1998 Congressional Hearings
Special Weapons
Nuclear, Chemical, Biological and Missile


Statement of Chairman Jim Saxton
Joint Economic Committee

Tuesday, April 28, 1998

"Chinese Access to Dual Use and Military Technology"


      Good morning ladies and gentlemen.

      This hearing today is about the People's Republic of China's access to dual use and military technology.

      This hearing will consist of two panels. The first panel will be the Administration's perspective.

      To give us the Administration's position is Mr. William Reinsch--Under Secretary for Bureau of Export Administration, Department of Commerce.

      Back in June of 1997, I contacted the General Accounting Office (GAO) and asked them to investigate high-tech transfers of a dual use and military nature to China. The GAO concluded its eight-month investigation into the effectiveness of Tiananmen sanctions restricting technology transfer. The Committee will hear about the Loral Space and Communications case, which is described in a Pentagon finding as increasing the accuracy and reliability of Chinese missiles because of corporate assistance from Loral and Hughes Electronics. The Committee will also hear about the McDonnell Douglas case in which sophisticated equipment was sold to China.

      I am very pleased that the GAO has concluded the initial phase of that investigation, and Mr. Harold Johnson, Associate Director of the International Relations and Trade Group, is here this morning to give us an update.

      Dr. Peter Leitner, the author of "Decontrolling Strategic Technologies" also testified before the Committee last year, and it was a fascinating testimony. Upon hearing about Dr. Leitner's article on supercomputers, I asked him to testify before the Committee again.

      Mr. Johnson, I'd just like to say that the thoroughness, competence and professionalism of your staff is of the highest caliber in my opinion and you are to be commended. Welcome to you both.

      Mr. Reinsch we will now hear your testimony and then ask you a few questions.

      Please begin.