Northern Telecom and China

Northern Telecom and China

Leung's most profitable contact was with Northern Telecom, or Nortel. In 1990, Northern Telecom signed an agreement with Merry Glory Ltd. of Hong Kong to provide DMS-100 switching systems to China. Under terms of the agreement, Leung was to be paid a fee equal to 3 percent of the initial capital of the joint venture.

Canadian-based Nortel Networks has previously worked closely with the Chinese People's Armed Police developing oppressive and intrusive computer systems to monitor, track and prosecute illegal Internet web browsers.

Nortel has contracts with Datang Telecom, a Chinese firm that works closely with the Chinese Ministry of State Security. Nortel has provided its "Personal Internet" suite to the MSS, allowing authorities to monitor and track nearly half of China's individual Internet users.

Nortel is currently working with the communist authorities in Shanghai to build a "Shasta 5000" firewall. The firewall allows the red thought police to monitor and track subscribers who access Internet Web sites judged inappropriate by the communist government.

Nortel is also currently working with Qinghua University on speech-recognition technology for automated tapping of telephone conversations.