http://www.worldnetdaily.com/bluesky_smith/19990309_xcsof_william_pe.shtml

In 1994, William Hambrecht, a major donor to Bill Clinton,
profited directly from advanced military technology sales to the
Chinese Army.  Hambrecht is the financial backer of the internet
magazine SALON.  Hambrecht, a very liberal investment banker,
owns the firm Hambrecht and Quist (H & Q), based in San
Francisco.

In 1994, Hambrecht also employed Defense Secretary William Perry
as an Executive Vice President of H & Q Incorporated.  Perry
joined William Hambrecht and founded H & Q Technology Partners,
Inc. in 1985.  William Perry stayed in his executive position at
H & Q even while he was serving as Secretary of Defense.  Perry
continues to serve part-time as Chairman and Chief Executive
Officer of H & Q.

In 1994, H & Q financed an American company, SCM/Brooks
Telecommunications, in a joint Sino-U.S. venture called Galaxy
New Technology.  This venture led to the direct export of
advanced, fiber-optic communications systems to a Chinese Army
unit.

In 1994, Defense Secretary Perry personally pushed for the
SCM/Brooks deal, lobbying with the NSA, while serving as
Secretary of Defense.  Secretary of Defense Perry was also close
to the "matchmakers" of the Galaxy New Technology deal,
Professor John Lewis from Stanford and Hua Di, a Chinese
defector, also working at Stanford.

"Defector" Hua Di was born into a family of prominent Communist
officials.  Hua studied missiles in Russia and worked in China's
missile program for 24 years.  In 1989, Hua fled China after the
Tiananmen Square crackdown on student democracy demonstrators.

Hua went to work as a researcher at Stanford's Center for
International Security and Arms Control.  The Center's
co-directors are former Secretary of Defense William Perry and
Stanford Political Science Professor John Lewis.

Perry, Hua and Lewis shared more than an academic career at
Stanford.  In 1992, Chinese Commission of Science, Technology,
and Industry for National Defense (COSTIND) Lt. General Huai
Guomo contacted Hua Di to start a joint venture called Galaxy
New Technology.

"Lewis and I were matchmakers," recalled Hua about Galaxy New
Technology in 1996.  "(General) Huai is my good friend."

The Chinese Army venture needed financial backing.  Thus, Perry
secured H & Q to provide the money to Galaxy New Technology.
Galaxy New Technology used the cash to finance a contract with
SCM/Brooks.  SCM/Brooks then purchased large quantities of
encrypted AT&T fiber-optic communications equipment and shipped
it to China under a joint venture called "Hua Mei".

Perry was not the only Hua Mei participant on double salary.
Documents obtained from the Department of Defense using the
Freedom of Information Act (FOIA) shows Dr. Lewis was being paid
by the Chinese Army for Hua Mei while serving on the U.S.
Defense Policy Board and while working for DoD as a contractor.

John Lewis and "defector" Hua Di worked together in 1994 on the
Hua Mei project using SCM/Brooks.  Hua Di located a Madam Nie Li
in China to run the project and be co-chair with an American
director.  Dr. Lewis located Aldai Stevenson III, the former
Democratic Senator from Ohio, to lead the American side.

Of course, Galaxy New Technology head Madam Nie Lie was also the
wife of Chinese Army General Ding Henggao.  Madam Nie is the
daughter of Marshal Nie, a close associate of Mao.  Madam Nie
also has the rank of General in the Chinese Army.

In 1994, Madam Nie's husband, General Ding Henggao was director
of COSTIND, the Chinese Commission on Science Technology and
Industry for National Defense.  General Ding Henggao was also
the boss of Lt.  General Huai Guomo, the PLA contact for Hua Di.

COSTIND, according to the GAO "oversees development of China's
weapon systems and is responsible for identifying and acquiring
telecommunications technology applicable for military use."

In 1994, SCM/Brooks contracted AT&T to ship advanced, secure,
communication systems directly to the Chinese Army.  AT&T
officials who sold most of the equipment and software to
SCM/Brooks were adamant that there was no need to check the
Chinese firm, Galaxy New Technology, since it was led by Ms. Nie
Lie, a civilian.

Other than Madam "General" Nie, the so called "civilian" firm
was heavily packed with Chinese Army officers and experts.  One
member of Galaxy New Technology management, according to the
Defense document, was Director and President "Mr. Deng Changru".
Mr. Deng Changru was also Lt.  Colonel Deng Changru of the
People's Liberation Army, head of the PLA communications corps.
Another Chinese Army officer in the Galaxy New Technology staff
is co-General Manager "Mr. Xie Zhichao".  Xie was also Lt.
Colonel Xie Zhichao, Director of the COSTIND Electronics Design
Bureau.

With the help of Perry, Hambrecht, Hua and Madam Nie, the Galaxy
New Technology fiber-optic communication system was sold
directly to the General Logistics Division of the People's
Liberation Army.  It is currently providing communications for
the PLA and hard cash to the Chinese Generals.

The HUA MEI system has since been modified by the PLA for
re-export, providing command and control for Iraqi air defense.
The Chinese re-exported version of Hua Mei is code-named "Tiger
Song" by NATO.  It is an internet for surface-to-air (SAM)
missiles built with U.S. and French parts by the PLA under
contract to Saddam Hussein.

U.S. aircraft have been bombing Tiger Song since "Desert
Fox/Monica Storm".  Saddam's secure internet for SAMS is still
up and running although "degraded", according to Defense Dept.
officials.  The recent U.S. air attack that knocked out an Iraqi
oil pipe-line shows the classic mix of commercial/military
networking equal to the Hua Mei system in China.

The Tiger Song system shifted from one damaged network to
piggy-back on to the computer network running the Iraqi oil
pipe-line.  The U.S. attack knocked out the pipe-line and the
command link via Tiger-Song for local Iraqi SAM missile batteries.

Saddam Hussien and General Ding Henggao can thank William Perry
and William Hambrecht.  China did not have the technology nor
the money to field advanced missile command networks.  William
Perry supplied the technology and William Hambrecht supplied the
money.  Today, the Chinese Army re-exports U.S. technology
directly to the sworn enemy of America and profits from it.

John Lewis and Secretary Perry still work at Stanford.  Hua Di,
however, has chosen to return home.  In late October 1998, it
was announced that Hua Di had returned to China.  He met with
Chinese security officials in late 1997 and was assured that he
would not be prosecuted.  On December 31, 1997 Hua returned to
China.

On Jan. 6, 1998, the "defector" Hua was arrested and charged
with passing state secrets to U.S. officials.  Stanford
officials and Dr. John Lewis have written to the Chinese
government appealing for Hua's release.

Of course, Hua Di was no defector and he certainly will not
return to America.  Hua, like Perry and Lewis, was working for
the PLA.  Hua's arrest was faked.  Hua Di was an agent of
COSTIND, the espionage unit led by General Ding.  Hua served the
communist party and made a tidy profit in the process.  Hua
returned to a fat bank account from Hua Mei and a promotion in
the Chinese Army.

COSTIND General Ding and his wife, Madam-General Nie, also made
money on the Hua Mei project.  There were profits enough to
share.  Perry, Lewis and even Mr. Hambrecht all made money on
the Hua Mei export.

The exported "civilian" technology now threatens the lives of
Americans in the skies of Iraq and every nation around the
globe.  The secure line that now carries orders from Chinese
Generals to thermonuclear tipped missiles started with a pay-off
to American officials.  The direct line from pay-off, to export,
to weapon of war goes through William Perry and his millionaire
buddy, William Hambrecht.

===============================================================

Source documents

http://www.softwar.net/h&q.html


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