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China Reform Monitor, No. 84, June 15, 1998
American Foreign Policy Council, Washington, D.C.

NSC Documents, CIA Official Show White House Ignored China Missile Transfers; US Intelligence Reports Chinese Military Uses American-made Civilian Satellites

June 7

A US Air Force intelligence assessment concluded that a 1996 report given to Beijing by US satellite builders, including Loral Corporation, provided rocket guidance improvements that could be used in every Chinese military missile system, Newsday reports.

June 11

The US General Accounting Office (GAO) reported to the Congress that the recent policy change that gave the Commerce Department total control over licensing commercial satellite exports weakened Pentagon safeguards to prevent countries like China from obtaining missile know-how, reports the Washington Times. "Defense's power to influence the decision-making process has diminished" since the rule change, testified GAO defense specialist Katherine Schinasi at a Senate Intelligence Committee hearing. Under the new rules, Commerce is not required to impose security safeguards as a condition for giving a company a satellite export license.

The Washington Post cites declassified White House documents showing that since 1993, despite clear evidence that China had sold ballistic missile parts to Pakistan, President Clinton has waived through every proposal for US satellite exports to China.

June 12

The former director of the CIA's Nonproliferation Center told the Senate Foreign Relations Committee that the Clinton Administration ignored evidence that China violated a missile export agreement by shipping M-11 missiles to Pakistan, the Washington Times reports. Gordon Oehler stated that administration policy makers used "almost any measure" to block intelligence judgments confirming the missile transfers, which would have required economic sanction to be imposed on China under US nonproliferation laws, including on the sale of satellites.

President Clinton recently told religious leaders that US sanctions laws caused his administration to "fudge" the facts of Chinese proliferation or human rights violations to avoid the penalties. "Nowhere has this fudging of the facts been more clearly manifested than with respect to China's missile proliferation," said Foreign Relations Committee chairman, Senator Jesse Helms.

June 13

According to highly classified US intelligence reports, for the past two years China's military has relied on American-made satellites sold for civilian purposes for military communications, the New York Times reports. The intelligence reports were recounted last year in a document compiled last year by the Pentagon and sent to hundreds of senior policy-makers at the White House, State Department and other agencies. The document - distributed a few months before Clinton approved the latest sale of an American commercial satellite to China - states that China's army is making extensive use of American-made satellites to transmit its coded messages.

The White House has justified its satellite sales to China on grounds that they are used solely for civilian purposes. The Times adds, the reports are the most powerful evidence to date that the Clinton administration knew that China's army has taken advantage of White House decisions to encourage sales of satellites to Chinese companies, including Hong Kong companies with ties to China's government and military.

--Al Santoli



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