-Caveat Lector-

from:
http://www.aci.net/kalliste/
<A HREF="http://www.aci.net/kalliste/">The Home Page of J. Orlin Grabbe</A>
-----
------------------------------------------------------------------------
FEMA

Bunkers to Protect Top Government Leaders

Mount Weather

PERRYVILLE, Va. - While most government employees enjoyed a day off
yesterday, Harold Aldrich and his teams on this secluded mountain stood
on alert, preparing for the worst.
Publicly, officials of the Federal Emergency Management Agency say that
the Mount Weather facility, about 70 miles west of Washington in the
Blue Ridge Mountains, is responsible for monitoring potential natural or
man-made disasters and preparing responses for them. The real story,
though, is in the details: Mount Weather's most important function is
preparing for the worst disasters, those that threaten the top levels of
the government.

Buried beneath the manicured lawns and turn-of-the-century buildings of
the sensitive complex is a 200,000-square-foot bunker designed to
protect the president, the nine members of the Supreme Court, and other
high-ranking officials during a national crisis, such as a nuclear
attack on Washington.

Aldrich, who has worked for the government ''in the same capacity''
since 1969, will talk only about his unclassified responsibilities.

He oversees hundreds of men and women at Mount Weather (officially known
as FEMA's National Emergency Coordination Center) who handle the
logistics of the agency's response to disasters, answer telephone banks
for affected areas, and notify the proper FEMA officials and federal
agencies.

''We really have a dedicated bunch of people, and they really give their
all,'' he said one recent morning. ''And I don't hear any griping about
having to work on Christmas.''

Although Aldrich won't talk about the top-secret aspects of his job,
FEMA spokeswoman Mary Margaret Walker acknowledged that ''there are some
security issues'' involving Mount Weather.

During the Cold War, it was designated as the primary emergency
relocation center for top government officials if the Soviet Union
launched a nuclear strike on Washington.

It is reportedly one of 96 ''continuity of government'' installations
within the Federal Arc, an area within a 300-mile radius of Washington.
Most were designed or built during the Eisenhower administration to
prevent the Soviets from using a nuclear attack to ''decapitate'' the
nation's leadership from the rest of the government and the rest of the
country.

The Army Corps of Engineers helped build these facilities, from the
Federal Reserve bunker at Mount Pony in Culpeper, Va., to the so-called
Underground Pentagon within Raven Rock Mountain, located just north of
Thurmont, Md., the home of the presidential retreat Camp David.

Mount Weather is still surrounded by 10-foot fences with six layers of
barbed wire. Helipads and guard towers can be seen from Route 601, a
winding mountain road that runs through the above-ground portions of the
compound. Guards are heavily armed, and a sign at the front gate warns
the curious that the facility is off-limits to the public, by order of
the secretary of defense.

Unseen to the passersby are the giant metal doors that lead into the
bunker, a virtually self-contained facility that can house around 200
people for about a month. The installation has a cafeteria, hospital,
sewage-treatment plant, television studio, command center, reservoirs,
office buildings, and private apartments. It even has its own
crematorium.

According to news accounts, Mount Weather would be used to house top
federal officials after a nuclear attack. From here, they would direct
any retaliation and, presumably, the rebuilding of what's left of the
nation.

It would also be used if any type of chemical or biological attack or
civil unrest threatened the government.

''Due to the nature of the facility, we all have to have a national
security clearance, but I'd rather not talk about that,'' said Clyde W.
''Butch'' Stinedruf, a 14-year FEMA employee who is a ''team chief'' for
Aldrich in the emergency-warning unit of the operations center.

Stinedruf is a former military officer who used to spend his holidays
aboard the national airborne command post, a ''flying White House'' in a
Boeing 747.

He leads one of four teams responsible for notifying officials of
potential and actual disasters. He stressed the importance of
maintaining operations at facilities such as Mount Weather, even for its
unclassified functions, during the holidays.

Since adding more unclassified functions to Mount Weather's
responsibilities in the early 1990s, FEMA officials have praised the
teams there for the job they have done responding to needy citizens.

''We handle all types of emergencies,'' said Stinedruf. ''If you have a
tropical depression coming off the coast of Africa, and it looks like it
could be developing into something, we start tracking it and notify the
hurricane response team.''

Disasters, Stinedruf added, don't take off for the holidays.

The Boston Globe, Dec. 26, 1998


Impeached POTUS

A Censure May Be "Tricky to Negotiate"

Simplify, simplify, simplify

TRENT LOTT, the Senate Republican leader, warned Democrats to "calm
down" yesterday, saying their talk of censuring President Clinton for
his apparent lying might be trickier to negotiate than some assumed.
He said a full Senate trial, due to start next week, was needed for a
"full presentation" of all testimony. He said: "We need to go forward
and do our constitutional duty to hear the evidence." His remarks were
aimed at re-assuring hard-line Republicans who are demanding an airing
of all the evidence of perjury and obstruction of justice. There are
fears that some party moderates will join the Senate's 45 Democrats to
push for censure.

The trial could be adjourned early by a majority vote, which would mean
approval by 51 senators. At the moment, most senators feel that there
are not enough votes to remove Mr Clinton from office. This would
require two-thirds of the 100-member chamber. Mr Lott said a simple
rebuke could raise "all kinds of constitutional problems". He added: "I
don't think a magic formula has been found yet."

The Republican approach to the trial was being worked out in Washington
yesterday by Henry Hyde, chairman of the House of Representatives
Judiciary Committee, and the 12 congressmen he has picked to manage the
prosecution. All 13 are lawyers and, to nobody's surprise, disagreement
is evident in their approach. George Gekas thinks that there is no need
to call witnesses such as Monica Lewinsky. Two prominent Republican
senators agree.

The Arkansas congressman Asa Hutchinson, a former federal prosecutor,
thinks as many as 15 witnesses need to be called in a trial that would
last a month. He ruled out the idea of simply submitting the independent
counsel Kenneth Starr's report, as happened in the House. He said: "You
diminish the impact of the evidence if it's simply stipulated instead of
given in live fashion."

However, agreement seems to be building on the need to keep the trial as
brief as possible. Congressman Bob Barr said: "A senator's attention
span is probably less than an average juror's, so we'll need to
simplify, simplify, simplify."

London Telegraph, Dec. 30, 1998


The China Scandal

Advanced Technology to the PRC

The Red Rat Strikes Back

by Charles Smith

SOFTWAR Best Of 1998 - If Attorney General Janet Reno really wanted to
investigate Bill Clinton then she need look no farther than
WORLDNETDAILY. Starting in 1998, Worldnetdaily readers were treated to a
series of articles on the documented sale of advanced technology to
China for campaign donations.
One prime example of the documented China scandal is a series of letters
written to President Clinton and Commerce Secretary Ron Brown by
million-dollar DNC donor Sanford Robertson. Sanford Robertson is a U.S.
businessman and a west coast financial banker. He recently sold his
firm, Robertson Stephens Company, to Bank of America for well over a
billion dollars. Robertson, when interviewed, could not remember
traveling to China with Ron Brown.

The connections between Sanford Robertson, the Communist Chinese and the
Clinton/Gore campaign are provided in his own written words. Robertson
bragged in a 1994 letter to Ron Brown that his influence extended into
the PRC leadership by employing the son of a powerful red party member.

Robertson also foolishly wrote a November, 1994, "thank you" letter to
Bill Clinton. The letter was found in the files of Ron Brown at the U.S.
Commerce Department. Robertson thanked Clinton in writing for sending
him to China on U.S. tax dollars. "Thank you for autographing the
pictures taken in the cabinet room before Ron Brown's delegation to
China. The trip seemed to be an economic and diplomatic triumph."

Robertson's letter to President Clinton specifically mentions how
Secretary Brown skipped over "human rights" during his 1994 talks with
the communist Chinese leadership. According to Robertson, Brown went
directly to more important issues such as "helping Chrysler, Sprint and
others with their joint ventures."

Robertson concluded his letter to Clinton with a telling post script,
and a personal DNC donation report. Robertson wrote to Clinton "Bob
Rubin came to our home on Thursday for a Dianne Feinstein dinner, which
raised over $100,000 for her campaign. Bob, of course, turned out the
financial community and Silicon Valley."

Another prime example of Bill Clinton selling lucrative trade rights in
exchange for campaign donations is Bernard Schwartz, the CEO of Loral.
Schwartz traveled to Beijing in August 1994, on U.S. tax dollars.
Schwartz also donated over a million dollars to the DNC.

According to documents discovered in the files of Ron Brown, Schwartz
met with Chinese Army Lt. General Shen Roug Jun, to sell U.S.
communications satellites and buy Chinese space rockets. The meeting
between Loral CEO Schwartz and the PLA General was arranged by President
Clinton.

The documented evidence shows Loral successfully exported advanced
military technology using the Brown connection and the massive amount of
money donated to the DNC. Another letter discovered in the previously
unreleased files of Ron Brown shows that Loral Defense Systems
President, Jerald A. Lindfelt, wrote Brown in March of 1996.

Lindfelt sought Brown's help in the export of an advanced radar system
called SAR (Synthetic Aperture Radar) to China's State Science and
Technology Commission. SAR radar is employed by U.S. bombers, and
special military aircraft such as the advanced JSTARS ground
surveillance plane. SAR radar played a major role in detecting and
destroying Iraqi tanks during the Gulf war.

"We've worked hard trying to resolve these problems with the Department
of State, the Department of Commerce and the Defense Technology Security
Administration (DTSA)," Loral's Lindfelt wrote to Brown.

"But someone in these organizations always manages to block our
participation... Over the years we have found that this type of obstacle
often comes from lower levels of management rather than by people
willing to look at the bigger picture. Could you help us by identifying
someone in the Commerce Department high enough in the organization to
help us resolve these issues and open this marketplace..."

Of course, Lindfelt knew he was writing to someone "high enough" in the
Commerce Department who could appreciate Loral's plight. Brown was well
aware that Schwartz had donated over a million dollars to Bill Clinton -
the same man that would sign any waivers.

President Clinton left a paper trail a mile wide between himself and his
Chinese benefactors. Money paid to U.S. and Chinese agents went directly
into Bill Clinton's 1996 campaign. In exchange, Clinton used his pen to
sign waiver after waiver, circumventing Congress and the law, to export
satellites, super computers, radars, secure communications, and bombing
navigation equipment to China. In fact, according to the GAO, Clinton
personally authorized a secure communications system be sold directly to
the Chinese Air Force.

Motorola obtained a waiver from Bill Clinton to sell a secure
communications system to the Chinese police. Motorola obtained that
waiver over the objections of State Department diplomats who noted that
the Chinese police beat, tortured and killed dissidents as a matter of
PRC state policy. A policy of oppression that continues today.

In February 1995, Motorola was impatient with the delay over human
rights and their proposed sale to red China. Motorola's CEO wrote Ron
Brown an angry letter detailing his objections.

According to Tooker, Brown needed to "Delegate to the export control
officer appropriate authority for reviewing certain classes of controls,
e.g., encryption... Export controls administered by the State Department
at the behest of the National Security Agency (NSA) should NOT be
referred for endless delay to the human rights bureau and myriad others
in State."

In July 1995, Motorola got the waiver. Clinton overrode the objections
of his diplomats and okayed the export with his signature. In response,
the CEO of Motorola, Gary Tooker, wrote a personal note to Ron Brown,
expressing his gratitude.

"Dear RON," wrote Tooker to Brown. "I am writing to thank you and some
key members of the Commerce Department for your assistance in obtaining
the Presidential waiver for encryption export sales to China."

Of course, Ms. Reno is aware of all this. She participated in the China
encryption scandal. She approved of President Clinton's use of executive
fiat to transfer power to the Brown dominated Commerce Department.

Ms. Reno appointed her trusted Assistant Attorney General Webster
Hubbell to over-see a secret National Security Agency (NSA) encryption
chip project in 1993. Hubbell attended at least one meeting at NSA
Headquarters in May 1993, along with Vince Foster and Benard Nussbaum.

Documents from Hubbell's personal schedule for 1993 show that the
Whitewater figure met multiple times at the White House on a top secret
computer chip project called CLIPPER. Hubbell met with the then National
Security Council (NSC) advisor George Tenet. Tenet is currently the
Director of the CIA.

Hubbell resigned from the Justice Department in April of 1994. In late
June 1994, Lippo boss James Riady met with John Huang and Bill Clinton
during five days of White House visits. Early the next week, a Lippo
unit paid Hubbell about $100,000.

In December 1994, Hubbell pled guilty to several felony charges relating
to illegal billing in the Whitewater affair. Webb Hubbell also cited his
Fifth Amendment rights to not testify before the Senate Congressional
hearings.

Reno, Hubbell, Huang, and the communist Chinese Generals all shared a
common interest in U.S. secure military communication systems. Huang,
also a Lippo paid agent, was so interested he sought secret information.
Huang was briefed 37 times on satellite encrypted communications by the
CIA. Huang has also taken the Fifth.

Ms. Reno has been heavily involved in the making of export policy of
interest to China for quite some time. One 1996 CIA report noted that
Ms. Reno wanted to monitor all American domestic computer communications
such as email, using a technique to secretly intercept and decode any
messages.

According to the CIA Director, the government would mandate all
computers be equipped with a special "back-door" system called "key
recovery". Federal agents would use a secret "key" for a back door to
secretly read any computer communication. Prime targets for government
monitoring would be foreign governments, banks, corporations, and
individuals targeted by the Clinton administration. The keys were to be
held by "key recovery agents" licensed by the Commerce Department.

Janet Reno wanted to wire a bug into your home, your bank account, your
Congressman and your life. Janet Reno, according to Deutch, proposed an
all out Federal take-over of the computer industry. The Justice
Department, proposed "legislation that would ... ban the import and
domestic manufacture, sale or distribution of encryption that does not
have key recovery."

The Chinese Generals were keenly aware of the clumsy attempt to bug U.S.
equipment they purchased. The red Generals were privy to all the inner
secrets through their White House contacts. The NSA back doors and other
bugs secretly stashed in satellites by U.S. intelligence agencies have
been discovered, disabled or circumvented by the Chinese Army spy
masters. America lost the first Information War. The attempt to bug
Beijing failed.

Janet Reno will never investigate this matter because she is hip deep in
the China scandal. Reno appointed the convicted former partner of
Hillary Clinton as her trusted Deputy in the Department of Justice.
Attorney General Reno continues to ignore the penetration of Chinese
agents into the White House. Reno refuses to see any evidence because it
links her to the greatest spy story of the 20th Century.

Softwar Newsletter, Dec. 29, 1998


Russian Follies

$1 Billion Missing from Central Bank?

So much money to keep track of


Russia's interior ministry said yesterday it was widening its
investigation into alleged wrongdoing at the central bank and suggested
more than $1bn could have gone missing.


Ministry officials said they were trawling through central bank records
from the past six years and were also examining finance ministry
accounts.


The investigation now includes experts from the prosecutor general's
office as well as the FSB, successor to the KGB.


Sergei Stepashin, interior minister, said: "We have been picking through
the central bank's activities since 1992. We are talking about enormous
losses."


The interior ministry launched its investigation into misuse of funds at
the central bank soon after Russia's financial crisis broke on August
17, when the government devalued the rouble and defaulted on its
domestic debt.


The Auditing Chamber, the government's financial watchdog, questioned
how the central bank had used the $4.8bn loan it received from the
International Monetary Fund in July as part of a last-ditch attempt to
save the rouble.


There were also allegations that the central bank had given soft credits
to several politically influential commercial banks, which were facing
big repayments on hard currency loans.


Sergei Dubinin, head of the central bank at the time of the August
crisis, yesterday fiercely rejected suggestions he had been involved in
any wrongdoing. He added that it was difficult to fight with "phantoms"
who aired vague allegations rather than specific charges.


Mr Dubinin said the bank had been subject to emotional attacks,
tarnishing its reputation and threatening its independence. "If we want
to have a weak currency, we should destroy the independent central bank,
as has been done in his own time by the president of Belarus," he said.


Other former government officials have suggested the investigation is
politically motivated and is designed to blacken names, not to achieve
prosecutions. Previous audits of central bank and finance ministry
activities have not uncovered evidence of fraud.


The central bank has always said that it spent the IMF money on the
purposes for which it was intended. Up to $3.8bn was spent on the failed
defence of the rouble, while the remaining $1bn was used to retire a
slab of government debt.


But central bank staff have at times come under enormous pressure from
Russia's aggressive financial institutions to grant them special
favours.


Unidentified gunmen have twice fired on Mr Dubinin's apartment.

The Financial Times, Dec. 29, 1998


Covert Operations

Spook Company's Activities Probed

Vector Microwave Research Corp.

The federal agents who burst into the Alexandria office of Vector
Microwave Research Corp. one morning late last year got right to the
point. "This is a court-authorized search," an agent announced. "Stand
up, don't turn off your computers. We'll take care of that."
The raid, which netted U.S. Customs Service and Navy investigators boxes
of records and computer disks, came as a shock to a firm that made a
business of eluding attention. For years, Vector had performed secret
tasks for the CIA and the U.S. military, using guile, experience and
connections, including those of its president, retired Lt. Gen. Leonard
Perroots, a former director of the Defense Intelligence Agency.

Vector was a leading entrepreneur in a classified or "black" specialty
with high stakes and few rules: covertly acquiring foreign missiles,
radar, artillery and other weapons for U.S. intelligence agencies. Its
work was seen as crucial by some U.S. officials who study innovations in
foreign weaponry as part of efforts to protect Americans from the global
spread of ballistic missiles and other arms.

But the rise and fall of Vector illustrates the awkward bargain that can
result when agencies such as the CIA and the DIA privatize covert
operations. When Vector went out of business earlier this year, it left
a trail of mysterious dealings, some that may have run counter to U.S.
policy, according to government officials, former Vector employees and
the firm's competitors.

Today, investigators are trying to determine at whose behest the firm
bid for a batch of North Korean missiles. Also unresolved is whether the
firm, trying to sweeten a deal for the purchase of Chinese missiles,
provided China sensitive technical specifications on the U.S. Stinger
antiaircraft missile.

So complex was the web of connections surrounding Vector that its
founder, Donald Mayes, became a business partner with China's
state-owned missile manufacturer while secretly buying Chinese weapons
for the U.S. government.

Government officials admit they may never know the scope of Vector's
activities. "Where's the reality?" said a U.S. official who has pursued
Vector for years. "We'll never untangle some of this."

No charges have been brought in the federal inquiry, and attorneys for
Vector and its executives deny wrongdoing. The agents who led the Nov.
20, 1997, raid are looking into a number of Vector projects, as well as
a private side deal in which Mayes sold Russian helicopters to the
Mexican navy.

Guidelines for Bribes


The ongoing investigation had not been made public previously, and,
besides scant references in the business press, Vector itself has hardly
been mentioned in print. The firm quietly went out of business recently
after spinning off parts of the company to competitors. Perroots, 65,
did not respond to messages left at his Virginia home. Mayes, 60, who is
living in Mexico, responded through his Washington attorney, Thomas
Green.

"It's hard for me to get into Mr. Mayes' activities, but they were
appropriate and didn't violate any laws," Green said. Green also read a
statement issued by Mayes, which said: "Anything we've done for the U.S.
government was completely approved." Vector's allies said any
prosecution would fail because of Vector's intelligence ties.

Executives of Vector and its competitors in the "foreign materiel
acquisition" business, such as BDM International of McLean and
Electronic Warfare Associates of Dulles, stride the marble halls of
defense ministries from Moscow to Minsk to Beijing competing for
weaponry on secret CIA and DIA wish lists. Because they can deny any
direct tie to the U.S. government, they can buy from people who wouldn't
deal with Washington, or require deniability to do so. The contractors,
in turn, are held to secrecy by the U.S. government.

Operating largely on their own in this shadowy world, people who scour
the globe for arms on the government's behalf acknowledge that they
could face legal trouble if U.S. investigators questioned them about
their methods. U.S. officials say people who bribe foreign officials
while on authorized U.S. government assignment won't be prosecuted under
statutes that prohibit such corrupt practices. But people who bribe
seeking foreign arms "on speculation" � in the hopes of finding a
government buyer � may be in legal jeopardy, officials said.

"If you say what you do, you can go to jail" because of U.S.
anti-bribery laws, said a Vector competitor, who acknowledged that
people in his industry commonly retain middlemen to bribe foreign
officials. "The U.S. is paying us to go to a foreign country and find
somebody to do an illegal thing for us. ... Do you want a Boy Scout
doing it, or somebody who can get the job done to save U.S. lives?"

'Name and Access'


Mayes, who was described by an employee as "one of the most cunning
individuals I've ever met," learned the arms acquisition trade at a
cluster of firms in Virginia's Tidewater area in the 1970s. He founded
Vector in 1984, and it was soon acquiring missiles, electronics and
ships from China, France and elsewhere. Many of Vector's 150 employees
tested the materiel at a California Navy base, or designed classified
computer networks for the government. Other employees worked on purely
commercial projects, such as a plan to bury waste from South Korean
nuclear reactors in the Mongolian desert, and a plan to build a Russian
casino � until Moscow mobsters seized their slot machines.

In 1989 Mayes hired retiring Air Force Lt. Gen. Perroots, who had spent
three years as DIA director. A favorite of former CIA director William
J. Casey, Perroots had superb intelligence connections. "Mayes told
people, 'We got Len for his name and access,' " a former Vector
executive said. "Len did what he was told" by Mayes, who often left
Perroots in the dark, former employees said.

Several people who worked at Vector's headquarters on South Washington
Street in Alexandria said freewheeling foreign missions brought out a
swagger in Mayes, who cultivated a disdain for law enforcement officials
who wanted to question him about his activities. They said the hulking
6-foot-4 Oklahoman boasted that federal agents were too stupid to nail
him.

"He bragged about how his phone was tapped, and he was outsmarting them,
and they'd never get him," a Vector consultant said of Mayes. Green,
Mayes' lawyer, denied Mayes ever said that.

"Mayes compartmented everything from his own employees," a firm official
said. "We called him 'prince of darkness.' He'd go overseas on a trip,
and no one would know what he was doing." His wife, a former CIA
employee, "would call and say, 'Where's Don?' "

Former Vector associates said the firm performed a variety of "little
tasks" for the government, nearly all of them secret. The company
maintained contact with people the government wanted to keep tabs on,
including a businessman from Bahrain with ties in Iran, a former company
executive said. U.S. officials unsuccessfully used Mayes to try to lure
the man to this country in connection with a Customs investigation, the
former executive said.

Government officials also used Vector to pry information from an Iraqi
official with whom it had grown close: the flamboyant, Rolls
Royce-driving Iraqi Brig. Gen. Nabil Said, military attache� at
Baghdad's embassy here in the years before the Persian Gulf War.

Vector also informed intelligence officials about its dealings with
Moscow. In 1990, while trying to buy a supersonic Soviet antiship
missile, officials of the firm met a Soviet general who was defense
attache� at the embassy in Washington. The attache�, Grigoriy Yakovlev,
ended up working with Vector on numerous deals. "The relationship was
prejudged [by U.S. officials] and guidance was provided" by U.S.
agencies, said Patrick Sweet, who worked with Vector. What guidance did
U.S. officials give? "Our policy is not to get into that," Sweet
replied. Yakovlev later became a paid Vector deal-spotter in Moscow.

In addition, U.S. officials asked traveling Vector executives to make
specific inquiries of Russian space officials about production methods
on new electronic and optical technologies, a former company executive
said.

Vector's practices have earned some enemies within the U.S. government.
In the late 1980s, naval intelligence officials accused the firm of
overcharging for Chinese missiles and delivering Chinese missile
electronics that were different from what the firm had promised. The
Navy refused to pay the firm's $390,000 fee, but after Vector's
sustained lobbying, Navy officials ultimately paid in full, industry
executives said.

In 1993 Navy officials launched a criminal probe of the firm for alleged
fraud, which was later dropped. Mayes wrote an eight-page, single-spaced
letter to Congress complaining that Navy intelligence was out to destroy
Vector by leaking its proprietary proposals to competitors in "a war of
innuendo, investigations and outright abuse."

The resentment flared again last year, when Perroots persuaded the
Pentagon inspector general to investigate Perroots's old agency, the
DIA, for allegedly giving a competitor details of Vector's plan to
acquire Russian missiles. Vector's allies say the current probe of
Vector was engineered by enemies of the firm in DIA and Customs, which
has simmered at the unregulated importing of arms into this country by
firms such as Vector. DIA and Customs declined comment.

Customs is investigating Mayes for a private deal that apparently had no
links to the government. Mayes allegedly lacked a State Department
license when his employees repaired Russian helicopters for the Mexican
Navy and trained its pilots to fly them. Mayes sold the Mi-8 copters to
the Mexicans for search-and-rescue work. While the copters lacked
military equipment, Mayes' associates allegedly advised Mexico on how to
outfit them with guns, an industry executive said. Maintaining or
upgrading aircraft without a license could violate U.S. arms exports
law.

"What the Mexican government does with the copters is its business,"
said Green, Mayes' lawyer.

North Korean Missiles


Another investigation by Customs agents has examined Vector's efforts to
acquire a North Korean missile. Vector officials said they had U.S.
approval for a deal, according to industry executives and the National
Security News Service, an independent investigative group that conducted
research on Vector. U.S. officials asked The Washington Post not to
identify the type of missile to avoid jeopardizing future covert
operations.

Industry executives familiar with Vector's work said Perroots arranged
for a South Korean consultant to approach a Seoul company to broker a
$33 million deal to buy four missiles and a launcher from Pyongyang.
They said Vector also had a U.S. consultant pay a Venezuelan military
official $50,000 for a phony "end-user certificate," a document used in
import-export work to indicate an item's destination. In this case, the
North Koreans were meant to think the missiles were headed to Pakistan
and then Venezuela.

Vector never got the missiles. Customs has reviewed the indirect
dealings between Vector and North Korean officials, which took place in
Beijing, since any financial transactions with North Korea would be a
violation of U.S. laws banning commercial ties to the country. Agents
are also looking into whether Vector had approval to seek the missiles,
since some U.S. agencies had said such a mission could be illegal, in
part because it would threaten weapons agreements to which the United
States is a signatory. A U.S. government official said that Vector's
efforts were "amateurish," and that it stumbled into the deal without
U.S. authorization.

"I thought we were doing everything by the book," said a former Vector
executive. "DIA said they needed it."

Perhaps the most baffling and sensitive area of Vector's enterprise has
been in China, which also has sparked the Customs Service's interest.
Chiefly, investigators are exploring whether, in efforts to secure
Chinese missiles in about 1991, Mayes gave Chinese engineers technical
advice that could help them pirate the design of the U.S. Stinger
antiaircraft missile.

Through his attorney, Mayes denied giving China any data; the lawyer,
Green, said "it's a canard circulating for several years." Former Vector
officials said that when Beijing's officials tried to barter sensitive
U.S. data from Mayes as a condition for deals, he play-acted, disclosing
material that already was public. Industry officials said the government
at times allows contractors to give away such "trading material."

Whatever his tactics, sources said, Mayes scored many acquisition
successes in China, at times by telling the Chinese that the weapons
were destined not for this country but for Peru. He obtained the C-801
antiship missile for the CIA around 1987, when Iran was threatening to
fire those weapons at U.S. Navy ships in the Persian Gulf. He also
landed the similar C-601 missile in 1991 for $9.9 million, according to
industry executives and an internal company report.

Over the same period, Mayes had developed close ties to China Precision
Machinery Import & Export Corp. (CPMIEC), Beijing's missile builder. A
Vector affiliate, Mayes & Co., became CPMIEC's official, global marketer
of a number of its missiles, including the HN-5A, a crude forerunner of
the shoulder-fired Stinger.

For the Chinese, Mayes' traceable ties to U.S. intelligence made him an
odd choice of a partner. In any case, piles of CPMIEC promotional
materials were stacked inside Vector's offices, and Mayes tried to sell
CPMIEC arms to Saudi Arabia and other nations. At the same time, Mayes
was informing U.S. intelligence about China's missile sales, industry
officials said.

But now investigators are asking whether Mayes, to ingratiate himself
with the Chinese, helped them figure out how to place the Stinger's
electronics in the nose cone of China's primitive shoulder-fired
missile. An industry executive said that around 1991 Mayes boasted that,
with the CIA's approval, he gave the Chinese some of the Stinger's
technical specifications to deepen his relationship with them. The
agency declined comment, but U.S. officials expressed doubt that Mayes
had CIA approval to do so.

A joint promotional brochure of CPMIEC and Mayes & Co., aimed at
marketing China's HN-5As, said the Chinese agency "utilizes the
research, design, marketing and tactical capabilities of Mayes & Co. to
evaluate and improve" Chinese missile designs. "Mayes & Co. is a small
group of highly specialized engineers and technicians that have a unique
understanding of the problems associated with electronic and missile
systems."

The Chinese appear to have incorporated Stinger technology in a new
missile that entered Chinese military service in 1996, called the QW-1
Vanguard, the CIA told a Senate committee two years ago. But it is
impossible to know where the Chinese got the technology because China is
thought to have secured some of the 1,000 or so Stingers the CIA gave
Afghan rebels to repel Soviet troops in the 1980s.

The Pentagon is now concerned the Vanguard could be fired at U.S.
aircraft. CPMIEC, which is notorious for violating global agreements by
distributing Chinese missiles around the world, has sold Vanguards to
Iran and Pakistan.

The Chinese Agent


U.S. aviation officials are "increasingly concerned" for the traveling
public's safety because of the proliferation of such mobile antiaircraft
missiles, said a 1994 State Department report. It noted that rebel
militias around the world have shot down 25 commercial airliners using
these missiles, killing 536 people.

Perhaps the most puzzling aspect of this story, though, is the role
played by a Chinese military intelligence agent stationed at Beijing's
embassy here in the 1980s. The FBI spotted Hou Desheng early on as a
bumbler; there was his odd talkativeness, for example. He complained of
his difficulty surviving on the $75 a month he was paid as assistant
military attache�, said a reporter who used to take him to lunch.

Hou showed up weekly at Vector's offices mounting clumsy efforts to
learn classified secrets about a Navy electronics program it worked on,
a Vector official said. U.S. agents urged Vector to play along, and the
firm once left a sensitive-looking file for him, so he would become even
more reckless and blunder into a trap, the official said.

In 1987 Hou was arrested for espionage in a Washington restaurant after
he received what he thought were classified National Security Agency
documents from an FBI agent posing as a U.S. traitor. Days later the
U.S. government expelled Hou as a spy.

Soon after, working out of an office in a Beijing hotel, Hou became
Mayes & Co.'s representative in Beijing. He helped Mayes line up the
missile deals he swung with China's military, industry executives said.

Hou "was a conduit to other people" and remained a Chinese government
employee while working for Mayes, a former Vector executive said. Did
Mayes and Vector employ a Chinese spy as part of a U.S. intelligence
operation? "I can't get into that," he replied.

Green, Mayes' lawyer, declined comment on Hou. "It's too sensitive," he
said.

The Washington Post, Dec. 30, 1998
-----
Aloha, He'Ping,
Om, Shalom, Salaam.
Em Hotep, Peace Be,
Omnia Bona Bonis,
All My Relations.
Adieu, Adios, Aloha.
Amen.
Roads End
Kris

DECLARATION & DISCLAIMER
==========
CTRL is a discussion and informational exchange list. Proselyzting propagandic
screeds are not allowed. Substance�not soapboxing!  These are sordid matters
and 'conspiracy theory', with its many half-truths, misdirections and outright
frauds is used politically  by different groups with major and minor effects
spread throughout the spectrum of time and thought. That being said, CTRL
gives no endorsement to the validity of posts, and always suggests to readers;
be wary of what you read. CTRL gives no credeence to Holocaust denial and
nazi's need not apply.

Let us please be civil and as always, Caveat Lector.

========================================================================
To subscribe to Conspiracy Theory Research List[CTRL] send email:
SUBSCRIBE CTRL [to:] [EMAIL PROTECTED]

To UNsubscribe to Conspiracy Theory Research List[CTRL] send email:
SIGNOFF CTRL [to:] [EMAIL PROTECTED]

Om

Reply via email to