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

                CIA agents named
                in John Huang files
                Chinagate figure who
                'took the 5th' 2,000 times
                met with spy agency on
                Indonesian corruption


                By Charles Smith
                © 2000 WorldNetDaily.com

                In an apparent breach of national security, the Central
                Intelligence Agency provided convicted Chinagate figure
                John Huang with information on corrupt trade deals with
                Indonesia, according to documents obtained from Huang's
                files, which included the names and phone numbers of four
                CIA agents.

                The original documents that identified the CIA agents
                were heavily blacked out and marked as being withheld for
                "national security" reasons. However, Clinton
                administration officials accidentally included a second
                un-blacked-out copy, revealing the CIA contacts, with
                documents for Huang.

                Judicial Watch, a Washington-based legal watchdog group,
                obtained documentation on the CIA meetings with Huang
                as part of a cache of over 200 boxes of materials from the
                U.S. Commerce Department through a Freedom of
                Information Act lawsuit.

                Huang, who pled guilty in 1999 to federal charges of
                making illegal political contributions to the Clinton/Gore
                campaign, had joined the U.S. Commerce Department
                after leaving a much higher paying job with the Lippo
                Group, a firm owned by Indonesian billionaire Moctar
                Riady, a close supporter of President Suharto. During his
                stay at Commerce, Huang obtained a secret clearance and
                attended more than 37 classified briefings with the CIA.

                "Huang clearly had access to commercial information that
                would have been of keen interest to the Riadys," said
                Asian defense specialist, and co-author of "Year of the
                Rat," William Triplett. "That very night Huang called Lippo
                in Jakarta."

                "Huang took the Fifth Amendment more than two
                thousand times when asked by Judicial Watch if he had
                ties to Chinese intelligence," added Triplett.

                The newly-released documents from the Commerce
                Department show that agents from the Central Intelligence
                Agency met with Huang and representatives from the
                U.S. Export-Import Bank and the Overseas Private
                Investment Corporation.

                According to the documents, four CIA agents attended an
                August 1994 "Trade Policy Coordinating Committee"
                meeting with Huang on Indonesia. (Editor's note:
                WorldNetDaily has the names of the CIA personnel but
                is not publishing them.) The subject of the meeting was
                U.S. government-financed trade deals that contained "first
                family involvement" -- a euphemism for kickbacks to
                relatives of then-Indonesian dictator Suharto.

                The Huang documents could not have come at a worse
                time for the newly-declared Hillary Clinton Senate
                campaign in New York. It was Mrs. Clinton who
                reportedly had insisted that Huang be given a position at
                the Commerce Department under Ron Brown. And she
                has not made any public comment regarding her
                relationship with Riady, Huang's former employer. A
                Hillary 2000 spokesperson refused to answer questions on
                the newly-discovered documents.

                In addition, Riady has been accused of having passed
                illegal monies to the 1992 and 1996 Clinton/Gore
                campaigns. Ominously, the CIA has also accused Riady of
                working for Chinese military intelligence.

                According to a 1998 CIA report presented to Sen. Fred
                Thompson, R.-Tenn., "James and Moctar Riady have had
                a long-term relationship with a Chinese intelligence
                agency. The relationship is based on mutual benefit, with
                the Riadys receiving assistance in finding business
                opportunities in exchange for large sums of money and
                other help."

                "The Chinese intelligence agency seeks to locate and
                develop relationships with information collectors,
                particularly with close association to the U.S. government,"
                states the CIA report on Riady.

                The accidental release of the identity of CIA agents also
                comes at a time when the intelligence agency is under
                intense fire for lax security. Former CIA Director John
                Deutch admitted that he left classified materials on an
                unsecure home computer. In addition, CIA investigators
                revealed that someone used Deutch's home computer to
                scan the Internet and tour pornographic sites. As a result
                of the reports, Deutch has lost his security clearances but
                no charges have been filed.

                The 1994 meeting between the CIA and Huang included
                detailed information on a $2.6 billion U.S.-sponsored
                electric power plant for Indonesia. A 1994 Commerce
                Department report found in Huang's files noted that the
                Indonesian "Paiton" power plant had encountered
                difficulties with financing because the Asian Development
                Bank knew it contained money for a Suharto family
                member.

                "ADB had raised concern about first family involvement
                during its consideration of the $50 million financial portion,"
                states the Paiton Project document found in Huang's files.

                "Ambassador Barry stated that the project is facing two
                problems (i) the ADB financing may cave in and (ii)
                EXIM financing. Regarding ADB, technical questions
                have been satisfied, but ADB is skittish about involvement
                of Indonesia's first family (a minority shareholder is
                married to Pres. Suharto's daughter)."

                Kickbacks for the president's family were becoming a
                stumbling block.

                In addition, 1994 documents provided by the Offshore
                Private Investment Corporation noted that Suharto's
                daughter Prabowo and her brother-in-law Hashim
                Djojohadikusumo were given a total "2.5%" ownership in
                the U.S.-sponsored power project, through their local
                company BHP.

                "ADB is still considering this, b/c of very minimal
                involvement of Indo ruling family in the Mission project ...
                ADB's delay revolves around concern for projects in
                Indonesia involving the first family. .75% ownership of the
                Mission project by daughter of Indo pres."

                On top of the concerns about paying off the Indonesian
                first family to get the contract, in 1999 an Indonesian
                government audit revealed that the Paiton power plant has
                accumulated losses of over $280 million. PLN, the
                Indonesian power company, estimated that it had lost over
                $18 billion in total to Suharto corruption inside various
                power plant contracts.

                "It happened because there were so many people that
                'used' Suharto's power when he was still in charge," stated
                former president/director of PLN, Adhi Satriya.

                "The Paiton project by itself is the largest loss for PLN.
                Corruption occurred in all parts of the project," said Adhi.

                PLN also obtained similar documents to those found in
                Huang's files. In 1999, PLN acquired documents that
                stated Clinton administration officials were aware of
                "corruption, collusion and nepotism" inside the electric
                power trade deals made with Indonesia.

                PLN used the documents to win a lawsuit against the
                Clinton administration, charging that U.S. officials knew
                the Paiton power plant contract was "corrupt from the
                beginning." In December 1999, an Indonesian court ruled
                that the entire $2.6 billion Paiton power plant contract was
                illegal.

                In a related story, Indonesian authorities announced that
                they are now seeking the testimony of former President
                Suharto. Indonesian law enforcement officials have
                charged that Suharto and his relatives illegally acquired
                billions of dollars from various corrupt schemes during his
                term in office.

                A spokesman for the former dictator asserted that
                President Suharto was "too sick" to appear for questioning.



                Charles Smith is a national security and defense
                reporter for WorldNetDaily.


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