DATE=5/7/99
TYPE=BACKGROUND REPORT
NUMBER=5-43338
TITLE=CONGRESS-CHINA SATELLITES
BYLINE=PAULA WOLFSON
DATELINE=CAPITOL HILL
CONTENT=
VOICED AT: 

INTRO:  A CONGRESSIONAL PANEL SAYS AMERICAN SATELLITE FIRMS 
INADVERTENTLY HELPED CHINA'S MISSILE PROGRAM.  IN A FINAL REPORT 
WRAPPING UP A YEAR-LONG INQUIRY, THE SENATE INTELLIGENCE 
COMMITTEE SAYS THE RISK TO U-S NATIONAL SECURITY IS REAL, AND 
THERE IS PLENTY OF BLAME TO GO AROUND -- FROM WASHINGTON TO 
BEIJING TO THE BOARDROOMS OF CORPORATE AMERICA.  V-O-A'S PAULA 
WOLFSON REPORTS FROM CAPITOL HILL.

TEXT:  IT'S A COMPLEX STORY.  AND THE SENATE INTELLIGENCE 
COMMITTEE FOUND  NO  EASY ANSWERS.  LAST MAY, THE PANEL BEGAN AN 
INQUIRY INTO REPORTS CHINA GLEANED IMPORTANT MISSILE TECHNOLOGY 
FROM U-S FIRMS.   THESE COMPANIES GOT GOVERNMENT EXPORT LICENSES 
TO LAUNCH SATELLITES ON CHINESE ROCKETS.  WHEN THE ROCKETS 
FAILED, THEY SENT ENGINEERS TO CHINA TO IMPROVE LAUNCH 
RELIABILITY.

THE PROBLEM IS, THE TECHNOLOGY THAT POWERS THESE ROCKETS CAN HAVE
MILITARY APPLICATIONS..

                    /// SHELBY TEASE ACT ///

         THERE IS  NO  DOUBT, IN MY MIND, THAT U-S MISSILE 
         TECHNOLOGY WAS INDEED TRANSFERRED TO CHINA.

                         /// END ACT ///

ALABAMA REPUBLICAN RICHARD SHELBY CHAIRS THE INTELLIGENCE 
COMMITTEE.

                       /// SHELBY ACT ///

         THIS TRANSFER GAVE CHINA THE CAPABILITY TO IMPROVE ITS 
         PRESENT AND FUTURE SPACE LAUNCH VEHICLES, ITS I-C-B-MS 
         (LONG RANGE MISSILES), AND OTHER MILITARY BALLISTIC 
         MISSILES.

                         /// END ACT ///

SIXTEEN OF THE SEVENTEEN COMMITTEE MEMBERS PUT THEIR NAMES ON THE
COMMITTEE'S FINAL REPORT ON THE SATELLITE CONTROVERSY.   IT WAS A
RARE SHOW OF BIPARTISANSHIP IN A CONGRESS WHERE DEBATE ON CHINA 
IS USUALLY POLITICALLY CHARGED.

THE REPORT IS SHARPLY CRITICAL OF PRESIDENT CLINTON AND HIS 
PREDECESSOR, REPUBLICAN GEORGE BUSH.   IT SAYS SINCE 1989, THERE 
HAS BEEN LAX ENFORCEMENT OF EXPORT CONTROLS DESIGNED TO KEEP 
FOREIGN GOVERNMENTS FROM GETTING SENSITIVE U-S TECHNOLOGY.

NEBRASKA SENATOR BOB KERREY IS THE TOP DEMOCRAT ON THE PANEL.  HE
SAYS THE EXPORT-LICENSE PROGRAM MUST BE REVIEWED AND MONITORING 
MUST BE STRENGTHENED.

                       /// KERREY ACT ///

         IT'S A VERY SERIOUS BREACH OF SECURITY THAT WE HAVE 
         IDENTIFIED IN THIS REPORT.  WE ARE HOPEFUL THAT WE CAN, 
         IN A CONSTRUCTIVE FASHION, CLOSE THE GAPS THAT WE HAVE 
         IN OUR SECURITY

                         /// END ACT ///

MR. KERREY SAYS THE INTERESTS OF THE BUSINESS COMMUNITY HAVE 
TAKEN PRECEDENCE OVER NATIONAL SECURITY.    HE SAYS CONGRESS CAN 
MAKE RECOMMENDATIONS AND PASS LAWS, BUT THE ULTIMATE FATE OF THE 
PROGRAM RESTS WITH THE WHITE HOUSE.

                       /// KERREY ACT ///

         IF THE PEOPLE AT THE TOP AND THE PRESIDENT DON'T 
         UNDERSTAND THIS RISK AND DON'T SAY "THERE MAY COME A 
         TIME WHEN WE ARE GOING TO SAY 'NO' TO A COMMERCIAL 
         INTEREST BECAUSE A NATIONAL SECURITY CONCERN DOMINATES,"
         THEN  NO  MATTER WHAT WE DO WITH LAWS AND RESOURCES IT 
         IS LIKELY MISTAKES ARE GOING TO BE MADE THAT INCREASE 
         THE RISK AND DECREASE THE SECURITY OF THE PEOPLE OF 
         AMERICA.  

                       /////END ACT///////

THE REPORT ALSO POINTS TO LOBBYING BY AMERICAN COMMUNICATIONS 
FIRMS.  IT SAYS CHINA PUT PRESSURE ON SATELLITE COMPANIES, URGING
THEM TO DEMAND FEWER EXPORT RESTRICTIONS, AND WARNING THEIR 
ACCESS TO THE LUCRATIVE CHINESE MARKET COULD BE LIMITED.  IT SAYS
THE COMPANIES THEN CAMPAIGNED FOR CHANGES IN EXPORT POLICY.

THE SENATE INVESTIGATORS SAY THE EVIDENCE IS LESS CONCLUSIVE 
REGARDING CHINESE EFFORTS TO DIRECTLY AFFECT U-S POLICY THROUGH 
CAMPAIGN CONTRIBUTIONS. (OPT) BUT SENATOR SHELBY SAYS HE IS STILL
WORRIED.

                       ////SHELBY ACT////

         THE P-R-C TRIED TO INFLUENCE OUR POLICY AND POLITICS BY 
         COVERT CAMPAIGN CONTRIBUTIONS.  THERE CAN BE NO DOUBT 
         ABOUT IT.  THERE IS VERY LITTLE INTELLIGENCE INFORMATION
         ON WHICH TO BASE A CONCLUSION AS TO THE DEPTH AND 
         BREADTH OF THIS EFFORT.   IT IS, HOWEVER, VERY 
         DISTURBING TO A LOT OF US.

                   /////END ACT (END OPT) ///

THE SATELLITE AND CAMPAIGN CONTRIBUTION CONTROVERSIES COMPRISED 
THE FIRST PHASE OF THE SENATE INTELLIGENCE COMMITTEE'S 
INVESTIGATION. THE PANEL IS NOW LOOKING INTO ALLEGATIONS OF 
CHINESE NUCLEAR ESPIONAGE.  (SIGNED) 

NEB/PW/LTD/KL/WTW

07-May-99 2:56 PM EDT (1856 UTC)
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Source: Voice of America
.