SECTION: BEHIND THE TREASON ALLEGATIONS SUBSECTION: NATIONAL SECURITY PAKISTAN Revised 1/8/01 GENERAL RECENT ACTIVITY GENERAL Clinton permitted the sale of satellite and missile technology to China. China provided nuclear assistance to Pakistan and Iran. That prompted India to boost its nuclear weapons program. And today Pakistan is once again upping the ante. "China has had a major hand in what happened today," said R. James Woolsey, former CIA director. Transfers: nuclear weapons design information, ring magnets, M-11 short-range missiles and equipment used in setting up a missile production facility, expertise, industrial furnace and high-tech diagnostic equipment with military applications. India has said that its nuclear tests were conducted in response to threats posed by China. China stepped up military cooperation with Pakistan in 1995 in retaliation for the United States' allowing Taiwan's president, Lee Teng-hui, to visit Cornell University. Lanny Davis, Clinton's chief spokesman during the campaign finance investigations is now serving as a foreign agent for Pakistan, representing the Islamabad government at a time when White House officials are making key decisions on how to address the threat of a nuclear arms buildup between Pakistan and India. As of June 16th, 1998 he had not registered with the Justice Department as a foreign agent. 1/21/93 President's instructions to staff requires all senior appointees to pledge they will refrain from:."Lobbying during the five years after they leave government any agency where they have served or which they have had any responsibility for as a member of the White House staff; . Engaging in any activity on behalf of any foreign government at any time after they leave government service;.Representing any foreign government or foreign corporation in any way within five years of being involved in a trade negotiation on behalf of the U.S. government" v Lanny Davis/Pakistan Mark Middleton/Asian business interests, and Webster Hubbell/Lippo Congressional Record 8/7/98 Rep Rohrabacher ".I disclosed information that indicated that American aerospace firms, with the acquiescence of officials in the Clinton administration, and perhaps the President himself, had facilitated the transfer of sophisticated rocket technology to the Communist Chinese.First and foremost, since my first address, nothing has emerged that suggests that my original statements were inaccurateâ€¦ The document is from a leadership document of the Communist Chinese themselves. It was released last week. This white paper details China's own goals. It calls the United States and its alliance with democratic countries in Asia as `the main threat to world peace and stability.'â€¦China is also staking out its claim to all the territories in the South China Sea, including islands just off the coast of the Philippines, almost within view of the Philippines and Malaysia as well.. In this, China, while cozying up to this dictatorship, actually supporting the dictatorship in Burma, is building a chain of military naval installations in Burma along the Indian Ocean that, in part, have lead India, have lead India to become more aggressive in developing its own conventional and nuclear weapons policies. While China was assuring the world that it was against this nuclear arms race, and we have seen that in Pakistan and in India and what a threat it is, but while China says it is against that arms race, what has it done? It continues to ship and to smuggle components to Pakistan for their nuclear weapons program and their missile delivery systems. This is really, perhaps, the thing that China is doing that perhaps causes a short-term threat, even greater than the long-term threat of their own missiles. If Pakistan and India began exchanging rockets and atomic bombs, millions of people will die, and it will be a tragedy beyond all description. China is helping people put these weapon systems togetherâ€¦..." RECENT ACTIVITY On June 4, 1998 - the Nihon Keizai Shimbun - a financial daily - reported that North Korea may have at least one nuclear bomb. The daily also quoted a report saying that the nuclear tests by India and Pakistan might tempt North Korea to resume its nuclear program. Pakistan and North Korea have close ties. China and Pakistan have close ties. The U.S. Customs Service has opened an investigation into the sale of super computer upgrades to India by IBM, in violation of US export laws. U.S. law requires an American company to obtain an export license before selling and shipping overseas any computer that performs more than 2 billion operations per second. The computer that was sold operated at 1.4 billion operations per second when installed in 1994. The Clinton Commerce Department oddly granted a license for the sale of the sensitive computer, despite knowledge the buyer was a missile site. IBM then upgraded it in March 1997 to perform 3.2 billion operations per second and again in June 1997 to 5.8 billion, making it possibly the most powerful computer in India. Former UN Ambassador Jeane Kirkpatrick noted that the danger of nuclear war is "greater now than any time since Hiroshima.." and that President Clinton takes a "see no evil, speak no evil, hear no evil" attitude toward nuclear proliferation. According to a Pakistan news source, the nuclear blast has "created new and interesting opportunities for the country to embark upon a major foreign policy initiative in the Middle East and particularly among the Gulf states. The growing Indo-Israeli relations can go a long way in making through to the circles concerned the real Indian designs in this region..It could mean Pakistan exports to the region rising and could also mean more Pakistani manpower in the region." A recently retired CIA top intelligence officer, Gordon Oehler told the Senate Foreign Relations Committee in June 1998 that the CIA was ``virtually certain'' that China transferred 34 intermediate-range missiles to Pakistan from 1992 to 1996, and that China also assisted Pakistan in developing its nuclear weapons. He said that although China promised reforms, it was still "a major proliferator." He further identified the National Security Council for dismissing the CIA evidence as preliminary or incomplete to avoid triggering sanctions. He also said the CIA was pleased with the 1996 decision to move U.S. satellite decisions to Commerce since the CIA then had a chance to review the licenses. The June 15th, 1998 article from Economic Times (India) reveals a clear sense of betrayal: "THOSE gullible people who ask what is the threat from China should now wake up after President Clinton's statement: ``Because of its history with both countries, China must be a part of any ultimate resolution of this matter''. This was with reference to India and Pakistan resolving their differences, including Kashmir, through dialogue. In other words, President Clinton was clearly signalling that from now onwards South Asia will, in the US view, be the Chinese sphere of influence and China will be the hegemonistic power of this part of the world as the US is over Latin America and Europe. This is the first time the US President has come out openly to advance China's hegemonic interests. In fact, the Indian nuclear tests were meant to block that contingency." North Korea publicly revealed for the first time on Tuesday that it was selling missiles and demanded that the United States pay compensation if it wanted the arms exports to stop. Defense analysts said Pakistan, Iran, Iraq and Syria are among countries which have received the missiles. Maheshwar Singh Deo and his associates were arrested June 14 1998 for uranium smuggling at Salanpur and Raghunathpur in West Bengal in a deal trading heroin for uranium, a component of a nuclear bomb. The uranium seized was in a satchel stamped with the Ashoka Pillar and the official stamp of the Jaduguda Mines and embossed on it was the word 'isoltope-238'. Continuing to express a feeling of betrayal, India's defense minister said 6/18/98 that President Clinton should explain why the United States believes that it can "trust China with nuclear weapons" while imposing economic sanctions on India for seeking a nuclear de The Heritage Foundation 6/19/98: China has provided Islamabad with ``highly enriched uranium, ring magnets necessary for processing the uranium and education for nuclear engineers. Pakistan's nuclear bomb is widely believed to be based on Chinese blueprints.'' In 1990 and 1992, China provided Pakistan with nuclear-capable M-11 missiles'' and also the technology for Islamabad ``to build a missile that could strike targets within a 360-mile (576-km) range.'' The memo clearly noted that ``China's deep involvement with Pakistan's nuclear programme contributed to the new Indian government's decision to test nuclear weapons last month.'' The U.S. Commerce Department approved exports of American nuclear technology (from high speed computers to radiation warning badges) to India over the last few years despite Pentagon objections (September 14, 1995): "The provision of such technology serves to undercut international and U.S. counter-proliferation policies.'' India plans, with help from Russia, to build its first nuclear powered submarine by 2004 and arm it with Sagarika nuclear warhead missiles - estimated by 2005 On 6/27/98 - in a prompt, strongly-worded reaction, India rejected the US-China joint statement on South Asia, saying the approach was reflective of "hegemonistic mentality" of a bygone era in international relations that was completely unacceptable and out of place in the present day world. Iftikhar Chaudhry Khan, 29, a Pakistani nuclear scientist fled to the US because he felt his country was considering a first nuclear strike against India. Four associates also concerned are believed to be in England. Pakastani Foreign Minister Gohar Ayub Khab said that this man is an impostor. A person of that name worked for the Pakistan Atomic Energy Agency (PAEC) in 1980 - but this man is 29. He also said the other 4 were impostors. 7/6/98 Charles R. Smith softwar "Last month U.S. intelligence sources revealed that a Chinese freighter, bound for Pakistan, contained a load of anti-tank missiles. However, recent information published in the Pakistan Observer on June 23, 1998 asserts that China also transferred a large number of depleted uranium tank shells designed for the Pakistani armored forces. .The new systems were supplied by a Chinese arms company, NORINCO, which is owned by the Chinese army General staff. NORINCO has it's headquarters in Islamabad. NORINCO is one of several companies owned by the PLA. One of NORINCO's brother companies, Poly Technologies, had it's CEO, Wang Jun, in the White House along with Charlie Trie. President Clinton had his picture taken with Jun. Trie made a large donation which was later returned by the DNC as tainted. A U.S. Poly Technologies facility was later raided on the west coast by the BATF. The raid netted 2,000 automatic AK-47 rifles.." China Today 7/10/98 "China urged India on Thursday to halt its nuclear weapons program and sign two major global nuclear weapons control pacts. ."The most urgent task for India is to immediately abandon its nuclear program and sign the CTBT (Comprehensive Test Ban Treaty) and the NPT (Non-Proliferation Treaty) unconditionally and as soon as possible," Foreign Ministry spokesman Tang Guoqiang told a news conference..Tang was responding to a reporter's question regarding a report that India had offered to sign a nuclear weapons no-first-use pact with China. .." DAWN 7/10/98 Pakistan "US Secretary of State Madeleine Albright said on Thursday that it was not right to blame China for Pakistan's nuclear programme as it stemmed from the dispute with India over Kashmir and from India's nuclear programme. She told the senate's finance committee that China had played a significant and helpful role in trying to move India and Pakistan back from the brink of a nuclear arms race. The Hindu 7/8/98 "The United States has given Chinese companies the green light to sell missile technology to countries like Pakistan and Iran, Mr. Gary Milhollin, a nuclear expert, has testified before a U.S. parliamentary committee.Officials here said the American nuclear expert's testimony confirmed India's concerns of Washington pursuing a policy of duplicity on the issue of nuclear non-proliferation.." London Telegraph 7/11/98 Hugo Gurdon "The economic sanctions imposed on India and Pakistan to punish them for their nuclear weapons tests collapsed yesterday after the US Senate voted to resume farm exports. Only two months after President Clinton expressed "grave displeasure" over the 11 underground tests, he has backed legislation ending restrictions on the bulk of American trade with the two states. At the same time, the World Bank has resumed aid to India, with his blessing. The about-turn has taken place even faster than predicted by sceptics, who said a mild slap on the wrist was the worst that India and Pakistan need fear." Hindustan Times 7/13/98 "The United States Senate's legislation exempting the US farm credit programmes from the purview of the economic sanctions against India and Pakistan is more aimed at bailing out the crisis-ridden Pakistan economy and taking care of the immediate interests of the US farm lobby rather than giving any real benefit to India..The fact that as high a member of the government as the US Commerce Secretary himself is talking against mandatory sanctions speaks eloquently of the acute embarrassment being faced by the Clinton Administration on this issue." 7/13/98 Hindustan Times/Indian Express "Palestinian president Yasser Arafat today supported Pakistan's nuclear-tests saying if Israel possesses nuclear weapons then why Pakistan cannot have the nuclear capability. Addressing mediapersons at Islamabad airport during his brief stopover before leaving for Beijing, Arafat said Arab and Muslim countries backed Pakistan for its nuclear tests. There was a very positive and strong reaction from the Muslim world to Pakistan's nuclear tests, he added.." Nando.net 7/13/98 "The Clinton administration asked Congress on Monday for authority to waive the economic sanctions just imposed on India and Pakistan, saying it would give the United States more leverage in slowing the arms race in South Asia. "Our purpose is not to punish for punishment's sake, but to influence the behavior of both governments," Karl F. Inderfurth, assistant secretary of state for South Asian affairs, told a Senate hearing.." 7/16/98 Far East Economic Review Ahmed Rashid ".On June 24, Deputy Treasury Secretary Lawrence Summers received an urgent call from a senior IMF official whose message was simple but stark: Pakistan was likely to default on its foreign debt before the end of July. If the U.S. was interested in organizing a bailout for Islamabad, it had better move fast. ." 7/17/98 Hindustan Times (from N. C. Menon) "State Department spokesman James Rubin yesterday confirmed that India's Atomic Energy Commission Chairman Dr Chidambaram had applied on June 29 for a visa to attend a scientific conference in Atlanta, and his passport and application fee had been returned to him on July 9 on the ground that current visa procedures were under review as a result of the May nuclear tests by India and Pakistan. "This isn't technically a refusal," Rubin insisted. "We told them it was under review. He hasn't persisted in his effort," he added." WorldNetDaily Charles Smith 8/4/98 "New documents from the files of Ron Brown reveal that secure satellite communications systems, super-computers and even turbine engines for the most advanced U.S. ARMY helicopters were sold to India. The documents provide detailed information on advanced U.S.military technology sold during the 1994 Brown trade mission to India. The newly released information was obtained from the U.S. Commerce Department using the Freedom of Information Act. The January 1995 Commerce Dept. document, titled "OGC (Office of the General Counsel) Summary of India Trade Mission Deliverables" provides information on advanced technology sales to India. In 1994, the U.S. Commerce Department authorized Allied Signal -- Allison Engine Company -- to sell T800 Comanche turbine engines to Hindustan Aeronautics Ltd. (HAL) for a mere $35 million dollars. The turbine engines were slated for India's Advanced Light Helicopter. The U.S. Army did not get the T800 until two years AFTER the engine was exported to India. .. Furthermore, advanced U.S. telecommunications helped India conceal the 1998 A-bomb tests from the prying eyes of U.S. intelligence.. In 1998, however, India successfully used advanced satellite communications purchased through the Brown Commerce Department with encryption security to mask their A-bomb activity. CIA officials were blocked from listening in on Indian A-bomb peparations and were caught unaware by the blasts. . " Electronic Telegraph 8/9/98 Julian West "SHELLING along the 450-mile Line of Control dividing Indian and Pakistani Kashmir has increased fears that the region is heading for all-out war. Given that both India and Pakistan have recently tested nuclear devices, the conflict could be catastrophic. Two of India and Pakistan's three wars have been fought over Kashmir. The present border bombardment, which locals describe as heavier than that during the entire 1948 and 1965 wars put together, has seen an estimated 50,000 rounds of ammunition expended so far, and heavy artillery used for the first time.." Deccan Herald (Press Trust of India) 9/8/98 "In an acknowledgment of India`s security concerns, a US government-owned defence institute has said Washington failed to stop technology and weapons of mass destruction-related traffic between China and Pakistan, an issue repeatedly conveyed to Clinton administration by New Delhi. These were some of the strongest arguments India had advanced for its need to carry out nuclear explosions, but the Clinton administration did not accept them, the in- house think tank on defence issues, the national defence university`s institute for national strategic studies said in its ''strategic assessment 1998.`` .." AP K.N. Arun "In exchange for signing a nuclear test ban treaty, India wants the nuclear energy technology that it has been denied because the material also has military uses, the prime minister said today. Atal Bihari Vajpayee's comments to reporters confirmed speculation that ongoing talks about the treaty with U.S. officials involve opening the flow of nuclear technology to India." Indian Express Press Trust of India 10/2/98 "China has transferred M-11 missiles to Pakistan and poses a threat to the United States as a significant proliferator of weapons of mass destruction, according to a high-powered U.S. Congressional commission. The commission, in its report, notes that China has supplied Pakistan with "a design for a nuclear weapon and additional nuclear weapons assistance. It has even transferred complete ballistic missile systems to Pakistan (the 350-km range M-11) and Saudi Arabia (the 3,100-km range CSS-2)." Stating that "China poses a threat to the U.S. as a significant proliferator of ballistic missiles, weapons of mass destruction (WMD) and enabling technologies," the commission headed by former defence secretary Donald Rumsfeld and including America's top missile and intelligence experts, said the ballistic missiles armed with wmd payloads "pose a strategic threat to the U.S." PTI report.." StratFor Intelligence Briefing 10/13/98 "At a news conference in Delhi on October 10, the leader of the regional All-India Anna Dravida Munnetra Khazagham (AIADMK), Jayaram Jayalalitha, warned that some 200 Afghan-trained supporters of Osama Bin Laden were "roaming" in Tamil Nadu and other southern Indian states. Jayalalitha claimed that Bin Laden's agents might have been responsible for bombings in the city of Coimbatore on the eve of parliamentary elections, earlier this year. She said that suspicions that Bin Laden may be active in India were reinforced following the recent arrest and interrogation of a Moslem terrorist in Hyderabad. The prisoner reportedly confessed that he had received six months' training in Afghanistan, and that Bin Laden himself had been in Hyderabad recently. ...As such, Moslem militants trained by the Taleban and, allegedly, by Bin Laden have begun to appear in the disputed Kashmir and in China's Xinjiang region. As Bin Laden begins to recover, not from the U.S. missile attacks, but from the damage done to his operations by the capture and interrogation of several of his associates, the question is, where will he strike next? His operational foray into India, with Pakistani blessings, provides not only a new set of targets but also a new jumping-off point for actions in Asia and beyond..To begin with, while it has been partially exposed, Bin Laden already has a network in Southeast Asia. He has followers in Malaysia, where he also banks a portion of his money, and in the Philippines, where he finances the Abu Sayyaf terrorist organization and other Moslem militant groups both directly and through Islamic charitable associations. " The Hindu 11/8/98 Amit Baruah ".The U.S. President, Mr. Bill Clinton, today wrote a letter to the Pakistani Prime Minister, Mr. Nawaz Sharif, informing him of the American decision to lift some sanctions against Islamabad. In his letter, Mr. Clinton stated that he intends to ``lift restrictions on private U.S. bank lending and to authorise the Overseas Private Investment Corporation (OPIC), U.S. Export-Import Bank and the Trade and Development Agency to resume financial and commercial activities in Pakistan''. A Pakistani release said the U.S. would also exercise its influence with international financial institutions to meet Pakistan's economic difficulties. ``The United States will also work with the international community to permit lending from the multilateral development banks to support an emergency agreement negotiated between Pakistan and the International Monetary Fund.'' ." Newsday 11/12/98 Charles Hutzler AP ".Washington suspects China may have transferred missile technology to Iran and Pakistan despite Chinese pledges to strengthen missile export controls, a U.S. official said today. U.S. concerns about possible transfers were aired during a day and a half of meetings between senior Chinese and American arms-control negotiators, the official said, speaking on condition of anonymity. Undersecretary of State John Holum, who led the U.S. team, said he and Chinese Foreign Minister Tang Jiaxuan and senior military commander Gen. Zhang Wannian also discussed North Korea's threatening launch of a rocket over Japan in late August. Suspicions of Chinese nuclear and missile proliferation have been a constant irritant in U.S.-China relations. The potential dangers crystallized this spring with South Asia's nuclear arms race. Within two months, Pakistan, China's staunch ally, tested a ballistic missile and exploded a nuclear bomb.Washington also determined that Pakistan received North Korean, not Chinese, help in developing the Ghauri missile launched in April, he said.."