SOFTWAR and the Commerce Department are going to Federal Court.
The upcoming legal battle is over the public release of Commerce
documents on deals between Ron Brown and Chinese Army officers.
The first hearing for pre-trial motions and to set a trial date
is Feb. 18, 1999 at the Richmond Federal Court.

In 1998, SOFTWAR performed a Freedom of Information (FOIA)
request on all documents in reference to the Chinese military
unit COSTIND, the Chinese Commission of Science, Technology, and
Industry for National Defense.  According to the GAO, COSTIND
"oversees development of China's weapon systems and is
responsible for identifying and acquiring telecommunications
technology applicable for military use."

In Sept. 1998, the Commerce Dept. withheld release of any
documents claiming, among other things, that to release them
would not be in the "national interest".  The Commerce Dept.
will not even acknowledge that any such documents exist.

SOFTWAR appealed the Commerce FOIA denial, including several
documents returned by previous FOIA request.  The Commerce Dept.
did not respond and ignored the SOFTWAR appeal.  According to
documents submitted to the Federal Court, the Commerce Dept.
admitted it did not respond to the SOFTWAR FOIA appeal.

In fact, the Commerce Dept. claimed it had no knowledge of any
such documents, including those recognizing Softwar as a member
of the public media.  In response, Softwar submitted for the
Court as evidence a letter from the Commerce Dept., dated March
12, 1998, recognizing Softwar as a member of the "media" for the
purposes of the Freedom of Information Act.

The failure of the Commerce Dept. filing system over the Softwar
status as a member of the media is minor in comparison to the
sudden loss of records on Ron Brown and the Chinese Army.
Softwar has the proof the Commerce Dept. has information on the
PLA unit COSTIND.  The proof comes from a Defense Dept. document
found at the Commerce Department.

In 1998 the Department of Defense, Directorate For Freedom of
Information and Security Review, sent information on COSTIND on
behalf of the Commerce Dept.  The letter, dated August 18, 1998
states "The Department of Commerce referred one document to this
Directorate for a release determination,  The document was
received on August 13, 1997."

The Defense Dept. document found at the Commerce Dept. is a
report on the U.S./Chinese telecommunications project called
"Hua Mei".  The DOD report states "We are aware that the
Commission on Science, Technology and Industry for National
Defense (COSTIND) is a part owner of Hua Mei Telecommunications.
Such partial ownership is increasingly common as the Chinese
military establishment invests in commercial (civilian)
enterprises".  Furthermore, the Defense Department wrote that
Chinese Army "General Ding Henggao" is the Director and
commanding officer of COSTIND.

According to additional documents provided by the Commerce
Dept., Ron Brown engaged in direct negotiations with Chinese
military officials of COSTIND at the orders of President
Clinton.  President Clinton arranged an August 1994 meeting
between the Secretary of Commerce Ron Brown, Chairman of Loral,
Bernard Schwartz, a U.S. satellite and aerospace manufacturer,
and Chinese General Shen Rong-Jun, Vice Minister of COSTIND.

Another document Commerce claims does not exist is a letter to
Commerce Secretary Brown requesting his intervention to assist
in the transfer of a "Synthetic Aperture Radar" (SAR) imaging
radar to the Chinese National Remote Sensing Center in Beijing.

SAR "imaging radar" is clearly defined as a controlled military
item under the U.S. Munitions List category XI.  According to
the U.S.M.L., items such as SAR imaging radars are licensed only
by the State Department.

The Loral letter clearly states that Loral officials were aware
that Defense and State Department licensing was required.
According to the Loral letter, the President of Loral Defense
directly appealed to Brown over-rule a denial of license for
export of a SAR imaging radar issued by the Defense Department,
the State Department and the Commerce Department.

According to a recently declassified report from the Defense
Department on Chinese weapons development, the Beijing
"Institute of Remote Sensing" is actually a front for a Chinese
Army missile guidance design laboratory.  The Defense Department
report states the Beijing Institute of Remote Sensing is "a
developer of precision and guidance systems for surface-to-air
missiles".

Only the State Department is authorized to issue licenses for
defense services under ITAR Part 120.9 and ITAR category XI.
According to a report written by the Department of Defense, the
Commerce Dept. issued licenses for technology transfers to
Chinese military units covered by the State Department's
International Traffic in Arms Regulations (ITAR) under the Arms
Control Act (ACEA).

The DOD report dated December 7, 1998 is on the "assessment of
certain documents" for license authority and approvals issued by
the defendant to Chinese military organizations in reference to
satellite exports.  The Defense Department report states the
Commerce Department issued licenses to the Chinese military that
constituted a "defense service" within the meaning of the State
Department's International Traffic in Arms Regulations (ITAR)
under the Arms Control Act (ACEA).

The Defense Department wrote "This was clearly beyond the scope
of Commerce export control jurisdiction because only the
Department of State is authorized to issues licenses for defense
services".

You can view the documents that Commerce claims do not exist at
the Softwar web site.

- SAR Radar For PLA Missile maker
http://www.softwar.net/sar.html   <--- gif images
http://www.softwar.net/sart.html  <--- text

- Loral CEO Meets Lt. Gen. Shen Rougjun
http://www.softwar.net/schwartz.html

- DOD Report on COSTIND/HUA MEI
http://www.softwar.net/dod.html

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1 if by land, 2 if by sea.  Paul Revere - encryption 1775
Charles R. Smith
SOFTWAR         http://www.softwar.net      [EMAIL PROTECTED]
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SOFTWAR EMAIL NEWSLETTER                            02/08/99
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