DATE=1/7/99
TYPE=CORRESPONDENT REPORT
NUMBER=2-243907
TITLE=CHINA-TECHNOLOGY THEFTS (L-ONLY)
BYLINE=GIL BUTLER
DATELINE=WASHINGTON
CONTENT=
VOICED AT: 

INTRO:  CHINESE OFFICIALS IN BEIJING AND WASHINGTON HAVE REPEATED
DENIALS THAT CHINA HAS TRIED TO ACQUIRE SENSITIVE AMERICAN 
WEAPONS AND ROCKET TECHNOLOGY.  V-O-A'S GIL BUTLER REPORTS FROM 
WASHINGTON, THE CHINESE EMBASSY CAUTIONS THAT SUCH ALLEGATIONS 
COULD HARM BILATERAL TRADE.

TEXT:  IN BEIJING, A FOREIGN MINISTRY SPOKESMAN CALLED A U-S 
CONGRESSIONAL REPORT ON ALLEGED CHINESE EFFORTS TO ACQUIRE 
SENSITIVE TECHNOLOGY "IRRESPONSIBLE," AND SAID CONGRESSMEN WHO 
MAKE SUCH CHARGES ARE OBSESSED WITH A COLD WAR MENTALITY.

THE CHINESE SPOKESMAN WAS REFERRING TO A 700-PAGE CONGRESSIONAL 
REPORT THAT REPORTEDLY CONCLUDES HE CHINESE HAVE STOLEN SOME OF 
AMERICA'S MOST SENSITIVE MILITARY INFORMATION OVER A 20-YEAR 
PERIOD.  THE COMMITTEE REPORT WAS SPARKED BY ALLEGATIONS THAT 
CHINA HAS GOTTEN AMERICAN TECHNOLOGY BY LAUNCHING SATELLITES FOR 
U-S COMPANIES.

THE REPORT HAS  NOT  BEEN MADE PUBLIC, BUT REPRESENTATIVE 
CHRISTOPHER COX, THE COMMITTEE CHAIRMAN, SAYS THERE  WAS  
NATIONAL SECURITY HARM TO AMERICA FROM THE TECHNOLOGY 
ACQUISITIONS.

HERE IN WASHINGTON, THE CHINESE EMBASSY HELD A NEWS CONFERENCE TO
REFUTE WHAT IS KNOWN ABOUT THE REPORT.

MINISTER COUNSELOR HE YAFEI BASICALLY ARGUED THAT CHINA HAS 
DEVELOPED MISSILE AND NUCLEAR TECHNOLOGY ON ITS OWN, AND SO 
DOESN'T NEED TO STEAL U-S SECRETS.   HE CAUTIONED THAT THE COX 
REPORT COULD HAVE A NEGATIVE EFFECT ON AMERICAN TECHNOLOGY SALES 
TO CHINA. 

                         /// HE ACT ///

         THE ATMOSPHERE IS CERTAINLY  NOT  GOOD NOW.  THE COX 
         REPORT HAS HAD CERTAIN EFFECTS.  THE SATELLITE 
         MANUFACTURERS IN THE UNITED STATES ARE RATHER MORE TIMID
         NOW.

                         /// END ACT ///

MR. HE DESCRIBED HIS COMMENTS AS PRELIMINARY, AND SAID CHINA WILL
HAVE MORE TO SAY WHEN THE COX REPORT IS MADE PUBLIC.

                        /// REST OPT ///

IN ANOTHER DEVELOPMENT, THE WALL STREET JOURNAL (NEWSPAPER) 
REPORTED THURSDAY THAT IN THE MID-1980'S, CHINA GOT DESIGN 
INFORMATION ON AN ADVANCED AMERICAN NUCLEAR WARHEAD FROM A 
DEPARTMENT OF ENERGY LABORATORY. 

A DEPARTMENT OF ENERGY OFFICIAL DID  NOT  COMMENT DIRECTLY ON THE
NEWSPAPER REPORT, BUT SAID THE DEPARTMENT HAS TAKEN MEASURES TO 
ENSURE WHAT HE CALLS A STRONG COUNTER-INTELLIGENCE PROGRAM.  
COUNTER-INTELLIGENCE DIRECTOR EDWARD CURRAN SAYS THE ENERGY 
DEPARTMENT WILL ALWAYS BE A TARGET FOR FOREIGN INTELLIGENCE 
SERVICES, BECAUSE OF ITS ADVANCED RESEARCH AND DEVELOPMENT 
ACTIVITIES.   (SIGNED)

NEB/MGB/WTW



07-Jan-99 4:00 PM EST (2100 UTC)
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Source: Voice of America
.