1999: Clinton Admin Knew/Facilitated China Military Theft

 Wen Ho Lee

Related reading: 2015, FBI Arrests Chinese Millionaire Once Tied to Clinton $$ Scandal

Related reading: The Russia-China relationship could lead to some interesting changes on the global stage.

And the biggest changes are occurring far away from Washington’s orbit.

obama xi putinUS President Barack Obama (L-R), China’s President Xi Jinping, and Russia’s President Vladimir Putin during a photo shoot at the International Convention Center at Yanqi Lake in Beijing, November 11, 2014. REUTERS/Kim Kyung-Hoon

Although the Sino-Russo relationship predates the Ukraine conflict, there’s no question that the crisis has shifted Moscow even more toward Beijing.

Over the last year, we saw the two countries sign highly publicized energy deals, conduct joint military exercises, and even generally support each others’ foreign policy adventures. More here from BusinessInsider.

Here are a few questions for investigators in both houses of Congress to pose:

NYT’s: To Samuel Berger, the Hogan & Hartson trade lobbyist turned national security adviser: Why can’t Congress see your memo to President Clinton summarizing the devastating Cox report on espionage when it was submitted for security clearance in January? With the report now public, no claim of secrecy can properly be made.

Clinton pretended two months ago to have been uninformed of wholesale espionage. Did Berger’s January cover memo truly reflect the Cox report’s revelations, or did it lull the President into a false sense of national security?

To Bill Richardson, Energy Secretary since September 1998: You were briefed on espionage suspicions in November, and received the Cox report in January. Did you never have occasion to mention its serious implications on China policy to the President? You knew Secretary of State Albright was going to China in February; why did you withhold it from her? Did the White House suggest she be kept ignorant, or was it your own idea?

To F.B.I. Director Louis Freeh: Attorney General Janet Reno says ”I was not apprised of the details of the case at the time the decision was made” to reject wiretap surveillance of Wen Ho Lee at Los Alamos. Didn’t you think this was important enough to take to the top? She also says your 1997 request ”did not contain a request to search any computer.” If that is true, why not?

To the Senate Democratic leader, Tom Daschle: The bipartisan Cox report charges the White House with failing to inform Congress, but you say ”Republican chairs of the Congress were warned about this as early as 1996 and also chose to do nothing.” Did you read those ”warnings” before accusing Senator Arlen Specter and Representative Porter Goss of failing in their intelligence oversight duties? Can the public now see if those staff briefings were complete?

To Dan Burton, chairman of the House Government Reform and Oversight Committee: With Reno Justice allowing all Clinton’s illegal Asian fund-raisers to cop a plea and walk, you’ve subpoenaed Charlie Trie for June 10 and John Huang for June 17. Will you allow the ranking Democrat, Henry Waxman, to turn hearings into a partisan circus, or will you depose Trie and Huang extensively beforehand to discover links to Bruce Lindsey, the D.N.C.’s Don Fowler and Hillary’s Harold Ickes?

To George Tenet, Director of Central Intelligence: You reported to Cox that information on China’s theft of our W-88 nuclear warhead design came from a ”walk-in” planted by Chinese intelligence. That’s counterintuitive counterintelligence; does nobody in C.I.A. dispute the ”dangle” theory? Where is he now, and is he (or she) singing?

To Richard Shelby and Bob Kerrey of Senate Intelligence: The Cox report ran 900 pages, but nearly 400 pages were cut out by the Clinton sanitizers. Was all of this really for security reasons, or do many redactions cover C.I.A., F.B.I. and White House embarrassments?

To Senator Robert Torricelli, Democrat of New Jersey: You told CBS’s Bob Schieffer that Clinton should talk to Reno about ”her ability to perform her duties.” Are you worrying about her judgment under a physical affliction, or making a nonpartisan judgment on sustained misfeasance at Justice — or helping the White House toss her off the sled to save Sandy Berger?

The biggest question is this: Will we fall for the usual ”it’s old news” and ”everybody did it” defenses? Or will we connect the dots from the (a) corrupt Asian and satellite-producer contributions to the (b) refusal to stop the theft of nuclear codes lest it offend Beijing to the (c) change of policy to sell China powerful computers capable of using those codes to simulate tests?

The House is being serious. What about the Senate?

****What is this all about you ask?

*The People’s Republic of China (PRC) has stolen design information on the United States’ most advanced

thermonuclear weapons.

* The Select Committee judges that the PRC’s next generation of thermonuclear weapons, currently under development, will exploit elements of stolen U.S. design information.

* PRC penetration of our national weapons laboratories spans at least the past several decades and almost

certainly continues today.

****

• The stolen information includes classified information on seven U.S. thermonuclear warheads, including every currently deployed thermonuclear warhead in the U.S. ballistic missile arsenal.

• The stolen information also includes classified design information for an enhanced radiation weapon (commonly known as the “neutron bomb”), which neither the United States, nor any other nation, has yet deployed.

• The PRC has obtained classified information on the following U.S. thermonuclear warheads, as well as a number of associated reentry vehicles (the hardened shell that protects the thermonuclear warhead during reentry).

****

In addition, in the mid-1990s the PRC stole, possibly from a U.S. national

weapons laboratory, classified thermonuclear weapons information that cannot be

identified in this unclassified Report. Because this recent espionage case is currently

under investigation and involves sensitive intelligence sources and methods, the

Clinton administration has determined that further information cannot be made public

without affecting national security or ongoing criminal investigations.

The W-88, a miniaturized, tapered warhead, is the most sophisticated nuclear

weapon the United States has ever built. In the U.S. arsenal, it is mated to the D-5 submarine-

launched ballistic missile carried aboard the Trident nuclear submarine. The

United States learned about the theft of the W-88 Trident D-5 warhead information, as

well as about the theft of information regarding several other nuclear weapons, in 1995.

The PRC has stolen U.S. design information and other classified information

for neutron bomb warheads. The PRC stole classified U.S. information about

the neutron bomb from a U.S. national weapons laboratory. The U.S. learned of the

theft of this classified information on the neutron bomb in 1996.

In the late 1970s, the PRC stole design information on the U.S. W-70 warhead

from the Lawrence Livermore Laboratory. The U.S. government first learned of this

theft several months after it took place. The W-70 warhead contains elements that

may be used either as a strategic thermonuclear weapon, or as an enhanced radiation

weapon (“neutron bomb”). The PRC tested the neutron bomb in 1988.

The Select Committee is aware of other PRC thefts of U.S. thermonuclear

weapons-related secrets. The Clinton administration has determined that further

information about PRC thefts of U.S. thermonuclear weapons-related secrets cannot

be publicly disclosed without affecting national security.

The PRC acquired this and other classified U.S. nuclear weapons information as

the result of a 20-year intelligence collection program to develop modern thermonuclear

weapons, continuing to this very day, that includes espionage, review of unclassified

publications, and extensive interactions with scientists from the Department of

Energy’s national weapons laboratories.

**** The full Cox Report is 700 pages but this link is the summary.  So, those questions the New York Times asked in 1999 need to be asked again today of both Hillary and Bill. What say you?

ICANN Soon to be ICANT? Obama Gives Away Internet Control

   

ICANN, the International Community, and Internet Governance

Because cyberspace and the Internet transcend national boundaries, and because the successful

functioning of the DNS relies on participating entities worldwide, ICANN is by definition an

international organization. Both the ICANN Board of Directors and the various constituency

groups who influence and shape ICANN policy decisions are composed of members from all over

the world. Additionally, ICANN’s Governmental Advisory Committee (GAC), which is

composed of government representatives of nations worldwide, provides advice to the ICANN

Board on public policy matters and issues of government concern. Although the ICANN Board is

required to consider GAC advice and recommendations, it is not obligated to follow those

recommendations.

Many in the international community, including foreign governments, have argued that it is

inappropriate for the U.S. government to maintain its legacy authority over ICANN and the DNS,

and have suggested that management of the DNS should be accountable to a higher

intergovernmental body. The United Nations, at the December 2003 World Summit on the

Information Society (WSIS), debated and agreed to study the issue of how to achieve greater

international involvement in the governance of the Internet and the domain name system in

particular. The study was conducted by the U.N.’s Working Group on Internet Governance

(WGIG). On July 14, 2005, the WGIG released its report, stating that no single government

should have a preeminent role in relation to international Internet governance. The report called

for further internationalization of Internet governance, and proposed the creation of a new global

forum for Internet stakeholders. Four possible models were put forth, including two involving the

creation of new Internet governance bodies linked to the U.N. Under three of the four models,

ICANN would either be supplanted or made accountable to a higher intergovernmental body. The

report’s conclusions were scheduled to be considered during the second phase of the WSIS held

in Tunis in November 2005. U.S. officials stated their opposition to transferring control and

administration of the domain name system from ICANN to any international body. Similarly, the

109th Congress expressed its support for maintaining U.S. control over ICANN (H.Con.Res. 268

and S.Res. 323).39

The European Union (EU) initially supported the U.S. position. However, during September 2005

preparatory meetings, the EU seemingly shifted its support towards an approach which favored an

enhanced international role in governing the Internet. Read more here from FAS.

President Barack Obama’s drive to hand off control of Internet domains to a foreign multi-national operation will give some very unpleasant regimes equal say over the future of online speech and commerce.

Breitbart: In fact, they are likely to have much more influence than America, because they will collectively push hard for a more tightly controlled Internet, and they are known for aggressively using political and economic pressure to get what they want.

Here’s a look at some of the regimes that will begin shaping the future of the Internet in just a few days, if President Obama gets his way.

China

China wrote the book on authoritarian control of online speech. The legendary “Great Firewall of China” prevents citizens of the communist state from accessing global content the Politburo disapproves of. Chinese technology companies are required by law to provide the regime with backdoor access to just about everything.

The Chinese government outright banned online news reporting in July, granting the government even tighter control over the spread of information. Websites are only permitted to post news from official government sources. Chinese online news wasn’t exactly a bastion of freedom before that, of course, but at least the government censors had to track down news stories they disliked and demand the site administrators take them down.

Related reading: Dangerous Transfer: The President’s ICANN Internet Problem

Unsurprisingly, the Chinese Communists aren’t big fans of independent news analysis or blogging, either. Bloggers who criticize the government are liable to be charged with “inciting subversion,”even when the writer in question is a Nobel Peace Prize winner.

Chinese citizens know better than to get cheeky on social media accounts, as well. Before online news websites were totally banned, they were forbidden from reporting news gathered from social media, without government approval. Spreading anything the government decides is “fake news” is a crime.

In a report labeling China one of the worst countries for Internet freedom in the world, Freedom House noted they’ve already been playing games with Internet registration and security verification:

The China Internet Network Information Center was found to be issuing false digital security certificates for a number of websites, including Google, exposing the sites’ users to “man in the middle” attacks.

The government strengthened its real-name registration laws for blogs, instant-messaging services, discussion forums, and comment sections of websites.

A key feature of China’s online censorship is that frightened citizens are not entirely certain what the rules are. Huge ministries work tirelessly to pump out content regulations and punish infractions. Not all of the rules are actually written down. As Foreign Policy explained:

Before posting, a Chinese web user is likely to consider basic questions about how likely a post is to travel, whether it runs counter to government priorities, and whether it calls for action or is likely to engender it. Those answers help determine whether a post can be published without incident — as it is somewhere around 84 percent or 87 percent of the time — or is instead likely to lead to a spectrum of negative consequences varying from censorship, to the deletion of a user’s account, to his or her detention, even arrest and conviction.

This was accompanied by a flowchart demonstrating “what gets you censored on the Chinese Internet.” It is not a simple flowchart.

Beijing is not even slightly self-conscious about its authoritarian control of the Internet. On the contrary, their censorship policies are trumpeted as “Internet sovereignty,” and they aggressively believe the entire world should follow their model, as the Washington Post reported in a May 2016 article entitled “China’s Scary Lesson to the World: Censoring the Internet Works.”

China already has a quarter of the planet’s Internet users locked up behind the Great Firewall. How can anyone doubt they won’t use the opportunity Obama is giving them, to pursue their openly stated desire to lock down the rest of the world?

Russia

Russia and China are already working together for a more heavily-censored Internet. Foreign Policy reported one of Russia’s main goals at an April forum was to “harness Chinese expertise in Internet management to gain further control over Russia’s internet, including foreign sites accessible there.”

Russia’s “top cop,” Alexander Bastrykin, explicitly stated Russia needs to stop “playing false democracy” and abandon “pseudo-liberal values” by following China’s lead on Internet censorship, instead of emulating the U.S. example. Like China’s censors, Russian authoritarians think “Internet freedom” is just coded language for the West imposing “cultural hegemony” on the rest of the world.

Just think what Russia and China will be able to do about troublesome foreign websites, once Obama surrenders American control of Internet domains!

Russian President Vladimir Putin has “chipped away at Internet freedom in Russia since he returned to the Kremlin in 2012,” as International Business Times put it in a 2014 article.

One of Putin’s new laws requires bloggers with over 3,000 readers to register with the government, providing their names and home addresses. As with China, Russia punishes online writers for “spreading false information,” and once the charge is leveled, it’s basically guilty-until-proven-innocent. For example, one of the “crimes” that can get a blogger prosecuted in Russia is alleging the corruption of a public official, without ironclad proof.

Human-rights group Agora estimates that Russian Internet censorship grew by 900% in 2015 alone, including both court orders and edicts from government agencies that don’t require court approval. Censorship was expected to intensify even further throughout 2016. Penalties include prison time, even for the crime of liking or sharing banned content on social media.

Putin, incidentally, has described the entire Internet as a CIA plot designed to subvert regimes like his. There will be quite a few people involved in the new multi-national Internet control agency who think purging the Web of American influence is a top priority.

The Russian government has prevailed upon Internet Service Providers to block opposition websites during times of political unrest, in addition to thousands of bans ostensibly issued for security, crime-fighting, and anti-pornography purposes.

Many governments follow the lead of Russia and China in asserting the right to shut down “extremist” or “subversive” websites. In the United States, we worry about law enforcement abusing its authority while battling outright terrorism online, arguing that privacy and freedom of speech must always be measured against security, no matter how dire the threat. In Russia, a rough majority of the population has no problem with the notion of censoring the Internet in the name of political stability, and will countenance absolutely draconian controls against perceived national security threats. This is a distressingly common view in other nations as well: stability justifies censorship and monitoring, not just physical security.

Turkey

Turkey’s crackdown on the Internet was alarming even before the aborted July coup attempt against authoritarian President Recep Tayyip Erdogan.

Turkey has banned social media sites, including temporary bans against even giants like Facebook and YouTube, for political reasons. Turkish dissidents are accustomed to such bans coming down on the eve of elections. The Turkish telecom authority can impose such bans without a court order, or a warning to offending websites.

Turkey is often seen as the world leader in blocking Twitter accounts, in addition to occasionally shutting the social media service down completely, and has over a 100,000 websites blacklisted. Criticizing the government online can result in anything from lost employment to criminal charges. And if you think social-media harassment from loyal supporters of the government in power can get pretty bad in the U.S., Turks sometimes discover that hassles from pro-regime trolls online are followed by visits from the police.

Turkish law infamously makes it a crime to insult the president, a law Erdogan has already attempted to impose beyond Turkey’s borders. One offender found himself hauled into court for creating a viral meme – the sort of thing manufactured by the thousands every hour in America – that noted Erdogan bore a certain resemblance to Gollum from Lord of the Rings. The judge in his case ordered expert testimony on whether Gollum was evil to conclusively determine whether the meme was an illegal insult to the president.

The Turkish example introduces another idea common to far too many of the countries Obama wants to give equal say over the future of the Internet: intimidation is a valid purpose for law enforcement. Many of Turkey’s censorship laws are understood to be mechanisms for intimidating dissidents, raising the cost of free speech enough to make people watch their words very carefully. “Think twice before you Tweet” might be good advice for some users, but regimes like Erdogan’s seek to impose that philosophy on everyone. This runs strongly contrary to the American understanding of the Internet as a powerful instrument that lowers the cost of speech to near-zero, the biggest quantum leap for free expression in human history. Zero-cost speech is seen as a big problem by many of the governments that will now place strong hands upon the global Internet rudder.

Turkey is very worried about “back doors” that allow citizens to circumvent official censorship, a concern they will likely bring to Internet control, along with like-minded authoritarian regimes. These governments will make the case that a free and open Internet is a direct threat to their “sovereign right” to control what their citizens read. As long as any part of the Internet remains completely free, no sector can be completely controlled.

Saudi Arabia

The Saudis aren’t too far behind China in the Internet rankings by Freedom House. Dissident online activity can bring jail sentences, plus the occasional public flogging.

This is particularly lamentable because Saudi Arabia is keenly interested in modernization, and sees the Internet as a valuable economic resource, along with a thriving social media presence. Freedom House notes the Internet “remains the least repressive space for expression in the country,” but “it is by no means free.”

“While the state focuses on combatting violent extremism and disrupting terrorist networks, it has clamped down on nonviolent liberal activists and human rights defenders with the same zeal, branding them a threat to the national order and prosecuting them in special terrorism tribunals,” Freedom House notes.

USA Today noted that as of 2014, Saudi Arabia had about 400,000 websites blocked, “including any that discuss political, social or religious topics incompatible with the Islamic beliefs of the monarchy.”

At one point the blacklist included the Huffington Post, which was banned for having the temerity to run an article suggesting the Saudi system might “implode” because of oil dependency and political repression. The best response to criticism that your government is too repressive is a blacklist!

The Saudis have a penchant for blocking messaging apps and voice-over-IP services, like Skype and Facetime. App blocking got so bad that Saudi users have been known to ask, “What’s the point of having the Internet?”

While some Saudis grumble about censorship, many others are active, enthusiastic participants in enforcement, filing hundreds of requests each day to have websites blocked. Religious figures supply many of these requests, and the government defends much of its censorship as the defense of Islamic values.

As with other censorious regimes, the Saudi monarchy worries about citizens using web services beyond its control to evade censorship, a concern that will surely be expressed loudly once America surrenders its command of Internet domains.

For the record, the Saudis’ rivals in Iran are heavy Internet censors too, with Stratfor listing them as one of the countries seeking Chinese assistance for “solutions on how best to monitor the Iranian population.”

North Korea

You can’t make a list of authoritarian nightmares without including the psychotic regime in Pyongyang, the most secretive government in the world.

North Korea is so repressive the BBC justly puts the word “Internet” in scare quotes, to describe the online environment. It doesn’t really interconnect with anything, except government propaganda and surveillance. Computers in the lone Internet cafe in Pyongyang actually boot up to a customized Linux operating system called “Red Star,” instead of Windows or Mac OS. The calendar software in Red Star measures the date from the birth of Communist founder Kim Il-sung, rather than the birth of Christ.

The “Internet” itself is a closed system called Kwangmyong, and citizens can only access it through a single state-run provider, with the exception of a few dozen privileged families that can punch into the real Internet.

Kwangmyong is often compared to the closed “intranet” system in a corporate office, with perhaps 5,000 websites available at most. Unsurprisingly, the content is mostly State-monitored messaging and State-supplied media. Contributors to these online services have reportedly been sent to re-education camps for typos. The North Koreans are so worried about outside contamination of their closed network that they banned wi-fi hotspots at foreign embassies, having noticed information-starved North Korean citizens clustering within range of those beautiful, uncensored wireless networks.

This doesn’t stop South Koreans from attempting cultural penetration of their squalid neighbor’s dismal little online network. Lately they’ve been doing it by loading banned information onto cheap memory sticks, tying them to balloons, and floating them across the border.

Sure, North Korea is the ultimate totalitarian nightmare, and since they have less than two thousand IP addresses registered in the entire country, the outlaw regime won’t be a big influence on Obama’s multi-national Internet authority, right?

Not so fast. As North Korea expert Scott Thomas Bruce told the BBC, authoritarian governments who are “looking at what is happening in the Middle East” see North Korea as a model to be emulated.

“They’re saying rather than let in Facebook, and rather than let in Twitter, what if the government created a Facebook that we could monitor and control?” Bruce explained.

Also, North Korea has expressed some interest in using the Internet as a tool for economic development, which means there would be more penetration of the actual global network into their society. They’ll be very interested in censoring and controlling that access, and they’ll need a lot more registered domains and IP addresses… the very resource Obama wants America to surrender control over.

Bottom line: contrary to left-wing cant, there is such a thing as American exceptionalism – areas in which the United States is demonstrably superior to every other nation, a leader to which the entire world should look for examples. Sadly, our society is losing its fervor for free expression, and growing more comfortable with suppressing “unacceptable” speech, but we’re still far better than anyone else in this regard.

The rest of the world, taken in total, is very interested in suppressing various forms of expression, for reasons ranging from security to political stability and religion. Those governments will never be comfortable, so long as parts of the Internet remain outside of their control. They have censorship demands they consider very reasonable, and absolutely vital. The website you are reading right now violates every single one of them, on a regular basis.

There may come a day we can safely remand control of Internet domains to an international body, but that day is most certainly not October 1, 2016.

Worth $2 Billion Secreted in the Mexican Desert

An aluminum stockpile (pictured), worth $2 billion and representing six per cent of the world's aluminum, was discovered two years ago in San José Iturbide, a city in central Mexico
An aluminum stockpile (pictured), worth $2 billion and representing six per cent of the world’s aluminum, was discovered two years ago in San José Iturbide, a city in central Mexico
Liu (center) controls China Zhongwang Holdings Ltd, the world's second largest aluminum producer in its category. His current fortune is estimated at $3.2 billion
Liu (center) controls China Zhongwang Holdings Ltd, the world’s second largest aluminum producer in its category. His current fortune is estimated at $3.2 billion

Liu, who is currently the deputy secretary of China’s Communist Party, told the Wall Street Journal he didn’t have any connection with the aluminum in San José Iturbide. He denied trying to route his aluminum through Mexico to avoid the payments. More from the DailyMail. 

A Chinese billionaire may have hidden 6 percent of the world’s aluminum in the Mexican desert

It’s not every day that Mr. Bean makes an appearance on the Wall Street Journal’s commodities coverage.

And that might not even be the strangest finding in the Journal’s investigation into a massive pile of aluminum that allegedly just sat there, unused, in the Mexican desert for years.

To start, some background: China’s growing industrial sector has been hard on the aluminum producers in the United States. In 2000 there were 23 smelters operating nationwide, now there are only five.

So when an aluminum executive named Jeff Henderson got wind of a giant stockpile of Chinese aluminum just below the U.S border with Mexico, he decided to commission a plane to check it out.

What did they find?

Six percent of the world’s aluminum, worth some $2 billion and enough to make 77 billion beer cans, according to the Journal‘s fascinating report.

The revelation led to tensions between U.S. trade authorities and China, as U.S. industry executives insist that the metal is linked to Liu Zhongtian, who runs China Zhongwang Holdings, an enormous industrial aluminum company.

U.S. industry officials allege the metal got there as part of a scheme to evade trade restrictions. The idea was to move aluminum through Mexico into the U.S. where it could benefit from provisions in the North American Free Trade Agreement.

“These things have nothing to do with me,” Liu told the Journal, although the results of the investigation cast doubt on that claim.

Aluminum manufacturing is subsidized in China, and so Chinese firms were able to undercut U.S. producers; the United States responded by setting up tariffs to make domestic aluminum more attractive.

Routing Chinese aluminum through Mexico was a way to get around those tariffs.

Things went awry when a one of Liu’s alleged business partners Po-Chi “Eric” Shen, started to gain attention over some of his erratic practices, which the Journal report highlighted and included spending fortunes on dubious expenses like $70 million worth of red diamonds and rare Ferraris.

The relationship allegedly deteriorated quickly — Shen made headlines in 2014 when he wrecked Liu’s sports car while vacationing in Italy, and was rescued by Rowan Atkinson, of Mr. Bean fame.

The metal may never make it to the United States, in fact there are currently plans to ship it back to Asia, this time Vietnam.

 

15 Kiloton Nuclear Detonation, North Korea

North Korea Claims Nuke Test Proves It Can Miniaturize Warheads

VOA: North Korea has claimed the past two tests involved hydrogen bombs, which are much more powerful than atomic bombs. Analysts, however, said the January blast was not big enough to be a full thermonuclear explosion or “H-bomb.”

South Korea’s meteorological agency said Friday’s test produced a 10-kiloton blast, nearly twice the power of the country’s nuclear test in January but slightly less than the Hiroshima bombing, which was measured about 15 kilotons.

N.Korea conducts fifth and largest nuclear test, drawing broad condemnation

 

AP/MSN: North Korea conducted its fifth and biggest nuclear test on Friday and said it had mastered the ability to mount a warhead on a ballistic missile, ratcheting up a threat that its rivals and the United Nations have been powerless to contain.

The blast, on the 68th anniversary of North Korea’s founding, was more powerful than the bomb dropped on Hiroshima, according to some estimates, and drew condemnation from the United States as well as China, Pyongyang’s main ally.

Diplomats said the United Nations Security Council would discuss the test at a closed-door meeting on Friday, at the request of the United States, Japan and South Korea.

Under 32-year-old dictator Kim Jong Un, North Korea has accelerated the development of its nuclear and missile programmes, despite U.N. sanctions that were tightened in March and have further isolated the impoverished country.

South Korean President Park Geun-hye, in Laos after a summit of Asian leaders, said Kim was showing “maniacal recklessness” in completely ignoring the world’s call to abandon his pursuit of nuclear weapons.

U.S. President Barack Obama, aboard Air Force One on his way home from Laos, said the test would be met with “serious consequences”, and held talks with Park and with Japanese Prime Minister Shinzo Abe, the White House said.

China said it was resolutely opposed to the test and urged Pyongyang to stop taking any actions that would worsen the situation. It said it would lodge a protest with the North Korean embassy in Beijing.

There were further robust condemnations from Russia, the European Union, NATO, Germany and Britain.

North Korea, which labels the South and the United States as its main enemies, said its “scientists and technicians carried out a nuclear explosion test for the judgment of the power of a nuclear warhead,” according to its official KCNA news agency.

It said the test proved North Korea was capable of mounting a nuclear warhead on a medium-range ballistic missile, which it last tested on Monday when Obama and other world leaders were gathered in China for a G20 summit.

Pyongyang’s claims of being able to miniaturise a nuclear warhead have never been independently verified.

Its continued testing in defiance of sanctions presents a challenge to Obama in the final months of his presidency and could become a factor in the U.S. presidential election in November, and a headache to be inherited by whoever wins.

“Sanctions have already been imposed on almost everything possible, so the policy is at an impasse,” said Tadashi Kimiya, a University of Tokyo professor specialising in Korean issues.

“In reality, the means by which the United States, South Korea and Japan can put pressure on North Korea have reached their limits,” he said.

Executive Orders, Statutes, Rules and Regulations Relating to North Korea


The North Korea sanctions program represents the implementation of multiple legal authorities.  Some of these authorities are in the form of executive orders issued by the President.  Other authorities are public laws (statutes) passed by The Congress.  These authorities are further codified by OFAC in its regulations which are published the Code of Federal Regulations (CFR).  Modifications to these regulations are posted in the Federal Register.  In addition to all of these authorites, OFAC may also implement United Nations Security Council Resolutions (UNSCRs) with regard to the North Korea.
Proclamations

  • Proclamation 8271 – Termination of the Exercise of Authorities Under the Trading With the Enemy Act With Respect to North Korea (Effective Date – June 27, 2008)

Executive Orders

  • 13722 – Blocking Property of the Government of North Korea and the Workers’ Party of Korea, and Prohibiting Certain Transactions With Respect to North Korea (Effective date – March 16, 2016)
  • 13687 – Imposing Additional Sanctions with Respect to North Korea (Effective date – January 2, 2015)
  • 13570 – Prohibiting Certain Transactions With Respect To North Korea (Effective date – April 18, 2011)
  • 13551 – Blocking Property of Certain Persons With Respect to North Korea (Effective date – August 30, 2010)
  • 13466 – Continuing Certain Restrictions With Respect to North Korea and North Korean Nationals (June 26, 2008)

Determinations

Statutes

Wenxia Man, Chinese Spy Found Guilty Stealing Aircraft Secrets

Illegally Export Fighter Jet Engines and Unmanned Aerial Vehicle to China

Wenxia Man, aka Wency Man, 45, of San Diego, was sentenced today to 50 months in prison for conspiring to export and cause the export of fighter jet engines, an unmanned aerial vehicle – commonly known as a drone – and related technical data to the People’s Republic of China in violation of the Arms Export Control Act.

The sentence was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Mark Selby of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in Miami and Special Agent in Charge John F. Khin of the Department of Defense’s Defense Criminal Investigative Service (DCIS).

On June 9, 2016, Man was convicted by a federal jury in the Southern District of Florida of one count of conspiring to export and cause the export of defense articles without the required license.

According to evidence presented at trial, between approximately March 2011 and June 2013, Man conspired with Xinsheng Zhang, who was located in China, to illegally acquire and export to China defense articles including: Pratt & Whitney F135-PW-100 engines used in the F-35 Joint Strike Fighter; Pratt & Whitney F119-PW-100 turbofan engines used in the F-22 Raptor fighter jet; General Electric F110-GE-132 engines designed for the F-16 fighter jet; the General Atomics MQ-9 Reaper/Predator B Unmanned Aerial Vehicle, capable of firing Hellfire Missiles; and technical data for each of these defense articles. During the course of the investigation, when talking to an undercover HSI agent, Man referred to Zhang as a “technology spy” who worked on behalf of the Chinese military to copy items obtained from other countries and stated that he was particularly interested in stealth technology.

HSI and DCIS investigated the case. Assistant U.S. Attorney Michael Walleisa of the Southern District of Florida and Trial Attorney Thea D. R. Kendler of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.

 Photo: balicad24.com 

Announcement by the Justice Department

Related reading: 5 Weapons China Stole & Copied from the US

Related reading: Chinese cyber spies may be watching you, experts warn

In part from FreeBeacon:

Michael Walleisa, assistant U.S. Attorney for the Southern District of Florida, asked the judge to impose the maximum sentence of 78 months for the weapons conspiracy conviction.

“There is hardly a more serious case than a case such as this that involves some of our most sophisticated fighter jet engines and unmanned weaponized aerial drones,” Walleisa said in a sentencing memorandum.

“The potential for harm to the safety of our fighter pilots, military personnel, and national security which would occur had the defendant been successful is immeasurable, particularly where, as here the clear intent of the co-conspirators was to enable the People’s Republic of China to reverse engineer the defense articles and manufacture fighter jets and UAV’s.”

The conspiracy revealed that China was seeking to “increase its military capabilities and might to the potential detriment of the United States,” Walleisa said.

The U.S. government imposed an arms embargo on China in 1990 following the Chinese military’s massacre of unarmed pro-democracy protesters in Beijing’s Tiananmen Square a year earlier.

Between 2011 and 2013, Man and Zhang worked together to solicit three sets of General Electric and Pratt and Whitney turbofan engines for the F-35, F-22, and F-16 jets, as well as a General Atomics Reaper drone and technical details of the equipment. The Chinese were prepared to pay $50 million for the embargoed items.

Authorities launched an investigation of the case after Man contacted a defense industry source who alerted U.S. Immigration and Customs Enforcement’s Homeland Security Investigations unit in Miami. The Pentagon’s Defense Criminal Investigative Service also investigated the case.

Man used a company called AFM Microelectronics, Inc. in trying to buy the military equipment. She disclosed to an undercover federal agent in 2012 that the jet engines were meant for the Chinese government and that she knew it was illegal to export them, according to court papers.

China is engaged in a major military buildup that includes two new advanced stealth jet fighters that U.S. intelligence agencies say benefitted from stolen American aircraft technology.

The attempt to buy embargoed jet fighter engines highlights what military analysts say is China’s major technology shortfall—its inability to manufacture high-quality jet engines. Turbofan engines require extremely precise machine work and parts because of the high speeds of their spinning engine fans.

Zhang was described by the government in court papers as a “technology spy” working for China’s military-industrial complex. The Chinese government buys arms and military technology from Russia and other states “so that China can obtain sophisticated technology without having to conduct its own research,” the indictment in the case states.

The name of the Chinese entity was not disclosed. China’s government defense industry group is SASTIND, an acronym for State Administration for Science, Technology and Industry for National Defense.

Zhang sought to buy the operating system and aircraft control system for the MQ-9 Reaper as well as the unmanned aerial vehicle itself and the technical design data for the aircraft. The drone sought was an armed version capable of firing Hellfire missiles.

Man, 45, was convicted of one count of conspiracy to export defense goods with a license.

At sentencing on Friday, U.S. District Judge Beth Bloom told the court that Man hoped to get a $1 million commission on the illegal export and that she wanted to help China compete with the United States militarily.

“I’m innocent,” Man told the judge, the South Florida Sun-Sentinel newspaper reported. “This is my country, too.” She plans to appeal the conviction that was reached after a jury trial in June.

Michael Pillsbury, a China specialist at the Hudson Institute, said the Man case highlights China’s large-scale technology theft program.

“The scope and the ambition of their technology intelligence collection is breathtaking,” said Pillsbury. “They’re not after petty secrets.”

The Man case is similar to an earlier Chinese technology acquisition operation headed by Chi Mak, another naturalized Chinese citizen. In 2007, Mak, an electrical engineer at the U.S. firm Power Paragon, was convicted of conspiracy to export sensitive electronics defense technology to China.

Mak was a long-term technology spy who operated for 20 years. U.S. officials believe Mak provided China with secrets to the Aegis battle management system, the heart of current Navy warships.

China has deployed a similar version of the Aegis ship, known as the Type 052D warship.