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05-20-1999, 05:25 AM
<b><font size=5>Cox panel findings frighten senators</b></font>

<p>

By Nancy E. Roman<br>

THE WASHINGTON TIMES<br><br>

May 20, 1999 <p>

<p>

A House special committee and the Clinton administration

have resolved most of their differences over release of a

long-awaited report on technology transfers to China, clearing

the way for it to be released to the public within the next few

days.

<p>

"The report will be amply illuminating," said Rep.

Christopher Cox, California Republican, chairman of the

U.S.-Chinese national security committee that put together the

report. "No nation has succeeded in stealing so much."

Mr. Cox said that disputes over what material to "redact,"

or censor, have been winnowed from the hundreds to "just a

handful," and that the public will see only 70 percent of the

committee's findings. The rest will remain classified to avoid

revealing damaging information about U.S. intelligence

methods. Some Republicans have said the White House also

wants to eliminate language that would be politically damaging

as well.<br>

But 70 percent will be enough, Mr. Cox said. Sen. Conrad

Burns, Montana Republican and one of 15 senators who were

briefed on the report by Mr. Cox, emerged with a one-word

description of it: "Scary."<br>

Mr. Cox said that news accounts of what is in the report --

based on information "leaked by others" --have

-- Continued from Front Page --

made headlines that merely tease.<br>

"The report will explain the story behind the headlines," he

said. The document will be posted on the Internet at the

address <A HREF="http://www.house.gov">www.House.gov</a>.<br>

Most of the information that has leaked out has related to

nuclear warheads and China's nuclear capability. Mr. Cox said

the report, which is divided into 11 chapters, also includes

sections on:

<p>

<li>Supercomputer technology.

<li>Stealth technology.

<li>The manufacture of stealth airplanes.

<li>China's acquisition of U.S. technology.



<p>

Mr. Cox met last night with Rep. Norm Dicks, ranking

Democrat on the committee, to discuss the few remaining

disputes over what sections of the report to censor.<br>

The committee has wrangled with the White House since

Jan. 1 over which sections to release. The White House argued

that most of the report was too sensitive to make public.<br>

Members of the committee have said most of the findings

should be released to the public.<br>

Congress set up the special committee last fall after reports

circulated suggesting the Clinton administration was granting

waivers for the transfer of technology that could enhance

China's nuclear capability.<br>

Loral Space & Communications Ltd. requested a waiver in

February 1998 to transfer satellite technology to China. The

Justice Department recommended against it, saying Loral

already had transferred technology to improve the accuracy of

intercontinental ballistic missiles that could be targeting the

United States.<br>

But the administration approved the waiver anyway.<br>

Mr. Cox said his committee will look at the Justice, State

and Commerce departments and the positions they took on the

proposed transfer. He said then that the committee would also

examine reported political contributions from Lt. Col. Liu

Chaoying, vice president of the Beijing-backed China

Aerospace International Holdings Ltd.<br>

Democratic fund-raiser Johnny Chung has said he received

$300,000 from Col. Liu, a lieutenant colonel in the Chinese

military and the daughter of a member of the Politburo. She has

denied making the contribution.<br>

Members of Congress who are eager to trade with China

fear that Chinese espionage and the findings of what China has

managed to acquire through legal technology transfers might

dampen enthusiasm for trade with Beijing.<br>

A struggle erupts annually in Congress over whether to

extend favorable trading conditions. The United States is also

negotiating with China over its admission to the World Trade

Organization (WTO).<br>

Mr. Cox does not expect negotiations over WTO

membership to be affected by the findings of the report -- at

least "not directly."<br>

But he said the committee recommends that the bilateral

relationship "be made more sturdy."