Sioeng family personal accounts from/to.......         .9          5.0  
Bank loan proceeds/payments...................         .7          6.8  
Certificates of deposit proceeds/purchases....         .5           .3  
Supplier payments.............................  .........          1.3  
Unknown.......................................         .3           .2  
                                               -------------------------
  Total.......................................       26.5         26.5  
------------------------------------------------------------------------

                          G. Glossary of Names

    A glossary of names of persons significant to the Sioeng 
investigation are presented below. The names are organized by 
the different associations they have to Ted Sioeng or the 
investigation. The glossary should assist readers throughout 
this chapter and gives a sense of the complexities the 
Committee faced in the Sioeng investigation. Note that Chinese 
last names are presented first.

1. Sioeng Family Members

     Ted Sioeng (Shong) (aka Sioeng San Wong, or by his 
Chinese name, Hsiung De-Lueng)--Patriarch of the family. He 
made $50,000 in donations to Republican Matt Fong and sat at 
the head table at five separate DNC fundraisers. He has left 
the United States.
     Sundari Elnitiarta (El-nit-e-are-ta) (Chinese name 
Nie San Nio)--Wife of Ted Sioeng. She attended at least one 
fund-raiser with her husband. She has left the United States.
     Jessica Elnitiarta (Chinese name Nie Shiat Chen)--
Eldest daughter of Ted Sioeng. She operates Ted Sioeng's U.S. 
businesses and contributed $250,000 to the DNC. She has 
asserted the Fifth Amendment privilege against self 
incrimination.
     Ridwan (Rick) Dinata (Chinese name Kim Liang 
Lie)--Married to Jessica Elnitiarta. He operates a gun and 
ammunition store in Alhambra, California. He has asserted the 
Fifth Amendment privilege against self incrimination.
     Sandra Elnitiarta--Second daughter of Ted Sioeng. 
She is involved in several of Ted Sioeng's U.S. and overseas 
businesses. She has left the United States.
     Didi Kurniawan (Kur-nee-ah-wan)--Married to Sandra 
Elnitiarta. He works for Ted Sioeng in Hong Kong. He also 
attended several DNC events and a meeting with Speaker Gingrich 
in Washington, DC. He has left the United States.
     Laureen Elnitiarta--Third and youngest daughter of 
Ted Sioeng. She is involved in several of Ted Sioeng's U.S. 
businesses. She has left the United States.
     Subandi (Sue-bon-dee) Tanuwidjaja (Tan-u-wid-
jaya)--Married to Laureen Elnitiarta. He operated several U.S. 
businesses until early 1997. He also contributed $80,000 to the 
DNC. He has left the United States.
     Yopie (Yo-pee) Elnitiarta--Eldest son of Ted 
Sioeng. He operates several Sioeng's overseas business and 
attended several DNC fundraisers. He has left the United 
States.
     Yaohan (Yo-han) Elnitiarta--Youngest son of Ted 
Sioeng. He has asserted the Fifth Amendment privilege against 
self incrimination.
     Suryanti (Sur-yon-ti) Tanuwidjaja--Subandi's 
sister. She contributed $20,000 to the DNC. She has left the 
United States.
     Susanto Tanuwidjaja--Father of Subandi and 
Suryanti and patriarch of the overseas business. Business 
associate and in-law of Ted Sioeng. He has left the United 
States.
     Yanti Ardi--Ted Sioeng's sister and Jessica 
Elnitiarta's aunt who lives in Indonesia. Money from overseas 
accounts was transferred into her account before being routed 
to family members and businesses and political contributions by 
Jessica Elnitiarta who has power of attorney over the account. 
She is a foreign witness that the Committee has been unable to 
interview.
     Nanny Nitiarta--Sister of Sundari Elnitiarta and 
Jessica Elnitiarta's aunt who lives in Indonesia. Money from 
overseas accounts was transferred into her account before being 
routed to family members and businesses by Jessica Elnitiarta 
who has power of attorney over the account. She is a foreign 
witness that the Committee has been unable to interview.

2. Friends and Business Associates

     Kent La (Chinese name, Lo Wen Zheng)--President of 
Loh Sun International, importer ofHongtashan cigarettes, and 
close business associate of Ted Sioeng. He contributed $50,000 to the 
DNC. La originally asserted the Fifth Amendment privilege against self 
incrimination but has been granted immunity by the Committee.
     Simon Chen--Former owner of the International 
Daily News. He has asserted the Fifth Amendment privilege 
against self incrimination.
     Sioeng Fei Man Hung--Current editor-in-chief of 
the International Daily News. Former President of the China 
News Agency in New York. He has asserted the Fifth Amendment 
privilege against self incrimination.
     Lay Kweek Wie--Long time friend and business 
associate of Ted Sioeng who served as a director for several 
Sioeng family companies. He has asserted the Fifth Amendment 
privilege against self incrimination.
     Bun Tsun (Benson) Lai--Son of Kweek Wie Lay, 
employed by the Sioeng family. He has asserted the Fifth 
Amendment privilege against self incrimination.
     Li Kwai Fai--President and CEO of LuDanlan Group 
in Guangzhou, PRC, and business associate of Sioeng. He 
received an honorary degree from Iowa Wesleyan College at Ted 
Sioeng's request. He attended the Hay-Adams DNC event where he 
sat at the head table with President Clinton. He is a foreign 
witness that the Committee has been unable to interview.
     Bruce Cheung--Singapore permanent resident and 
President of Chinois Tobacco, Sioeng's tobacco company in 
Singapore. He attended the Hay-Adams DNC event as Ted Sioeng's 
guest. He is a foreign witness that the Committee has been 
unable to interview.
     Ambrose Hsuing--Canadian representative of Panda 
Industries and Vice-President of Sioeng Group. He resides in 
Vancouver, Canada. He has refused to cooperate and the 
Committee has been unable to interview him.
     Tsang Hin Chi--Managing Director of Goldlion Ltd 
and business partner of Ted Sioeng. He has also been twice 
convicted of mislabeling goods. Tsang is the Standing Committee 
Member, The 8th and 9th People's Congress of the People's 
Republic of China; and a Member, Prepatory Committee of the 
Hong Kong Special Administrative Region. He received an 
honorary degree from Iowa Wesleyan College at Ted Sioeng's 
request. He is a foreign witness that the Committee has been 
unable to interview.
     Jimmy Chi Mai Mao Tsang--President of Goldlion 
International and Tsang Hin Chi's son. He attended the Hay-
Adams event at Ted Sioeng's request and had pictures taken with 
President Clinton. He is a foreign witness that the Committee 
has been unable to interview.
     Jean Lim Tsang--Jimmy Tsang's wife. She attended 
the Hay-Adams event at Ted Sioeng's request and had pictures 
taken with President Clinton. She is a foreign witness that the 
Committee has been unable to interview.
     Chu Shijian--Former manager of the state owned 
Yuxi Cigarette Factory in Yunnan Province, who rose to become 
chairman of the Hongta Tobacco Group in 1995. Through Chu, Ted 
Sioeng was awarded lucrative distribution rights for exporting 
Hongtashan cigarettes. In January 1998, the Communist party of 
China expelled Chu for public corruption and charged him and 
several family members with accepting bribes and embezzling 
about $10 million.
     Chu Yibin--Attended the Hay-Adams event as Ted 
Sioeng's guest with Bruce Cheung and had pictures taken with 
President Clinton. May be related to Chu Shijian.
     Sylvana Djojomartono--Employee of Sioeng's 
Hollywood Metropolitan Hotel. She made conduit payment of 
$1,100 to Gary Locke's (D-WA) campaign. She has asserted the 
Fifth Amendment privilege against self incrimination.
     Gretel Pollard--Employee of the Sunset Market and 
Liquor, owned by Sioeng associate Glenville Stuart. Pollard 
contributed $1,100 to Gary Locke (D-WA).
     Chew Nin Kim--Officer of Supertrip Travel, located 
in Sioeng's hotel. Chew contributed $1,100 to Gary Locke (D-
WA).
     Yen Chu (Margaret) Kim--Officer of Supertrip 
Travel, located in Sioeng's hotel. Yen contributed $1,100 to 
Gary Locke (D-WA).
     Chen Lo Jun--Leader of Hainan (Province) Tobacco 
Study Delegation. He received an honorary degree from American 
M&N University at Ted Sioeng's request.
     Chio Ho Cheong (aka Chen Kai Kit, aka Tommy 
Chio)--Supposed head of Ang-Du International, Macau legislator, 
and casino operator. He received an honorary degree from 
American M&N University at Ted Sioeng's request. He attended 
the Sheraton Carlton event as Ted Sioeng's guest, sat at the 
head table, and had pictures taken with President Clinton.
     Guo Zhong Jian--Deputy General Manager of China 
Construction Bank--Hong Kong Branch. He received an honorary 
degree from American M&N University at Ted Sioeng's request. He 
attended the Sheraton Carlton event as Ted Sioeng's guest and 
had pictures taken with President Clinton.
     Lin Fu Qiang--Managing Director of Everbrite Asia 
Limited. He received an honorary degree from American M&N 
University at Ted Sioeng's request. He attended the Sheraton 
Carlton event as Ted Sioeng's guest and had pictures taken with 
President Clinton.
     Chan Elsie Y.Z.--Managing Director of Ang-Du 
International and former Hong Kong movie star. She received an 
honorary degree from American M&N University at Ted Sioeng's 
request. She attended the Sheraton Carlton event as Ted 
Sioeng's guest, sat at the head table, and hadpictures taken 
with President Clinton.
     He Jian Shan--Attended the Sheraton Carlton event 
as Ted Sioeng's guest and had pictures taken with President 
Clinton.
     Tong Yun Kai--Chinese businessman and member, 
Guangdong Province and Fo Shan City Committees of Chinese 
People's Political Consultative Conference. He received an 
honorary degree from Iowa Wesleyan College at Ted Sioeng's 
request.
     Feng Shu Sen--Former Counsel General for the 
People's Republic of China Consulate in Los Angeles and a 
friend of Ted Sioeng's from Yunnan Province. He attended many 
social functions with Ted Sioeng.
     Zhou Weng Zhong--Former Counsel General of the 
People's Republic of China's Consulate in Los Angeles and 
former Minister and Deputy Chief of Mission for the Embassy of 
the People's Republic of China. Ted Sioeng assisted in getting 
Zhou's daughter into Iowa Wesleyan College.
     Yang Youzhu--Officer and Director of China 
National Tobacco Corporation, Yunnan Province. He received an 
honorary degree from Iowa Wesleyan College at Ted Sioeng's 
request.
     Tie Zhengguo--Officer and Director of China 
National Tobacco Corporation, Yunnan Province. He received an 
honorary degree from Iowa Wesleyan College at Ted Sioeng's 
request.
     Deng Jiazhen--Officer and Director of China 
National Tobacco Corporation, Guangxi Province. He received an 
honorary degree from Iowa Wesleyan College at Ted Sioeng's 
request.
     Theng Bunma--Cambodian tycoon banned by the State 
Department from entering the United States due to suspected 
drug trafficking and business partner of Ted Sioeng. He 
received an honorary degree from Iowa Wesleyan College at Ted 
Sioeng's request and attended Laureen Elnitiarta's wedding in 
Hong Kong.
     Hun Sen--Former Khmer Rogue leader and ruler of 
Cambodia under the Vietnamese. He orchestrated a coup in 1997 
to oust the first Prime Minister. He received an honorary 
degree from Iowa Wesleyan College at Ted Sioeng's request and 
attended Laureen Elnitiarta's wedding in Hong Kong.
     Sok An--Minister in Charge of the Presidency and 
the Council of Ministers in Cambodia. He serves as Hun Sen's 
spokesman and liaison to the Chinese Embassy. He received an 
honorary degree from Iowa Wesleyan College at Ted Sioeng's 
request.
     Tony Tandijono--Runs one of two licensed casinos 
in Phnom Penh, Cambodia and part owner of a weapons firing 
range north of that city. Business partner of Sioeng in a 
cigarette factory in Cambodia. He received an honorary degree 
from Iowa Wesleyan College at Ted Sioeng's request.
     Sophia Wong--Friend and business partner of 
Jessica Elnitiarta. She is half owner of Vision Builders with 
her brother Dennis that built Benner Apartments owned by Sophia 
and Jessica.
     Teng Meini (Mary)--Chinese national and president 
of Guangdong Travel. She was a former employee of China state-
owned China Travel Service.
     Pu Xiang--Chinese national and manager of Dragon 
Rainbow Medicine & Equipment of Yunnan, China. He wire-
transferred $1 million into the account of Yanti Ardi.
     Shiping Xu--Chinese national, and officer and 
director of Seagull International.
     Guo Lin--Chinese national, and officer and 
director of American Guizhou Pacific.
     Feng Qian--Chinese national, and officer and 
director of American Guizhou Pacific.
     He Jianghui--Chinese national, and president, 
director, and one third owner of Pacific Hotel Investment.
     John Huang--Former Commerce Department employee 
and DNC fundraiser who solicited contributions from the 
Sioengs. Jessica Elnitiarta referred to him as ``Uncle Huang.'' 
He has asserted the Fifth Amendment privilege against self 
incrimination.
     Maria Hsia--DNC fundraiser who along with John 
Huang organized the April 29, 1996 Buddhist Temple fundraiser 
attended by Vice President Gore. She has asserted the Fifth 
Amendment privilege against self incrimination.

3. People Deposed by Government Reform and Oversight Committee

     Robert Prins (also interviewed)--President of Iowa 
Wesleyan College. He awarded Ted Sioeng an honorary degree in 
1993 and made him a trustee of the college. He also awarded 14 
honorary degrees to Sioeng's associates at Sioeng's request.
     Cary Ching (also interviewed)--President of the 
Grand National Bank, which is 18 percent owned by the Sioeng 
family.
     Lily Wong (also interviewed)--President of the US-
China Chamber of Commerce and friend of the Sioeng family.
     Johnny Ma (also interviewed)--President of 
Sideffects and the California Chinese-American Investment and 
Development (CCAID) Group. Former Sioeng business associate who 
assisted Sioeng in bringing Chinese officials to the United 
States for tours.
     Glenville Stuart--Belize citizen and Sioeng's 
business partner in Belize tobacco factory venture. He also is 
the owner of a liquor store at Sioeng's Hollywood Metropolitan 
Hotel complex.
     Haddi Kurniawan (also interviewed)--Father of Didi 
Kurniawan who sold Sioeng tobacco machinery and toured his 
plant in Yunnan, China.
     Matt Fong (two volumes)--California Republican 
candidate for U.S. Senate and California State Treasurer. He 
received $100,000 from Sioeng and his company, Panda 
Industries, which he later returned.
     Dr. Daniel Wong (also interviewed)--California 
Republican, Doctor of Medicine and former Mayor of Cerritos, 
California. He received $5,000 from Sioeng's wife, Sundari, 
which a Senate report claimed came from the Chinese Consulate 
through Sioeng's Hollywood Metropolitan Hotel.
     Hoa Bang Huynh (also interviewed)--Cambodia 
Importer/Exporter located in Los Angeles and former business 
partner in Sioeng's Cambodian tobacco factory venture. He 
received an honorary degree from Iowa Wesleyan College at Ted 
Sioeng's request.
     Joseph Sandler--DNC General Counsel.
     Steven Walker, Jr.--Former Controller for the 
National Policy Forum.
     Governor Gary Locke (D)--Governor of Washington 
State. He received $8,700 of contributions from Sioeng family 
members, business associates, and employees.
     Kent La--See above.

4. People Interviewed by Committee Investigators

     Simon Chen--See above.
     Julia Wu--Republican member of Los Angeles County 
Community College Trustees with some knowledge of Ted Sioeng. 
Her husband and campaign Treasurer Alfred Wu received $20,000 
from Kent La and Bun Tsun Lai.
     Norman Hsu--Republican member of the Hacienda La 
Peunte Unified School District and current candidate for State 
Assembly. He received $7,500 from Ted Sioeng for his last 
school board election.
     Jerry Sun--Vice President of Minmet K.N. (USA) 
Inc. of Houston, Texas. He attended an honorary degree ceremony 
hosted by Ted Sioeng at the Hollywood Metropolitan Hotel and is 
the cousin of Simon Chen.
     Mike Woo--Former candidate for Mayor of Los 
Angeles. He received several small contributions from Sioeng's 
family.
     David Lang--Los Angeles fund raiser who solicited 
the contributions for Mike Woo and Governor Gary Locke (D-WA).
     Gary Kroener--Director of Operations, Sunrider 
Manufacturing, L.P who conducted business with Victory Trading 
Co. and World Seal in Hong Kong.
     Thomas Shea--Office Manager, Alhambra Chamber of 
Commerce.
     Elaine Dung--Office Manager, Monterey Park Chamber 
of Commerce.
     Peter Woo & Charles Woo--DNC contributors who 
attended the Sheraton Carlton event.
     Tom Chang--Controller, Tehdex Corp.
     Karen Elia--Assistant Manager, Oak Hill 
Apartments, Montebello, CA.
     Christopher Davis--Director, ACI International, 
Inc.
     Margaret To--Marketing Director, Asia Pacific.
     Andrew Cherng--President and Chief Executive 
Officer, Panda Management Co. He attended the Hay-Adams event 
and sat at the head table.
     Katrina Lai--Daughter of Lay Kweek Wie and sister 
of Bun Tsun Lai.
     Dr. Tei Fu Chen--President of Sunrider, Inc.
     Dr. Nancy Chien (Chinese name Chen Hwa Tsai Liu)--
President of American M&N University.
     Margaret Ng--former Senior Vice President and 
General Manager of CAS, Inc., a Tanuwidjaja company.
     Mr. Boy Z. Lilipaly--President, P.T. Mandiri 
Traktor Utama & Mandiri Group.
     Mr. Sunaryo Adam Kesuma--President, P.T. Bank 
Sino.

III. Sioeng's U.S. Business Interests

                               a. summary

    The Committee found that Ted Sioeng owns or controls 20 
businesses--in seven different industries--within the United 
States. All of these corporations are located in California. 
The Committee also found that many of these businesses are 
actually run by Jessica Elnitiarta, who a Grand National Bank 
credit report described as being ``the right hand person to her 
father, TedSioeng.'' 64 The bank noted that Ms. 
Elnitiarta ``spends much of her time coordinating his U.S. 
investments.'' 65 Committee investigators developed 
information suggesting that, while Jessica Elnitiarta ran many of the 
family's businesses in the United States, major decisions were made by 
her father, Ted Sioeng.
---------------------------------------------------------------------------
    \64\ See Exhibit 16.
    \65\ Id.
---------------------------------------------------------------------------
    Committee investigators also found documentary evidence 
endorsing Elnitiarta's previous statement that ``the source of 
her father's funds are his businesses abroad.'' 66 
Specifically, Committee investigators have determined that 
although some of the Sioeng family's U.S. businesses generated 
domestic cash flow, foreign money clearly was needed to sustain 
their overall business operations. Those foreign funds were 
regularly provided to Sioeng's U.S. businesses. Committee 
investigators also determined that some of this foreign money 
was used to fund contributions to American political campaigns.
---------------------------------------------------------------------------
    \66\ Elnitiarta interview.
---------------------------------------------------------------------------

             B. The Sioeng Family Businesses in California

    Committee investigators identified approximately 20 Sioeng 
family businesses in California which operated in 7 different 
industries.
            Real Estate
    Committee investigators identified five Sioeng family real 
estate operations involving commercial and residential 
properties. These operations provided the family with a safe 
investment for Ted Sioeng's foreign money and enabled family 
members to acquire equity and a source of collateral to obtain 
bank loans. The companies are described below:
           Panda Estates Investment, Inc. was 
        incorporated in April 1993 to build, own, and manage 
        Doheny Estates, a 14-unit condominium property in 
        Beverly Hills, California. Jessica Elnitiarta is the 
        sole corporate officer, director, and 
        stockholder.67 In December 1995, Panda 
        Estates donated $50,000 to the California State 
        Treasurer campaign of Matt Fong.68 In July 
        1996, the company contributed $150,000 to the 
        DNC.69
---------------------------------------------------------------------------
    \67\ Doheny Estate Investment, Inc. articles of incorporation, Apr. 
15, 1993. Exhibit 33.
    \68\ Check No. 1446 from Panda Estates Investment Inc. to Matt Fong 
for State Treasurer in the amount of $50,000, Dec. 14, 1995. Exhibit 
34.
    \69\ Check No. 1632 from Panda Estates to the DNC in the amount of 
$100,000, July 12, 1996; Check No. 1652 from Panda Estates to the DNC 
in the amount of $50,000, July 29, 1996. Exhibit 35.
---------------------------------------------------------------------------
           Panda Property Holdings, Inc. was 
        incorporated in September 1996, and owns 808 Tower, a 
        commercial office building in Los Angeles, California. 
        Jessica Elnitiarta is the sole corporate officer and 
        director.70
---------------------------------------------------------------------------
    \70\ Panda Property Holdings, Inc. articles of incorporation and 
statement of domestic stock corporation, Sept. 24, 1996. Exhibit 36.
---------------------------------------------------------------------------
           Euclid Medical Center consists of two 
        commercial and three residential rental properties in 
        Fullerton, California. The properties were purchased in 
        October 1991 by Jessica, Sandra, and Laureen 
        Elnitiarta.71
---------------------------------------------------------------------------
    \71\ See Exhibit 40.
---------------------------------------------------------------------------
           Benner Property, Inc. incorporated in April 
        1994, built and now manages a 10-unit apartment 
        building in Pasadena, California. Jessica Elnitiarta is 
        a director, president, and half owner. Her friend and 
        associate, Sophia Wong, is the remaining director, 
        officer, and owner. The building is co-owned by Jessica 
        Elnitiarta and Sophia Wong.72
---------------------------------------------------------------------------
    \72\ Benner Property, Inc., California Secretary of State corporate 
record, Apr. 26, 1994. Exhibit 37.
---------------------------------------------------------------------------
           Sioeng's Group, Inc. was incorporated in 
        June 1996 and is a holding company that owns the stock 
        of Chen International Publications,73 
        publisher of the International Daily News. Jessica 
        Elnitiarta is the sole corporate officer and 
        director.74 She also holds the largest share 
        of stock with the remaining shares owned by her mother 
        and her four siblings.75 Ted Sioeng served 
        as the chairman of the board of directors and president 
        of Chen International Publications until April 
        1997.76
---------------------------------------------------------------------------
    \73\ Letter from Akin, Gump, Strauss, Hauer, & Feld, counsel for 
Jessica Elnitiarta, to John H. Cobb, Counsel, U.S. Senate Committee on 
Governmental Affairs, Special Investigation, June 18, 1997. Exhibit 38.
    \74\ Sioeng's Group, Inc. articles of incorporation, June 26, 1996; 
statement by domestic stock corporation, Sept. 5, 1996. Exhibit 39.
    \75\ See Exhibit 38.
    \76\ See Exhibit 80.
---------------------------------------------------------------------------
    Other property owned by members of the Sioeng family 
include five residential properties and a vacant commercial 
lot.77
---------------------------------------------------------------------------
    \77\ Various property records for Los Angeles County, CA. Exhibit 
40.
---------------------------------------------------------------------------
            Trading
    Committee investigators identified eight trading companies 
owned or controlled by the Sioeng family, some of which did 
business with Sioeng's foreign companies. The Committee notes 
that as the campaign finance scandal stories began to break in 
late 1996, all of the firms listed below began to shutdown 
operations or dissolve:
           Guangdong China Travel Service Incorporated 
        (U.S.A.), was incorporated in May 1995.78 
        The company discontinued operations in June 1996 when 
        the corporate bank account was closed and all remaining 
        funds were deposited into Jessica Elnitiarta's personal 
        bank account.79 Through another Sioeng 
        Company, CCAID Executive Program, Inc.,80 
        Guangdong China Travel Service did a limited business 
        in making travel arrangements for U.S. tours by Chinese 
        government officials. The president of Guangdong was a 
        Chinese national, Meini Teng, who formerly worked for 
        the Chinese state-owned China Travel Service in 
        Guangzhou, China.81 In October 1995, Teng 
        was replaced as president by Jessica Elnitiarta, who 
        also became the sole corporate officer and a 
        director.82 Mr. Sioeng and Xiashong Chen, 
        another Chinese national, served as the company's other 
        two directors.83
---------------------------------------------------------------------------
    \78\ Guangdong China Travel Service Inc. (U.S.A.) articles of 
incorporation, May 22, 1995; statements of domestic stock corporation, 
Oct. 6, 1995 and Oct. 25, 1995. Exhibit 41.
    \79\ Check No. 1037 from Guangdong Travel to Jessica Elnitiarta in 
the amount of $5,299.02 with deposit slip, June 21, 1996. Exhibit 42.
    \80\ Deposition of Johnny Ma, page 15, Feb. 12, 1998, [hereinafter 
Ma Depo.].
    \81\ Letter from Robert J. Prins, president, Iowa Wesleyan College, 
to Teng Mei Ni, Dec. 8, 1994. Exhibit 43.
    \82\ See Exhibit 41.
    \83\ Id.
---------------------------------------------------------------------------
           Supertrip Travel Service, Inc., was 
        incorporated in January 1991. The company discontinued 
        operations in December 1996 when the corporate bank 
        account was closed.Ted Sioeng became president of 
Supertrip on March 8, 1995. Chew Nin Kim served as chief financial 
officer and director, and his wife Yen Chu (Margaret) Kim served as 
corporate secretary and director. The Sioengs made numerous payments to 
Supertrip, including a $10,000 loan by Jessica Elnitiarta on July 15, 
1996 which the next day was paid to Kent La's Loh Sun 
International.84 The Kims also appeared to have made conduit 
political contributions from the Sioengs to the Governor Gary Locke 
campaign.85
---------------------------------------------------------------------------
    \84\ Supertrip Travel Service, Inc. articles of incorporation, Jan. 
8, 1991; statements of domestic stock corporation, Mar. 8, 1994 and 
Mar. 8, 1995; Grand National Bank signature card for Supertrip Travel, 
Mar. 9, 1995; check No. 164 from Jessica Elnitiarta to Supertrip Travel 
in the amount of $10,000, July 15, 1996; and check No. 2242 from 
Supertrip Travel to Loh Sun International in the amount of $10,000, 
July 16, 1996. Exhibit 44.
    \85\ See, ``Contributions to Gary Locke.''
---------------------------------------------------------------------------
           American Guizhou Pacific Corp was 
        incorporated in October 1989. The company discontinued 
        operations in November 1996 when the corporate bank 
        account was closed and all remaining funds were 
        deposited into Mr. Sioeng's personal bank account. Its 
        corporate filings indicated that the firm engaged in 
        international trade in chemicals and machinery. Ted 
        Sioeng served as corporate president and a director. 
        Other officers and directors included Sioeng associate 
        Lay Kweek Wie, who has asserted his privilege against 
        self-incrimination in response to a Committee subpoena, 
        and Jessica Elnitiarta. On February 2, 1994, all 
        corporate officers and directors were replaced by 
        Chinese nationals, Guo Lin and Feng Qian.86
---------------------------------------------------------------------------
    \86\ American Guizhou Pacific Corporation statements by domestic 
stock corporation, Oct. 7, 1989, Apr. 11, 1990, July 8, 1991, Feb. 2, 
1994; unnumbered check from American Guizhou to Sioeng San Wong in the 
amount of $108,128.01, Oct. 31, 1996. Exhibit 45.
---------------------------------------------------------------------------
          Through an examination of bank records, Committee 
        investigators determined that the American Guizhou's 
        primary financial activity was to earn interest on 
        $100,000 transferred from another Sioeng company, Panda 
        Industries, Inc. According to INS officials, this 
        limited activity may have been used as justification to 
        extend the U.S. visas of the two Chinese nationals 
        appointed as corporate officers and directors, which 
        were due to expire on March 26, 1994.87 
        Democratic fundraiser Johnny Chung reportedly used a 
        similar tactic to set up fake businesses in California, 
        in an effort to obtain U.S. visas for a half-dozen 
        Chinese executives.88
---------------------------------------------------------------------------
    \87\ Briefing by Immigration and Naturalization Service to staff of 
Government Reform and Oversight Committee, May 4, 1998.
    \88\ George Lardner, Jr., Fund-Raiser Set Up Fake Firms for 
Chinese, the Washington Post, Sept. 21, 1998 at A2.
---------------------------------------------------------------------------
           American Dragon Skies, Inc. was incorporated 
        in July 1993 and was dissolved in January 
        1998.89 Yopie and Jessica Elnitiarta served 
        as corporate officers and directors along with Chinese 
        national, Pu Xiang, manager of the Dragon Rainbow 
        Medicine & Equipment Company in Yunnan, 
        China.90
---------------------------------------------------------------------------
    \89\ American Dragon Skies, Inc. statement of domestic stock 
corporation, Aug. 16, 1995 and certificate of dissolution, Mar. 4, 
1998. Exhibit 46.
    \90\ Id. See also business card of Pu Xiang. Exhibit 47.
---------------------------------------------------------------------------
          According to its incorporation papers, the company 
        was established in the import/export trades, perhaps in 
        medical equipment. Committee investigators concluded 
        that the company was either inactive or a shell 
        corporation, as the investigation could find no 
        evidence of company business or financial activity. 
        However, Committee investigators noted that on January 
        17, 1995, Pu Xiang wired almost $1 million from a bank 
        account in Hong Kong into the personal U.S. bank 
        account of Yanti Ardi.91 Jessica Elnitiarta 
        then used this money to pay off a family bank 
        loan.92
---------------------------------------------------------------------------
    \91\ Wire transfer from Pu Xiang to Yanti Ardi in the amount of 
$996,088.15, Jan. 17, 1995. Exhibit 48.
    \92\ Telephone transfer from Yanti Ardi to Laureen & Sandra 
Elnitiarta in the amount of $300,000, Jan. 17, 1995. Exhibit 49; 
Telephone transfer from Yanti Ardi to Laureen & Sandra Elnitiarta in 
the amount of $690,000, Jan. 27, 1995. Exhibit 50.
---------------------------------------------------------------------------
           Goldlion International USA, Inc. was 
        established in July 1995 and discontinued operations in 
        February 1997. According to incorporation records, 
        Goldlion was established for the purpose of import/
        export trade in garment and leather goods.93 
        Committee investigators determined that the business 
        was primarily funded by wire transfers from Goldlion in 
        Hong Kong.94 Jimmy Chi Mai Mao Tsang, a Hong 
        Kong resident, was the corporate 
        president.95 Jimmy Tsang is the son of Dr. 
        Tsang Hin Chi, a corporate director and Chairman of the 
        Goldlion Group in Hong Kong.96 Dr. Tsang has 
        extensive connections in China and is a delegate of the 
        National People's Congress.97
---------------------------------------------------------------------------
    \93\ Goldlion International USA, Inc. statement by domestic stock 
corporation, May 9, 1996-July 1, 1997. Exhibit 51.
    \94\ Bank statements of Goldlion International USA, Nov. 27, 1995 
through Feb. 21, 1997. Exhibit 52.
    \95\ See Exhibit 51.
    \96\ Id. Undated letter from Tsang Hin Chi, Chairman, Goldlion 
Group, to Hong Tan Shan Cup Organizing Committee. Exhibit 53.
    \97\ Adela Ma, Goldlion Snares Final China Tobacco Deal Before 
Temporary Ban, S. China Morn. Post, Aug. 16, 1995.
---------------------------------------------------------------------------
          Jimmy Tsang and his wife, Jean Lim Tsang, were guests 
        of Sioeng at a Feb. 19, 1996 DNC fundraiser at the Hay-
        Adams Hotel in Washington, DC, and had pictures taken 
        with President Clinton.98 The Tsangs are 
        believed to be in Hong Kong and have refused to be 
        interviewed. Other corporate officers and directors of 
        Goldlion included Ted Sioeng; Jessica, Yopie, and 
        Yaohan Elnitiarta; and two relatives of Jimmy 
        Tsang.99
---------------------------------------------------------------------------
    \98\ Photographs of Ted Sioeng and guests with President Clinton, 
Feb. 19, 1996. Exhibit 54.
    \99\ See Exhibit 51.
---------------------------------------------------------------------------
           Seagull International, Inc. was incorporated 
        in January 1997 as an international trading 
        company.100 Sioeng served as the company's 
        president and a director.101 The only other 
        officer and director was Shiping Xu, a Chinese 
        national.102 The assistant manager where the 
        company used an apartment as commercial office space 
        told Committee investigators that the company 
        prematurely vacated the premises in March 1997, thus 
        forfeiting their security deposit, and the officers 
        went back to China.103
---------------------------------------------------------------------------
    \100\ Seagull International Inc. statement by domestic stock 
corporation, Mar. 3, 1997. Exhibit 55.
    \101\ Id.
    \102\ Id.
    \103\ Interview with Karen Elia, Dec. 9, 1997.
---------------------------------------------------------------------------
          Committee investigators suspect that Seagull 
        International may be a shell corporation, as there is 
        little evidence of company business or financial 
        activity.
           CCAID (California Chinese-American 
        Investment Development) Group trades in health food, 
        shrimp and crab food, and, at one time, medical 
        equipment.104 The group also included the 
        CCAID Executive Program, Inc. which was incorporated in 
        October 1992 as a trading company and discontinued 
        operations in 1996.105 Sioeng served as the 
        Executive Program's president and a 
        director.106 Sioeng associate Johnny Ma was 
        the only other officer and director.107
---------------------------------------------------------------------------
    \104\ Ma Depo. at 14.
    \105\ CCAID Executive Program, Inc. article of incorporation, Oct. 
29, 1992 and statement of domestic stock corporation, Nov. 12, 1992. 
Exhibit 56.
    \106\ Id.
    \107\ Id.
---------------------------------------------------------------------------
          The Executive Program arranged U.S. tours for 
        delegations of Chinese government officials, primary 
        from Yunnan Province.108 Simon Chen, the 
        former owner of the International Daily News, told 
        Committee investigators that these groups included 
        Chinese businessmen, Communist party officials, and 
        provincial governors.109 Johnny Ma testified 
        in similar terms.110
---------------------------------------------------------------------------
    \108\ Ma Depo. at 40-41.
    \109\ Interview with Simon Chen, Jan. 14, 1998, [hereinafter Chen 
Interview].
    \110\ Ma Depo. at 40-41.
---------------------------------------------------------------------------
          Assisting in the tour efforts was Sioeng associate 
        Bun Tsun Lai, a young British (overseas) national who 
        listed his occupation as a student.111 Lai 
        is the son of Lay Kweek Wie, a close friend of Ted 
        Sioeng 112 and a former officer and director 
        of the International Daily News.113
---------------------------------------------------------------------------
    \111\ Grand National Bank signature card, Bun Tsun Lai, July 17, 
1995. Exhibit 57.
    \112\ Deposition of Dr. Daniel K. Wong, Mar. 12, 1998, at 185, 
[hereinafter Wong Depo.].
    \113\ Chen International Publications (U.S.A.), Inc. statement by 
domestic stock corporation, Feb. 12, 1996. Exhibit 58.
---------------------------------------------------------------------------
          Committee investigators found that, from April 1995 
        through January 1997, Lai received over $300,000 from 
        Sioeng family members and their foreign and U.S. 
        businesses. Some of these funds were conduit payments 
        whereby Lai received money and quickly disbursed the 
        same amount to various parties as follows: $10,000 from 
        Glenville Stuart,114 which Lai paid to 
        Alfred Wu; 115 $100,000 from Pristine 
        Investments in Hong Kong 116 which Lai spent 
        $11,030 on travel expenses; 117 $20,000 to 
        Glenville Stuart for business expenses; 118 
        and $24,800 to purchase degrees from American M&N 
        University; 119 $10,000 from Panda 
        Industries 120 which Lai paid to the Central 
        Los Angeles Chapter of the United Nations Association; 
        121 $50,000 from Glenville Stuart 
        122 which Lai paid to Sundari, Sandra, and 
        Laureen Elnitiarta; 123 and $97,911 from 
        Panda Industries which Lai spent on travel 
        expenses.124 About $24,000 in cash 
        transactions were also noted which were primarily 
        funded by Pristine Investments and Victory 
        Trading.125
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    \114\ Check No. 240 from Glenville A. Stuart to Bun Tsun Lai in the 
amount of $10,000 with deposit slip, May 30, 1995. Exhibit 59.
    \115\ Check No. 5045 from Bun Tsun Lai to Alfred Wu in the amount 
of $10,000, May 29, 1995, Exhibit 60.
    \116\ Wire transfer from Pristine Investment to Bun Tsun Lai in the 
amount of $100,000, July 28, 1995. Exhibit 61.
    \117\ Check No. 302 from Bun Tsun Lai to Supertrip Travel in the 
amount of $11,030, July 28, 1995, Exhibit 62.
    \118\ Check No. 303 from Bun Tsun Lai to G.A. Stuart in the amount 
of $20,000, July 28, 1995. Exhibit 63.
    \119\ Starter checks from Bun Tsun Lai in the amounts $9,500, 
$9,300, and $6,000 with the memo ``M&N'', July 28, 1995. Exhibit 64.
    \120\ Check No. 1119 from Panda Industries Inc. to Bun Tsun Lai in 
the amount of $10,000 with deposit slip, Oct. 10, 1995. Exhibit 65.
    \121\ Check No. 352 from Bun Tsun Lai to Central Los Angeles 
Chapter, United Nations Association, in the amount of $10,000, Oct. 6, 
1995, Exhibit 66.
    \122\ Check No. 304 from Glenville Stuart to Bun Tsun Lai in the 
amount of $50,000, Dec. 5, 1995. Exhibit 67.
    \123\ Telephone transfer from Bun Tsun Lai to Sundari, Sandra & 
Laureen Elnitiarta in the amount of $50,000, Dec. 15, 1996. Exhibit 68.
    \124\ Check No. 1535 from Panda Industries to Bun Tsun Lai in the 
amount of $97,911.20, Feb. 1, 1996; Check No. 326 from Bun Tsun Lai to 
Horizon Travel in the amount of $67,911.20, Jan. 5, 1996 and Check No. 
327 from Bun Tsun Lai to Horizon Travel in the amount of $30,000, Jan. 
12, 1996, Exhibit 69.
    \125\ Wire transfer from Victory Trading to Bun Tsun Lai in the 
amount of $9,985, June 5, 1995, Exhibit 70; See also Exhibit 61.
---------------------------------------------------------------------------
           Ginza Strasse consisted of two businesses, 
        located in the shopping plaza of the family's Hollywood 
        Metropolitan Hotel, that ceased operations in December 
        1996.126 Ginza Strasse, Inc. was 
        incorporated in December 1994 with Laureen Elnitiarta 
        as the sole officer and director. The firm operated a 
        retail clothing store until it was dissolved. Ginza 
        Strasse International, Inc., incorporated in February 
        1995, was operated by Laureen Elnitiarta as Bali 
        Hollywood, an Indonesian restaurant.
---------------------------------------------------------------------------
    \126\ Ginza Strasse, Inc. articles of incorporation, Dec. 9, 1994; 
Ginza Strasse, International, Inc. articles of incorporation, Jan. 19, 
1995. Exhibit 71.
---------------------------------------------------------------------------
            Tobacco
    Committee investigators identified the following two Sioeng 
family tobacco companies that complemented Ted Sioeng's 
overseas tobacco businesses:
           Panda Industries, Inc., the oldest of the 
        Sioeng family's U.S. businesses, was incorporated in 
        May 1988 for the import and export of cigarette 
        machinery.127 Sioeng is a corporate director 
        and president. Jessica Elnitiarta serves as the only 
        other corporate director and officer.128
---------------------------------------------------------------------------
    \127\ Panda Industries, Inc. articles of incorporation, May 25, 
1988. Exhibit 72.
    \128\ Id.
---------------------------------------------------------------------------
          Committee investigators found that from 1994 through 
        1996, the company purchased just under $1 million worth 
        of used tobacco machinery from Hadco General Trading 
        Co. in Virginia.129 Hadco is solely owned by 
        Haddi Kurniawan, who is the father of Didi Kurniawan 
        who is married to Sioeng's daughter, Sandra 
        Elnitiarta.130 The purchased machinery was 
        then shipped to China for reconditioning by Sioeng's 
        Hangao Tobacco Rebuilt Machinery Factory.131
---------------------------------------------------------------------------
    \129\ Deposition of Haddi Kurniawan, Apr. 14, 1998, at 26.
    \130\ Id. at 27.
    \131\ Id.
---------------------------------------------------------------------------
          On April 18, 1995, the company made $145,000 in 
        payments to Kent La for an unknown 
        purpose.132 On July 18, 1995 Panda 
        Industries contributed $50,000 to the National Policy 
        Forum (See ``Republican Contributions,'' and 
        ``Democratic Contributions.'').
---------------------------------------------------------------------------
    \132\ Check No. 1032 from Panda Industries to Kent La in the amount 
of $85,000, Apr. 18, 1995; Check No. 1033 from Panda Industries to Kent 
La in the amount of $60,000, Apr. 18, 1995. Exhibit 73.
---------------------------------------------------------------------------
           China American Tobacco Industries, Inc. was 
        incorporated in March 1994 and dissolved 4 years 
        later.133 Ted Sioeng served as the sole 
        director, and Jessica Elnitiarta served as the only 
        other corporate officer.134 According to its 
        incorporation papers, the company was established for 
        import/export trading,135 perhaps in 
        connection with Sioeng's Chinese cigarette operations. 
        Committee investigators concluded that the company was 
        either inactive or a shell corporation, as there is no 
        evidence of company business or financial activity.
---------------------------------------------------------------------------
    \133\ China American Tobacco Industries, Inc. articles of 
incorporation, Mar. 21, 1994; and certificate of dissolution, Mar. 4, 
1998 and statement by domestic stock corporation, Oct. 30, 1995. 
Exhibit 74.
    \134\ Id.
    \135\ Id.
---------------------------------------------------------------------------
            Hotels
    Committee investigators identified two hotels run by the 
Sioeng family. These businesses likely were used as an 
investment for Ted Sioeng's foreign money; a source of domestic 
funding from room, store, and office rentals; and an 
opportunity to entertain and influence Chinese government 
officials:
           Panda Hotel Investment, Inc. was 
        incorporated in February 1993 and owns and operates the 
        90-room Hollywood Metropolitan Hotel and adjacent 30 
        stores and offices of the Metropolitan Shopping Plaza 
        in Hollywood, California.136 Jessica 
        Elnitiarta is the corporate president and a director 
        and Sandra and Laureen Elnitiarta are the other 
        corporate officers and directors.137 Jessica 
        Elnitiarta, her mother, and four siblings own all of 
        the hotel's outstanding stock.138 The hotel 
        was used to house and host receptions for Chinese 
        government officials, including those on U.S. tours set 
        up by CCAID Group.139
---------------------------------------------------------------------------
    \136\ Hollywood Metropolitan Investment, Inc. articles of 
incorporation, Feb. 8, 1993; and statement by domestic stock 
corporation, Feb. 16, 1993. Exhibit 75.
    \137\ Id.
    \138\ Panda Hotel Investment, Inc. stock transfer ledger and stock 
certificates, Mar. 8, 1993. Exhibit 76.
    \139\ Ma Depo. at 38.
---------------------------------------------------------------------------
           Pacific Hotel Investment, Inc. was 
        incorporated in March 1994 and owns and operates the 44 
        rooms and five retail stores of the Pacific Inn Hotel 
        in Los Angeles.140 Jianghui He, a Chinese 
        national, is the corporate president, a director, and a 
        one third owner.141 The remaining corporate 
        officers, directors, and owners are Mr. Sioeng and his 
        wife, Sundari Elnitiarta.142
---------------------------------------------------------------------------
    \140\ Pacific Hotel Investment, Inc. articles of incorporation, 
Mar. 16, 1994. Exhibit 77.
    \141\ Pacific Hotel Investment, Inc. statement by domestic stock 
corporation, Aug. 26, 1994. Exhibit 78.
    \142\ Id.
---------------------------------------------------------------------------
            Newspaper
    Committee investigators identified a newspaper business 
that provided the Sioeng family with a media for advertising 
their political connections, exerting influence in the local 
Chinese community, and promoting the Beijing government:
           Chen International Publications (USA), Inc. 
        was incorporated in April 1981 and owns and operates 
        the International Daily News, a Chinese language 
        newspaper published in Los Angeles, 
        California.143 The stock of the corporation 
        was sold in October 1995 and now is held by the Sioeng 
        Group, Inc.144 Jessica Elnitiarta is 
        currently the sole corporate director, 
        officer,145 and owner of the largest share 
        of Sioeng Group stock, and the Group's remaining stock 
        is owned by Jessica's mother and her four 
        siblings.146
---------------------------------------------------------------------------
    \143\ Chen International Publications (U.S.A.), Inc. articles of 
incorporation, Apr. 9, 1981. Exhibit 79
    \144\ See Exhibit 38.
    \145\ Chen International Publications statements by domestic stock 
corporation, Feb. 12. 1996; Apr. 25, 1997; and Jan. 12, 1998. Exhibit 
80 See also Chen Interview.
    \146\ See Exhibit 38.
---------------------------------------------------------------------------
    Ted Sioeng served as Chen's chairman of the board of 
directors and president until April 1997.147 At that 
time, the paper's editor, Sioeng Fei-Man Hung, became president 
until he was replaced by Jessica Elnitiarta in January 
1998.148 Kweek Wie Lay, and former owner Simon Chen, 
also served as corporate officers and directors until they were 
replaced by Jessica Elnitiarta in April 1997.149
---------------------------------------------------------------------------
    \147\ See Exhibit 80.
    \148\ Id.
    \149\ Id.
---------------------------------------------------------------------------
    Jessica Elnitiarta stated that it was her father's idea to 
buy the paper with her to run itbecause it would enhance the 
family's standing in the local community, there were tax advantages in 
acquiring the paper's debt, and it was cheap. She further stated that 
the family contracted to buy the paper in October 1995 for 
approximately $3 million, paying that in a series of installments 
through July 1996. She further said that since the purchase, the paper 
has consistently lost money, causing her father to subsidize it with 
money from overseas.150
---------------------------------------------------------------------------
    \150\ Elnitiarta interview.
---------------------------------------------------------------------------
    Committee investigators identified $2.88 million in 
payments to the International Daily News from the personal bank 
account of Yanti Ardi between October 1995 through March 
1997.151 These payments, made by Jessica Elnitiarta 
using a power of attorney over Yanti Ardi's account, were 
funded by wire transfers from Sioeng companies in Hong Kong and 
China.152 Another $1.35 million was wired directly 
into the paper's bank account from Hong Kong, consisting of 
$200,000 from Victory Trading, $830,000 from R.T. Enterprises, 
$100,000 from Yopie Elnitiarta, and $220,000 from Ted 
Sioeng.153 When Simon Chen expressed concern about 
the source of funds used to purchase the paper, Jessica 
Elnitiarta told him that the money was ``clean.'' 
154
---------------------------------------------------------------------------
    \151\ Various telephone transfers from Yanti Ardi to the Chen 
International Publications totaling $2,880,000, Oct. 27, 1995 through 
Mar. 5, 1997. Exhibit 81.
    \152\ Exhibit 107-111.
    \153\ Wire transfer from Victory Trading Company to Chen 
International Publications, Inc. in the amount of $199,985, Nov. 17, 
1995; wire transfers from R.T. Enterprises to Chen International 
Publications in the amount of $199,977 on May 14, 1996, $197,586 on 
Aug. 30, 1996, $200,000 on Jan. 2, 1997, and $230,000 on Mar. 25, 1997; 
wire transfer from Yopie Elnitiarta for $99,984, Feb. 3, 1997; and wire 
transfer from Ted Sioeng for $219,979, July 3, 1997. Exhibit 82.
    \154\ Interview of Simon Chen, Jan. 14, 1998, [hereinafter Chen 
Interview].
---------------------------------------------------------------------------
    Several articles and sources have stated Sioeng's 
acquisition of the paper helps the Chinese government because 
the paper has changed from a pro-Taiwan view to a pro-Beijing 
view.155 Former owner Simon Chen stated that he 
believes Sioeng bought the paper to ``impress Beijing'' and 
that he ``couldn't accept'' the new editorial 
focus.156
---------------------------------------------------------------------------
    \155\ Bruce Gilley, A Democratic Donor's Cambodian Connection, Wall 
Street Journal, Jan. 13, 1998.
    \156\ Chen Interview.
---------------------------------------------------------------------------
    On June 20, 1996, President Clinton sent the International 
Daily News a congratulatory letter on the newspaper's 15th 
anniversary.157 Jessica Elnitiarta stated that she 
had requested the letter from John Huang, as she had seen such 
congratulatory letters sent by politicians to other Chinese 
language papers on their anniversaries.158
---------------------------------------------------------------------------
    \157\ Letter form President Clinton to Ted Sioeng, Chairman, 
International Daily News, June 20, 1996. Exhibit 83.
    \158\ Elnitiarta Interview.
---------------------------------------------------------------------------
            Munitions
    Committee investigators identified a Sioeng family-owned 
business with a Federal firearms license to sell firearms and 
ammunition as follows:
           Code 3 USA, L.L.C. was incorporated in May 
        1996 as a limited liability corporation and is owned by 
        Jessica Elnitiarta and her husband, Ridwan 
        Dinata.159 Using a power of attorney, 
        Jessica Elnitiarta financed the business with $230,000 
        of foreign funds through Yanti Ardi's personal bank 
        account.160 The business operates as a 
        retail store and Dinata indicated that the company will 
        export firearms and ammunition to Asian 
        countries.161 He further stated that Code 3 
        had received an order for 1 million rounds of .38 
        caliber bullets from the Hong Kong 
        government.162
---------------------------------------------------------------------------
    \159\ Code 3 USA, L.L.C. limited liability company articles of 
incorporation, May 17, 1996; Grand National Bank commercial credit 
commitment report, July 29, 1997. Exhibit 84.
    \160\ Check No. 2302 from Yanti Ardi to Code 3 USA in the amount of 
$30,000, May 31, 1996; check No. 2317 from Yanti Ardi to Code 3 USA in 
the amount of $200,000, Dec. 5, 1996. Exhibit 85.
    \161\ Grand National Bank credit commitment report on Ridwan 
Dinata, June 22, 1992. Exhibit 86.
    \162\ Id.
---------------------------------------------------------------------------
          Committee's investigators found that on August 6, 
        1996, Code 3 advanced $10,000 163 to 
        partially cover a July 29, 1996, contribution of 
        $50,000 to the DNC from Panda Estates Investment, 
        Inc.164 The advance was repaid by Jessica 
        Elnitiarta on September 10, 1996.165
---------------------------------------------------------------------------
    \163\ Telephone transfer from Code 3 to Panda Estates Investment in 
the amount of $10,000, Aug. 6, 1996. Exhibit 87.
    \164\ See Exhibit 35.
    \165\ Check No. 255 from Jessica Elnitiarta to Code 3 USA in the 
amount of $10,000, Sept. 10, 1996. Exhibit 88.
---------------------------------------------------------------------------
            Banking
    Committee investigators identified partial ownership of a 
commercial bank by the Sioeng family. The bank provided 
checking and savings accounts, certificates of deposit, and 
loans for most of the Sioeng family members and businesses.
           Grand National Bank was incorporated in 
        February 1983.166 In July 1990, Cary Ching 
        led a group of 13 investors, including the Sioeng 
        family, to buy the bank and install new management with 
        Ching as President.167 Committee 
        investigators obtained a deposition from 
        Ching.168 Jessica Elnitiarta and her two 
        sisters own a total of 18 percent of the bank's 
        stock.169 Ted Sioeng and Jessica Elnitiarta 
        serve as honorary directors of the bank.170
---------------------------------------------------------------------------
    \166\ Grand National Bank Web site . Exhibit 89.
    \167\ Id.
    \168\ Deposition of Cary Ching, Feb. 11, 1998.
    \169\ See Exhibit 31.
    \170\ See Exhibit 89.
---------------------------------------------------------------------------
          Committee investigators note that the Sioeng family's 
        ownership and directorships were always mentioned in 
        loan officer assessments of the family's applications 
        for loans from the bank. Committee investigators also 
        note that the bank normally did not charge family 
        members overdraft fees when negative balances 
        frequently occurred.

                IV. Sioeng's Foreign Business Interests

                               a. summary

    The Committee determined that Sioeng is the driving force 
behind his family's business empire. Committee investigators 
have identified 16 foreign businesses either owned or 
controlled in whole or in part by the Sioeng family. Sioeng's 
foreign businesses, operating in seven countries, transferred 
millions of dollars from foreign accounts in Hong Kong and the 
PRC to subsidize Sioeng family members and businesses in the 
United States. These foreign funds, in turn, have been used to 
fund over $400,000 in political contributions to both 
Republican and Democratic organizations and candidates.
    The PRC has provided significant business opportunities for 
Sioeng and he is in partnership with its Communist government 
through a number of joint venture agreements, particularly with 
state-owned tobacco companies.171 Sioeng also claims 
to be an economic advisor to six Chinese provinces or 
regions.172
---------------------------------------------------------------------------
    \171\ Millennium Group Limited, discloseable transactions, May 5, 
1997. Exhibit 90.
    \172\ Bruce Gilley, A Democratic Donor's Cambodian Connections, 
Wall Street Journal, Jan. 13, 1998.
---------------------------------------------------------------------------
    Hong Kong, which reverted to the PRC in July 1997, serves 
as the base for Mr. Sioeng's business operations. He maintains 
a residence in Hong Kong and he and several family members 
located there soon after the campaign contributions story broke 
in the press. The location also provides easy access to Mr. 
Sioeng's business ventures in China and Southeast Asia.
    Ted Sioeng also operates out of Singapore where he 
distributes, and more recently, manufactures, Chinese brand 
cigarettes to Southeast Asia and the United States. According 
to news reports, many cigarettes intended only for export are 
smuggled through Singapore back into China, to avoid a large 
Chinese national consumption tax levied on domestic cigarette 
sales.173 Sioeng also has tobacco related business 
interests in Belize, Indonesia, Cambodia, and Canada.
---------------------------------------------------------------------------
    \173\ Craig Smith, China Moves to Sanction Executive, Wall Street 
Journal, Jan. 27, 1998.
---------------------------------------------------------------------------

                     b. ted sioeng's tobacco empire

    Sioeng's main business is the manufacture and distribution 
of Hongtashan (Red Pagoda Mountain) cigarettes.174 
Hongtashan is the most popular brand of cigarettes in the PRC, 
and the third largest-selling brand in the world.175 
The China National Tobacco Corporation is a state monopoly that 
manages the tobacco industry and oversees the business 
operations and factories within the tobacco rich provinces of 
Yunnan, Guizhou, and Guengxi.176
---------------------------------------------------------------------------
    \174\ Chart, The Chinese Tobacco Connection. Exhibit 91.
    \175\ Lana Wong, Brand Names Struggle to Make an Impression, S. 
China Morn. Post, Oct. 10, 1996.
    \176\ James Harding, China's Cigarette Makers Fear Competition, 
Fin. Post, July 4, 1997.
---------------------------------------------------------------------------
    In the 1980s, through his contacts with Chu Shijian, then 
manager of the state owned Yuxi Cigarette Factory in Yunnan 
Province, Ted Sioeng was awarded lucrative distribution rights 
for exporting Hongtashan cigarettes.177 By 1995, Chu 
had become Chairman of the state-owned Yuxi Hongta Tobacco 
Group which had expanded its tobacco business to include 
ventures in chemicals and property development.178 
In January 1998, the Communist party of China expelled Chu for 
public corruption and charged him and several family members 
with accepting bribes and embezzling about $10 
million.179
---------------------------------------------------------------------------
    \177\ Craig Smith, China Moves to Sanction Executive, Wall Street 
Journal, Jan. 27, 1998.
    \178\ Kari Huus, Hazardous to Health, Far Eastern Economic Review, 
July 25, 1996.
    \179\ Former Chairman of Cigarette Company Expelled from Party, 
Xinhua News Agency, Jan. 25, 1998.
---------------------------------------------------------------------------
    Sioeng established operations in Singapore for the 
distribution of Hongtashan cigarettes, and in April 1997, for 
their manufacture outside of China.180 Sioeng 
associate and DNC contributor, Kent La, President of Loh Sun 
International, is the U.S. distributor of Hongtashan 
cigarettes.181
---------------------------------------------------------------------------
    \180\ See Exhibit 90.
    \181\ Elnitiarta Interview.
---------------------------------------------------------------------------
    Committee investigators identified the following cigarette 
and tobacco-related businesses which are owned or controlled by 
Sioeng, his family members, and business associates:
           Chinois Tobacco International Co., Pte., 
        Ltd. is listed in the Singapore Companies Registry and 
        appears on Sioeng's business card as part of his S.S. 
        Group. Sioeng serves as the company's chairman and his 
        associate, Bruce Cheung, is president, a director, and 
        a 50 percent owner.182 Cheung, a Singapore 
        permanent resident,183 was Sioeng's guest at 
        the February 19, 1996, DNC fundraiser at the Hay-Adams 
        Hotel, and had his picture taken with President 
        Clinton.184 Through 1997, Chinois exported 
        Chinese-made Hongtashan cigarettes through a joint 
        venture with the Chinese state-owned Yuxi Hongta 
        Tobacco Group.185 This included shipments to 
        Loh Sun International in the United 
        States,186 and sponsorship of the Hongtashan 
        Cup International Badminton 
        Championships.187
---------------------------------------------------------------------------
    \182\ Registry of Companies and Business (Singapore). Exhibit 92.
    \183\ Id.
    \184\ Picture of President Clinton with Bruce Cheung, Feb. 19, 
1996. Exhibit 93.
    \185\ Connie Kang and David Rosenzweig, Entrepreneur Formed Ties to 
China, L.A. Times, May 18, 1997.
    \186\ Invoice from Loh Sun International to Goldlion Tobacco 
International Ltd. in the amount of $10,000, Jan. 23, 1997. Exhibit 94.
    \187\ Letter from Ted Sioeng, Chairman, and Bruce Cheung, 
President, Chinois Tobacco International. Exhibit 95.
---------------------------------------------------------------------------
           Worldwide Golden Leaf, Ltd. was incorporated 
        in the British Virgin Islands in July 1993. Ted Sioeng 
        and associate Bruce Cheung serve as two of the 
        company's three directors. The company lay dormant 
        until April 1997, when it entered into a joint 
ventureagreement with the Yuxi Hongta Tobacco Group to manufacture 
Hongtashan cigarettes in Singapore and export them to Southeast Asia 
and the United States. In addition, two Chinese state owned tobacco 
companies agreed to supply Worldwide Golden Leaf with tobacco leaves 
for sale in North America and Europe.188 In May 1997, the 
Millennium Group, a Hong Kong company controlled by Sioeng's in-laws, 
the Tanuwidjaja family, purchased 25 percent of Worldwide Golden Leaf 
for $34 million, and in April 1998, the remaining 75 percent for $87 
million.189
---------------------------------------------------------------------------
    \188\ See Exhibit 90.
    \189\ Bruce Gilley, Hong Kong: Nicotine Fix, Far East. Econ. Rev., 
Apr. 2, 1998.
---------------------------------------------------------------------------
           Hangao Tobacco Machinery Industry, Ltd. 
        (Hangao Machinery) appears on Sioeng's business card as 
        part of his S.S. Group.190 The company is a 
        joint venture with the Chinese state-owned Hangao 
        Tobacco Rebuilt Machinery Factory in Guizhou Province. 
        Hangao Tobacco Machinery is 70 percent owned by Mr. 
        Sioeng, who claims a capital investment of $5 million. 
        The remaining 30 percent is owned by the state-owned 
        Guizhou Tobacco Company.191
---------------------------------------------------------------------------
    \190\ See Exhibit 14.
    \191\ See Exhibit 90.
---------------------------------------------------------------------------
          Using funds from Hong Kong and China, Mr. Sioeng 
        purchased nearly $1 million of used tobacco machinery 
        from Hadco General Trading of Virginia and shipped it 
        to the Chinese factory for rebuilding and sale. Hadco 
        is owned and operated by Haddi Kurniawan, the father of 
        Sioeng's son-in-law, Didi Kurniawan.192
---------------------------------------------------------------------------
    \192\ Deposition of Haddi Kurniawan, Apr. 14, 1998, at 26.
---------------------------------------------------------------------------
           Goldlion Tobacco International, Ltd. is 
        another company listed on Sioeng's business card as 
        part of his S.S. Group. It is a joint venture with the 
        Chinese state-owned cigarette factory in Hainan 
        Province to manufacture and distribute Goldlion brand 
        cigarettes.193 The China National Tobacco 
        Corporation owns 25 percent of the venture. S.S. Group 
        owns 24 percent of the venture and, according to a 
        brochure prepared by the company, is to distribute 
        Goldlion cigarettes in Southeast Asia. The 51 percent 
        controlling interest in the venture is owned by 
        Goldlion Holdings Group, headed by Dr. Tsang Hin Chi, a 
        staunch supporter of the Chinese government who serves 
        as the only Hong Kong Deputy on the Standing Committee 
        of the National People's Congress.194 Tsang 
        also has been twice convicted of mislabeling 
        goods.195
---------------------------------------------------------------------------
    \193\ Adela Ma, Goldlion Snares Final China Tobacco Deal before 
Temporary Ban, S. China Morn. Post, Aug. 16, 1995.
    \194\ See Chart on Tsang Hin Chi. Exhibit 96.
    \195\ Firm Backs Chairman, S. China Morn. Post, July 11, 1995.
---------------------------------------------------------------------------
           Panda Belize Tobacco, Inc. appears on 
        Sioeng's business card as part of his S.S. Group. 
        However, Belize Panda Industry, Ltd. is listed by the 
        Belize General Company Registry as a separate entity. 
        This listing also shows Sioeng as an officer, director, 
        and 50 percent owner. Sioeng's U.S. business partner, 
        Glenville Stuart, is the only other officer, director, 
        and is a 50 percent owner of the company.196
---------------------------------------------------------------------------
    \196\ Phone conversation with Belize General Company Registry, May 
20, 1998.
---------------------------------------------------------------------------
          In 1994, Sioeng and Stuart were building a factory in 
        Belize to manufacture and distribute Hongtashan 
        cigarettes in the Caribbean and Central 
        America.197 Stuart purchased a factory site 
        from the Government of Belize 198 with 
        $100,000 transferred to his personal bank account from 
        Sioeng's Pacific Hotel Investment.199 
        According to Stuart, the business had not started 
        production due to an industrial accident.200
---------------------------------------------------------------------------
    \197\ Stuart Depo. at 8-13.
    \198\ Stuart Depo. at 84.
    \199\ Telephone transfer from Pacific Hotel Investment, Inc. to 
Glenville Stuart in the amount of $100,000, July 20, 1994. Exhibit 97.
    \200\ Stuart Depo. at 9.
---------------------------------------------------------------------------
           Asia Indonesia Tobacco Utama, Inc., appears 
        on Sioeng's business card as part of the S.S. Group. In 
        October 1995, under the name of Asia Tobacco 
        International Indonesia, PT., Sioeng received 
        Indonesian government approval to build a cigarette 
        factory on Batam Island, Riau.201 The 
        project was to be managed by Sioeng's son, Yopie 
        Elnitiarta, and funded by a capital investment of $2.8 
        million, including participation by World Seal, Ltd., a 
        Sioeng company in Hong Kong. The plant was to employ 70 
        people and was scheduled to begin operations in October 
        1998. The Committee has seen no evidence that this 
        plant was ever built or where its funding, if any, 
        originated.
---------------------------------------------------------------------------
    \201\ Indonesian Investment Highlights, P.T. Data Consult Inc., 
Nov. 1, 1995. Exhibit 98.
---------------------------------------------------------------------------
           The Cambodia Cigarette Factory venture began 
        in 1995 as Evans International Tobacco,202 a 
        partnership with Ted Sioeng and Hoa Bang 
        Huynh.203 A year later, cigarette machinery 
        for the factory was supplied from Sioeng's rebuilt 
        tobacco machinery factory in China. Huynh paid $250,000 
        to Panda Industries,204 with an additional 
        $450,000 being deposited into Jessica Elnitiarta's 
        personal bank account.205 Huynh testified 
        that the machinery delivered was defective, and later 
        withdrew from the partnership after receiving a refund 
        of his $700,000 from Cambodian casino operator Tony 
        Tandijono.206 Sioeng has reportedly 
        continued building the cigarette factory in Cambodia 
        with Tandijono and Theng Bunma, a Cambodian tycoon and 
        suspected drug trafficker with close ties to the 
        Cambodian government.207
---------------------------------------------------------------------------
    \202\ Letter from Fred Wong, May 15, 1998. Exhibit 99.
    \203\ Interview of Hoa Bang Huynh, Mar. 12, 1998 [hereinafter Huynh 
Interview]. The Committee notes that Huynh did not testify to this 
during his Apr. 15, 1998 deposition.
    \204\ Check No. 103 from Hoa Bang Huynh to Panda Industries in the 
amount of $250,000, Jan. 8, 1996. Exhibit 100.
    \205\ Telephone transfer from Hao Bang Huynh to Jessica Elnitiarta 
in the amount of $450,000, May 23, 1996. Exhibit 101.
    \206\ Deposition of Hoa Bang Huynh at 13-14, Apr. 15, 1998 
[hereinafter Huynh Depo.].
    \207\ Huynh Interview.
---------------------------------------------------------------------------

                C. Other Sioeng Businesses in Hong Kong

    Committee investigators found that Sioeng owns or controls 
the following companies in Hong Kong:
           S.S. Group appears to be the entity that 
        serves as an umbrella over his businesses worldwide. It 
        is listed as such on Sioeng's business card. However, 
        this entity does not appear in the Hong Kong Companies 
        Registry and may be a holding company or a shell 
        entity. Correspondence reviewed by Committee 
        investigators indicated that Jessica and Yopie 
        Elnitiarta are affiliated with S.S. Group. The Group is 
        also reported to own 24 percent of a joint venture 
        between Goldlion Tobacco International, Ltd. and 
        Chinese state-owned cigarette factory in Hainan 
        Province.208
---------------------------------------------------------------------------
    \208\ Adela Ma, Goldlion Snares Final China Tobacco Deal Before 
Temporary Ban, S. China Morn. Post, Aug. 16, 1995.
---------------------------------------------------------------------------
           World Seal, Ltd. is a registered private 
        company in Hong Kong. Yopie and Sandra Elnitiarta 
        served as corporate directors of World Seal and each 
        own 15 percent of thecompany's stock.209 
Since December 1997, Didi Kurniawan reportedly has served as the 
company managing director.210
---------------------------------------------------------------------------
    \209\ World Seal Limited certificate of incorporation, Jan. 17, 
1997. Exhibit 102.
    \210\ Bruce Gilley, A Democratic Donor's Cambodian Connection, Wall 
Street Journal, Jan. 13, 1998.
---------------------------------------------------------------------------
          Committee investigators found that World Seal ordered 
        over $20 million worth of health food products from 
        Sunrider International Corporation for distribution in 
        China.211 Most of the invoices for these 
        products were paid by the Tanuwidjaja family of 
        Indonesia,212 who are in-laws of Sioeng.
---------------------------------------------------------------------------
    \211\ See Exhibit 24.
    \212\ Wire transfers from World Seal to Sunrider Manufacturing, 
July 11, 1996-Jan. 24, 1997. Exhibit 103.
---------------------------------------------------------------------------
           Victory Trading Company is not listed on 
        Sioeng's business card, however, its phone number is 
        listed. While Victory Trading is registered as a 
        private company in Hong Kong, company representatives 
        told Committee investigators that Yopie and Sandra 
        Elnitiarta were no longer associated with the 
        firm.213 Committee investigators were also 
        told by Gary Koerner of Sunrider International 
        Corporation that Victory Trading became World 
        Seal.214
---------------------------------------------------------------------------
    \213\ Telephone interview with company officials, June 25, 1998.
    \214\ Interview of Gary Koerner, May 20, 1998.
---------------------------------------------------------------------------
          During 1994, Committee investigators identified 
        $50,000 in wire transfers from Panda 
        Industries,215 a company controlled by 
        Sioeng, and $250,000 in wire transfers from Sioeng's 
        personal bank account,216 into a Bank of 
        China account held by Victory Trading. The transfer 
        from Mr. Sioeng was funded by bank loans made in the 
        United States to the Sioeng family.217
---------------------------------------------------------------------------
    \215\ Wire transfer from Panda Industries to Victory Trading 
Company in the amount of $50,000, Mar. 23, 1994. Exhibit 104.
    \216\ Wire transfer from Ted Sioeng to Victory Trading Company in 
the amount of $250,000, Sept. 21, 1994. Exhibit 105.
    \217\ Telephone transfer from Laureen & Sandra Elnitiarta TCD Loan 
to Sioeng San Wong in the amount of $250,000, Sept. 21. 1994. Exhibit 
106.
---------------------------------------------------------------------------
          During 1995, Victory Trading wired about $2.5 million 
        from a Bank of China account into the personal U.S. 
        bank account of Sioeng's sister, Yanti Ardi. Jessica 
        Elnitiarta then used her power of attorney over this 
        account to transfer this foreign money into family 
        business and personal accounts and to repay Sioeng 
        family bank loans.218
---------------------------------------------------------------------------
    \218\ Wire transfer from Victory Trading to Yanti Ardi in the 
amount of $1,549,985, Mar. 10, 1995, Exhibit 107; Wire transfer from 
Victory Trading to Yanti Ardi in the amount of $299,985, Aug. 7, 1995, 
Exhibit 108; Wire transfer from Victory Trading to Yanti Ardi in the 
amount of $599,985, Oct. 12, 1995. Exhibit 109.
---------------------------------------------------------------------------
          On November 17, 1995, Victory Trading wired nearly 
        $200,000 to Chen International 
        Publications,219 which may be part of 
        Sioeng's subsidization of the International Daily News 
        with overseas money.220
---------------------------------------------------------------------------
    \219\ See Exhibit 82.
    \220\ Elnitiarta interview.
---------------------------------------------------------------------------
           R.T. Enterprises is not listed in the Hong 
        Kong Companies Registry. Committee investigators could 
        find no address or phone numbers associated with the 
        firm.
          During 1996, R.T. Enterprises wired $2.7 million from 
        ING Bank in Hong Kong into the personal U.S. bank 
        account of Yanti Ardi.221 Jessica Elnitiarta 
        subsequently transferred these foreign funds into 
        Sioeng family businesses and personal accounts. Those 
        transfers included: $1,100,000 to buy and operate the 
        International Daily News; $60,000 to partially fund a 
        $100,000 July 29, 1996 political contribution from 
        Panda Estates Investments to the DNC; and $1,100 to 
        fund Sundari Elnitiarta's political contribution to 
        Washington State Governor Gary Locke.
---------------------------------------------------------------------------
    \221\ Wire transfer from Victory Trading to Yanti Ardi in the 
amount of $1,652,479.98, June 28, 1996, Exhibit 110; Wire transfer from 
R.T. Enterprises Limited to Yanti Ardi in the amount of $1,000,000, 
Aug. 30, 1996. Exhibit 111.
---------------------------------------------------------------------------
          From May 14, 1996 through March 25, 1997, R.T. 
        Enterprises wired $830,000 to Chen International 
        Publications,222 which may be part of 
        Sioeng's subsidization of the International Daily News 
        with overseas money.223
---------------------------------------------------------------------------
    \222\ See Exhibit 82.
    \223\ Elnitiarta interview.
---------------------------------------------------------------------------
          On July 24, 1996, R.T. Enterprises wired $97,555 into 
        the U.S. bank account of Loh Sun International. The 
        Committee believes it is likely that $50,000 of this 
        money was used to fund a political contribution to the 
        DNC made by Sioeng associate Kent La on July 29, 1996.
          On September 5, 1996, R.T. Enterprises wired $20,000 
        into the U.S. bank account of Sioeng associate 
        Glenville Stuart. The Committee believes it is likely 
        that Stuart used $1,100 of this money to reimburse his 
        Sunset Market and Liquor business for a conduit 
        political contribution by one of the market's employees 
        to Gary Locke on July 29, 1996.224
---------------------------------------------------------------------------
    \224\ See ``The Sioeng Contributions to Gary Locke.''
---------------------------------------------------------------------------
           Pristine Investments, Ltd. is a private 
        company registered in Hong Kong. Public filings reveal 
        no affiliation between Ted Sioeng, his family members, 
        or associates and the company. However, from January 
        1994 through May 1996, an ING Bank account in Hong Kong 
        in the name of Pristine Investments wired $9.9 million 
        into the personal U.S. bank account of Yanti 
        Ardi.225 Jessica Elnitiarta then transferred 
        these foreign funds into Sioeng family U.S. businesses 
        and personal accounts. That money, in turn, appears to 
        have been used to fund political contributions of 
        $20,000 to Julia Wu in 1995; $100,000 to Matt Fong in 
        1995; and $100,000 to the DNC in 1996.
---------------------------------------------------------------------------
    \225\ Wire transfers from Pristine Investments to Yanti Ardi, Jan. 
11, 1994-May 24, 1996. Exhibit 112.
---------------------------------------------------------------------------
          In April 1995, Pristine Investments also wired 
        $187,493 into the U.S. bank account of Panda 
        Industries, Inc.,226 which subsequently paid 
        $145,000 to Sioeng associate Kent La.227 
        Sioeng's attorneys refused to answer questions about 
        Pristine or other companies in Asia that made large 
        transfers to Sioeng-related accounts.228
---------------------------------------------------------------------------
    \226\ Wire transfer from Pristine Investments, Ltd. to Panda 
Industries in the amount of $38,286, Apr. 10, 1995; Wire transfer from 
Pristine Investments to Panda Industries in the amount of $85,155.95, 
Apr. 12, 1995; Wire transfer from Pristine Investments to Panda 
Industries in the amount of $64,051, Apr. 18, 1995. Exhibit 113.
    \227\ See Exhibit 73.
    \228\ Senate Campaign Finance Report at 5581.
---------------------------------------------------------------------------

                  D. Other Sioeng Businesses in China

    Committee investigators also found that Sioeng owns or 
controls the following companies in China:
           Billion Beer Industry, Ltd. appears on 
        Sioeng's business card as part of his S.S. 
        Group.229 It is a joint venture with the 
        state-owned Fu Haw Bigie Beer Brewery in Guizhou 
        Province. Sioeng claimed 100 percent ownership of the 
        venture, and that he made a capital investment in the 
        company of $3 million.230
---------------------------------------------------------------------------
    \229\ See Exhibit 14.
    \230\ See Exhibit 16.
---------------------------------------------------------------------------
           Panda Industry Building, Ltd. is also listed 
        on Sioeng's business card as part of his S.S. 
        Group.231 This appears to involve a 
        commercial building in Canton Province in which Sioeng 
        claimed a $3 million capital investment.232
---------------------------------------------------------------------------
    \231\ See Exhibit 14.
    \232\ Id.
---------------------------------------------------------------------------
           Dragon Rainbow Medicine & Equipment Co, Ltd. 
        in Yunnan Province appears to have some affiliation 
        with Sioeng. On January 17, 1995, the manager of Dragon 
        Rainbow, Pu Xiang, wired almost $1 million from ING 
        Bank in Hong Kong into the personal U.S. bank account 
        of Yanti Ardi.233 Jessica Elnitiarta used 
        this money to pay off a $1 million Grand National Bank 
        credit line loan in the name of Sandra and Laureen 
        Elnitiarta.234
---------------------------------------------------------------------------
    \233\ See Exhibit 48.
    \234\ See Exhibits 49, 50.
---------------------------------------------------------------------------

                      E. Sioeng Business in Canada

    Finally, Sioeng claims the following business venture in 
Canada:
           Panda Industries, Inc. appears on Sioeng's 
        business card as part of his S.S. Group. Ambrose 
        Hsiung, who resides in Vancouver, appears to be a 
        company official and Sioeng's Canadian 
        representative.235 Hsiung has refused to be 
        interviewed by Committee staff. The Committee could 
        find no financial transactions between Sioeng family 
        members and businesses in the United States with Panda 
        Industries in Canada.
---------------------------------------------------------------------------
    \235\ Business card of Ambrose Hsiung. Exhibit 114.
---------------------------------------------------------------------------

              V. Sioeng Connections to Foreign Governments

                        A. Connections to China

1. Summary

    The Committee's investigation found substantial evidence 
showing that Ted Sioeng has extensive ties with powerful 
political officials of the People's Republic of China, up to 
and possibly including Premier Jiang Zemin. Sioeng also has 
relationships with officials of both the PRC consulate in Los 
Angeles and the embassy in Washington, and made personal 
contributions to the consulate. In at least one instance, 
Sioeng funneled money from the PRC to an American political 
candidate. Finally, both Sioeng and business associates helped 
establish and fund pro-PRC propaganda groups in the southern 
California area.
    Through his businesses, Sioeng also has extensive financial 
ties with the PRC. Sioeng's major overseas venture, selling and 
exporting Hongtashan cigarettes, depends upon a partnership 
with the PRC government. One of Sioeng's U.S.-based companies, 
CCAID Executive Program, provides tours for visiting PRC 
officials. Sioeng used CCAID and another of his U.S. companies 
to provide employment for at least three PRC nationals. In 
addition, Sioeng changed the editorial position of the 
International Daily News from pro-Taiwan to pro-PRC after 
purchasing the newspaper from Simon Chen. He also hired 
journalists affiliated with PRC government agencies to write 
for the newspaper.

2. Findings

    According to the U.S. Senate Committee on Governmental 
Affairs, Special Investigation, Ted Sioeng ``. . . worked, and 
perhaps still works, on behalf of the Chinese government. 
Sioeng regularly communicated with PRC embassy and consular 
officials at various locations in the United States. Before the 
campaign finance scandal broke, Sioeng traveled to Beijing 
frequently where he reported to and was briefed by Chinese 
Communist Party officials.'' 236
---------------------------------------------------------------------------
    \236\ S. Rept. No. 105-167, 105th Cong., 2d sess. at 2505-06.
---------------------------------------------------------------------------
    The Committee has been able to uncover facts that tend to 
support the Senate's conclusions and shed additional light on 
the activities of Sioeng and his connections to the People's 
Republic of China.
            Political Connections
    Sioeng is closely associated with several officials of the 
PRC's consulate in Los Angeles and its embassy in Washington, 
DC. Sioeng's highest-ranking diplomatic contact may be Zhou 
Weng Zhong, former Minister and Deputy Chief of Mission to the 
PRC embassy. Sioeng introduced Zhou to Robert Prins, President 
of Iowa Wesleyan College, during a function at the 
consulate.237 At that time, Zhou stated that he 
wanted his daughter to study in the United 
States.238 Prins stated that he would be happy to 
have her, and Sioeng offered to financially support her while 
she was a student.239 Prins did not believe that it 
was in Sioeng's best interest, or that of the college, to have 
Sioeng, as a trustee of the college, dictating who received 
scholarship money when the student was related that to a 
Chinese politician.240 Therefore, Zhou's daughter 
received scholarship money from a separate fund.241
---------------------------------------------------------------------------
    \237\ Prins Depo. at 75.
    \238\ Id. at 76.
    \239\ Id.
    \240\ Id.
    \241\ Id.
---------------------------------------------------------------------------
    Committee investigators also believe that Sioeng is closely 
connected to former PRC Counsel General Feng Shu Sen. Feng was 
a high-ranking party official in Yunnan province before 
becoming the Consul General in Los Angeles.242 After 
Feng became Consul General, Sioeng became ``more influential, 
almost like whatever he ask for, he will get the cooperation 
of'' 243 the consulate. Sioeng became so influential 
during pro-PRC activities that he spoke at many such 
events.244 He even became a sort-of celebrity or 
leader in the community; 245 Sioeng was known as the 
number one man or big brother of the community.246 
Sioeng was given a place of honor, a seat in the front row, 
during a celebration for the Chinese New Year broadcast on 
state-owned Chinese cable television.247 This was at 
a time when at least one PRC businessman believed that Sioeng 
was just getting started in his business dealings with the 
PRC.248
---------------------------------------------------------------------------
    \242\ Wong Depo. at 57.
    \243\ Id. at 58.
    \244\ Id. at 54.
    \245\ Id. at 32.
    \246\ Id. at 56-57.
    \247\ Interview of Jerry J. Sun, Mar. 19, 1998 [hereinafter Sun 
Interview].
    \248\ Id.
---------------------------------------------------------------------------
    Sioeng attended several receptions at the consulate itself, 
during the terms of several different Consul 
Generals.249 Counselor representatives also attended 
receptions held by Sioeng at his hotel.250 According 
to Dr. Wong, Sioeng apparently knew PRC personnel in other 
diplomatic posts in the United States.251 Or, if he 
did not know them, they knew him.252
---------------------------------------------------------------------------
    \249\ Wong Depo. at 34, 56, See also, Ma Depo. at 59.
    \250\ Ma Depo. at 90.
    \251\ Wong Interview.
    \252\ Wong Depo. at 113.
---------------------------------------------------------------------------
    Sioeng was well-known to officials in Beijing, and the 
United States.253 According to Dr. Wong, ``. . . 
even Jiang Zemin [knew him] before he came here [the United 
States].'' 254 Sioeng was even able to obtain a 
private meeting with the Premier during his visit to the United 
States in October 1995.255 The Committee notes that, 
while Premier Zemin has denied there was a Chinese plan to 
influence U.S. elections, it is at least curious that such a 
prominent source of apparently illegal DNC funds was able to 
obtain a private meeting with the head of the PRC.
---------------------------------------------------------------------------
    \253\ Id. at 120.
    \254\ Id.
    \255\ Id. See also, Chairman of the People's Republic of China 
Jiang Zemin Meets with Ted Sioeng Separately and Independently, 
International Daily News, Oct. 24, 1995. Exhibit 115.
---------------------------------------------------------------------------
    Many of Sioeng's activities within the United States helped 
in the formation and support of pro-PRC organizations and 
entities. Sioeng has given financial assistance to several pro-
PRC organizations and entities, including the consulate itself. 
One such group, The Alliance of Chinese-American Groups of USA, 
was founded by Sioeng and his associate, Kent La as 
president.256 Witnesses have described this 
organization as a pro-PRC umbrella group.257 Sioeng 
funded this organization in 1996,258 and made 
financial contributions to other pro-PRC 
associations.259
---------------------------------------------------------------------------
    \256\ See Exhibit 27.
    \257\ Interview of Norman Hsu, Mar. 30, 1998 [hereinafter Hsu 
Interview].
    \258\ Sioeng San Wong deposit of $5,000 to open account for the 
Southern California United Chinese Association, July 25, 1996. Exhibit 
116; Check No. 662 from Sioeng San Wong to Sun Yat Sen Institute in the 
amount of $10,000, Nov. 25, 1995, Exhibit 117.
    \259\ Check No. 667 from Sioeng San Wong to O.C. China Friendship 
Association in the amount of $10,000, Apr. 15, 1995, Exhibit 118.
---------------------------------------------------------------------------
    Sioeng and his daughter, Jessica Elnitiarta, also made 
personal contributions to the PRC consulate totaling 
$50,000.260 In 1994, Sioeng made a donation of 
$10,000, and in 1996, Jessica Elnitiarta made out two $20,000 
checks to the Consulate General of the PRC for unknown 
purposes.261 Kent La also made donations to various 
pro-PRC organizations.262
---------------------------------------------------------------------------
    \260\ Check No. 604 from Sioeng San Wong to Consulate General of 
PRC in the amount of $10,000, July 26, 1994, Exhibit 119; Checks No. 
442 and No. 443 from Jessica Elnitiarta to Consulate General PRC in the 
amounts of $20,000 each, Nov. 15, 1996, Exhibit 120.
    \261\ Id.
    \262\ Check No. 0099 from Kent La to Sun Yat Sen Chinese Institute 
in the amount of $2,500, July 25, 1995, Exhibit 121; Check No. 127 from 
Kent La to Consulate General of PRC in the amount of $5,000, Feb. 14, 
1996, Exhibit 122; Check No. 142 from Kent La to League for Reunified 
China in the amount of $2,000, July 26, 1996. Exhibit 123.
---------------------------------------------------------------------------
    In 1996, Sundari Elnitiarta, Sioeng's wife, contributed 
$5,000 to Daniel Wong, a Republican California Assembly 
candidate.263 The Senate Campaign Finance Report 
concluded that this contribution was funded by the PRC 
consulate.264 The Committee noted that Wong 
disagreed with that conclusion, however, Wong did believe that 
if he wanted to get ``support'' from the PRC government he 
could have and he knows of possibly others who have received 
such support.265
---------------------------------------------------------------------------
    \263\ See Exhibit 243.
    \264\ Senate Campaign Finance Report at 2506.
    \265\ Wong Depo. at 107-110.
---------------------------------------------------------------------------
    Wong believed that one could obtain such support from a PRC 
propaganda group which attempts to gain the support of overseas 
Chinese.266 The Committee believes that organization 
could have been the United Front Work Department (UFWD). Wong 
did not recognize the UFWD, but knew of the Tong Jin Bu, or Dui 
Wai Sun.267 However, he did not know if Sioeng 
worked with these organizations.268
---------------------------------------------------------------------------
    \266\ Wong Interview.
    \267\ Wong Depo at 80-81.
    \268\ Id. at 83.
---------------------------------------------------------------------------
    Sioeng's connections to the PRC extend to the provincial 
level. According to Sioeng himself, he is an economic advisor 
to at least six different Chinese provinces or 
regions.269 Others have stated that Sioeng receives 
a motorcade escort when he arrives in some provinces, 
particularly Yunnan.270
---------------------------------------------------------------------------
    \269\ Bruce Gilley, A Democratic Donor's Cambodian Connection, Wall 
Street Journal, Jan. 13, 1998 (stating that Mr. Sioeng's business card 
lists him as an economic advisor to Yunnan, Guizhou, Guangxi, Jilin, 
Heilonjiang, and Inner Mongolia).
    \270\ Wong Depo at 37.
---------------------------------------------------------------------------
            Financial Connections
    As noted elsewhere in this chapter, many of Sioeng's 
business activities rely on his strong connection to the 
Chinese government for success. One such business is Code 3 
USA, the family's gun and ammunition store in Monterey Park, 
California, although it is owned by Sioeng's daughter and son-
in-law.271 Code 3 USA indicated in its financial 
disclosure forms that it plans on exporting guns and ammunition 
to Asian countries, and it had received an order from the Hong 
Kong government for 1 million rounds of .38 caliber 
bullets.272
---------------------------------------------------------------------------
    \271\ See Exhibit 84.
    \272\ Id.
---------------------------------------------------------------------------
    Sioeng's main business is the selling and exportation of 
China's No. 1 selling cigarette, Hongtashan (Red Pagoda 
Mountain).273 While discussing Sioeng's PRC 
businesses, Cary Ching, president of Grand National Bank, 
stated, ``I haven't seen anyone as comfortable operating in the 
PRC [as Sioeng].'' 274 As discussed earlier in this 
chapter, Sioeng's tobacco venture is the result of direct 
partnership between his company and the government of the PRC.
---------------------------------------------------------------------------
    \273\ See Exhibit 91.
    \274\ Interview of Cary Ching, Dec. 8, 1997.
---------------------------------------------------------------------------
    Sioeng strengthened his ties with PRC government officials 
by awarding them honorary degrees from Iowa Wesleyan College 
where he serves as a trustee of the college.275 In 
September 1994, the college awarded degrees to two senior 
officials of the state-owned China National Tobacco Corporation 
in Yunnan Province.276 In October 1995, the college 
awarded a degree to Deng Jiazhen, Director and President of 
China National Tobacco Corporation in Guangxi 
Province.277 Early in 1997, Sioeng's Millennium 
Group entered into lucrative agreements with these tobacco 
companies for cigarette manufacturing and the sale of tobacco 
leaves outside of the PRC.278
---------------------------------------------------------------------------
    \275\ Prins Depo. at 10.
    \276\ Honorary degrees and business cards of Yang Youzhu and Tie 
Zhengguo, Sept. 24, 1994. Exhibit 124.
    \277\ Honorary degree and business card of Deng Jiazhen, Oct. 26, 
1995. Exhibit 125.
    \278\ See Exhibit 90.
---------------------------------------------------------------------------
    Questions remain concerning whether money from the Chinese 
tobacco industry, and the Chinese government, were used to make 
political contributions in the United States, including ones to 
the Democratic National Committee (DNC). One possible example 
of Chinese money coming into the accounts of the DNC is 
highlighted by transactions involving R.T. Enterprises. 
Committee investigators could not obtain records identifying 
the ownership interests, officers, directors, or even an 
address of R.T. Enterprises. However, R.T. Enterprises 
transferred millions of dollars into various accounts held by 
Sioeng, his daughter, and his business associate, Kent 
La.279 One such transaction suggests that R.T. 
Enterprises operates for the benefit of Hongtashan.
---------------------------------------------------------------------------
    \279\ See ``Sioeng's Foreign Business Interests.''
---------------------------------------------------------------------------
    As discussed previously, on July 24, 1996, R.T. Enterprises 
wire transferred $97,555 from Hong Kong into the U.S. bank 
account of Loh Sun International for Hongtashan 
advertising.280 The Committee believes that some of 
this money may have been used to make a $50,000 contribution to 
the DNC.
---------------------------------------------------------------------------
    \280\ See Exhibit 10.
---------------------------------------------------------------------------
    Some people associated with Sioeng have suggested that he 
had some difficulties with his tobacco partnership with the PRC 
government, and Yunnan province in particular.281 
According to Jerry Sun, Vice President of Minmet K.N. (USA), 
Inc., Sioeng was upset with the Yunnan government over certain 
allegations it leveled against him.282 Specifically, 
the government wanted to enforce an agreement with Sioeng that 
only allowed him to manufacture Hongtashan cigarettes in 
Singapore for export. Despite that agreement, the Yunnan 
government claimed that Sioeng was selling cigarettes in the 
PRC at greatly inflated prices. Sioeng reportedly said he could 
not control some of his sales people and that they were to 
blame for the smuggling. Sioeng told Sun that he wanted to 
leave Yunnan and open a cigarette factory in Sun's home 
province of Guengxi.
---------------------------------------------------------------------------
    \281\ See generally, Ma Depo. at 98; Ma Interview; Sun Interview.
    \282\ Sun Interview.
---------------------------------------------------------------------------
    Another major business venture for Sioeng was arranging 
U.S. tours for various PRC government officials and 
businessmen. As noted previously, Sioeng formed the CCAID 
Executive Program with Johnny Ma.283 Sioeng assisted 
the company in marketing its services to Chinese 
officials,284 and arranging for airline tickets, 
itineraries, and visas for the travelers.285 
Depending on the types of delegations that would come, CCAID 
also might contact various organizations in order to set up 
relevant tours.286 Sioeng's partnership with Ma 
lasted from 1992 through 1993, when Sioeng began his own 
travel-related company.287 CCAID continued 
operations until 1996, during which time it hosted delegations 
from Yunnan Province, consisting of Xishuangbana city 
officials, public security officials, and border guard and bank 
officials.288
---------------------------------------------------------------------------
    \283\ See ``Sioeng's U.S. Business Interests.''
    \284\ Ma Depo. at 16.
    \285\ Id. at 15.
    \286\ Id.
    \287\ Id. at 16.
    \288\ Wire transfers from Yunnan Foreign Service Centre at CCAID in 
the amount of $60,722.50, Oct. 17, 1995; $106,235, Nov. 11, 1995; 
$208,985, Apr. 15, 1996, Exhibit 126.
---------------------------------------------------------------------------
    While at CCAID, Sioeng sought assistance in setting up 
tours with an old friend, Lay Kweek Wie.289 
Witnesses believe that Lay knew Sioeng from his days in 
Indonesia.290 Committee investigators believe that 
Lay is currently employed or associated with Sioeng in his 
current business, Sioeng's Group, where Lay and his son, Bun 
Tsun Lai, guide delegations of PRC officials on tours of the 
United States. Both Lay and Lai have asserted their Fifth 
Amendment privilege against self-incrimination before the 
Committee.291
---------------------------------------------------------------------------
    \289\ Ma Depo. at 54.
    \290\ Hsu Interview.
    \291\ Letter from Laura S. Shores to Michael D. Bopp, May 20, 1998, 
Exhibit 127.
---------------------------------------------------------------------------
    Sioeng has also brought at least one individual from a PRC 
state agency to work in the United States. Teng Meini, formerly 
an employee of the China Travel Service in 
Guizhou,292 became the registered agent and Chief 
Executive Officer of Guangdong China Travel Service, 
Inc.293 She served in that capacity from Guangdong's 
incorporation on May 23, 1995 until October 25, 1995, when she 
was replaced by Jessica Elnitiarta.294 During her 
brief tenure as a Guangdong official, Teng carried a PRC 
passport, and obtained a Social Security number.295 
The Committee does not know Teng's current location or 
occupation.
---------------------------------------------------------------------------
    \292\ See Exhibit 43.
    \293\ See Exhibit 41.
    \294\ Id. Oct. 25, 1995.
    \295\ Check No. 102 from Bun Tsun Lai to cash, June 8, 1995, 
Exhibit 128.
---------------------------------------------------------------------------
    In 1994, Sioeng brought two other PRC nationals to work in 
the United States under visas valid for only 90 
days.296 American Guizhou Pacific Corporation listed 
Guo Lin and Feng Qian as the Chief Executive Officer and 
Secretary respectively.297 The Immigration and 
Naturalization Service failed to provide the Committee with 
documentation concerning Teng, Feng, or Guo.
---------------------------------------------------------------------------
    \296\ Visa No. 364901837 issued to Qian Feng, Feb. 15, 1994; Visa 
No. 364901846 issued to Lin Guo, Feb. 15, 1994. Exhibit 129.
    \297\ See Exhibit 44.
---------------------------------------------------------------------------
    Another business with apparent ties to the PRC government 
is the International Daily News, a newspaper which Sioeng 
purchased from Simon Chen in 1995. The Committee has learned 
that Sioeng purchased the paper for approximately $3 million in 
installments from 1995 through 1997.298 Committee 
investigators have traced the funds used to purchase and 
operate the paper to bank accounts in Hong Kong held by Yanti 
Ardi.299 The Committee notes these same accounts 
were used to make many of the Sioeng family's political 
contributions.
---------------------------------------------------------------------------
    \298\ See ``Sioeng's U.S. Business Interests.''
    \299\ See ``Sioeng's U.S. Business Interests.''
---------------------------------------------------------------------------
    Members of the Chinese-American community believe that the 
paper was losing money at the time.300 In fact, one 
source confirmed that the Sioeng family approached him, asking 
him to take over the paper, and provided him with documentation 
showing that the paper was losing approximately $200,000 per 
month.301 Jessica Elnitiarta has stated that her 
father knew it was losing money,302 but decided to 
purchase the paper to enhance the family's standing in the 
local community and to take advantage of the favorable tax 
advantages in assuming the paper's debt.303
---------------------------------------------------------------------------
    \300\ Ma Depo. at 95 (stating the Mr. Ma loaned Mr. Sioeng $50,000 
so the IDN could make its payroll).
    \301\ Interview of Tei Fu Chen, July 18, 1998.
    \302\ Elnitiarta Interview.
    \303\ Id.
---------------------------------------------------------------------------
    According to Chen, Sioeng wanted to purchase the paper to 
``help and support the Chinese culture.'' 304 Before 
Sioeng's purchase of the paper, the editorial position favored 
the Taiwanese independence movement.305 After the 
purchase, the paper shifted its editorial position to favor the 
PRC.306 In addition, the paper began to insert the 
``Beijing-controlled Hong Kong newspaper, Wen Wei Boa,'' 
307 as a ``bonus to its readers.'' 308
---------------------------------------------------------------------------
    \304\ Interview of Simon Chen, Jan. 14, 1998.
    \305\ Ma Depo. at 96.
    \306\ Wong Depo. at 136. See also, Interview of Simon Chen, Jan. 
14, 1998.
    \307\ David Holley, Friendly Summit in Tokyo Leaves Undercurrents 
of Concern, L.A. Times, Apr. 19, 1996 at A4.
    \308\ Bruce Gilley, A Democratic Donor's Cambodian Connection, Wall 
Street Journal, Jan. 13, 1998.
---------------------------------------------------------------------------
    One possible explanation for this change in focus was that 
Sioeng may have been trying to impress leaders in the PRC and 
show that he could be influential in the overseas Chinese 
community in southern California.309
---------------------------------------------------------------------------
    \309\ Ma Depo. at 96-99. See also, Wong Depo. at 135; Interview of 
Simon Chen, Jan. 14, 1998.
---------------------------------------------------------------------------
    That explanation is endorsed by Johnny Ma, a former Sioeng 
business partner, who stated that he believed ``he [Sioeng] 
wanted to use that newspaper [the International Daily News] to 
bargain with the Beijing government, and he wanted the Beijing 
government to support his newspaper.'' 310 In fact, 
Ma believed that Sioeng ``wanted to have the Beijing government 
support him because the newspaper was losing money every month, 
so he wants them to give him money so that he can hang in 
there.'' 311
---------------------------------------------------------------------------
    \310\ Ma Depo. at 96.
    \311\ Id. at 97.
---------------------------------------------------------------------------
    Daniel Wong stated that the paper ``. . . was a joint 
venture with China, in one of China's departments; like 
cultural department or the news agency department . . .'' 
312 The Committee notes that Sioeng brought several 
writers and editors from China or Hong Kong to work on the 
paper.313 Wong stated that ``I don't think he [Mr. 
Sioeng] spent his own money just to run a newspaper and hire 
these Chinese people.'' 314 In other words, Wong's 
perception was that the Chinese government was financially 
supporting the newspaper.
---------------------------------------------------------------------------
    \312\ Wong Depo. at 137.
    \313\ Wong Depo. at 139.
    \314\ Id. at 139.
---------------------------------------------------------------------------
    Sioeng has also developed contacts with many powerful PRC 
or pro-PRC businessmen, the most prominent of which is Tsang 
Hin Chi, President of Goldlion International, a large Hong Kong 
based conglomerate.315 His company, which produces 
items from cigarettes to men's clothing, derives 80 percent of 
its revenue from the PRC.316 Tsang is currently a 
member of the Standing Committee of the 9th National People's 
Congress, the organization which controls the Communist party 
within the PRC.317 Apart from Tsang's personal 
involvement in the PRC government, he also frequently meets 
with senior PRC leaders in Beijing.318
---------------------------------------------------------------------------
    \315\ Tsang Hin Chi biography from the Chinese General Chamber of 
Commerce web site, . 
Goldlion produces items ranging from cigarettes to men's clothing and 
accessories; honorary degree certificate for Tsang Hin Chi, Apr. 25, 
1994. Exhibit 130.
    \316\ Bruce Gilley, Discordant Sioeng, Far Eastern Econ. Review, 
June 25, 1998.
    \317\ Id.
    \318\ Id.
---------------------------------------------------------------------------
    Sioeng has very close business ties with Tsang. Sioeng's 
company, SS Group, owns 24 percent of a $7 million cigarette 
manufacturing and marketing venture in Hainan 
Province.319 Committee investigators believe that 
Sioeng assisted Tsang in setting up this venture. On April 25, 
1994, Sioeng arranged for Tsang Hin Chi to receive an honorary 
degree from Iowa Wesleyan College.320 In 1995, 
Sioeng hosted a delegation of Chinese tobacco officials at his 
hotel.321 The leader of the delegation from Hainan 
Province, Chen Lo Jun, was awarded an honorary degree by 
American M&N University at the request of Sioeng.322 
That same year, Goldlion reached a business arrangement with 
Hainan Province.323
---------------------------------------------------------------------------
    \319\ Id.
    \320\ See Honorary Degree Certificate for Tsang Hin Chi. Exhibit 
130.
    \321\ Interview of Nancy Chen, June 26, 1998.
    \322\ Id.
    \323\ Adela Ma, Goldlion Snares Final China Tobacco Deal Before 
Temporary Ban.
---------------------------------------------------------------------------
    A year later, Sioeng, Tsang, and Jessica Elnitiarta were 
listed as directors of Goldlion's U.S. subsidiary, Goldlion 
International, U.S.A., Inc. The President of Goldlion 
International was Tsang's son, Jimmy Chi Mai Mao 
Tsang.324 On February 19 and 20, 1996, both Jimmy 
Tsang and his wife as Sioeng's guests, attended DNC fundraisers 
at the Hay-Adams Hotel, in Washington, DC, hosted by President 
Clinton and Vice President Gore.325
---------------------------------------------------------------------------
    \324\ See Exhibit 51.
    \325\ Guest list of Hay-Adams dinner and breakfast. Exhibit 131. 
See also, photos of Jimmy Tsang and Jean Lim Tsang with President 
Clinton, Exhibit 132.
---------------------------------------------------------------------------
    Sioeng's connections to the PRC run through Macau, as well 
as Hong Kong. At a May 13, 1996 DNC fundraiser at the Sheraton 
Carlton, in Washington, DC, Chio Ho Cheong (aka Chen Kai Kit, 
aka Tommy Chio) was a guest of Sioeng's and sat at the head 
table with President Clinton.326 Chio used his 
apparent access to the President during his campaign for 
Macau's legislative body, featuring a picture of himself with 
President Clinton prominently in television 
advertisements.327 Chio was appointed in 1998 to the 
Chinese People's Consultative Conference (CPCC) in 
Beijing,328 which is the top advisory body in China 
and has senior Communist Party official Li Ruihan as its 
chairman.329
---------------------------------------------------------------------------
    \326\ Head table and guest lists, Sheraton Carlton event. Exhibit 
133. See also, photo of Chio Ho Cheong and President Clinton. Exhibit 
134.
    \327\ Micah Morrison, The Macau Connection II, Wall Street Journal, 
Feb. 27, 1998.
    \328\ Id.
    \329\ Chinese Newspaper Highlights, Asia Pulse, Mar. 13, 1997 and 
China's Li Ruihan to Visit Portugal-Lusa, Reuters World Service, Mar. 
4, 1997.
---------------------------------------------------------------------------
    Other Chinese businessmen associated with Sioeng include Li 
Kwai Fai, Tong Yun Kai, and Guo Zhong Jian:
           Li Kwai Fai is President and CEO of LuDanlan 
        Group, located in Guangzhou, PRC.330 In 
        February 1996, Li attended the Hay-Adams event as 
        Sioeng's guest where they sat at the head table and 
        later had pictures taken with President 
        Clinton.331 Currently, the picture of 
        President Clinton with Li is advertised on the LuDanlan 
        Group's website.332 Sioeng also arranged for 
        Iowa Wesleyan College to award an honorary degree to 
        Li.333
---------------------------------------------------------------------------
    \330\ See Exhibit 137.
    \331\ Photo of Li Kwai Fai with President Clinton. Exhibit 135. See 
also Exhibit 131.
    \332\ LuDanlan Corporate Philosophy web page, ; honorary degree certificate of Li Kwai 
Fai, Dec. 18, 1995. Exhibit 137.
    \333\ Id.
---------------------------------------------------------------------------
           Tong Yun Kai is a Hong Kong businessman and 
        member of Guangdong Province and Fo Shan City 
        Committees of Chinese People's Political Consulative 
        Conference. He received an honorary degree from Iowa 
        Wesleyan College at Ted Sioeng's request.334
---------------------------------------------------------------------------
    \334\ See Honorary Degree Certificate, December 1997; business 
card, and resume of Tong Yun Kai. Exhibit 136.
---------------------------------------------------------------------------
           Guo Zhong Jian was the Deputy General 
        Manager of the China Construction Bank's Hong Kong 
        office.335 He received an honorary degree 
        from American M&N University at Ted Sioeng's request. 
        In May 1996, Guo attended the Sheraton Carlton dinner 
        with Sioeng. The bank recently sent Guo back to the PRC 
        from his Hong Kong position to ``help him keep a lower 
        profile'' after he garnered unwanted attention for his 
        attendance at the DNC event.336
---------------------------------------------------------------------------
    \335\ Photo of Guo Zhong Jian and President Clinton. Exhibit 138. 
See also Exhibit 131.
    \336\ Intelligence, Far Eastern Econ. Rev., May 21, 1998.
---------------------------------------------------------------------------
    Sioeng also does considerable business with the PRC through 
World Seal, a company in HongKong operated by his son Yopie 
Elnitiarta and son-in-law Didi Kurniawan.337 World Seal 
ordered over $20 million in health food products from a California 
company for distribution in the PRC.338
---------------------------------------------------------------------------
    \337\ Id.
    \338\ See Exhibit 24.
---------------------------------------------------------------------------

3. Conclusions

    Sioeng's connections to various members of the PRC 
government, at the National, Provincial, and business level is 
of great concern to the Committee. The U.S. Senate, Committee 
on Government Affairs, found in its unclassified report based 
upon classified material,339 that Sioeng ``. . . 
worked, or perhaps still works, on behalf of the Chinese 
government.'' 340 The Committee believes that the 
information it has uncovered concerning Sioeng's connections to 
the PRC tend to support and further enhance that conclusion.
---------------------------------------------------------------------------
    \339\ See Senate Campaign Finance Report at 2501.
    \340\ See Senate Campaign Finance Report at 2505.
---------------------------------------------------------------------------

               B. Connections to the Cambodian Government

1. Summary

    China is not the only country to which Ted Sioeng initiated 
close ties. He also developed a cozy relationship with the 
government of Cambodia. Sioeng has had two U.S. educational 
institutions award honorary degrees to his friends and business 
associates to enhance their status. Among the people to whom 
these degrees have been awarded are several Cambodian 
nationals, two of whom are the current leaders of the 
government, and one of whom has been banned from the United 
States as a suspected drug dealer. Another individual who 
received a degree had a financial relationship with Jessica 
Elnitiarta. Through these people to whom college diplomas were 
awarded, Sioeng developed close business and personal ties to 
the Cambodian government. At the same time as Sioeng was 
cultivating those connections, the government was moving closer 
to the PRC.
    Sioeng's relationships with Cambodian business associates 
raise a number of troubling questions, many of which remain 
unanswered due to many key witnesses fleeing the country, and/
or asserting their right against self-incrimination and refusal 
to answer questions posed by the Committee. One such question 
is the use to which Jessica Elnitiarta put the moneys she 
received. Another is, what Sioeng's intent was in developing 
close ties to the Cambodian government.

2. Findings

    Many of his business associates and acquaintances have 
described Sioeng as very good at making connections.\341\ One 
way in particular that Sioeng sought to make connections is 
through the awarding of honorary degrees to his friends and 
business associates. Sioeng has used, to the Committee's 
knowledge, two U.S. educational institutions to further his 
objectives, Iowa Wesleyan College, a college of roughly 840 
full and part-time students in Mt. Pleasant, Iowa; \342\ and 
American M&N University, a correspondence school of theology 
and philosophy registered in Louisiana, but located in a small, 
second-floor office in a Monterey Park, California, strip mall.
---------------------------------------------------------------------------
    \341\ Interview of Johnny Ma, Dec. 8, 1997; Wong Interview.
    \342\ The Iowan, Fall 1997 at 2. Exhibit 139.
---------------------------------------------------------------------------
    All told, Sioeng persuaded Iowa Wesleyan and American M&N 
to award at least 20 honorary degrees \343\ to various 
businessmen and government officials of the PRC (including Hong 
Kong), Macau, Indonesia, and Cambodia. Apparently in exchange 
for those degrees, Sioeng, through his family and businesses, 
donated from $370,000 to $400,000 to Iowa Wesleyan for 
administrative and tuition costs between 1993 and 1997.\344\ In 
addition to those gifts, Sioeng donated $100,000 to the college 
in 1993, allowing the institution to secure a loan needed to 
make its payroll.\345\ Sioeng is also a member of Iowa 
Wesleyan's Board of Trustees.346
---------------------------------------------------------------------------
    \343\ The Committee identified 15 honorary degrees that were 
awarded by Iowa Wesleyan College to Ted Sioeng and his associates (See 
chart at Exhibit 139), and other 5 degrees by American M&N University.
    \344\ Prins Depo. at 14-16
    \345\ Id. at 10.
    \346\ Id. at 10.
---------------------------------------------------------------------------
    Simon Chen introduced Sioeng to Iowa Wesleyan's President, 
Robert J. Prins, in 1994.\347\ At the time, Chen was president 
of the International Daily News, a Chinese language newspaper 
that he sold to Sioeng in 1995.348 According to 
Prins, Chen informed him that Sioeng was interested in 
obtaining an honorary degree from Iowa Wesleyan College.\349\ 
Chen told Prins that Sioeng was ``an active businessman that he 
had supported many groups, both Chinese and community groups 
within the LA area, [and] that he was involved in business, in 
both LA and China, [and] Hong Kong . . .'' \350\
---------------------------------------------------------------------------
    \347\ Id. at 12.
    \348\ See ``Sioeng U.S. Business Interest.''
    \349\ Prins Depo. at 13.
    \350\ Id.
---------------------------------------------------------------------------
    Through Prins, Sioeng met the Governor of Iowa, Terry E. 
Branstad.\351\ In fact, Sioeng got his picture taken with the 
Governor \352\ and even asked Prins if Governor Branstad needed 
some financial help in his re-election campaign.\353\ Sioeng 
also brought a business associate of his, Jerry Sun, Vice 
President of Minmet K.N. (USA), Inc. to the meeting with the 
Governor.\354\
---------------------------------------------------------------------------
    \351\ Prins Depo. at 74.
    \352\ Photo of Simon Chen, Sundari Elnitiarta, Ted Sioeng, Gov. 
Terry Bransted and Robert Prins, Sept. 2, 1993. Exhibit 140.
    \353\ Prins Depo. at 74.
    \354\ Interview of Jerry J. Sun, Mar. 19, 1998. Minmet K.N. (USA), 
Inc. is the U.S. subsidiary of China Minmetals Group, ``one of the 56 
Key enterprise groups approved by the State Council.'' China Minmetals 
Group Web Site, , Exhibit 141.
---------------------------------------------------------------------------
    Prins subsequently traveled overseas with Sioeng on several 
occasions.\355\ During one of those trips, in October 1996, 
Prins awarded an honorary degree to Cambodia's Second Prime 
Minister, Samdech Hun Sen.\356\ Hun Sen, as he is commonly 
known, is a former Khmer Rogue officer and leader of Cambodia 
during the Vietnamese occupation.\357\ He led a bloody coup in 
July 1997 and ousted the elected First Prime Minister, Prince 
Norodom Ranariddh.\358\ Turmoil over the coup--and criticism of 
Hun Sen's totalitarian style of governance--persists to this 
day.\359\
---------------------------------------------------------------------------
    \355\ Id. at 39.
    \356\ Id. at 40; See also Honorary Degree Certificate for Samdech 
Hun Sen. Exhibit 142.
    \357\ Tina Rosenberg, Hun Sen Stages an Election, New York Times 
Mag., Aug. 30, 1998, at 26.
    \358\ Fin. Times (London), July 25, 1998, at 7.
    \359\ Tina Rosenberg, Hun Sen Stages of Election, New York Times 
Mag., Aug. 30, 1998, at 26.
---------------------------------------------------------------------------
    Hun Sen moved Cambodia closer to the PRC. After his 
election as Second Prime Minister, Hun Sen began to court 
Chinese investment in Cambodia.\360\ For example, he took the 
extraordinary step of kicking out Taiwan's representatives from 
Cambodia and closing their ``de facto embassy in Phnom Penh.'' 
\361\ The largest Chinese investor in Cambodia is China 
Everbright, ``a huge conglomerate that reports directly to 
Beijing's cabinet.'' \362\
---------------------------------------------------------------------------
    \360\ Bruce Gilley, Fragile Prospects: Political backing only goes 
so far for China's investors, Far East. Econ. Rev., Dec. 11, 1997 at 
29.
    \361\ Bruce Gilley, Staying Power: Taiwan's Businesses still have 
clout in Cambodia, Far East. Econ. Rev., Dec. 11, 1997 at 29.
    \362\ Id.
---------------------------------------------------------------------------
    The PRC supported Hun Sen during the coup, bringing him to 
the capital city of Beijing in July 1996 for a public show of 
support.\363\ The People's Republic of China was one of the 
first foreign governments to recognize the new, Hun Sen-led 
government.\364\ Since then, Hun Sen has made several 
concessions to the Chinese government to maintain their 
support, including, cutting off a deal to fly direct commercial 
flights from Phnom Penh to Taipei, allowing Chinese police more 
power in security matters and suing 10 Cambodian newspapers 
over stories critical of the Chinese-Cambodian 
relationship.\365\
---------------------------------------------------------------------------
    \363\ Id.
    \364\ Id.
    \365\ Id.
---------------------------------------------------------------------------
    The Committee has developed information suggesting that 
Sioeng's facilitation of honorary degree ceremonies was 
consistent with other efforts he undertook to impress the 
rulers of Cambodia, and, presumably, to facilitate his business 
ventures there. As an example, Sioeng told Hun Sen after his 
honorary degree ceremony, that he was close to both President 
Clinton and PRC Premier Zemin.\366\ Sioeng also donated 
motorcycles and money to Hun Sen.\367\ As further evidence of 
the close relationship between Sioeng and Hun Sen, Prins told 
the Committee that he communicated with Hun Sen through 
Sioeng.\368\
---------------------------------------------------------------------------
    \366\ Huynh Interview.
    \367\ Huynh Interview. The Committee notes that during his 
deposition, Huynh claimed to have no such knowledge of Sioeng's 
donations to Hun Sen. (See Deposition of Hoa Bang Huynh, Apr. 15, 1998 
at 12, hereinafter Huynh Depo.)
    \368\ Prins Depo. at 65; See also photo of Hun Sen and Sioeng at 
honorary degree ceremony, Exhibit 143.
---------------------------------------------------------------------------
    The Committee found that Iowa Wesleyan awarded three other 
honorary degrees at Sioeng's recommendation to Cambodian 
nationals. One went to Hun Sen's ``right hand man'' Sok 
An,\369\ another to casino operator Tony Tandijono,\370\ and 
the third to Hoa Bang Huynh, a Cambodian with U.S. citizenship 
and former business partner of Sioeng.\371\
---------------------------------------------------------------------------
    \369\ Honorary Degree Certificate and business card for Sok An. 
Exhibit 144.
    \370\ Honorary Degree Certificate and business card for Tony 
Tandijono. Exhibit 145.
    \371\ Huynh Depo. at 8; See also, Honorary Degree Certificate and 
business card for Hoa Bang Huynh, Exhibit 146.
---------------------------------------------------------------------------
    Sok An's title is Minister in Charge of the Presidency and 
the Council of Ministers in Cambodia.372 He serves 
as Hun Sen's spokesman and liaison to the Chinese 
Embassy.373 Huynh was an original partner in the 
tobacco manufacturing plant being constructed by Sioeng in 
Cambodia. He testified that he purchased $700,000 worth of 
tobacco equipment from Sioeng's U.S. company, Panda 
Industries.374 However, Huynh sent $250,000 to Panda 
Industries 375 and transferred the remaining 
$450,000 to the personal account of Jessica 
Elnitiarta.376
---------------------------------------------------------------------------
    \372\ See Exhibit 144.
    \373\ 40th Anniversary of Sino-Cambodia Ties Marked, Xinhua English 
Newswire, July 17, 1998. See also, Thai Foreign Minister Meets 
Cambodian King Sihanouk, Hun Sen, Deutsche Press-Agentur, June 27, 1998 
(Sok An discussing Hun Sen's position concerning the elections with 
reporters); Japan Hinted at aid cut unless Ranariddh Pardoned, Japan 
Econ. Newswire, Mar. 22, 1998 (describing Sok An as ``. . . a close aid 
to Second Prime Minister Hun Sen.''); Cambodian Government plays down 
Contract for Elections, Deutsche Presse-Agentur, Mar. 20, 1998 
(discussing Sok An's briefing of British, Japanese and Australian 
ambassadors on a secret contract).
    \374\ Huynh Depo. at 14.
    \375\ See Exhibit 100.
    \376\ See Exhibit 101.
---------------------------------------------------------------------------
    According to Huynh, the equipment was defective, so he 
returned the machinery and demanded a refund. As a result, 
Sioeng agreed to refund Huynh the money; however, he refunded 
the money to Huynh, through Tony Tandijono,377 who 
runs one of two licensed casinos in Phonm Penh, and is also 
part owner of a weapons firing range north of that 
city.378
---------------------------------------------------------------------------
    \377\ Huynh Depo. at 14.
    \378\ Id.
---------------------------------------------------------------------------
    Huynh stated that after Sioeng returned the money, Sioeng 
formed a partnership with Theng Bunma 379 and Mr. 
Tandijono to run the tobacco plant.380 Reportedly 
the richest man in Cambodia, Bunma was a ``staunch supporter of 
Hun Sen.'' 381 In fact, he is such a strong 
supporter of Hun Sen that he bankrolled the coup against Prince 
Ranariddh.382 Bunma donated over $1 million in cash 
and gold to finance Hun Sen's takeover of the Cambodian 
government.383 Bunma gained international attention 
in April 1997 when he stormed off a Cambodian jetliner in Phonm 
Penh, demanded a gun from one of his waiting bodyguards, and 
shot out the plane's tires, because his luggage had been 
lost.384
---------------------------------------------------------------------------
    \379\ The Committee notes that in his deposition, Huynh testified 
that he did not know Theng Bunma was. (See Huynh deposition at 15). 
However, The Far East. Econ. Rev. reported that Huynh is a business 
partner of Bunma (See Bruce Gilley, Rising by Degrees, Aug. 20, 1998).
    \380\ Huynh Interview.
    \381\ Nate Thayer, Tycoon Admits to Role in Cambodian Coup, the 
Washington Post, July 25, 1997 at A4.
    \382\ Id.
    \383\ Id.
    \384\ Robin McDowell, Tycoon propelled Hun Sen to power in Cambodia 
coup, Washington Times at A11, Aug. 14, 1997.
---------------------------------------------------------------------------
    In his interview with the Committee, Huynh stated that 
Sioeng acknowledged his political contributions to both 
Democrats and Republicans.\385\ Huynh specifically quoted 
Sioeng as saying that, for $10,000, he could arrange for Huynh 
to sit at the head table with the President, presumably at a 
fundraising lunch or dinner.\386\ In addition, Huynh stated 
that Sioeng had asked him if he would like to sponsor a table 
at the fundraising event scheduled to be attended by President 
Clinton.\387\ Huynh did not repeat those assertions under oath. 
The Committee notes that Ted Sioeng himself was not the 
signatory on any of the contributions to the DNC, rather 
Jessica Elnitiarta signed the checks. However, Hunyh's 
statements above supports the conclusion that Sioeng directed 
Jessica Elnitiarta's contributions.
---------------------------------------------------------------------------
    \385\ Huynh Interview.
    \386\ Id.
    \387\ Huynh Depo. at 22-25.
---------------------------------------------------------------------------
    The Committee has been unable to confirm Huynh's 
explanation of events, or to reconcile the differences between 
what he said when interviewed on March 12, 1998 versus his 
deposition testimony on April 15, 1998. One explanation for the 
discrepancies is the translation difficulties that arose during 
the deposition. It was unclear at times whether Huynh fully 
understood the questions posed.
    On December 20, 1997, Iowa Wesleyan College awarded an 
honorary degree to Theng Bunma at the request of Hun Sen.\388\ 
The degree was presented at the Intercontinental Hotel in Phnom 
Penh, Cambodia which is owned by Bunma.\389\
---------------------------------------------------------------------------
    \388\ Honorary Degree Certificate and business card for Theng 
Bunma. Exhibit 147.
    \389\ Prins Depo. at 52.
---------------------------------------------------------------------------
    The U.S. State Department has made it clear that, aside 
from his other ventures, Bunma ``is closely and heavily 
involved in drug trafficking in Cambodia.'' \390\ Furthermore, 
the U.S. Government has banned Bunma from entering the country 
due to his alleged narcotics smuggling.\391\
---------------------------------------------------------------------------
    \390\ Nate Thayer, Drug Suspects Bankroll Cambodian Coup Leader, 
the Washington Post, July 22, 1997.
    \391\ Id.
---------------------------------------------------------------------------
    Then-Ambassador to Cambodia Charles Twining warned 
Cambodian authorities in 1994 of Bunma's alleged narcotics 
trafficking.\392\ Despite these warnings, the State Department 
``issued Bunma a visa to attend the National Prayer Breakfast 
in Washington, an event organized at Congress and presided over 
by President Clinton . . . After hearing Clinton's speech, 
Bunma was granted a meeting with U.S. officials at the 
Pentagon.'' \393\
---------------------------------------------------------------------------
    \392\ Id. The Committee noted that Ted Sioeng did not make the 
allegations against Bunma known to Prins when Iowa Wesleyan awarded the 
honorary degree to Bunma. Prins later confronted Sioeng about those 
allegations, and Sioeng apologized. Iowa Wesleyan subsequently 
``revoked [the degree] based on the State Department's ruling that 
Bunma cannot enter the United States and is currently blacklisted.'' 
(See Prins Depo. at 53).
    \393\ Nate Thayer, Drug Suspects Bankroll Cambodian Coup Leader, 
the Washington Post, July 22, 1997.
---------------------------------------------------------------------------
    A guest list from Bunma's honorary degree event shows many 
Sioeng family members and business associates present at the 
event. \394\ This includes: Sandra Elnitiarta; Didi Kurniawan; 
Yopie Elnitiarta; Kent La; Hung Fei Man; Li Kwai Fai; \395\ 
(All of whom attended at least one DNC fundraiser), Frankie 
Hum, Manager of Chinois Tobacco, Ltd.; \396\ Ambrose Hsuing, 
Vice-President, The Sioeng Co. Group; \397\ Amy Zhang, 
Personnel Relations, S.S. Group; \398\ Glenville Stuart,\399\ 
Belize consulate personnel; Benny Sit, Director, Well & Well 
Group; \400\ Yanuar Joeng,\401\ Vice President WGL Tobacco Ltd. 
(Director of Worldwide Golden Leaf Tobacco Ltd.); Kook Ying Tai 
Peter, (aka Peter Kook),\402\ Chairman, Well & Well Group; and 
Yueng Hong Man, Vice-President, International Daily News \403\ 
(Hong Kong).\404\
---------------------------------------------------------------------------
    \394\ International Industrial Commercial Conference guest list. 
Exhibit 148; See also, picture at conference. Exhibit 149.
    \395\ Id.
    \396\ Ted Sioeng serves as Chairman of Chinois Tobacco. See 
``Sioeng's Foreign Business Interests.''
    \397\ See Exhibit 114.
    \398\ See ``Sioeng's Foreign Business Interest''.
    \399\ See ``Sioeng's U.S. Business Interests.''
    \400\ In December 1997, Peter Kook, Chairman of the Well & Well 
Group, was awarded an honorary degree from Iowa Wesleyan College at the 
recommendation of Ted Sioeng. Honorary Degree Certificate and business 
card for Peter Kook. Exhibit 150.
    \401\ See ``Sioeng's Foreign Business Interest''.
    \402\ See ``Sioeng's U.S. Business Interest.''
    \403\ Id.
    \404\ The Committee has been unable to contact or speak with many 
people on this guest list. Some, such as Sioeng's family members and 
U.S. business associates have asserted their fifth amendment rights. 
Others have refused to respond to Committee requests for information or 
to calls from Committee investigators to their offices.
---------------------------------------------------------------------------

3. Conclusions

    Sioeng's relationship with Hun Sen, Theng Bunma, and others 
in Cambodia is a concern to the Committee. Due to Sioeng's 
refusal to cooperate with the Committee several important 
questions remain unanswered.
    The Committee has been unable to confirm that the $700,000 
Huynh gave to Jessica Elnitiarta and Panda Industries was for a 
legitimate business transaction. Nor has it seen documentation 
that the money was returned, as Huynh testified.
    Also unaddressed are questions concerning Sioeng's 
relationship to powerful figures in Cambodia and China. The 
nature of the relationships and Sioeng's motives remain 
unclear, largely because Sioeng and his family have refused to 
shed light on these and other important questions.

                      VI. Democratic Contributions

                          A. John Huang's Role

1. Summary

    The Committee has learned that former Commerce Department 
employee and DNC fundraiser John Huang solicited funds from Ted 
Sioeng and Jessica Elnitiarta. Huang, a major focus of both the 
House and Senate investigations into illegal and/or improper 
activities during the 1996 campaign, asserted his privilege 
against self-incrimination and has refused to cooperate with 
the Committee.

2. Findings

    DNC tracking forms credit John Huang as the solicitor for 
all but the first of the Sioeng related contributions.\405\ The 
Committee notes that all DNC tracking forms recording the 
Sioeng family's contributions appear to be in Huang's 
handwriting. Huang was first introduced to the Sioeng family in 
1995.\406\ Huang's first solicitation for the Sioeng family was 
in connection with a fundraiser on February 19, 1996, held at 
Washington, DC's Hay-Adams hotel.\407\ After some negotiation 
with Huang, Jessica Elnitiarta contributed $100,000 in 
connection with that event, or $12,500 for each of their eight 
guests.\408\ Huang later claimed that because of their late 
attendance the family did not have good seats for the 
event.\409\
---------------------------------------------------------------------------
    \405\ See, Check No. 575 from Jessica Elnitiarta to the DNC in the 
amount of $100,000. Feb. 12, 1996, Exhibit 151; Check No. 1632 from 
Panda Estates Investment Inc. to the DNC in the amount of $100,000, 
July 12, 1996, Exhibit 152; Check No. 1652 from Panda Estates 
Investment to the DNC in the amount of $50,000, July 29, 1996, Exhibit 
153; Check No. 3881 from Loh Sun International, Inc., to the DNC in the 
amount of $50,000, July 29, 1996, Exhibit 154; Check No. 134 from 
Subandi Tanuwidjaja to the DNA in the amount of $60,000, Sept. 9, 1996, 
Exhibit 155; Check No. 136 from Subandi Tanuwidjaja to the DNC in the 
amount of $20,000, Sept. 19, 1996. Exhibit 156; Check No. 1611 from 
Suryanti Tanuwidjaja to the DNC in the amount of $20,000, Sept. 16, 
1996. Exhibit 157. See also, Elnitiarta Interview.
    \406\ Elinitiarta Interview.
    \407\ Id.
    \408\ Id.
    \409\ Id.
---------------------------------------------------------------------------
    However, DNC records and photographs show that Sioeng and 
one of his Chinese guests sat at the head tables with President 
Clinton during the dinner, and Vice President Gore at a 
breakfast the next morning.\410\ The Committee notes that, at 
the Hay-Adams event, President Clinton specifically thanked 
``those [people in attendance] who have come from other 
countries to be with us tonight . . .'' \411\
---------------------------------------------------------------------------
    \410\ See Exhibit 131.
    \411\ White House video of Hay-Adams event.
---------------------------------------------------------------------------
    The Committee notes that a DNC staff member told Huang that 
the Sioeng family participated inthe Hay-Adams event in a 
``relatively major way.'' \412\ The DNC official also stated that the 
Tanuwidjaja family ``is also prominent and can play a major role.'' 
\413\
---------------------------------------------------------------------------
    \412\ Facsimile from Anne Edder to John Huang, Mar. 6, 1996. 
Exhibit 158.
    \413\ Id.
---------------------------------------------------------------------------
    Jessica Elnitiarta stated that, following the Hay-Adams 
event, Huang gave the family complimentary tickets to a 
controversial fundraiser held at a Buddhist temple on April 29, 
1996.\414\ However, Huang's personal documents show that he may 
have counted on Sioeng for a contribution during that 
event.\415\ Furthermore, Subandi Tanuwidjaja, who at the time 
was engaged to Laureen Elnitiarta, was listed as attending the 
event, but his name was later crossed out.\416\ The apparent 
amounts attributed by the DNC to Sioeng, ``100/80,'' correspond 
to the amount contributed by Subandi Tanuwidjaja and his 
sister, Suryanti Tanuwidjaja in September 1996. The event guest 
list show that Ted Sioeng and Sioeng Fej Man Hung, the editor 
of the International Daily News, sat at the head table at this 
event.\417\
---------------------------------------------------------------------------
    \414\ Elnitiarta Interview.
    \415\ Notes prepared by John Huang, Exhibit 159.
    \416\ Guest list for Tsi Lai Temple event, Apr. 1996. Exhibit 160.
    \417\ Id.
---------------------------------------------------------------------------
    Huang's next solicitation of Sioeng was in connection with 
a May 13, 1996 fundraiser at the Sheraton Carlton Hotel in 
Washington, DC. As per DNC protocol, Jessica Elnitiarta faxed a 
letter giving the background of most of the family's 
guests.\418\ The Committee notes that, in the facsimile, 
Elnitiarta referred to ``Uncle Huang.'' \419\ This could either 
be a traditional Chinese honorific used for older males, or an 
indication that Huang was personally close to the Sioeng 
family. DNC records show that Sioeng and two of his guests 
attended and sat at the head table.\420\ Jessica Elnitiarta 
claimed that she did not contribute for this event until July 
12, 1996,\421\ at which time she contributed $100,000 or 
$12,500 per-head consistent with the Hay-Adams donation 
negotiated with Huang.\422\ Sioeng business associate Kent La 
also attended this event and had his picture taken with 
President Clinton.\423\
---------------------------------------------------------------------------
    \418\ Facsimile from Jessica Elnitiarta to John Huang, Exhibit 161.
    \419\ Id.
    \420\ See Exhibit 133.
    \421\ Elnitiarta Interview.
    \422\ Id.
    \423\ Picture of President Clinton with Kent La. Exhibit 162.
---------------------------------------------------------------------------
    Jessica Elnitiarta stated that Huang then begged her to 
participate in a July 22, 1996 fundraiser held at the Century 
Plaza Hotel in California, as he was having trouble obtaining 
participants.\424\ Elnitiarta said Huang encouraged her to 
bring as many guests as she liked.\425\ Sioeng attended the 
event, bringing at least one business associate from Hong Kong, 
Lam Kwok Man, and 48 other guests.\426\
---------------------------------------------------------------------------
    \424\ Elnitiarta Interview.
    \425\ Id.
    \426\ Id.
---------------------------------------------------------------------------
    Sioeng sat at the head table with President Clinton and 
Lippo executive James Riady.\427\ Kent La also attended this 
event.\428\ Although the DNC credited Huang with La's $50,000 
contribution,\429\ they attributed it to a July 30, 1998 
Presidential dinner at the Jefferson Hotel in Washington, 
DC,\430\ an event that La certainly did not attend. The DNC 
also credited Huang with contributions made by Sioeng's in-
laws, the Tanuwidjaja's,\431\ to various events, including the 
same $60,000 contribution attributed to two different 
events.\432\
---------------------------------------------------------------------------
    \427\ Picture of Ted Sioeng, President Clinton, and James Riady. 
Exhibit 163.
    \428\ Ma Interview.
    \429\ See Exhibit 154.
    \430\ Id.
    \431\ See Exhibits 155-157.
    \432\ See Exhibit 155.
---------------------------------------------------------------------------

3. Conclusions

    Huang has not cooperated with the Committee in its 
investigation of his fundraising activities for the Democratic 
National Committee.\433\ Given the total number of 
contributions credited to Huang which have been returned as 
being improper or illegal, the Committee finds that Huang is a 
central figure in the campaign finance scandal. In addition, 
the Committee has serious and substantial unanswered questions 
about Huang's connections to the People's Republic of China.
---------------------------------------------------------------------------
    \433\ See Huang chapter.
---------------------------------------------------------------------------
    The Committee concludes that a majority of the 
contributions made by Sioeng's family andbusiness associates 
are likely illegal.\434\ Huang appeared to influence or participate in 
all of the contributions related to Sioeng.
---------------------------------------------------------------------------
    \434\ See ``The Sioeng-Related Contributions to the DNC Appear to 
Violate Campaign Finance Laws.''
---------------------------------------------------------------------------

         b. contributions to the democratic national committee

1. Summary

    During the 1996 Federal election cycle, courted by 
fundraiser John Huang, Ted Sioeng's family and associates 
contributed $400,000 to the DNC. A review of bank records 
strongly suggests that $310,000 of the contributions were 
ultimately funded from foreign accounts in Hong Kong and 
Indonesia. The remaining $90,000 while funded from U.S. 
receipts, remains suspect due to large and continuing foreign 
subsidies to the family's U.S. businesses from family patriarch 
and Belize national Ted Sioeng. The result of these subsidies 
was often a commingling of domestic receipts and foreign funds 
in accounts from which political contributions were made.
    Additional questions are raised by the Sioeng family's 
deafening silence on the subject of its political 
contributions. All of the Sioeng family members and those 
associates closest to the family have either asserted the Fifth 
Amendment, left the country, or are foreign nationals who have 
refused to be interviewed. The fact that the people most likely 
to know about the Sioeng family's political contributions 
uniformly have refused to talk to the Committee about the 
contributions casts serious doubt on whether they meet 
applicable legal and regulatory requirements. Furthermore, they 
are largely inappropriate under the DNC's own announced 
standards for contribution retention.

2. Findings

                     a. jessica elnitiarta $100,000

    In connection with a February 19, 1996 fundraiser hosted by 
the President at the Hay-Adams Hotel, Ted Sioeng's oldest 
daughter, Jessica Elnitiarta, a U.S. legal permanent resident, 
wrote a personal check for $100,000 to the DNC \435\ against a 
bank account balance of only $9,225.\436\ Elnitiarta took steps 
to cover the check 3 days later. On February 22, 1996, 
Elnitiarta, using a power of attorney, transferred $200,000 
from the personal bank account of Ted Sioeng's sister, Yanti 
Ardi,\437\ an Indonesian national, to her own account. This 
$200,000 came from a $518,434 wire transfer 10 days earlier 
from Pristine Investments in Hong Kong.\438\
---------------------------------------------------------------------------
    \435\ See Exhibit 151.
    \436\ Grand National Bank statement Jessica Elnitiarta, Feb. 1996. 
Exhibit 164.
    \437\ Telephone transfer from Yanti Ardi to Jessica Elnitiarta in 
the amount of $200,000, Feb. 22, 1996, Exhibit 165.
    \438\ Wire transfer from Pristine Investments to Yanti Ardi in the 
amount of $518,434, Feb. 12, 1996. Exhibit 166.
---------------------------------------------------------------------------
    In short, this $100,000 contribution was funded by 
ineligible foreign money and should be returned by the DNC. 
This is part of a pattern that recurs throughout the brief but 
curious history of Sioeng-related contributions to the DNC.

               b. panda estates investment, inc. $100,000

    On July 12, 1996, Jessica Elnitiarta, as President of Panda 
Estates Investment, Inc., signed a $100,000 company check to 
the DNC \439\ against a negative bank account balance of 
$599.\440\ The check cleared the bank on July 25, 1996, causing 
a negative bank balance of $100,125.\441\ The next day, 
Elnitiarta telephone transferred $100,000 from a Panda Estates 
receipts account toward the overdraft.\442\ Of this transfer, 
$60,000 came from Yanti Ardi's personal bank account,\443\ 
which in turn was funded by a $1,652,480 wire transfer on June 
28, 1996 from R.T. Enterprises in Hong Kong.\444\ R.T. 
Enterprises appears to be a Sioeng owned or controlled company. 
The remaining $40,000 was funded by a transfer from a Panda 
Estates receipts account that consisted of domestic rents 
collected for the month of July 1996.\445\
---------------------------------------------------------------------------
    \439\ See Exhibit 152.
    \440\ Grand National Bank statement, Panda Estates Investment, 
Inc., July 1996. Exhibit 167.
    \441\ Id.
    \442\ Telephone transfer from Panda Estates Investment receipts 
account to disbursement account in the amount of $100,000, July 26, 
1996; Check No. 2309 from Yanti Ardi to Panda Estates Investment in the 
amount of $60,000, July 26, 1996. Exhibit 168.
    \443\ Id.
    \444\ See Exhibit 110.
    \445\ Grand National Bank statement, Panda Estates Investment, 
Inc., deposits into receipts account, July 5-22, 1996. Exhibit 169.
---------------------------------------------------------------------------
    In short, this contribution of $100,000 was funded by 
$60,000 of foreign money and $40,000 by domestic sources and, 
hence, should be returned.

                        c. panda estates $50,000

    Only July 29, 1996, Jessica Elnitiarta signed a $50,000 
company check to the DNC \446\ from Panda Estates Investment 
against a negative bank account balance of $2,351.\447\ The 
check cleared the bank on August 5, 1996, causing a $48,198 
overdraft.\448\ The next day, Elnitiarta covered part of the 
overdraft through a $40,000 transfer of domestic rental 
receipts for the month of August 1996.\449\ The remaining 
overdraft was covered by an August 6, 1996 transfer of $10,000 
from the bank account of Code 3 USA, the family's gun and 
ammunition business, operated by Elnitiarta's husband, Ridwan 
Dinata.\450\ This transfer came from an August 5, 1996 advance 
of $10,000 against Code 3's $250,000 bank credit line.\451\ On 
September 10, 1996, Elnitiarta appears to have repaid Code 3 
the $10,000 from her personal bank account.\452\
---------------------------------------------------------------------------
    \446\ See Exhibit 153.
    \447\ See Exhibit 167.
    \448\ Grand National Bank statement, Panda Estates Investment. 
Inc., Aug. 1996. Exhibit 170.
    \449\ Telephone transfer from Panda Estates Investment (receipts) 
to Panda Estates Investment (disbursement) in the amount of $40,000, 
Aug. 6, 1996. Exhibit 171.
    \450\ See Exhibit 87.
    \451\ Telephone transfer from Code 3 USA (loan) to Code 3 USA 
(bank) in the amount of $10,000, Aug. 5, 1996. Exhibit 172.
    \452\ See Exhibit 88.
---------------------------------------------------------------------------
    In conclusion, this $50,000 contribution appears to have 
been funded by domestic rental receipts. Nevertheless, Ted 
Sioeng's probable involvement with this and the two other DNC 
contributions made by his daughter, Jessica, raises troubling 
and severe doubts about the legality and appropriateness of 
this contribution.

                    d. loh sun international $50,000

    On July 29, 1996, the same day as Jessica Elnitiarta wrote 
the above $50,000 check to the DNC, Ted Sioeng, associate Kent 
La, a U.S. legal permanent resident, also wrote a $50,000 check 
to the DNC.\453\ As President of Loh Sun International, Kent La 
signed a company check to the DNC against a July 29, 1996, bank 
balance of $262,185.\454\ Five days earlier, on July 24, 1996, 
the company account had received a $97,555 wire transfer from 
R.T. Enterprises in Hong Kong,\455\ which appears to be owned 
or controlled by Ted Sioeng. Although documentation of the wire 
transfer indicates the funds were for ``Hongtashan 
Advertising,'' \456\ the amount of the transfer as its close 
proximity to Loh Sun's contribution to the DNC raised serious 
questions about its true purpose and use.
---------------------------------------------------------------------------
    \453\ See Exhibit 154.
    \454\ United Pacific Bank statement, Loh Sun International, July 
1996. Exhibit 173.
    \455\ See Exhibit 10.
    \456\ Id.
---------------------------------------------------------------------------
    Moreover, the mystery surrounding this contribution is 
compounded by a check signed by Kent La on an account with his 
wife, Nancy.\457\ The check, dated October 28, 1996, in the 
amount of $20,000, is payable to Loh Sun International, but was 
not deposited until December 23, 1996. On the memo line La has 
written, ``Donation to DNC-7/29/96.'' It is unclear why La 
would reimburse his own company for a political contribution. 
One explanation is that he was attempting to ``cure,'' after 
the fact, a conduit contribution funded by Ted Sioeng with 
foreign funds.
---------------------------------------------------------------------------
    \457\ Check No. 143 from Kent La to Loh Sun International in the 
amount of $20,000, Oct. 28, 1996. Exhibit 174.
---------------------------------------------------------------------------

                e. the tanuwidjaja family contributions

    Within 10 days in September 1996, the Tanuwidjaja family, 
to which the Sioeng family is related through marriage and 
family businesses, made three contributions to the DNC totaling 
$100,000 as follows:
            Subandi Tanuwidjaja $80,000
    On September 9, 1996, Ted Sioeng's son-in-law, Subandi 
Tanuwidjaja, a U.S. legal permanent resident, signed a $60,000 
personal check to the DNC \458\ against a U.S. bank balance of 
$66,050.\459\ Three days before, the account received a 
$100,000 personal check from the U.S. bank account of his 
father, Susanto Tanuwidjaja, an Indonesian national.\460\ 
Susanto's check was funded by a $100,000 wire transfer on 
August 21, 1996, from an Indonesian bank account in the name of 
Subandi Tanuwidjaja.\461\ The fact that the foreign money was 
wired into Susanto's U.S. bank account and not his son's 
suggests that the money may have been his, and raises questions 
about the legality of the contribution. It thus appears that 
this $60,000 contribution may have been funded by foreign money 
by a foreign national and should be returned by the DNC.
---------------------------------------------------------------------------
    \458\ See Exhibit 155.
    \459\ Western State Bank statement, Subandi Tanuwidjaja, Sept. 13, 
1996. Exhibit 175.
    \460\ Check No. 1026 from Susanto Tanuwidjaja to Subandi 
Tanuwidjaja in the amount of $100,000, Sept. 6, 1996. Exhibit 176.
    \461\ Wire transfer from Subandi Tanuwidjaja to Susanto Tanuwidjaja 
in the amount of $100,000, Aug. 21, 1996. Exhibit 177.
---------------------------------------------------------------------------
    On September 19, 1996, Subandi Tanuwidjaja signed a $20,000 
personal check to the DNC 462 against a bank balance 
of $25,640.463 The day before, the account received 
a $20,000 wire transfer from Dragon Union, Ltd. in Hong 
Kong.464 Subandi Tanuwidjaja is Dragon Union's sole 
corporate director.465 It thus appears that this 
$20,000 contribution was funded by foreign money and should be 
returned by the DNC.
---------------------------------------------------------------------------
    \462\ See Exhibit 156.
    \463\ Western State Bank statement, Subandi Tanuwidjaja, Oct. 15, 
1996. Exhibit 178.
    \464\ Wire transfer from Dragon Union to Subandi Tanuwidjaja in the 
amount of $20,000, Sept. 18, 1996. Exhibit 179.
    \465\ See Exhibit 23.
---------------------------------------------------------------------------
            Suryanti Tanuwidjaja $20,000
    On September 16, 1996, Ted Sioeng's daughter-in-law, 
Suryanti Tanuwidjaja, a U.S. legal permanent resident, signed a 
$20,000 personal check to the DNC 466 against a bank 
balance of $61,726.467 Two days later, the account 
received a $20,000 wire transfer from Dragon Union, Ltd in Hong 
Kong,468 for which her brother, Subandi Tanuwidjaja, 
is the sole corporate director.
---------------------------------------------------------------------------
    \466\ See Exhibit 157.
    \467\ Bank of America Statement, Suryanti Tanuwidjaja, Sept. 27, 
1996. Exhibit 180.
    \468\ Wire transfer from Dragon Union to Suryanti Tanuwidjaja in 
the amount of $20,000, Sept. 18, 1996. Exhibit 181.
---------------------------------------------------------------------------
    Hence, although sufficient domestic funds existed at the 
time the check was written, the close proximity, same amount, 
and similar circumstances of the $20,000 contribution suggests 
a coordinated scheme to make a contribution and reimburse the 
donation with foreign funds.
    In this case, as with Subandi's $20,000 contribution, it 
appears that the Dragon Union transfers were intended to fund 
or reimburse the DNC contributions.

                C. contributions to governor gary locke

1. Summary

    The Committee has found that Ted Sioeng's political 
contributions and activities were not limited to political 
parties, but included donations to--and apparently fundraising 
on behalf of--candidates for state and local offices. One 
candidate who benefitted from Sioeng's generosity was Gary 
Locke, the current Governor of Washington State, who became the 
first Governor of Chinese descent in American history.
    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. 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. Additionally, four of the payments totaling $4,400 
appear to be illegal ``straw donor'' conduit payments by 
employees of companies that the Sioeng family either owns or 
does business with. Committee investigators presented 
information on one contributor for which they had completed 
work to Governor Locke during a deposition on July 7, 1998. 
Locke stated, ``The circumstances didn't look at that legit 
when they showed it to us.''\469\ The Governor's campaign 
refunded the $1,100 contribution on July 23, 1998.\470\
---------------------------------------------------------------------------
    \469\ David Postman, Investigation of foreign campaign donations 
entangles Locke, Seattle Times, Aug. 6, 1998.
    \470\ Letter from Blair Butterworth to Sylvana Djojomartono with 
refund check No. 1575 for $1,100, July 23, 1998. Exhibit 182.
---------------------------------------------------------------------------
    The Committee has found no evidence to indicate that 
Governor Locke knowingly accepted illegal donations from 
Sioeng's family and associates. However, the Committee has 
serious questions regarding some of the contributions and their 
apparent violation of Federal campaign funding laws.

2. The Relationship of Governor Locke to Ted Sioeng

    Governor Locke stated that he first met Ted Sioeng during a 
DNC fund-raiser at the Sheraton-Carlton Hotel in Washington, DC 
which took place on May 13, 1996, and was attended by President 
Clinton.\471\ Sioeng told Governor Locke that he was in the 
newspaper publishing business and that he manufactured and 
exported tobacco products to China.\472\
---------------------------------------------------------------------------
    \471\ Locke Depo. at 15.
    \472\ Id. at 17.
---------------------------------------------------------------------------
    Governor Locke stated that the only other time he recalled 
meeting with Ted Sioeng was in Los Angeles in July 1996.\473\ 
This meeting was arranged by David Lang of Lang, Murakawa, & 
Wong, a firm hired by the Gary Locke for Governor campaign to 
raise funds in southern California.\474\ The meeting occurred 
on July 1, 1996, at the Sioeng owned International Daily News 
in Monterey Park, California. The next day, the paper published 
an article with the headline, ``Gary Locke and his wife visit 
old friend Ted Sioeng at the International Daily News.'' In 
this article, Sioeng expressed his support for Locke's campaign 
and claimed that he was to be the co-chairman of a large scale 
fundraiser for Locke on August 5 in southern California.\475\
---------------------------------------------------------------------------
    \473\ Id. at 19.
    \474\ Id. at 18
    \475\ Article from International Daily News, July 2, 1996 
(translated by Michael D. Yan). Exhibit 183.
---------------------------------------------------------------------------
    Governor Locke confirmed that Sioeng volunteered to raise 
funds for his campaign,\476\ however, the proposed Sioeng 
fundraiser never materialized. In addition, Governor Locke 
refuted the statement that he was an old friend of Ted Sioeng 
and considered it self-promotional.\477\ However, Governor 
Locke acknowledged contributions to his campaign by Sioeng 
family members.\478\
---------------------------------------------------------------------------
    \476\ Locke Depo. at 67.
    \477\ Id. at 25.
    \478\ Id. at 34.
---------------------------------------------------------------------------

3. The Sioeng Contributions to Gary Locke

    The Committee determined that although Ted Sioeng did not 
contribute directly to Gary Locke's campaign, he apparently 
arranged for some contributions totaling $8,700. An invoice 
from David Lang for fundraising services indicated that some 
$8,700 contributed by persons related or otherwise connected 
with Ted Sioeng's was actually ``raised from Ted Sioeng.'' 
\479\ The eight contributions from Sioeng family members and 
associates were all dated around July 29, 1996, less than a 
month after Governor Locke's visit with Ted Sioeng at the 
International Daily News:
---------------------------------------------------------------------------
    \479\ Invoice from David Lang, Aug. 8, 1996. Exhibit 184.
---------------------------------------------------------------------------
           Sylvana Djojomartono (an employee of the 
        Hollywood Metropolitan Hotel owned by the Sioengs) 
        contributed $1,100.\480\ Committee investigators 
        determined this to be an illegal ``straw donor'' 
        contribution funded by foreign money. When subpoenaed 
        by the Committee, Djojomartono asserted her privilege 
        against self-incrimination.\481\
---------------------------------------------------------------------------
    \480\ Check No. 2882 from Sylvana Djojomartono to Gary Locke for 
Governor in the amount of $1,100, July 29, 1996. Exhibit 185.
    \481\ Letter from Laura shores to Michael Bopp, July. 17, 1998. 
Exhibit 186.
---------------------------------------------------------------------------
          On July 29, 1996 Sioeng's daughter, Jessica 
        Elnitiarta, wrote a $1,100 check from her personal bank 
        account payable to ``cash'' for which the memo line 
        said ``Donation for Gary Locke for Governor.'' \482\ 
        The same day, Djojomartono endorsed Elnitiarta's check, 
        deposited it into her personal bank account, and wrote 
        an $1,100 check to Gary Locke for Governor. At the time 
        Jessica wrote the check to ``cash,'' her bank account 
        was overdrawn by $13,045.\483\ To cover this overdraft, 
        she transferred $45,000 from the personal bank account 
        of Ted Sioeng's sister, Yanti Ardi on August 1, 
        1996.\484\ This transfer, in turn, was financed by a 
        June 28, 1996 wire transfer of $1,652,480 from RT 
        Enterprises in Hong Kong, which the Committee has 
        determined is affiliated with Ted Sioeng and his 
        tobacco interests overseas.\485\ After committee 
        investigators presented Governor Locke with the above 
        information at a July 7, 1998 deposition, this 
        contribution was refunded to Djojomartono on July 23, 
        1998. Locke stated, ``The circumstances didn't look at 
        that legit when they showed it to us.'' \486\
---------------------------------------------------------------------------
    \482\ Check No. 198 from Jessica Elnitiarta to cash in the amount 
of $1,100, July 29, 1996. Exhibit 187.
    \483\ Grand National Bank statements, Jessica Elnitiarta, July 
1996. Exhibit 188.
    \484\ Telephone transfer from Yanti Ardi to Jessica Elnitiarta in 
the amount of $45,000, Aug. 1, 1996. Exhibit 189.
    \485\ See Exhibit 110.
    \486\ See Exhibit 182. David Postman, Investigation of foreign 
campaign donations entangles Locke, Seattle Times, Aug. 6, 1998.
---------------------------------------------------------------------------
           Sundari Elnitiarta (Sioeng's wife) 
        contributed $1,100.\487\ Committee investigators 
        determined that this contribution was funded by foreign 
        money. This contribution was written against a bank 
        balance of $16,264.\488\ The check was financed from a 
        $30,000 transfer from the personal bank account of 
        Yanti Ardi on July 24, 1996.\489\ That deposit, in 
        turn, was financed by a June 28, 1996 wire transfer of 
        $1,652,480 from R.T. Enterprises in Hong Kong.\490\
---------------------------------------------------------------------------
    \487\ Check No. 1533 from Sundari, Sandra, Laureen Elnitiarta to 
Gary Locke for Governor in the amount of $1,100, July 29, 1996. Exhibit 
190.
    \488\ Grand National Bank statement, Sundari, Sandra, Laureen 
Elnitiarta, July 1996. Exhibit 191.
    \489\ Telephone transfer from Yanti Ardi to Sundari Elnitiarta in 
the amount of $30,000, July 24, 1996. Exhibit 192.
    \490\ See Exhibit 110.
---------------------------------------------------------------------------
           Chew Nin Kim and Yen Chu (Margaret) Kim 
        (officers of Supertrip Travel along with Ted Sioeng, 
        located in the Hollywood Metropolitan Hotel complex 
        owned by the Sioengs \491\ each contributed 
        $1,100.\492\ Committee investigators believe these to 
        be illegal ``straw donor'' contributions funded by 
        foreign money from the Sioengs.
---------------------------------------------------------------------------
    \491\ See Exhibit 44.
    \492\ Check No. 7206 from Chew Nin Kim to Gary Locke for Governor 
in the amount of $1,100, July 28, 1996; Check No. 102 from Yen Chu Kim 
to Gary Locke for Governor in the amount of $1,100, July 28, 1996. 
Exhibit 193.
---------------------------------------------------------------------------
          The Committee believes that Supertrip Travel provided 
        each officer with $1,100,\493\ which may have been 
        funded by a July 22, 1996 check from Jessica Elnitiarta 
        for $4,200.\494\ She financed that check with a $50,000 
        transfer from the personal bank account of Yanti Ardi 
        on July 18, 1996.\495\ The source of Ardi's funds, 
        again, was a June 28, 1996 wire transfer of $1,652,480 
        from R.T. Enterprises in Hong Kong.\496\ The Committee 
        notes that it is still awaiting bank documents related 
        to these transactions.
---------------------------------------------------------------------------
    \493\ The Committee is awaiting documents responsive to a subpoena.
    \494\ Check No. 177 from Jessica Elnitiarta to Supertrip Travel in 
the amount of $4,200, July 22, 1996. Exhibit 194.
    \495\ Check No. 2308 from Yanti Ardi to Jessica Elnitiarta in the 
amount of $50,000, July 18, 1996. Exhibit 195.
    \496\ See Exhibit 110.
---------------------------------------------------------------------------
           Glenville Stuart (Sioeng associate) 
        contributed $1,100 to Gary Locke's campaign.\497\ The 
        contribution appears to have been funded by a $15,000 
        loan advance on July 2, 1996.\498\ Committee staff 
        deposed Stuart on February 18, 1998, before becoming 
        aware of his contribution to Governor Locke.
---------------------------------------------------------------------------
    \497\ Check No. 371 from Glenville Stuart to Gary Locke for 
Governor in the amount of $1,100, July 29, 1996. Exhibit 196.
    \498\ Telephone transfer from Glenville Stuart loan account to 
Glenville Stuart checking account in the amount of $15,000, July 2, 
1996. Exhibit 197.
---------------------------------------------------------------------------
           Gretel Pollard (an employee of Glenville 
        Stuart's Sunset Market & Liquor) contributed 
        $1,100.\499\ Committee investigators believe this is an 
        illegal ``straw donor'' contribution later reimbursed 
        with foreign money from Ted Sioeng.
---------------------------------------------------------------------------
    \499\ Check No. 224 from Gretel Pollard to Gary Locke for Governor 
in the amount of $1,100, July 29, 1996. Bank of America statement for 
Gretel Pollard, July 23-Aug. 21, 1996. Check No. 374 from Glenville 
Stuart to Gretel Pollard and deposit slip in the amount of $1,500, Aug. 
1, 1996.
---------------------------------------------------------------------------
          On July 29, 1996, Pollard wrote a $1,100 check to 
        Gary Locke for Governor against a bank balance of only 
        $24.\500\ Committee investigators found that on August 
        1, 1996, Stuart wrote a personal check to Pollard for 
        $1,500 which she deposited into her personal bank 
        account to cover the Locke check which Stuart funded 
        from the July 2, 1996 loan advance.\501\ However, on 
        September 9, 1996, Stuart reimbursed Sunset Market 
        $1,100,\502\ against a bank balance of $20,391.\503\ 
        The money for this reimbursement was financed by a 
        September 5, 1996 wire transfer of $20,000 from R.T. 
        Enterprises in Hong Kong.\504\
---------------------------------------------------------------------------
    \500\ See Exhibit 198.
    \501\ See Exhibits 198 and 197.
    \502\ Check No. 381 from Glenville Stuart to Sunset Market in the 
amount of $1,100, Sept. 9, 1996. Exhibit 199.
    \503\ Grand National Bank statement, Glenville Stuart, Sept. 1996. 
Exhibit 200.
    \504\ Transfer from R.T. Enterprises to Glenville Stuart in the 
amount of $20,000, Sept. 5, 1996. Exhibit 201.
---------------------------------------------------------------------------
           Ridwan Dinata (Jessica's husband) donated 
        $1,000,\505\ against a bank balance of $3,426.\506\ The 
        check was funded by a $3,000 check from Code 3 USA, the 
        family's gun and ammunition business. The memo line of 
        the check said ``Transfer to personal acct (Sioeng).'' 
        \507\ Dinata transferred the remaining $2,000 back to 
        Code 3 on July 31, 1996.\508\ The $3,000 was funded by 
        domestic business receipts or loan advances from a 
        business credit line.\509\
---------------------------------------------------------------------------
    \505\ Check No. 295 from Ridwan Dinata to Gary Locke for Governor 
in the amount of $1,000, July 29, 1996. Exhibit 202.
    \506\ Grand National Bank statement, Ridwan Dinata, July 1996. 
Exhibit 203.
    \507\ Check No. 1129 from Code 3 USA to Ridwan Dinata in the amount 
of $3,000, July 29, 1996. Exhibit 204. See also Note 476.
    \508\ Check No. 298 from Ridwan Dinata to Code 3 USA in the amount 
of $2,000, July 31, 1996. Exhibit 205.
    \509\ Grand National Bank statement, Code 3, USA, July 31, 1996. 
Exhibit 206.
---------------------------------------------------------------------------
           Kent La (Sioeng associate and President of 
        Loh Sun International) contributed $1,100.\510\ This 
        contribution was funded from a $4,870 deposit on July 
        25, 1996, which included $2,940 in cash from an unknown 
        source.\511\
---------------------------------------------------------------------------
    \510\ Check No. 144 from Kent La to Gary Locke for Governor in the 
amount of $1,100, July 29, 1996. Exhibit 207.
    \511\ Deposit slip, Kent La, July 25, 1996. Exhibit 208.
---------------------------------------------------------------------------
    The Committee found no evidence that Gary Locke solicited 
contributions from Ted Sioeng, a foreign national, or engaged 
in any improper campaign-related activities. However, Locke's 
campaign accepted what appear to be conduit contributions 
funded with foreign money, and may have actively solicited the 
$8,700 in contributions from Ted Sioeng.

  VII. The Sioeng-Related Contributions to the DNC Appear to Violate 
                         Campaign Finance Laws

                               a. summary

    There is strong evidence that most of the political 
contributions made by Ted Sioeng's family and associates to the 
Democratic National Committee are illegal. Over 75 percent of 
the funds used to make the $400,000 in contributions described 
in the previous section were wired into the United States from 
foreign bank accounts in Hong Kong and Indonesia. It is likely 
that the contributions were illegally made and should have been 
returned over a year ago.
    Each of the contributions suffer from one or both of the 
following legal deficiencies: (1) the nominal contributor was 
influenced by Ted Sioeng or another foreign national who 
participated in the contribution decision; or (2) the 
contribution was made by a U.S. corporation using foreign 
money, and not from its domestic profits as the law requires.

            b. contributor influenced by a foreign national

    The three contributions made by Jessica Elnitiarta 
individually and through Panda Estates to the DNC are highly 
suspect--and likely illegal--due to Ted Sioeng's probable 
involvement in the decisionmaking processes. As discussed 
previously, the three contributions are as follows:

----------------------------------------------------------------------------------------------------------------
                  Account name                    Check date   Check amount                Returned             
----------------------------------------------------------------------------------------------------------------
Jessica Elnitiarta..............................    02/19/96        $100,000  No.*                              
Panda Estates Investment........................    07/12/96         100,000  No.*                              
Panda Estates Investment........................    07/29/96          50,000  No.*                              
----------------------------------------------------------------------------------------------------------------
* As of Sept. 16, 1998.                                                                                         

    The Federal Election Campaign Act (``Act'') prohibits 
foreign nationals from making contributions in connection with 
an election to a political office.\512\ The prohibition applies 
whether the contribution is made directly or indirectly and is 
codified in Federal Election Commission regulations as follows:
---------------------------------------------------------------------------
    \512\ 2 U.S.C. Sec. 441e.

        A foreign national shall not directly or through any 
        other person make a contribution, or an expenditure, or 
        expressly or impliedly promise to make a contribution, 
        or an expenditure, in connection with a convention, a 
        caucus, or a primary, general, special, or runoff 
        election in connection with any local, State, or 
        Federal public office.\513\
---------------------------------------------------------------------------
    \513\ 11 C.F.R. 110.4(a)(1).

    Moreover, FEC regulations prohibit individuals who are 
foreign nationals from directing, dictating, controlling, or 
participating in decisionmaking processes through which a 
domestic corporation decides to make a political 
contribution.\514\ In other words, if a foreign national 
directed the president of a U.S. corporation to contribute to 
the DNC, that would be illegal. Similarly, it would have been 
illegal for Ted Sioeng to direct his daughter to contribute to 
the DNC, or even to ``participate'' in the decisionmaking 
process.\515\ Given what the Committee has learned about the 
Sioeng family, it seems extremely likely that Ted Sioeng did 
``participate'' in the decisions to contribute $250,000 to the 
DNC in 1996.
---------------------------------------------------------------------------
    \514\ See 11 C.F.R. Sec. 110.4(a)(3). Note that the prohibition 
extends to persons as well. Hence, under Federal regulations, a foreign 
national may not ``directly or indirectly participate in the decision-
making process of any person'' with regard to a political contribution. 
Id.
    \515\ Id.
---------------------------------------------------------------------------
    Three associates of Ted Sioeng told the Committee that the 
Sioeng family patriarch likely would have directed or approved 
the $250,000 in DNC contributions made by his daughter, Jessica 
Elnitiarta.
    Business partner Johnny Ma, in response to a question about 
Sioeng's control of the family money, testified that, if one of 
Sioeng's daughters ``were to write a check, it would have to be 
first approved by the father. Only when the father [said] yes, 
then she would write a check.'' \516\ In a subsequent 
interview, Ma told Committee staff that he avoided business 
dealings with Jessica Elnitiarta because she could not act 
without permission from her father.\517\ Ma stated further his 
belief that Jessica Elnitiarta would have needed Ted Sioeng's 
approval to contribute to the DNC.\518\
---------------------------------------------------------------------------
    \516\ Ma Depo. at 86.
    \517\ Ma Interview.
    \518\ Id.
---------------------------------------------------------------------------
    Tei Fu Chen, another Sioeng business associate, told 
Committee staff that Sioeng raised his family in a traditional, 
Chinese manner.\519\ He explained that, consistent with this 
style of family life, Sioeng would have controlled the family 
businesses and would have made the family's important 
decisions.\520\ Chen opined that the $250,000 in DNC 
contributions made by daughter Jessica either would have met 
with Sioeng's approval, or Sioeng would have directed the 
contributions himself.\521\
---------------------------------------------------------------------------
    \519\ Interviews with Tei Fu Chen, June 12, 1998 and July 17, 1998.
    \520\ Id.
    \521\ Id.
---------------------------------------------------------------------------
    A third Sioeng associate, Daniel K. Wong, expressed a 
similar understanding to the Committee. Wong testified that, 
while he believed Jessica Elnitiarta had the power to sign 
checks and could attempt to influence her father, he was not 
certain as to whether she ``make[s] the final decision or not'' 
in business contexts.\522\ In a subsequent interview, Wong told 
Committee staff that Sioeng--not his daughter--would have 
decided whether or not to make political contributions.\523\ 
Furthermore, Wong said that Jessica Elnitiarta was not involved 
in politics and that Jessica's father, not Jessica, was the 
family-member approached by political fund-raisers.\524\ This 
is consistent with what the Committee has learned about David 
Lang's fund-raising for Washington State Governor Gary 
Locke.\525\
---------------------------------------------------------------------------
    \522\ Wong Depo. at 63-64. Significantly, when asked whether 
Jessica Elnitiarta ``was entrusted with making significant business 
decisions,'' Wong's immediate response did not focus upon whether 
Jessica could make independent decisions for the family businesses, but 
whether she could influence her Ted Sioeng's decisions. ``My impression 
is . . . she can make influence, and I'm sure that the father might 
listen to her in a certain way.'' Id. at 64.
    \523\ Wong Interview.
    \524\ Id.
    \525\ See ``Contributions to Governor Gary Locke.''
---------------------------------------------------------------------------

           c. corporate contribution made with foreign funds

    The Federal Election Commission interprets the Act and its 
regulations as prohibiting a domestic subsidiary of a foreign 
corporation from making political contributions with funds from 
the parent.\526\ The FEC has applied this prohibition broadly, 
ruling that it extends to a situation where ``most'' of the 
funds used to make a political contribution ultimately come 
from a foreign parent.\527\ Likewise, the FEC has not limited 
the prohibition to situations involving a foreign parent 
corporation and a domestic subsidiary. Rather, it has applied 
the rationale ``to the parallel situation of . . . domestic 
corporations majority-owned by foreign national individuals.'' 
\528\
---------------------------------------------------------------------------
    \526\ See FEC Advisory Opinion 1989-20.
    \527\ Id.
    \528\ In re Royal Hawaiian Country Club, FEC MUR 2892 at 8 (1993). 
Exhibit 209.
---------------------------------------------------------------------------
    This legal framework makes it abundantly clear that a U.S. 
corporation cannot make political contributions with funds 
provided from abroad. Yet this is precisely how Panda Estates 
funded most of its $100,000 contribution to the DNC. And it is 
likely how Loh Sun International funded its $50,000 
contribution to the same entity.

                            d. dnc response

    The DNC has not returned any of the $400,000 in Sioeng-
related contributions it received in 1996. This is not because 
the DNC failed to review the seven contributions because it 
did. Rather, the money was retained after the DNC conducted 
what it termed an ``in-depth'' review of many suspect 
contributions. In reality, the review was based largely on 
information from public databases and representations made by 
the contributors themselves, when they actually were 
contacted.\529\ However, it is important to note that all of 
the witnesses have either taken the Fifth Amendment, fled the 
country, or refused to provide any testimony under oath.
---------------------------------------------------------------------------
    \529\ See, e.g., Democratic National Committee, DNC In-Depth 
Contribution Review, at 2-3. Exhibit 210.
---------------------------------------------------------------------------
    On May 14, 1998, the Committee deposed Joseph Sandler, 
General Counsel of the Democratic National Committee since 
February 1993, on the subject of the Sioeng-related 
contributions as well as DNC guidelines concerning what types 
of contributions it accepts and retains. The communications 
preceding Sandler's deposition are an instructive look into the 
DNC's position on these matters.
    On March 18, 1998, Committee staff contacted counsel for 
the DNC and requested that DNC Chairman, Governor Roy Romer, 
agree to be deposed on the above matters. On March 24, 1998, 
DNC counsel wrote back, ignoring the request to depose Governor 
Romer, but stating the DNC's position on the $250,000 
contributed by Jessica Elnitiarta and Panda Estates Investment 
as follows:

        A review of information relating to these contributors 
        indicates that Ms. Elnitiarta has been in residence in 
        the State of California for some time, and that Panda 
        Estates Investment Inc. was incorporated in the State 
        of California in April of 1993. Additional inquiry has 
        shown that both Ms. Elinitiarta and Panda Estates 
        Investment Inc. have substantial assets in the United 
        States. Again, all of this information has been 
        provided to your Committee.

        A meeting between counsel for the DNC and counsel for 
        Ms. Elnitiarta confirmed that Ms. Elnitiarta was a 
        permanent resident of the United States of substantial 
        means. The DNC also received the assurance of her law 
        firm that the referenced contributions were entirely 
        lawful. Subsequent to this meeting, her law firm has 
        publicly stated that any political contributions made 
        by Ms. Elnitiarta personally or through her business 
        interests, . . . have been lawful and properly 
        documented. In the same statement they have also 
        publicly confirmed that Ms. Elnitiarta has been a 
        permanent resident of the United States for more than 
        five years and has resided in California for more than 
        ten years. They go on to state that she is a successful 
        businesswoman who, along with her family, has done a 
        great deal to promote the economic and social 
        development of the Asian-American community in 
        California and throughout the United States.

           *       *       *       *       *       *       *


        Based on this information, the DNC determined to retain 
        the referenced contributions for the simple reason that 
        no credible information has been advanced to support a 
        contrary course of action.\530\
---------------------------------------------------------------------------
    \530\ Letter from Judah Best, DNC counsel, to Richard D. Bennett, 
chief counsel, Government Reform and Oversight Committee, Mar. 24, 1998 
(with attachment). Exhibit 211.

    This curious explanation rests not on any sort of proof 
that the contributions in question are legal, but on the notion 
that the money need not be returned unless someone comes 
forward with evidence proving its illegality. Essentially, the 
DNC's position was (and, presumably, is) that because Jessica 
Elnitiarta is a U.S. citizen and Panda Estates a U.S. company, 
and both appear to have assets, there is no reason to return 
the money. Furthermore, the family lawyers told the DNC that 
the contributions were legal, although apparently they did not 
explain in any detail the sources of funds used to make the 
contributions, or why their clients believe discussing the 
matter under oath might incriminate them.
    On March 30, 1998, Committee staff wrote counsel for the 
DNC again seeking to depose Governor Roy Romer.\531\ The letter 
explained that, while the Committee appreciated receiving the 
DNC's position on the Elnitiarta and Panda Estates 
contributions, the deposition would be broader, exploring DNC 
policies on the retention or return of contributions as well as 
other matters.\532\
---------------------------------------------------------------------------
    \531\ Letter from Richard D. Bennett, chief counsel, Government 
Reform and Oversight Committee, to Judah Best, DNC counsel, Mar. 30, 
1998. Exhibit 212.
    \532\ Id.
---------------------------------------------------------------------------
    Counsel for the DNC responded by letter dated April 3, 
1998.\533\ In it, DNC counsel explained that ``the DNC's 
decision with regard to retaining the contributions from 
Jessica Elnitiarta and her company, as well as the other 
contributions about which you now indicate you seek information 
(contributions from Subandi and Suryanti Tanuwidjaja and Loh 
Sun International), were the result of an inquiry commenced in 
November of 1996 which concluded in late February of 1997.'' 
\534\ This was the DNC's ``In-Depth Contribution Review,'' 
conducted at the DNC's behest by the law firm Debevoise & 
Plimpton and the Big-6 accounting firm, Ernst & Young. As part 
of the review, the DNC had Debevoise & Plimpton and Ernst & 
Young examine all contributions of $2,500 or more solicited by 
John Huang, which included the seven Sioeng-related 
contributions.\535\
---------------------------------------------------------------------------
    \533\ Letter from Judah Best, DNC counsel, to Richard D. Bennett, 
chief counsel, Government Reform and Oversight Committee, Apr. 3, 1998 
(with attachment). Exhibit 213.
    \534\ Id.
    \535\ Id. at attachment.
---------------------------------------------------------------------------
    In the April 3, 1998 letter, DNC counsel was adamant that 
Governor Romer was the wrong person to depose about DNC 
policies and the Sioeng-related contributions. As a result, the 
Committee agreed to depose Joseph Sandler, and did so on May 
14, 1998.
    As general counsel to the DNC, Sandler is responsible for 
all legal matters affecting the national party, including 
campaign finance, election, and ethics-related matters at the 
Federal, state, and local levels.\536\ Sandler testified that, 
during the 1996 election cycle, the DNC vetted contributions it 
received by reviewing each for both appropriateness and 
legality.\537\ According to Sandler, it was the responsibility 
of the DNC fund-raisers and the finance administrator--not the 
general counsel's office--to raise issues concerning the 
legality and appropriateness of contributions.\538\ The 
appropriateness checks used to consist of ``Nexis,'' or 
computer database, searches for contributions over a certain 
amount, but that practice ended once the person doing the 
searches left the DNC in 1994.\539\
---------------------------------------------------------------------------
    \536\ Sandler Depo. at 5.
    \537\ Id. at 6.
    \538\ Id. at 12, 13.
    \539\ Id. at 15.
---------------------------------------------------------------------------
    Sandler testified that, throughout the 1996 election cycle, 
the DNC's policy was not to accept any contributions from 
foreign nationals.\540\ Sandler claimed that the policy applied 
to both the DNC Federal and non-Federal accounts, meaning the 
DNC's policy was not to accept hard or soft money contributions 
from foreign nationals.\541\
---------------------------------------------------------------------------
    \540\ Id. at 25.
    \541\ Id. at 25.
---------------------------------------------------------------------------
    But despite the DNC's policies against accepting money from 
foreign nationals, and despite its vetting procedures, it 
accepted large amounts of foreign money. Indeed, by the end of 
February 1997, the DNC had determined to return nearly $1.5 
million in contributions as a result of its in-depth 
review.\542\
---------------------------------------------------------------------------
    \542\ Statement of Judah Best, DNC counsel, Feb. 28, 1997. Exhibit 
214.
---------------------------------------------------------------------------
    According to Sandler, the in-depth contribution review was 
initiated soon after and because the press broke the campaign 
finance scandal. Sandler explained:

        There were many, many questions being raised in the 
        press in October and November of 1996 about 
        contributions that had been made [to] the DNC during 
        1994, 1995, and 1996. And rather than try to 
        investigate these one at a time, we determined that it 
        would be best if we did a systematic review of these--
        of contributions made during this period to determine 
        which--you know, if there were, to the extent there 
        were contributions that we accepted that should now be 
        refunded.\543\
---------------------------------------------------------------------------
    \543\ Sandler Depo. at 27-28.

    As noted, the review was conducted largely by Ernst & 
Young, which attempted to contact certain categories of 
corporate and individual donors to run through a questionnaire 
on their donations and ran ``[s]earches of standard databases 
containing publicly available information.'' \544\ The 
Committee has not seen summary data on how many contributors 
were actually spoken to and provided useful information, but a 
review of questionnaires produced by the DNC suggests that 
many--including Jessica Elnitiarta, Subandi Tanuwidjaja, and 
Suryanti Tanuwidjaja--were never reached.
---------------------------------------------------------------------------
    \544\ DNC In-Depth Contribution Review, at 2. Exhibit 210.
---------------------------------------------------------------------------
    As a result of the in-depth contribution review, the DNC 
decided to return at least 77 contributions.\545\ The DNC 
produced to the Committee a chart summarizing the 77 returned 
contributions.\546\ The chart consists of five columns and the 
fifth is entitled ``Reason.'' Among the reasons stated for 
returning contributions are, ``deemed inappropriate,'' 
``insufficient information,'' ``U.S. sub foreign national,'' 
``could not confirm source--U.S. $,'' ``U.S. sub foreign 
national partic in decision inadvertent,'' and ``U.S. sub--
source did not--U.S. $.'' \547\ As is evident, contributions 
were returned for a variety of reasons, including that the DNC 
simply did not have sufficient information to verify the 
contribution's legality and appropriateness.\548\ Yet, not one 
of the Sioeng-related contributions appears on the list.
---------------------------------------------------------------------------
    \545\ Id. at 1. The Committee notes that other contributions were 
returned by the DNC at a later date.
    \546\ Id. The Committee notes that, although there are no page 
numbers on the chart, it can be found at the pages Bates-stamped DNC 
4298589-DNC 4298593. Exhibit 210.
    \547\ Id.
    \548\ Id. at 1.
---------------------------------------------------------------------------
    The DNC decided to retain Jessica Elnitiarta's and the two 
Panda Estates' contributions even though Jessica was never 
spoken to and, to Sandler's knowledge, nor was anyone else at 
the company.\549\ The Committee notes, once again, that 28 
witnesses with knowledge of these contributions either invoked 
their Fifth Amendment privilege against self-incrimination, 
fled the country, or were foreign witnesses that refused to be 
interviewed, rather than answer questions about the donations 
to the DNC.\550\ Based entirely on information from public 
databases, Sandler said he determined the following:
---------------------------------------------------------------------------
    \549\ Sandler Depo. at 86-87.
    \550\ See Exhibit 1.

        My conclusion was that, first of all, it was pretty 
        clear that Elnitiarta was a legal permanent resident of 
        the U.S., and press accounts were all consistent with 
        that. Secondly, she appeared to own very substantial 
        assets in the United States, a number of corporations, 
        residential and commercial real estate, and that was 
        consistent with making a major contribution; she had 
        the wherewithal to make the contribution.\551\
---------------------------------------------------------------------------
    \551\ Id. at 88.

    Later during his deposition, Sandler testified that the 
database information he had seen on Elnitiarta indicated ``that 
her family has a substantial amount of money.'' \552\ Asked to 
expound on this point, Sandler explained his understanding that 
the family was engaged in the cigarette business overseas:
---------------------------------------------------------------------------
    \552\ Id. at 101.

          Q: I'm sorry, what was the family business you are 
        referring to?
          A: It says here that her father is a principal in an 
        Indonesian cigarette company and--not her father, a 
        relative is a principal of an Indonesian cigarette 
        company and--well, also that her family owns some of 
        this--basically owns some of this property with 
        her.\553\
---------------------------------------------------------------------------
    \553\ Id. at 102.

    In short, Sandler was aware of the Sioeng family's foreign 
tobacco interests and was satisfied that the database and press 
information he saw was sufficient to support the conclusion 
that the family's contributions should be retained.\554\
---------------------------------------------------------------------------
    \554\ Id. at 89.

        Q: So in the case of these three contributions, I take it 
      you were satisfied with the information provided to you; 
      you were satisfied that information was sufficient to make 
      your decision as to whether to retain or return the 
      contributions?
        A: Yes.
    Prior to his deposition, Sandler had never seen records of 
the bank accounts from which the Elnitiarta and Panda Estates 
contributions were made.\555\ Confronted with records that 
showed Elnitiarta's contribution was made with foreign 
money,\556\ Sandler became incensed, insisting that the 
``information tells us virtually nothing that we would need to 
know to determine whether the contribution was an illegal 
contribution in the name of another,'' and that the foreign 
money may have been Elnitiarta's.\557\ Sandler explained:

    \555\ Id. at 103.
    \556\ Committee staff showed Sandler bank records that had been 
made exhibits to the Senate Campaign Finance Report. Curiously, 
although the report had been made ordered printed on Mar. 10, 1998, and 
was widely reported on in the press, neither Sandler nor DNC counsel 
was aware that it was publicly available. See Sandler Depo. at 114.
    \557\ Sandler Depo. at 121-122.

        The Thompson committee, in its characteristically 
        disingenuous and dishonest and distorted fashion, would 
        say [Elnitiarta's contribution] is [a] foreign source 
        contribution, thereby implying that it is illegal. 
        Absolutely false. Nothing illegal whatsoever about that 
        contribution if it is my money and I am entitled to it. 
        The fact that I earned it abroad, I pay taxes on my 
        worldwide--as a U.S. Citizen, I pay taxes on my 
        worldwide income. It's my money. Nothing wrong at all 
---------------------------------------------------------------------------
        with that contribution.

        And that's the logical shuffle, distortion, and 
        twisting, and as I say, unfortunately in my experience, 
        characteristic of the entire Thompson committee report, 
        that leads me to the conclusion that this information 
        is virtually meaningless with respect to whether the 
        DNC should now conclude that these contributions were 
        unlawful or inappropriate.\558\
---------------------------------------------------------------------------
    \558\ Id. at 122. Shortly after making this statement, Sandler 
admitted that the bank account he had been shown was, in fact, relevant 
to a determination of whether to return or retain Elnitiarta's 
contribution. Id. at 123.

    Sandler and the DNC appear to attach no significance to the 
fact that Jessica Elnitiarta and her entire family refuse to 
communicate on the subject of whether their contributions were 
legal. While this remains troubling to the Committee, it 
apparently does not to the DNC. Furthermore, it should be noted 
that in a meeting with Committee majority staff and the Justice 
Department regarding immunity, DOJ opposed granting immunity to 
Jessica Elnitiarta because they believed she is a key figure 
under review by the Campaign Finance Task Force.
    When the DNC was shown that a large portion of the 
contribution made by Panda Estates came from foreign funds, 
Sandler put forward the confusing contention that, even if one 
could trace a corporation's political contribution to a foreign 
source, the contribution would still be legal if the company 
had sufficient income over some longer period, say a year, to 
fund the contribution.\559\ This argument fails for at least 
two reasons.
---------------------------------------------------------------------------
    \559\ Id. at 162.
---------------------------------------------------------------------------
    First, it is incoherent. If the funds actually used to make 
a political contribution can be traced, through bank records, 
to a foreign source, then why would it matter, from a legal 
standpoint, that the company generated domestic income in the 
next month or the next week, even.
    Second, the argument is contradicted by FEC practice and 
precedent. In Advisory Opinion 1992-16, the FEC was asked to 
consider the legality of political contributions a U.S. 
subsidiary of a foreign company sought to make. The Commission 
opined that ``the subsidiary must be able to demonstrate 
through a reasonable accounting method that it has sufficient 
funds in its account, other than funds given or loaned by its 
foreign national parent, from which the contribution is made.'' 
The point is, to test the legality of a contribution, one must 
look at its source at the time the contribution was made, and 
not at income the corporation might generate over some longer 
period of time.\560\
---------------------------------------------------------------------------
    \560\ See also, In re West Beach Estates, FEC MUR 2892 (1994) 
(holding that contributions violated 2 U.S.C. Sec. 441e(b) because 
ultimate source of funds was loans from a Japanese corporation). 
Exhibit 215.
---------------------------------------------------------------------------
    The $100,000 contribution made by Panda Estates to the DNC 
was funded mostly by foreign money. No explanation yet offered 
by the DNC sways the Committee from its conclusion that this 
contribution is illegal and should be returned by the DNC.

                     VIII. Republican Contributions

                  a. contributions to matthew k. fong

1. Summary

    Matthew K. Fong, then a candidate for California State 
Treasurer, accepted a $2,000 contribution from Jessica 
Elnitiarta during his 1994 campaign. The Committee found no 
evidence of foreign funding of this contribution by Elnitiarta, 
a U.S. permanent resident.
    A year later, in an effort to reduce outstanding campaign 
debt, Fong personally solicited contributions from Sioeng and 
businesses controlled by the Sioeng family. Subsequent to those 
solicitations, Ted Sioeng, a foreign national, made 
contributions totaling $50,000 from his personal bank account 
to Fong's campaign, Panda Estates Investment, Inc., a company 
controlled by Sioeng through his daughter, Jessica Elnitiarta, 
donated an additional $50,000.
    The Committee has determined that all of the 1995 
contributions totaling $100,000 were improper and/or illegal 
because (1) Sioeng is a foreign national and, thus, arguably 
ineligible to contribute under Federal election laws; and (2) 
the source of the funds were Sioeng's overseasbusinesses. Fong 
returned all of these contributions in April 1997, immediately after 
questions arose about their propriety in news accounts.
    The Committee has uncovered no evidence suggesting that 
Fong knew the contributions were improper, or that he knowingly 
solicited improper and/or illegal contributions. The Committee 
also notes that Fong informed Sioeng of the appropriate state 
laws governing campaign contributions, and that Fong fully 
cooperated with this and other investigations of improper and/
or illegal campaign contributions. Of course, Ted Sioeng and 
his family have refused to cooperate with the investigation, so 
we do not have their accounts of these events.

2. Findings

    Fong testified that he first met Mr. Sioeng ``around 
1988,'' \561\ after ``being introduced to him by Julia Wu at a 
Republican rally in Monterey Park.'' \562\ Fong testified that 
his only knowledge of Sioeng at the time of the Republican 
rally in Monterey Park was that he came from ``a very prominent 
family in the [Asian-American] community,'' \563\ and that they 
``were major donors to a lot of the charities.'' \564\ Fong 
said that subsequent to meeting Ted Sioeng, he ``developed a 
friendship [with Sioeng] that was based upon our seeing each 
other at community events, but nothing more than that.'' \565\
---------------------------------------------------------------------------
    \561\ Deposition of Matthew K. Fong, vol. I, Mar. 2, 1998 at 15. 
[Hereinafter, ``House Fong Dep., vol. I'']
    \562\ Id.
    \563\ House Fong Depo., vol. I, at 16.
    \564\ Id.
    \565\ Id. The Committee notes that Mr. Fong was invited to the 1993 
wedding of Jessica Elnitiarta, and attended and spoke at the 1995 
wedding of Sandra Elnitiarta (See Deposition of Glenville Anthony 
Stuart, Feb. 18, 1998 at 94; Interview of Julia Wu, Mar. 12, 1998).
---------------------------------------------------------------------------
    Fong stated that, during the time that he was developing a 
relationship with the Sioeng family, he also ``was trying to 
persuade them to get more involved politically and support 
Asian-Americans.'' \566\ Sioeng told Fong that since his 
children were raising their families in the United States, he 
wanted them to become politically active, and ``would like them 
to be the ones to participate politically.'' \567\
---------------------------------------------------------------------------
    \566\ House Fong Depo., vol. I, at 28.
    \567\ Id.
---------------------------------------------------------------------------
    Shortly after that conversation, Jessica Elnitiarta 
contributed $2,000 to Fong's successful 1994 campaign for State 
Treasurer.\568\ Fong said he believed the contribution was the 
result of a $1,000-per-ticket event at the Biltmore Hotel in 
Los Angeles.\569\ He further stated that Elnitiarta may have 
bought a ticket and decided to contribute an additional 
$1,000.\570\ The Committee found no evidence of foreign funding 
of this contribution by Elnitiarta, a U.S permanent resident.
---------------------------------------------------------------------------
    \568\ Deposition of Matthew K. Fong conducted by U.S. Senate 
Committee on Governmental Affairs, Special Investigation, Sept. 19, 
1997 at 14. [hereinafter ``Senate Fong Depo.''] Also see check No. 417 
from Jessica Elnitiarta to Matt Fongs for State Treasurer in the amount 
of $2,000, Sep. 28, 1994. Exhibit 216.
    \569\ Id. at 15.
    \570\ Id.
---------------------------------------------------------------------------
    Following his election as California State Treasurer, 
Fong's campaign committee had a deficit of ``at least a few 
hundred thousand dollars.'' \571\ In an effort to defray that 
debt, Alex Spanos, the owner of the San Diego Chargers football 
team, contributed $100,000 to Fong's campaign committee.\572\ 
Fong used that donation as a ``challenge, to the Chinese-
American community to match it [the amount] ''.\573\ As part of 
that challenge, ``Ted [Sioeng] and his family were asked for 
support in retiring our debts.'' \574\ Fong acknowledged 
personally soliciting Sioeng for contributions from himself, 
his family, and business associates.\575\
---------------------------------------------------------------------------
    \571\ House Fong Depo. vol. I, at 21.
    \572\ Senate Fong Depo. at 29-31.
    \573\ Id.
    \574\ House Fong Depo. vol. I, at 22.
    \575\ Id. at 24.
---------------------------------------------------------------------------
    Fong testified that at the time he initially solicited 
Sioeng, he informed Sioeng of the pertinent California state 
laws regarding political donations. Fong said he specifically 
told Sioeng ``that there is no [contribution] limitation in a 
state campaign,'' \576\ and that corporate donations are 
legal.\577\ Fong also stated that, ``It was also raised at one 
point that Mr. Sioeng's partners or the family's partners would 
also like to support me.'' \578\ In response, Fong told Sioeng 
that, ``Overseas contributions are not acceptable. It has to be 
[from] a U.S. citizen or green card holder.'' \579\ The 
Committee has uncovered no information disputing Fong's 
testimony concerning what he told Sioeng of the appropriate 
legal restrictions on political donations.\580\
---------------------------------------------------------------------------
    \576\ House Fong Depo. vol. I, at 34, See also Id. at 30-32, 53-55, 
61-63; Senate Fong Depo. at 34-40.
    The Committee notes Mr. Fong repeatedly stated that his 
conversations with Mr. Sioeng about California state campaign finance 
statutes occurred in English without an interpreter present. Numerous 
other witnesses, including Ms. Elnitiarta, testified that Mr. Sioeng 
had a limited grasp of conversational English. See Interview with 
Jessica Elnitiarta conducted by U.S. Senate Committee on Governmental 
Affairs, Special Investigation; Interview with Julia Wu, Mar. 12, 1998; 
Interview the Norman Hsu March 13, 1998; Deposition of Stephen M. 
Kinney conducted by U.S. Senate Committee on Governmental Affairs, 
Special Investigation, Sept. 23, 1997 at 26. It is unknown whether 
Sioeng could understand, in English, the basic rules concerning foreign 
national making California state campaign contributions.
    \577\ House Fong Depo., vol. I, at 34.
    \578\ Id.
    \579\ Id.
    \580\ The Committee notes that Mr. Sioeng, that only other witness 
to the conversation, fled the United States and has refused Committee 
requests to be interviewed or deposed.
---------------------------------------------------------------------------
    Some time in late 1994 or early 1995, Fong told Ted Sioeng 
of Spanos's challenge in order to encourage Sioeng to 
contribute.581 Sioeng responded, ``Well, I would 
certainly like to be of help in trying [to help] you to match 
that.'' 582 Although Fong did not take Sioeng's 
words as a commitment of a specific amount of 
money,583 he, or his fundraiser, Steven Kinney, 
followed up with a phone call to Sioeng asking for a 
contribution.584 On or about April 20, 1995, Fong 
``dropped by'' to see Sioeng at his office in the Hollywood 
Metropolitan Hotel.585
---------------------------------------------------------------------------
    \581\ Senate Fong Depo. at 29-30.
    \582\ Id. at 30.
    \583\ Id.
    \584\ Id. at 33.
    \585\ House Fong Depo. vol. I, at 28.
---------------------------------------------------------------------------
    When Fong arrived, a check in the amount of $20,000 
586 was ``already made out,'' 587 meaning 
that the ``payee [line] was the only thing that was blank. 
Everything else, the date, the amounts, signatures'' 
588 were filled out. Fong testified that an unknown 
person who worked for Sioeng asked him to fill the check out, 
but that he had a ``policy'' not to write anything on a check, 
so as to avoid being accused of converting campaign funds for 
personal use.589 As a result, Fong testified that 
the unknown staffer wrote the formal name of his campaign 
committee in the ``Pay to the order of'' line.590
---------------------------------------------------------------------------
    \586\ Check No. 671 from Sioeng San Wong to Matt Fong for State 
Treasurer in the amount of $20,000, Apr. 20, 1995. Exhibit 217 
[hereinafter Sioeng Check 1].
    \587\ House Fong Depo. vol. I, at 32.
    \588\ Id.
    \589\ Id. at 34.
    \590\ Id. at 33.
---------------------------------------------------------------------------
    Eight days later, on April 28, 1995, Sioeng wrote a second 
check in the amount of $30,000 to Fong's campaign.\591\ Fong 
does not know whether Sioeng gave him both checks at the same 
time.\592\
---------------------------------------------------------------------------
    \591\ Check No. 672 from Sioeng San Wong to Matt Fong for State 
Treasurer in the amount of $30,000, Apr. 28, 1995 [hereinafter Sioeng 
Check 2] Exhibit 218.
    \592\ House Fong Depo., vol. I at 35. (``Mr. Sioeng handed me an 
envelope and the envelope was sealed, and I took it to my office. 
Whether that envelope had one check or two, I couldn't tell you. But I 
know that I didn't have to go back and pick up a second check.'')
---------------------------------------------------------------------------
    The contributions were drafted on a personal checking 
account held by Sioeng in his Chinese name, Sioeng San Wong. 
Records turned over to the Committee by Fong's campaign show 
handwritten notations indicating that the checks were credited 
to: ``Dr. Ted Sioeng . . . business owner, Pacific Inn, 2717 
Sunset Blvd., L.A., 90026,'' \593\ Fong testified that his 
wife, Paula Fong, appears to have written down the tracking 
information.\594\ Campaign finance forms filed by Fong's 
campaign with the California Secretary of State show that both 
contributions were credited to Ted Sioeng.\595\
---------------------------------------------------------------------------
    \593\ Sioeng Check 1; Sioeng Check 2.
    \594\ House Fong Depo., vol. I, at 36.
    \595\ Independent Expenditure Committee and Major Donor Committee 
Campaign Statement filed by Matt Fong for State Treasurer, Jan. 1, 1995 
to June 30, 1995. Exhibit 219.
---------------------------------------------------------------------------
    Fong told the Committee that he ``assumed it [the donation] 
was from his family,'' \596\ explaining that Sioeng ``said 
earlier he wanted his family to support me, that his daughters, 
were supporting me, so I just made the assumption it was from 
his family.'' \597\ In addition, Fong stated that he had ``no 
personal knowledge that this Sioeng San Wong is in fact Ted 
Sioeng,'' \598\ rather, he thought Sioeng San Wong was Sioeng's 
``son or daughter'' or some other relative.\599\ In any event, 
the point was a moot one to Fong: ``[A]s far as I was 
concerned, I had no reason not to accept [the check] even if it 
[had] said Ted Sioeng.'' \600\
---------------------------------------------------------------------------
    \596\ House Fong Depo., vol. I, at 61. See also House Fong Depo. 
vol. II, at 46 (`` This is a family contribution. Sioeng San Wong is a 
family contribution as far as I'm concerned.'').
    \597\ House Fong Dep., vol. I, at 61.
    \598\ Id. at 28.
    \599\ Id. at 29.
    \600\ House Fong Depo., vol. I. at 29.
---------------------------------------------------------------------------
    The third and final contribution from the Sioeng family was 
made on December 14, 1995, when Panda Estates Investment, Inc. 
made a $50,000 donation to Matt Fong for State Treasurer.\601\ 
This last contribution was not related to debt left over from 
the 1994 campaign; rather, it was a result of ``ongoing fund-
raising'' Fong did as ``a sitting State Treasurer.'' \602\
---------------------------------------------------------------------------
    \601\ Independent Expenditure Committee and Major Donor Committee 
Campaign Statement filed by Matt Fong for State Treasurer, Jan. 1, 1995 
through Dec. 31, 1995. Exhibit 220.
    \602\ House Fong Depo., vol. II, at 102-103.
---------------------------------------------------------------------------

3. Sources of Contributions

    The Committee has determined that all three contributions 
were ultimately funded by wire transfers from Sioeng's overseas 
businesses:
           At the time Sioeng wrote the $20,000 check 
        on April 20, 1995, his bank account contained only 
        $1,613.\603\ Six days after the contribution was made, 
        Jessica Elnitiarta transferred $30,000 from the 
        family's loan account into Sioeng's personal checking 
        account.\604\ The bulk of that loan was repaid by 
        Jessica Elnitiarta through a November 3, 1996 wire 
        transfer of $928,432 from Pristine Investments,\605\ a 
        Hong Kong company firm that appears to be owned or 
        controlled by Sioeng.\606\
---------------------------------------------------------------------------
    \603\ Grand National Bank statement, Sioeng San Wong, Apr. 1-28, 
1995. Exhibit 221.
    \604\ Telephone transfer request from Laureen & Sandra Elnitiarta 
TCD Loan to Sioeng San Wong in the amount of $30,000, Apr. 26, 1995. 
Exhibit 222.
    \605\ Wire transfer from Pristine Investments to Yanti Ardi in the 
amount of $928,432.17, Nov. 3, 1995; Telephone transfer from Yanti Ardi 
to Sioeng San Wong in the amount of $992,000, Nov. 3, 1995; Telephone 
transfer from Sioeng San Wong to Laureen & Sandra Elnitiarta TCD Loan 
in the amount of $991,967, Nov. 3, 1995. Exhibit 223.
    \606\ See ``Sioeng's Foreign Businesses Interests.''
---------------------------------------------------------------------------
           The second check, dated April 28, 1995, was 
        made against a balance of $39,635.607 This 
        balance consisted mainly of a $30,000 check from 
        Glenville Stuart which Sioeng deposited on the same day 
        he made the Fong donation.608 Stuart funded 
        his check from a $55,000 wire transfer which he 
        received on April 27, 1995 from Pristine 
        Investments.609 Stuart testified that 
        Pristine Investments is ``associated with Ted Sioeng.'' 
        610
---------------------------------------------------------------------------
    \607\ See Exhibit 221.
    \608\ Check No. 224 from Glenville A. Stuart to Sioeng San Wong in 
the amount of $30,000, Apr. 28, 1996. Exhibit 224.
    \609\ Wire transfer from Pristine Investment to Glenville Stuart in 
the amount of $55,000, Apr. 27, 1995. Exhibit 225.
    \610\ Stuart Depo. at 65.
---------------------------------------------------------------------------
           The Panda Estates Investment company bank 
        account contained only $7,096 at the time the $50,000 
        check to Fong's campaign was written.611 The 
        check cleared the bank 4 days later, causing a $43,889 
        account overdraft.612 The next day, Jessica 
        Elnitiarta covered the overdraft by transferring 
        $50,000 from an account held by Yanti Ardi, Sioeng's 
        sister.613 This transfer was funded by a 
        wire transfer of $150,000 from Pristine Investments in 
        Hong Kong to Ardi account 8 days later.614
---------------------------------------------------------------------------
    \611\ Grand National Bank statement, Panda Estates Investment, 
Inc., Dec. 1-29, 1995. Exhibit 226.
    \612\ Id.
    \613\ Wire from Yanti Ardi to Panda Estates in the amount of 
$50,000, Dec. 19, 1995. Exhibit 227.
    \614\ Wire transfer from Pristine Investment to Yanti Ardi in the 
amount of $150,000, Dec. 11, 1995. Exhibit 228.
---------------------------------------------------------------------------
    In its April 28, 1997 issue, Newsweek Magazine published an 
article on the Sioeng family contributions to Mr. Fong's 
campaign.615 The day after that issue appeared on 
newsstands, Fong's campaign treasurer wrote a letter to Sioeng 
asking for verification that (1) the donations came from 
Sioeng's personal funds, and (2) whether Sioeng was a U.S. 
citizen or legal resident.616 The letter went on to 
state that failure to respond within 24 hours would result in 
the campaign returning the donations.617 A virtually 
identical letter was sent the same day to Sioeng and Jessica 
Elnitiarta at the Panda Estates Investment 
office.618 When neither Sioeng nor Elnitiarta 
provided a timely response, Fong's campaign committee returned 
all three donations.619
---------------------------------------------------------------------------
    \615\ Daniel Klaidman and Mark Hosenball, Connecting the Dots: The 
Feds explore a China-California Money Trail, Newsweek, Apr. 28, 1997 at 
40.
    \616\ Letter from William R. Turner, Treasurer of ``Matt Fong for 
State Treasurer,'' to Ted Sioeng/San Wong Sioeng, Apr. 21, 1997 
[hereinafter Turner Letter 1] Exhibit 229.
    \617\ Id.
    \618\ Letter from William R. Turner to Ted Sioeng, Panda Estates 
Investment, Inc., Apr. 21, 1997 [hereinafter Turner Letter 2] Exhibit 
230. The Committee notes that both letters stated that Mr. Fong's 
campaign ``will cooperate fulling with any federal or state 
investigation,'' and was ``prepared to turn over all records concerning 
these contributions to the United States Justice Department for their 
on-going investigation.''
    \619\ Turner Letter 1, Turner Letter 2. Check No. 1371 from Matt 
Fong for State Treasurer to San Wong Sioeng in the amount of $50,000, 
Apr. 22, 1997; Check No. 1372 from Matt Fong for State Treasurer to 
Panda Estates Investment in the amount $50,000, Apr. 22, 1997. Exhibit 
231.
---------------------------------------------------------------------------
    More than 1 month after the contributions were returned, 
Jessica Elnitiarta's attorney sent a letter to Fong's campaign 
protesting the campaign's decision. Counsel contended that 
Jessica Elnitiarta was traveling and, thus, unable to respond 
in a timely fashion.620 In addition, counsel stated 
that Jessica Elnitiarta ``has resided in California for more 
than ten years, and has been a permanent resident of the United 
States for more than five years.'' 621
---------------------------------------------------------------------------
    \620\ Letter from Mark J. MacDougall and Steven R. Ross, counsel 
for Ms. Elnitiarta, to William R. Turner, Treasurer, Matt Fong of State 
Treasurer, May 27, 1997. Exhibit 232.
    \621\ Id.
---------------------------------------------------------------------------
    The Committee notes that Jessica Elnitiarta's attorneys 
have refused to comply with subpoenas, have refused to produce 
Elnitiarta for interviews, and have not produced promised 
information.

5. Conclusions

    The Committee concludes that all three donations made by 
Sioeng and Panda Estates were funded with money transferred 
from overseas. However, the Committee finds no evidence that 
Fong knew the source of the contributions. In fact, Fong 
testified that he notified Sioeng of the relevant sections of 
appropriate state law, and his campaign promptly returned the 
contributions after questions arose about them.

              B. Contribution to the National Policy Forum

1. Summary

    On July 18, 1995, in between contributions to Matt Fong, 
the Sioeng family contributed $50,000, through its company, 
Panda Industries, Inc., to the National Policy Forum (``NPF''). 
Established in 1993 by then-Republican National Committee 
Chairman Haley Barbour, the NPF was a think tank designed ``to 
develop a national Republican policy agenda.'' 622 
During the time that Panda Industries made its contribution, 
the NPF operated as a non-profit corporation under Section 
501(c)(4) of the Internal Revenue Code.623 As such, 
the NPF could legally accept donations from corporations and 
foreign nationals.624 The story of Sioeng's 
contribution to the NPF overlaps with the story of his 
contributions to Fong.
---------------------------------------------------------------------------
    \622\ Investigation on Illegal or Improper Activities in Connection 
with the 1996 Federal Election Campaign--Part II: Hearings before the 
Committee on Governmental Affairs, U.S. Senate, 105th Cong., 1st sess. 
176 (1997).
    \623\ Id. at 215.
    \624\ Id.
---------------------------------------------------------------------------

2. Findings

    On April 28, 1995, as previously noted in this section, 
Sioeng donated $30,000 to ``Matt Fong for State Treasurer.'' At 
the time the donation was made, Fong testified that he and 
Speaker Gingrich:

        . . . worked together on the National Strategies Group, 
        which is his group, and he and I would regularly meet, 
        and he extended the invitation to me to stop by when I 
        was in town, and if I had anybody with me to bring them 
        with me.625
---------------------------------------------------------------------------
    \625\ House Fong Depo., vol. I, at 67.

    As a result of that open-ended invitation, Fong had planned 
to meet with the Speaker at his Capitol Office in July 
1995.626 The details of that meeting were arranged 
by Steven M. Kinney, Fong's campaign consultant who also served 
as an advance person and fundraiser for the 
Speaker.627
---------------------------------------------------------------------------
    \626\ Id. at 66.
    \627\ Id. at 71. See also Deposition of Stephen M. Kinney before 
the U.S. Senate Committee on Governmental Affairs, Special 
Investigation, Sept. 23, 1997, at 7.
---------------------------------------------------------------------------
    Fong invited Sioeng to attend the meeting because he 
``thought this would be a nice opportunity to show my 
appreciation for the Sioeng family's [financial] support.'' 
628 In fact, Fong stated that, had Sioeng rejected 
the invitation, he would have extended the invitation to 
another donor.629
---------------------------------------------------------------------------
    \628\ House Fong Depo., vol. I, at 66.
    \629\ Id.
---------------------------------------------------------------------------
    The meeting with the Speaker, held during the second week 
in July 1995, also was attended bySioeng's son-in-law, Didi 
Kurniawan.630 The entire encounter lasted approximately 15 
minutes, during which Sioeng and the Speaker exchanged what Fong called 
``ordinary'' pleasantries.631 According to Fong, fundraising 
was not discussed during the meeting.632
---------------------------------------------------------------------------
    \630\ Id. at 73 et seq. See also Deposition of Haddi Kurniawan, 
Apr. 14, 1998, at 64, 66.
    \631\ House Fong Depo., vol. I, at 73. Also, the Senate minority 
reported that: ``As described by Fong, the resulting meeting in 
Representative Gingrich's office on July 12 was brief and 
inconsequential.'' P. 5579.
    \632\ House Fong Depo., vol. I, at 72-74.
---------------------------------------------------------------------------
    In the weeks following the meeting with Fong and Sioeng, 
the Speaker was planning a series of fundraisers in 
California.633 Due to that planned fundraising trip, 
Joseph R. Gaylord, ``a political liaison to the Speaker,'' 
634 approached Kinney and asked him to ``raise some 
money'' 635 for the National Policy 
Forum.636
---------------------------------------------------------------------------
    \633\ Id. at 75.
    \634\ Senate Fong Depo. at 56.
    \635\ Deposition of Steven M. Kinney before the Senate Governmental 
Affairs Committee, Special Investigation, Sept. 23, 1997, at 10. See 
also Deposition of Joseph R. Gaylord before the Senate Governmental 
AffairsCommittee, Special Investigation, Sept. 16, 1997, at 36.
    \636\ Id.
---------------------------------------------------------------------------
    Following his conversation with Gaylord, Kinney asked Fong 
for ``permission [as to] whether he could approach our donors 
to invite them to any of the Gingrich events.'' 637 
Fong told the Committee that his discussion with Kinney 
involved possible solicitations of ``all my donors.'' 
638 He also testified that Kinney specifically 
``asked me whether the Sioeng family would be interested in 
supporting any of the Speaker's activities.'' 639 
Whatever the case, Fong granted Kinney permission to seek 
contributions from his donors for organizations supported by 
the Speaker.640
---------------------------------------------------------------------------
    \637\ House Fong Depo., vol. I, at 75.
    \638\ Id.
    \639\ Senate Fong Depo. at 50.
    \640\ House Fong Depo., vol. I, at 75.
---------------------------------------------------------------------------
    Kinney subsequently solicited a contribution from Jessica 
Elnitiarta,641 telling her the NPF ``was a 
foundation that Mr. Gingrich was supportive of and we'd like to 
have a contribution.'' 642 Following that 
conversation, Fong was contacted by members of the Sioeng 
family,643 who stated that they had been approached 
by Kinney ``to help Speaker Gingrich,'' 644 and 
asked Fong his opinion of Kinney's solicitation.645
---------------------------------------------------------------------------
    \641\ Deposition of Steven M. Kinney before the Senate Governmental 
Affairs Committee, Special Investigation, Sept. 23, 1997, at 12.
    \642\ Id at 20.
    \643\ Mr. Fong could not recall whether he spoke with Ms. 
Elnitiarta or Mr. Sioeng. See Id. at 77.
    \644\ Id at 77.
    \645\ Id.
---------------------------------------------------------------------------
    Fong told them, ``Speaker Gingrich is my friend. That's a 
good idea.'' 646 In his testimony before the 
Committee, Fong emphasized that he did not know for what 
organization the solicitation was made, as Fong was aware that 
Speaker Gingrich raises money for several different 
organizations.647
---------------------------------------------------------------------------
    \646\ Id.
    \647\ Id.
---------------------------------------------------------------------------
    On July 18, 1995, Panda Industries wrote a $50,000 check to 
the National Policy Forum, against a bank balance of 
$46,402.648 Kinney stated that he ``didn't solicit 
Panda [Industries],'' but instead, ``solicited a donation 
directly from Jessica Elnitiarta.'' 649
---------------------------------------------------------------------------
    \648\ Check No. 1060 from panda Industries to the National Policy 
Forum in the amount of $50,000, July 18, 1995. Grand National Bank 
statement for Panda Industries, July 1995. Exhibit 233.
    \649\ Deposition of Steven M. Kinney before the U.S. Senate 
Governmental Affairs Committee, Special Investigation, Sept. 23, 1997, 
at 12.
---------------------------------------------------------------------------
    Information developed by the Committee indicates that the 
Panda Industries contribution came from domestic funds. The 
investigation specifically reveals that the contribution was 
funded by a $50,000 check Sioeng had written to Panda 
Industries a day before the company contributed to the 
NPF.650
---------------------------------------------------------------------------
    \650\ Check No. 590 from Sioeng San Wong to Panda Industries in the 
amount of $50,000, July 17, 1995. Exhibit 234.
---------------------------------------------------------------------------
    Sioeng's check, in turn, was funded by a $70,000 check 
written on July 17, 1995 by Vinh B. La, a Canadian national and 
associate of Kent La.651 The $70,000 check was 
partially funded by a July 14, 1995 withdrawal of $50,000 by 
Kent La from a Loh Sun International, Inc. business savings 
account,652 which was opened on January 4, 1995 with 
a $200,000 transfer from Loh Sun's business checking 
account.653 Hence, the NPF contribution appears to 
have been funded with domestic business receipts from Loh Sun 
International. The Senate minority report traced the NPF 
funding only back to the $50,000 check from Ted 
Sioeng.654
---------------------------------------------------------------------------
    \651\ Check No. 239 from Vinh B. La to Cash in the amount of 
$70,000, July 17, 1995. Exhibit 235.
    \652\ Savings withdrawal from Loh Sun International in the amount 
of $50,000, July 14, 1995; Deposit slip from La Vinh Binh in the amount 
of $50,000, July 14, 1995. Exhibit 236.
    \653\ Counter check to Loh Sun International in the amount of 
$200,000, Jan. 4, 1995. Exhibit 237.
    \654\ Exhibit 234. See also Senate Campaign Finance Report at 5580.
---------------------------------------------------------------------------
    The NPF counsel has made a similar representation: ``There 
is no evidence anywhere that we are aware of which establishes 
that the funds used in connection with the Panda Industries, 
Inc./NPF contribution were foreign funds.'' 655
---------------------------------------------------------------------------
    \655\ Letter from Thomas E. Wilson, NPF counsel, to Michael D. 
Bopp, senior investigative counsel, House Government Reform and 
Oversight Committee, June 17, 1998, Exhibit 238.
---------------------------------------------------------------------------
    Fong's wife, Paula, played a role in the Panda Industries 
contribution to the NPF. Matt Fong testified that during 1995, 
Kinney ``hired her [Paula Fong] to help raise money for [the] 
Speaker.'' 656 On July 28, 1995, Paula Fong 
submitted an invoice requesting $6,500 in fundraising 
commissions 657 to Joseph Gaylord at office space he 
rented from the Republican National Committee.658 
The commissions purported to be related to ``Speaker Newt 
Gingrich's California visit on July 20, 1995 to July 23, 
1995.'' 659 The invoice also included a request for 
compensation for the Panda Industries contribution to the 
NPF.660
---------------------------------------------------------------------------
    \656\ House Fong Depo., vol. I, at 89.
    \657\ Invoice submitted by Paula Fong to Joseph Gaylord, July 28, 
1995. [hereinafter Fong invoice] Exhibit 239.
    \658\ House Fong Depo., vol. I, at 89; Deposition of Joseph Robert 
Gaylord before the Senate Governmental Affairs Committee, Special 
Investigation, Sept. 16, 1997, at 9.
    \659\ See Exhibit 239.
    \660\ Deposition of Steven S. Walker, Jr., July 1, 1998 at 36.
---------------------------------------------------------------------------
     Gaylord forwarded the invoice from Paula Fong to Stephen 
Walker, the NPF comptroller, who was puzzled upon receiving the 
bill.661 Walker specifically said that he ``asked . 
. . why did this woman send us a bill and who is she?'' 
662 While Walker cannot recall to whom he spoke, he 
testified that, after performing appropriate ``due diligence,'' 
663 he was ``satisfied as to the point [that Paula 
Fong was entitled to compensation from the NPF],'' 
664 and paid the bill.665
---------------------------------------------------------------------------
    \661\ Id.
    \662\ Id.
    \663\ Id.
    \664\ Id.
    \665\ Id.
---------------------------------------------------------------------------
    Walker acknowledged that it was ``out of the ordinary'' 
666 for Gaylord to receive invoices for commissions 
from NPF fundraisers. Walker said that he could not recall any 
other instance where Gaylord forwarded another person's invoice 
to the NPF.667 He also stated that he could not 
recall receiving bills from other fundraisers and not having 
been aware that they had solicited money for the 
NPF.668
---------------------------------------------------------------------------
    \666\ Id. at 78.
    \667\ Id.
    \668\ Id. at 37.
---------------------------------------------------------------------------
     Fong testified that the first time he knew that his wife 
was paid for the Panda Industries contribution to the NPF was 
in March 1996, while preparing to file his state financial 
disclosure forms.669 Matt Fong stated that he has no 
personal knowledge of the $50,000 contribution from Panda 
Industries.670 He testified as follows to his 
understanding of his wife's fundraising and the payment to her 
from the NPF:
---------------------------------------------------------------------------
    \669\ House Fong Depo. vol. I, at 87.
    \670\ Id. at 89.

        My wife was retained by Steve Kinney to raise money for 
        the Speaker. My wife is a CPA. She for two years helped 
        me raise money for my treasurer's campaign. She raised 
        over a million dollars by herself, and Steve Kinney 
        hired her to help raise money for the Speaker. In March 
        of the following year, we reported [on our state 
        financial disclosure forms] that my wife was paid from 
        the National Policy Forum, the National Republican 
        Congressional Committee, Friends of Newt Gingrich and 
        the Monday Morning PAC. She received a total of $11,000 
---------------------------------------------------------------------------
        for her effort.

        It was always my understanding that she was getting 
        compensated by Steve Kinney for raising money for 
        Speaker Gingrich for many of [her] fundraising 
        activities; and for me, whether it was the National 
        Policy Forum or the Friends of Newt Gingrich, it was 
        all, to me, under the same umbrella.671
---------------------------------------------------------------------------
    \671\ Id.

     In July 1995, the Speaker sponsored a reception for Asian-
American leaders at the Peninsula Beverly Hills 
Hotel.672 Prior to the event, Kinney asked Matt Fong 
for the names of some community, business and elected leaders 
who should be invited.673 Among the names supplied 
by Fong were that of Sioeng and his family.674
---------------------------------------------------------------------------
    \672\ House Fong Depo., vol. I, at 81; Senate Fong Depo. at 50-53; 
Deposition of Joseph R. Gaylord before the Senate Governmental Affairs 
Committee, Special Investigation, Sept. 16, 1997, at 33-35.
    \673\ Senate Fong Depo. at 51.
    \674\ Id.
---------------------------------------------------------------------------
     Sioeng attended the reception and, along with four to five 
other guests, met with the Speaker for approximately 15 
minutes.675 Simon Chen, who sold the International 
Daily News to Ted Sioeng and acted as an interpreter during the 
meeting between the Speaker and Sioeng, stated that the two 
talked generally about the relationship between the United 
States and the PRC.676 A photograph of the Speaker 
with Sioeng and Chen appeared in the July 21, 1995 issue of the 
International Daily News.677
---------------------------------------------------------------------------
    \675\ Chen Interview.
    \676\ Id.
    \677\ Photograph in the International Daily News, July 21, 1995. 
Exhibit 240.
---------------------------------------------------------------------------
     In December 1995, Jessica Elnitiarta approached Fong and 
asked him to secure a congratulatory letter from the Speaker in 
connection with a badminton tournament sponsored by one of 
Sioeng's businesses.678 Fong secured the requested 
letter.679 Fong said that he also helped Jessica 
Elnitiarta obtain a congratulatory letter from California 
Governor Wilson, from whom a letter appears in a brochure 
promoting the tournament.680 A congratulatory letter 
from Fong is also published in the brochure.681
---------------------------------------------------------------------------
    \678\ Senate Fong Depo. at 62-65.
    \679\ Id. at 106. Letter from Speaker Gingrich to Hong Ta Shan 
International Badminton Championship Cup Participants and Supporters. 
Exhibit 241.
    \680\ Id. at 106. Letter from Governor Wilson to Hongtashan 
International Badminton Championship Cup Participants, Dec. 18, 1995. 
Exhibit 242.
    \681\ Letter from Matt Fong, California State Treasurer, to Ted 
Sioeng, Hong Ta Shan Cup, Dec. 18, 1995. Exhibit 243.
---------------------------------------------------------------------------

 3. Conclusions

    Based on the information developed during the course of its 
investigation, the Committee concludes that there is no 
evidence of improper or illegal activities on behalf of Fong, 
or anyone else, regarding the Panda Industries contribution to 
the NPF.
    The Committee also concludes there is no evidence that the 
source of the moneys used for Panda Industries' contribution to 
the NPF was from foreign funds. The Committee notes that, in 
any event, as a 501(c)(4) corporation, the NPF could legally 
accept foreign donations.

                     C. Contribution to Daniel Wong

1. Summary

    Dr. Daniel Wong, a Republican who was elected to local 
offices in Cerritos, California, met Ted Sioeng when they were 
both attending a 1992 banquet in the People's Republic of 
China. At the time, Sioeng, who had little knowledge of U.S. 
politics, offered to help finance future political campaigns 
undertaken by Wong.
    Following that conversation, Wong unsuccessfully solicited 
Sioeng for campaign contributions. In 1996, Sioeng finally 
agreed to contribute $10,000 to one of Wong's political races. 
That contribution came in the form of two $5,000 checks from 
female employees of a Sioeng-affiliated travel agency. Both 
checks were post-dated, and Wong was instructed to deposit them 
on specific dates.
    The checks were never deposited, primarily because Wong 
knew that Sioeng received most of his money from overseas in 
the form of wire transfers. As a result of that knowledge, Wong 
called the bank to determine whether there were sufficient 
funds to cover the checks.
    When informed that there was not enough money to pay the 
checks, Wong telephoned Sioeng, who provided a single $5,000 
replacement check. That check, ostensibly from Jessica 
Elnitiarta, was drawn on an account held by Sioeng's wife and 
other two daughters over which Jessica Elnitiarta held power of 
attorney.
    The Committee concludes that Sioeng's contribution to Wong 
was improper because the source of the funds was wire transfers 
from an overseas corporation controlled by Sioeng.

2. Findings

    Daniel K. Wong is an obstetrician and 
gynecologist.682 Born in Hong Kong,683 
Wong also sings and acts as a self-styled goodwill ambassador 
between the people of the United States and the People's 
Republic of China (``PRC'').684 Due to his singing 
career and his unofficial activities, Wong is a ``celebrity in 
China,'' 685 has traveled extensively in the PRC and 
has had repeated meetings with senior communist party 
officials.686
---------------------------------------------------------------------------
    \682\ Deposition of Daniel K. Wong, Mar. 12, 1998, at 21 
[hereinafter Wong Depo].
    \683\ Id.
    \684\ Id. at 23.
    \685\ Id.
    \686\ Id. at 24.
---------------------------------------------------------------------------
    In addition to the activities listed above, Wong also has 
served as a Republican elected official. In 1978, Dr. Wong was 
elected to the Cerritos, California, City 
Council.687 He subsequently served two terms as the 
Mayor of Cerritos, and ran three unsuccessful campaigns for 
state assembly.688
---------------------------------------------------------------------------
    \687\ Id. at 21.
    \688\ Id. at 21-22.
---------------------------------------------------------------------------
    Wong first met Ted Sioeng ``out of the blue'' 
689 in 1992, while both were attending a banquet in 
Kunming, PRC.690 At that initial meeting, Wong 
testified that Sioeng ``knew nothing about U.S. politics.'' 
691 Despite his political ignorance, Sioeng said he 
knew of Wong through his political career,692 and 
went on to tell Wong that:
---------------------------------------------------------------------------
    \689\ Id. at 31.
    \690\ Id. at 27.
    \691\ Id. at 31.
    \692\ Id. at 28.

        . . . I should be his friend, and he can help me 
        [financially] in future campaigns and that actually 
        [Sioeng made] the promise and the commitment to support 
        any of my future campaigns without any condition 
        mentioned . . . I remember he even ask me how much does 
        it take to start to win any election and primary. I 
        mention to him about $250,000 for some assembly or 
        congressional [campaign], just to begin with. He said, 
        ``No problem.'' 693
---------------------------------------------------------------------------
    \693\ Id.

    According to Wong, the purpose behind the conversation was 
that Sioeng wanted ``to make a friend with me. He wanted to be 
friends, and he also wanted me to move higher up in the 
political area.'' 694
---------------------------------------------------------------------------
    \694\ Id. at 31.
---------------------------------------------------------------------------
    A year or two later, Wong once again had a conversation 
with Ted Sioeng about local politics. During that discussion, 
Wong suggested that Sioeng become more politically active in 
the Asian-American community.695 At the time, Wong 
was running for office and asked Sioeng for a campaign 
contribution.696 No such donation was forthcoming, 
because Sioeng ``was seldom in the United States,'' 
697 and it was ``[V]ery difficult to get hold of 
him.'' 698
---------------------------------------------------------------------------
    \695\ Id. at 33.
    \696\ Id.
    \697\ Id.
    \698\ Id.
---------------------------------------------------------------------------
    Following those discussions, Wong continued to 
unsuccessfully pursue Sioeng for campaign contributions. In 
1996, 4 years after his offer of financial support, Ted Sioeng 
agreed to support Wong's state assembly campaign. Wong 
testified that this agreement came only after he told Sioeng in 
late 1995, ``You didn't keep your word. Are you going to help 
me?'' 699
---------------------------------------------------------------------------
    \699\ Id. at 99.
---------------------------------------------------------------------------
    As a result of that comment, Wong went to Sioeng's office 
in Hollywood, California, and picked up two 
checks.700 Wong stated that ``each check was [for] 
$5,000, and those checks were from his affiliated travel 
agency, from a lady he called up to his office and she wrote 
two checks to me. But they both were postdated.'' 
701
---------------------------------------------------------------------------
    \700\ Id. at 101-102.
    \701\ Id. The Committee presumes the checks were written on an 
account held by either Supertrip Travel or Guangdong China Travel 
Service. Both firms were located in Sioeng's Hollywood Metropolitan 
Hotel complex and were owned or managed by the Sioeng family. See 
``Sioeng U.S. Business Interests'' this chapter.
---------------------------------------------------------------------------
    Wong further stated that Sioeng instructed him to deposit 
the two checks on specific dates.702 However, the 
checks were never deposited. Wong explained that most of 
Sioeng's funds comes from overseas, rather than the United 
States, and Sioeng ``will wire them from Hong Kong or 
somewhere.'' 703 As a result of that knowledge, Wong 
decided to see if the account had money in it before depositing 
the first check, and was told--presumably by the bank--to 
``hold on and wait for a long time.'' 704
---------------------------------------------------------------------------
    \702\ Id.
    \703\ Id. at 102.
    \704\ Id.
---------------------------------------------------------------------------
    When Wong called Sioeng to discuss the fact that there were 
not sufficient funds to cover the checks, Sioeng already knew 
about it,705 and offered to take back the checks and 
have his daughter, Jessica Elnitiarta, write another 
check.706 Wong subsequently received ``a replacement 
check'' 707 for $5,000 from the account of Sioeng's 
wife and two daughters.708 Wong apparently did not 
seek a replacement for the second $5,000 check. During his 
deposition, he did not explain the circumstances surrounding 
the delivery of the replacement check, nor did Wong offer an 
explanation for not seeking a replacement for the second $5,000 
check.
---------------------------------------------------------------------------
    \705\ Id. at 103.
    \706\ Id.
    \707\ Id. at 101.
    \708\ Check No. 1094 from Sundari, Sandra & Laureen Elnitiarta to 
Dr. Daniel Wong in the amount of $5,000, Feb. 15, 1996. The Committee 
notes that the signature on the checks matches that of Jessica 
Elnitiarta and that she holds power of attorney over the check account 
of her mother and sisters, Sundari, Sandra and Laureen, respectively. 
Exhibit 244.
---------------------------------------------------------------------------
    At the time the ``replacement'' check was written, the bank 
account held by Sundari, Sandra and Laureen Elnitiarta held 
$13,378.709 This balance was funded by a $50,000 
telephone transfer 3 days earlier from Yanti 
Ardi.710 The same day, Yanti Ardi received a nearly 
$519,000 wire transfer from Pristine Investments.711
---------------------------------------------------------------------------
    \709\ Grand National Bank statements, Sundari, Sandra & Laureen 
Elnitiarta, Feb. 1-29, 1996. Exhibit 245.
    \710\ Wire transfer from Yanti Ardi to Sundari Elnitiarta in the 
amount of $50,000, Feb. 12, 1996. Exhibit 246.
    \711\ See Exhibit 166.
---------------------------------------------------------------------------

3. Conclusions

    The evidence suggests that the contribution to Wong's 
campaign may have come from an eligible U.S. resident. However, 
the Committee concludes that the donation was funded by foreign 
money. As a result, the Committee concludes that the 
contribution was improper and possibly illegal.

                      d. contribution to julia wu

1. Summary

    During 1995, Julia Wu, a Republican, was campaigning for 
her third 4-year term on the Los Angeles Community College 
District Board of Trustees. Her husband, Alfred Wu, served as 
her campaign Treasurer. The Committee identified two $10,000 
conduit payments from Sioeng associates Kent La and Bun Tsun 
Lai to Alfred Wu. The Committee concluded that these 
contributions were ultimately funded from Pristine Investments 
in Hong Kong, which is affiliated with Sioeng.

2. Findings

    On February 21, 1995, Sioeng associate Kent La wrote a 
$10,000 check payable to Alfred Wu.712 The Committee 
notes that Julia Wu's campaign reported that La made only one 
donation of $1,000, and that it was received on February 23, 
1995.713 The $10,000 check to Alfred Wu was funded 
by a $50,000 telephone transfer made the same day from Sioeng's 
wife and two daughters to La.714 That transfer was 
funded in turn by $50,000 from a bank loan account held by the 
Sioeng family.715 The bulk of that loan was repaid 
by Jessica Elnitiarta through a November 3, 1996 wire transfer 
of $928,432 from Pristine Investments.716 Glenville 
Stuart testified that Pristine Investments is ``associated with 
Ted Sioeng.'' 717
---------------------------------------------------------------------------
    \712\ Check No. 122 from Kent La to Alfred Wu in the amount of 
$10,000, Feb. 21, 1995. Exhibit 247.
    \713\ ``Officeholder, Candidate and Controlled Campaign Committee 
Statement,'' Feb. 1-29, 1995. Contributions to Julia Wu. Exhibit 248.
    \714\ Telephone transfer from Sundari, Sandra, and Laureen 
Elnitiarta to Kent La in the amount of $50,000, Feb. 21, 1995. Exhibit 
249.
    \715\ Wire transfer from Sandra & Laureen Elnitiarta TCD Loan in 
the amount of $50,000 to Sundari, Sandra & Laureen Elnitiarta, Feb. 21, 
1995. Exhibit 250. Committee notes that on Nov. 3, 1995, the entire 
bank loan balance was paid off by Elnitiarta using foreign funds from 
Pristine Investments in Hong Kong. Exhibit 223.
    \716\ See Exhibit 223.
    \717\ Stuart Depo. at 65.
---------------------------------------------------------------------------
    On May 29, 1995, Bun Tsun Lai wrote a $10,000 check payable 
to Alfred Wu 718 against a bank balance of only 
$95.719 To cover the check, Lai deposited a $10,000 
check from Glenville Stuart on May 31, 1995.720 
Stuart, in turn, funded this check through a $55,000 wire 
transfer received from Pristine Investments in Hong 
Kong.721
---------------------------------------------------------------------------
    \718\ Check No. 5045 from Bun Tsun Lai to Alfred Wu in the amount 
of $10,000, May 29, 1995. Exhibit 251.
    \719\ Grand National Bank statement, Bun Tsun Lai, May 1996. 
Exhibit 252.
    \720\ Deposit slip for Bun Tsun Lai, May 31, 1995; Check No. 240 
from Glenville Stuart to Bun Tsun Lai in the amount of $10,000, May 30, 
1995. Exhibit 253.
    \721\ See Exhibit 225.
---------------------------------------------------------------------------
    The Committee notes that during the relevant time period, 
the Julia Wu campaign does not report any listing of a 
contribution from Bun Tsun Lai during this time 
period.722 The Committee further notes it is 
awaiting bank account records documenting these transactions.
---------------------------------------------------------------------------
    \722\ ``Officeholder, Candidate and Controlled Campaign Committee 
Statement,'' Mar. 26-June 30, 1995. Exhibit 254.
---------------------------------------------------------------------------

3. Conclusions

    The Committee concludes that the funding source for the Wu 
contributions was overseas businesses owned and/or controlled 
by Sioeng. In addition, the Committee concludes that the 
contributions were disguised by using Kent La and Bun Tsun Lai 
as conduits to transact the donations. As a result, the 
donations are improper and/or illegal.

                     e. contribution to norman hsu

    Another local Republican candidate to whom Ted Sioeng 
contributed is Norman Hsu, a member of the Hacienda-La Peunta 
School Board. Hsu, who like Sioeng hails from Indonesia, told 
Committee investigators that he first met Sioeng in May 1994, 
at an Indonesian festival held at Sioeng's Hollywood 
Metropolitan Hotel.723 A year later, Hsu and Sioeng 
formed an Indonesian-Chinese Benevolent 
Association.724 Around the time the association was 
formed in early 1995, Hsu asked Sioeng for financial support in 
his re-election campaign for the local school 
board.725
---------------------------------------------------------------------------
    \723\ Interview with Norman Hsu, Mar. 13, 1998 [hereinafter Hsu 
Interview].
    \724\ Id.
    \725\ Id.
---------------------------------------------------------------------------
    Sioeng subsequently served as finance chairman for a Hsu 
fund-raiser,726 and donated $7,500 to the 
campaign.727 The Committee notes that Hsu did not 
know that Sioeng was a foreign national, and that Hsu 
subsequently became disassociated with Sioeng over political 
differences.728
---------------------------------------------------------------------------
    \726\ Id.
    \727\ Check No. 654 from Sioeng San Wong to Friends of Norman Hsu 
in the amount of $7,500, Mar. 11, 1995. Exhibit 255.
    \728\ Hsu Interview.
---------------------------------------------------------------------------
    Sioeng signed a personal check payable to the Friends of 
Norman Hsu on March 11, 1995,729 against an account 
balance of only $2,159.730 To cover the check 2 days 
later, Jessica Elnitiarta transferred $30,000 from a family 
loan account to Sioeng's personal account.731 As 
previously stated, Jessica Elnitiarta repaid the bank loan 
primarily from a wire transfer from Pristine Investments in 
Hong Kong.732
---------------------------------------------------------------------------
    \729\ See Exhibit 255.
    \730\ Grand National Bank statements, Sioeng San Wong, Feb. 1-Mar. 
31, 1995. Exhibit 256.
    \731\ Telephone transfer from Laureen and Sandra Elnitiarta TCD 
loan account to Sioeng San Wong in the amount of $30,000, Mar. 13, 
1995. Exhibit 257.
    \732\ See Exhibit 223.
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    IX. Access to President Clinton, Vice President Gore, & Speaker 
                                Gingrich

1. Summary

    Political contributions totalling $450,000 made by Ted 
Sioeng, his family, and his associates opened the gates of 
political access to the three highest officials of the U.S. 
Government. The Committee believes Sioeng used this access to 
gain influence with the governments of China and Cambodia, and 
to increase his business opportunities both overseas and within 
the United States.733 Sioeng's affiliation with high 
level political leaders also helped him to increase his 
influence in the California Asian community.734
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    \733\ Wong Depo. at 35.
    \734\ Elnitiarta Interview.
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2. Findings

         a. access to president clinton and vice president gore

            The Hay-Adams Dinner with President Clinton
    On February 19, 1996, the DNC hosted an Asian Pacific 
American Leadership Council Presidential Dinner at the Hay-
Adams Hotel in Washington, DC. This is the first major Asian 
fundraiser organized by John Huang.
    Sioeng and seven guests attended the event, and had their 
pictures taken with President Clinton.735 The Sioeng 
attendees included: Sandra Elnitiarta and Didi Kurniawan, 
Sioeng's daughter and son-in-law; Li Kwai Fai, a Chinese 
businessman with factories located in Guangdong Province, 
China; 736 Jimmy Tsang and his wife Jean Lim Tsang; 
737 Bruce Cheung, a Singapore permanent resident, 
and President of Chinois Tobacco, a Singapore company 
controlled by Sioeng; and Chu Yibin, an apparent business 
associate of Cheung who may be related to Chu Shijian, Chairman 
of Yuxi Hongta Tobacco Group.
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    \735\ Photographs of Ted Sioeng and his guests with President 
Clinton, Feb. 19, 1996. Exhibit 258.
    \736\ The Committee has unsuccessfully attempted to contact Li on 
several occasions. The Committee notes that Li currently uses a picture 
of himself and President Clinton, taken at the event, on his company's 
Web site. See Exhibit 137.
    \737\ As stated previously, Jimmy Tsang is President of Sioeng's 
Goldlion International, and son of Tsang Hin Chi, Chairman of Goldlion 
Holding Group, which controls one of Sioeng's Chinese tobacco ventures 
and is also a member of the National People's Congress which controls 
the Communist party within the PRC. See Exhibit 130. Tsang, his wife, 
and father have all refused to cooperate with the Committee.
---------------------------------------------------------------------------
    Jessica Elnitiarta stated that she and Huang has previously 
negotiated a contribution of $12,500 per person for all eight 
attendees.738 Huang collected Elnitiarta's personal 
check of $100,000 from her sister, Sandra Elnitiarta, at the 
dinner.739
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    \738\ Elnitiarta Interview.
    \739\ Id.
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    The Committee notes that Sioeng and Li sat at the head 
table in close proximity to President Clinton which also 
included notable figures Pauline Kanchanalak, Charlie Trie, and 
Ng Lap Seng.740 The Committee also notes that John 
Huang claimed to have raised $1 million at this 
event.741 However, DNC records for the event 
indicated it raised $716,000 from 50 individuals or 
corporations.742
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    \740\ Photograph of Hay-Adams head table, Feb. 19, 1996, Exhibit 
259.
    \741\ Photograph of John Huang presenting check to Donald Fowler. 
Exhibit 260.
    \742\ DNC Finance Systems, detail report for Asian Dinner, 
documents D0000968 to 973. Feb. 19, 1996.
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            The Breakfast with Vice President Gore
    The next morning, the DNC hosted the same attendees for a 
White House tour and breakfast with Vice President Gore. Ted 
Sioeng and six guests attended the event, and had photographs 
taken with the Vice President.743 In fact, Sioeng 
and Li sat at the head table with Vice President 
Gore.744
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    \743\ Photographs of Ted Sioeng and his guests with Vice President 
Gore, Feb. 20, 1996. Exhibit 261.
    \744\ See Exhibit 131.
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            The Hsi Lai Temple Luncheon with Vice President Gore
    On April 29, 1996, the DNC hosted a fund-raising luncheon 
at the Hsi Lai Temple in Los Angeles, California. This event, 
organized by John Huang and Maria Hsia, was attended by Sioeng 
and four guests.745 Vice President Gore sat at the 
head table with Ted Sioeng to his left and Master Hsing Yun, 
the Temple's spiritual leader.746 Besides his wife 
and two daughters, Sioeng brought Sioeng Fei Man Hung, a 
Chinese/Hong Kong national, who was then the general manager of 
the International Daily News. Jessica Elnitiarta stated that 
the family made no contribution for this event because the 
family was ``comped'' by John Huang who cited the family's poor 
seating at the Hay-Adams dinner.747 This explanation 
is highly questionable given what the Committee has learned of 
Sioeng's seats at the Hay-Adams event.
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    \745\ See Exhibit 160.
    \746\ Photograph of head table at Hsi Lai Temple event. Exhibit 
262.
    \747\ Elnitiarta Interview.
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            The Sheraton Carlton Dinner with President Clinton
    Two weeks later, on May 13, 1996, the DNC hosted a fund-
raising dinner at the Sheraton Carlton Hotel in Washington, DC. 
Jessica Elnitiarta stated that John Huang invited the Sioeng's 
family, noting that her father was very excited about the 
invitation because he viewed it as a good opportunity to bring 
some of his overseas business partners.748
---------------------------------------------------------------------------
    \748\ Id.
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    This event was attended by Ted Sioeng and seven guests, all 
of whom had photographs takenwith the President.749 
Committee investigators have been able to identify photographs of five 
of Sioeng's six guests: Macau legislator and casino operator, Chio Ho 
Cheong (aka Chen Kai Kit, aka Tommy Chio), who according to his 
business card, operates businesses in Thailand, Hong Kong, China, and 
Macau;750 Chan Elsie Y.Z., Chio's business partner and 
former Hong Kong movie star; Guo Zhong Jian, the Deputy General Manager 
of the China Construction Bank; Kent La, President of Loh Sun 
International; and either Lin Fu Qiang of Everbrite Asia, Ltd in Hong 
Kong, or He Jian Shan, occupation unknown.751 According to a 
DNC document of the event, Sioeng, Chio, and Chan sat with President 
Clinton at the head table.752
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    \749\ Photographs of Ted Sioeng and his guests with President 
Clinton, May 13, 1996. Exhibit 263.
    \750\ Tommy Chio business card. Exhibit 264.
    \751\ See Exhibit 263.
    \752\ See Exhibit 133.
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    According to Jessica Elnitiarta, Huang did not immediately 
solicit a contribution for this event, as he wanted them to 
attend an upcoming Los Angeles fundraiser.753 
Instead, Jessica Elnitiarta paid for the event with a $100,000 
Panda Estates Investment check written on July 12, 
1996.754 She said she arrived at the figure using 
the same $12,500-per-seat rate that she applied to the Hay-
Adams event.755
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    \753\ Elnitiarta interview.
    \754\ Id.
    \755\ Id.
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            The Century Plaza Dinner with President Clinton
    On July 22, 1996, Sioeng attended a Presidential dinner at 
the Century Plaza Hotel in Los Angeles, along with 48 family 
members and business associates,756 including Kent 
La.757 Sioeng sat at the head table with President 
Clinton and James Riady, a top Lippo Group 
executive.758
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    \756\ Elnitiarta Interview.
    \757\ Ma Interview.
    \758\ See Exhibit 163.
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    Jessica Elnitiarta said that she paid for the event with a 
$50,000 check from Panda Estates Investment to the 
DNC.759 She stated that she arrived at the amount 
after determining the event was less significant than earlier 
ones, which averaged about $1,000 a plate.760 DNC 
documents attribute this contribution to a July 30, 1996 
Presidential Trustee dinner at the Jefferson Hotel in 
Washington, DC.761 However, there is no evidence 
that the Sioeng family or business associates attended this 
event.
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    \759\ Elnitiara Interview.
    \760\ Id.
    \761\ See Exhibit 153.
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    The same day as Jessica Elnitiarta wrote the Panda Estates 
check to the DNC, Kent La also signed a $50,000 Loh Sun 
International check to the DNC.762 Committee 
investigators believe the Loh Sun contribution is connected to 
the Century Plaza fundraiser, which La attended.763 
DNC documents attributed this donation to a July 30, 1996 
Presidential Trustee dinner at the Jefferson Hotel in 
Washington, DC,764 which La almost certainly did not 
attend.
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    \762\ See Exhibit 154.
    \763\ Ma Interview.
    \764\ See Exhibit 154.
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                    b. the tanuwidjaja contributions

    In September 1996, the Tanuwidjaja family made three 
contributions totaling $100,000 to the DNC. According to 
conflicting DNC documents, the same September 9, 1996 
contribution for $60,000 by Subandi Tanuwidjaja was attributed 
to both a September 18, 1996 Vice Presidential Asia Dinner at 
the Hilton Hotel in San Francisco, and the Jefferson Hotel 
Trustee dinner.765 DNC documents also attributed a 
September 19, 1996 contribution in the amount of $20,000 by 
Subandi Tanuwidjaja to the San Francisco dinner 766 
and a September 26, 1996 contribution in the amount of $20,000 
by Suryanti Tanuwidjaja to an African-American Presidential 
Dinner at the Sheraton Carlton Hotel in Washington, 
DC.767 The documents all listed John Huang as the 
DNC solicitor or contact person for these 
contributions.768 The Committee notes that has found 
no evidence that the Tanuwidjajas attended any of these events.
---------------------------------------------------------------------------
    \765\ See Exhibit 155.
    \766\ See Exhibit 156.
    \767\ See Exhibit 157.
    \768\ See ``John Huang's Role.''
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           c. access to house speaker gingrich 769
---------------------------------------------------------------------------

    \769\ See ``Contributions to Matt Fong,'' and ``Contributions to 
the National Policy Forum.''
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    After receiving $50,000 in contributions from Ted Sioeng, 
California State Treasurer Matt Fong's introduced Sioeng and 
his son-in-law, Didi Kurniawan, to Speaker Gingrich on July 12, 
1995.770 Shortly thereafter, the Sioeng family was 
approached by Steven Kinney, Fong's campaign consultant and a 
fundraiser for the Speaker, who asked for contributions to 
organizations supported by the Speaker.771 After a 
conversation between a member of the Sioeng family and Fong, 
Panda Industries donated $50,000 to the National Policy Forum 
on July 18, 1995. The next day, Sioeng sat next to the Speaker 
at an outreach event for Asian-American community leaders at 
the Beverly Hills Hotel, and had his photograph taken with the 
Speaker.772 During that second meeting, the Speaker 
and Sioeng discussed U.S.-China relations.773
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    \770\ Senate Fong Depo. at 65-66.
    \771\ Id.
    \772\ See Exhibit 240.
    \773\ Chen Interview.
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    Sometime in December 1995, Jessica Elnitiarta approached 
Fong to have him obtain a congratulatory letter from the 
Speaker for a badminton tournament sponsored by one of Sioeng's 
businesses.774 Fong secured the requested letter, 
which appeared in a promotional brochure for the 
tournament.775
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    \774\ Senate Fong Depo. at 62-65.
    \775\ Id. at 63; See Exhibit 241.
---------------------------------------------------------------------------
    The Committee notes that the subject of fundraising or 
donations did not come up in the July 1995 meeting between the 
Speaker and Sioeng. In fact, the two had a ``very cordial 
surface'' conversation, and made no mention of political 
contributions.776
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    \776\ Fong Depo, vol. I, at 72-74.
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                             X. Conclusions

    The Committee makes the following conclusions:
          1. Ted Sioeng controls 20 businesses within the 
        United States, most of which are run by his daughter, 
        Jessica Elnitiarta.
          2. Sioeng also owns or controls 16 businesses in 
        seven foreign countries, the vast majority of which are 
        located in the People's Republic of China/Hong Kong and 
        which involve a partnership with the Chinese 
        government.
          3. Sioeng's has close personal, political, and 
        financial ties to high level Chinese officials, 
        including Premier Jiang Zemin, whom Sioeng met in 
        October 1995.
          4. The Senate Campaign Finance Report concluded that 
        $5,000 in political contributions was funded by the PRC 
        consulate. The PRC or its officials may also have 
        funded other contributions which Ted Sioeng, his 
        family, and associates made to American political 
        campaigns, candidates, and pro-PRC groups. However, 28 
        witnesses have refused to talk and the Chinese 
        government refused to cooperate in this investigation 
        to follow the source of money funding Sioeng's Chinese 
        and Hong Kong bank accounts.
          5. Sioeng also has close personal and financial ties 
        to high level officials of the Cambodian government, 
        including the current leader, Hun Sen.
          6. The Sioeng family used foreign money to make 
        improper and/or illegal contributions to a variety of 
        political candidates and campaigns, including the 
        Democratic National Committee; Gary Locke, the Governor 
        of Washington State; Matt Fong, the California State 
        Treasurer; Daniel Wong, former City Council Member and 
        mayor of Ceritos, California; Julia Wu, a member of the 
        Los Angeles Community College District Board of 
        Trustees; and Norman Hsu, a member of the Hacienda-La 
        Peunta School Board in California.
          7. Sioeng also used conduits to make improper and/or 
        illegal contributions to other political candidates and 
        entities, including the Democratic National Committee, 
        Governor Gary Locke, and Trustee Julia Wu.
          8. Neither Gov. Locke nor Treasurer Fong appears to 
        have knowingly accepted improper contributions from 
        Sioeng's, his family and/or business associates. Fong 
        stated that he informed Sioeng of appropriate state 
        laws.
          9. The DNC should return the $400,000 in 
        contributions associated with the Sioeng's family 
        because the donations were directed by a foreign 
        national and/or made using foreign money.
          10. The donations made by Sioeng, his family and 
        business associates provided access to the three 
        highest level officials of the U.S. Government: 
        President Clinton, Vice President Gore, and House 
        Speaker Gingrich. Sioeng used this access to gain 
        influence with foreign government opportunities for 
        himself, and obtain a leadership position in the 
        southern California Asian Community.
    [Supporting documentation follows:]




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