Report Cites China-Clinton Donation
LOS ANGELES (AP) -- The head of Chinese military intelligence sent a
Democratic fund-raiser in Southern California $300,000 in campaign donations
to help President Clinton's reelection in 1996, the Los Angeles Times
reported Sunday.
Gen. Ji Shengde sent the money to Johnny Chung, but only a portion of the
money reached Democratic coffers, the newspaper said.
Chung's testimony has given investigators their first direct link between a
senior Chinese government official and illicit foreign contributions, the
Times said, citing sources familiar with Chung's sealed statements to federal
prosecutors.
It is illegal for U.S. political parties or candidates to accept
contributions from foreign sources.
Chung, a Taiwanese-born businessman who is now a U.S. citizen, donated nearly
$400,000 to Democratic candidates and causes from 1994 to 1996, but the money
was returned after questions arose about its legality.
Chung admitted making nearly $30,000 in illegal contributions to Democrats
including $20,000 to the Clinton-Gore reelection campaign. In December he was
sentenced to five years probation and 3,000 hours of community service as
part of a plea bargain.
Chung and Ji were brought together by Liu Chaoying, who was a Chung business
partner as well as a lieutenant colonel in the People's Liberation Army, the
Times said. Liu did not respond Friday to questions sent by the Times to her
office in Hong Kong.
In their first meeting in August 1996, Chung said, he declined Ji's money but
the general said he was already engaged in similar transactions with others
serving as conduits for Chinese funds to support Clinton's reelection.
Within a few days, Liu deposited $300,000 into Chung's Hong Kong bank
account, telling him it was from Ji, sources told the newspaper.
Federal election records show that five weeks after receiving the money,
Chung donated $35,000 in three checks to the Democratic National Committee.
The remaining funds went to one of Chung's California bank accounts but it is
not known how that money was used.
The Democratic party ``was unaware of any supposed relationship'' between
Chung and the Chinese government at the time of the contributions, said DNC
spokesman Rick Hess.
Chung declined to speak with the newspaper, saying he has ``already told the
whole truth to the grand jury.''
A spokesman for China's embassy in Washington denied any involvement in the
1996 elections. ``All these allegations about so-called Chinese government
officials' political contributions into U.S. campaigns are sheer
fabrications,'' said Yu Shuning.
