-Caveat Lector-   <A HREF="http://www.ctrl.org/">
</A> -Cui Bono?-

March 9, 2000

China boosts spy presence in U.S.,
CIA, FBI report

By Bill Gertz
THE WASHINGTON TIMES


     China's spy services are stepping up military spying against
the United States while using Chinese students as intelligence
agents and "political influence" programs to manipulate U.S.
policy, a joint CIA and FBI report says.

"Chinese attempts to obtain U.S. military and military-related
technology . . . have increased since the early 1990s," the
counterintelligence report stated.

     "Beijing continues to view the United States as one of its
major targets for political collection," according to the report
sent to Congress in January but released yesterday. A copy of the
five-page unclassified report was obtained by The Washington
Times.

     Chinese spying "focuses on the foreign policies and
intentions of the United States as well as information on U.S.
leaders and sensitive bi- or multilateral negotiations," the
report said.

     Regarding political influence activities, the report said
China is continuing to work on "building political influence in
the United States."

     Stepped-up influence operations date to 1995, when Beijing
began directing resources toward influencing Congress and
building greater overall political influence in the United
States. The operations followed the June 1995 visit to the United
States by Taiwanese President Lee Tenghui.

     That year, Beijing set up its Central Leading Group for U.S.
Congressional Affairs that sought to increase support for Chinese
goals.

     China's government is trying to influence Congress through
visits to China by members, lobbying of ethnic Chinese voters and
prominent U.S. citizens, and "engaging U.S. business interests to
weigh in on issues of mutual concern," the report said.

     As for military espionage, the United States continues to be
the "main target" of spying by the intelligence arm of the
People's Liberation Army, known as the Military Intelligence
Department (MID).

     China focused on gathering military-related technology after
seeing the impressive U.S. high-technology warfare actions in the
1991 Persian Gulf War and last year's Kosovo operations, the
report said.

     Most military spying is done overtly by Chinese attaches
posted to embassies and consulates. However, the report states
that since 1987 the FBI and Customs service have stopped "at
least two MID/ PLA clandestine collection operations in the
United States."

     The attaches collect intelligence from "contacts" with U.S.
officials and from publications as well.

     Chinese spies are continuing to obtain valuable intelligence
from U.S. nuclear weapons laboratories, the report states.

     "PRC scientists, through mutually beneficial scientific
exchange programs, gather [science and technology] information
through U.S. national laboratories," the report said.

     Cooperative exchange programs by the laboratories have
created "new vulnerabilities" for U.S. high-technology
information, the report states.

     "These vulnerabilities emphasize the significant difficulty
the United States encounters in detecting PRC espionage
activity," the report said.

     No mention was made in the report of the ongoing spy probe
of Los Alamos National Laboratory scientist Wen Ho Lee. Mr. Lee
is suspected of passing nuclear warhead secrets to China and has
been charged with mishandling extremely sensitive data on U.S.
nuclear weapons.

     The secret and public versions of the report were sent last
week to the House Intelligence Committee by CIA Director George
Tenet and FBI Director Louis Freeh. The report was required under
legislation passed by Congress.

     The report mentions the FBI case involving Lawrence
Livermore National Laboratory scientist Peter H. Lee, who gave
China secret information about the neutron bomb — which kills
with radiation instead of a large blast —in 1985 and 1997. Lee
pleaded guilty to espionage in 1997.

     Sen. Arlen Specter, Pennsylvania Republican, said during a
Senate hearing Tuesday that Lee was sentenced only to community
service and served no jail time despite his involvement in "a
very egregious case involving the disclosure of nuclear secrets
in 1985 and the disclosure of certain materials about detecting
submarines in 1997."

     Mr. Freeh said during the hearing that the FBI and other
security agencies view Chinese spying "with the utmost
seriousness."

     Asked if the threat from Chinese spies is serious, Mr. Freeh
said, "Yes, sir, absolutely."

     China also is engaged in economic espionage against U.S.
companies, the report said. Chinese spies have targeted private
company information and trade secrets, "particularly advanced
civilian, military and dual-use and bio-technology," as a top
priority, the report said.

     China's civilian MSS spy agency is particularly active
against U.S. businessmen and Westerners in China "where MSS
officers can be aggressive," the report said.

     Chinese spies often exploit the "shared ancestry" of
so-called overseas Chinese with access to commercial or
government secrets, the report said.

     According to the FBI and CIA, professional military and
civilian intelligence officers play a small part in the China's
spying efforts.

     "Some of the thousands of Chinese students, scientists,
researchers and other visitors to the United States also gather
information, working mostly for government-controlled end-user
organizations and other scientific bureaus, research institutes
and enterprises," the report said.

     The Ministry of State Security, however, assists these
institutions by "matching their information needs with assets the
service has developed in the United States and elsewhere," the
report said.

     Most intelligence collected by Chinese nationals abroad is
gathered legally through "open sources," such as U.S. university
libraries, research institutions, the Internet and other
databases.

     The report described the information as "highly valued yet
unclassified" data.

     The report said some Chinese businesses in the United States
"are a platform for intelligence collection activities." Chinese
firms provide "cover" for spies, it said.

     "These collectors enter the United States to gather
sensitive and/or restricted proprietary [and] trade secret
information or to act as a liaison to consumers of intelligence
back in China," the report said.

     The activities of Chinese spies were described as "low-key
and singular in nature," frustrating FBI counterspy efforts.

     China also is engaged in "propaganda and perception
management" against the United States, using government-owned or
-controlled press. The report identified the newspaper supplement
Wen Wei Po as "a favored outlet for reaching ethnic Chinese
audiences, whose perspectives in turn can influence the broader
public's views of China," the report said.

     The main spy agencies for Beijing were identified as the
Ministry of State Security, which conducts collection and
counterespionage in China and abroad, the MID, which gathers
military and technical secrets, and the PLA's Liaison Department,
charged with spying on Taiwan.




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