February 15, 1996. A Chinese Long March 3B carrying a $200 million Loral satellite explodes 22 seconds after lilftoff.
March 14, 1996. President Clinton shifts control over regulating the export of communications satellites from the State Dept. which was primarily concerned with national security aspects of such exports, to the Commerce Dept., which is concerned with the economic benefits.
May 10, 1996. The Loral-led review commission investigating the February rocket explosion completes and passes on to Chinese officials its report, which according to the April 13, 1998 New York Times, discusses “sensitive aspects of the rocket’s guidance and control systems, which is an area of weakness in China’s missile programs.” The New York Times says that a Pentagon report concludes that, as a result of this technology transfer, “United States national security has been harmed”.
May 23, 1996. President Clinton calls for renewal of MFN for China, saying that renewal would not be “a referendum on all China’s policies,” but “a vote for America’s interests.”
June 8, 1996. China conducts an underground nuclear test.
July 21, 1996. Johnny Chung, according to the New York Times, brings Liu Chao-ying to two DNC fundraisers, including a $25,000 per couple dinner. Liu Chao-ying is a Lieutenant Colonel in the People’s Liberation Army and an executive at China Aerospace, which owns the Great Wall Industry Corp. that makes Long March rockets. Her father is the top commander of Chinese military forces. The New York Times says that Chung has told the Justice Dept. that Liu gave him the better part of $100,000 he contributed to the DNC in the latter part of 1996, and that the source of the money was the PLA.
July 29, 1996. China declares a moratorium on nuclear testing after conducting another nuclear test.
August 8, 1996. According to AP, Clinton meets again with Long Beach officials to advocate turning over the naval base to COSCO.
September 24, 1996. At the UN, President Clinton joins with the foreign ministers of China, France, Russia and Great Britain in signing the Comprehensive Test Ban Treaty forbidding all testing of nuclear weapons.
November 5, 1996. President Clinton wins reelection. According to the Center for Responsive Politics, the single largest Democratic donor during the election cycle was Loral CEO Bernard Schwartz, who gave $632,000 in ‘soft money’ to the Democratic Party between 1995 and 1996. The State Dept. issues regulations shifting responsibility for satellite launching licenses to the Commerce Dept.
January 1997. The Panamanian government awards the contract to operate the Atlantic and Pacific ports of the Panama Canal to a Hong Kong company, Hutchison Whampoa. China takes control of Hong Kong six months later. The United States, which is set to relinquish control of the canal next year, does not protest.
March 25, 1997. While in Beijing for a meeting with Premier Li Peng and President Jiang Zemin, Vice President Gore attends signing ceremonies for Boeing’s $685 million sale of five jetliners to China’s state-owned Civil Aviation Administration as well as a $1.3 billion joint venture between General Motors and China’s state-owned Shanghai Automotive Industry Corp.
May 1997. According to the April 13, 1998 New York Times, a classified Pentagon report reveals that Hughes and Loral scientists “had turned over expertise that significantly improved the reliability of China’s nuclear missiles” following the February 1996 rocket explosion. Hughes and Loral deny the New York Times report when it is published in 1998.
May 19, 1997. President Clinton announces that he will authorize MFN renewal for China.
October 1997. Chinese President Jiang Zemin makes a state visit to the United States. During the trip, he stops at a Hughes site to discuss satellites.
January 15, 1998. After China promises that it will no longer aid Iran’s nuclear program, President Clinton certifies that China is a reliable partner for nuclear technology exchange.
February 19, 1998. Despite opposition from the Justice Dept, President Clinton signs a waiver approving the launch of a Loral satellite from a Chinese rocket and reportedly authorizing the transfer of the same type of technology that the Pentagon said had “harmed” US security and that the Justice Dept. was investigation Loral and Hughes for their illegally transferring in 1996.
