U.S. DEFENSE FACTORY CONTROLLED BY RED CHINA

U.S. DEFENSE FACTORY CONTROLLED BY RED CHINA

"Citing national-security concerns, two Democratic lawmakers are engaged in a last-ditch effort to halt plans for the transfer of an Indiana factory that produces critical technology used in the guidance systems of U.S. ‘smart bombs’ to the People’s Republic of China.
"The Department of Defense denies any impropriety, but some observers are asking: Is it a case of politics as usual, or a cover-up? The Magnequench factory (originally known as UGIMAG) was sold in August 2000 to a consortium that included Chinese interests. In 2001, it was announced the plant would be shut down.
"The factory is responsible for producing 80 percent of the rare-earth permanent magnets used in the guidance systems of U.S. ‘smart bombs,’ according to lawmakers.
"On Aug. 1, the office of Rep. Pete Visclosky, D-Ind., issued a statement indicating he and Sen. Evan Bayh, D-Ind., were mounting a ‘last-ditch’ effort to halt the factory move to China. Citing the loss of 225 northwest Indiana jobs, Visclosky also expressed concern over the ‘transfer of sensitive defense technology to the People’s Republic of China.’ …"

BUSH ADMINISTRATION STONEWALLS THE TECH TRANSFER

"The two lawmakers reportedly received no response from letters sent to President Bush on March 6 and May 1. Two letters sent to Treasury Secretary John Snow (on May 20 and June 5) received a response turning down a request from the congressman for a meeting. Several phone calls also have received no response. …
"Magnequench, a high-tech company created in 1986 by General Motors, pioneered the development and production of sintered neodymium-iron-boron (NdFeB) – magnets used in the guidance system of ‘smart bombs.’ Beijing San Huan New Materials High-Tech Inc. is a holding of the Chinese Academy of Science Business Group and was established in 1985. China National Non-Ferrous Metals – previously described by the Wall Street Journal as a ‘high-flying state company’ – operates under the control of the State Council, one of the major organs of the Chinese government.
"The 1995 sale required approval from the Committee on Foreign Investments in the U.S., or CFIUS. The CFIUS is an inter-agency committee chaired by the secretary of treasury, tasked with conducting reviews of foreign acquisitions that might threaten national security.
" ‘Concerns raised by American officials about what they considered a clear case of the PRC attempting to obtain control of vital U.S. weapons technology were shot down, and CFIUS permitted the buyout,’ reported Insight magazine and WND. …"

BEIJING’S TOP COMMIES ARE INVOLVED

"Archibald Cox Jr., founder of the Sextant Group, was appointed president and chief executive officer. And Shannon Song, the former finance director of state-run China National Non-Ferrous Metals Import & Export Corporation, was appointed as a member of the board of directors. Song is now senior vice president strategic planning and is also responsible for China operations. [San Huan New Materials chairman Hong (Harry)] Zhang is the husband of Deng Nan, second daughter of China’s former premier, Deng Xiaoping. Deng Nan serves on the PRC State Council as vice minister of state for the Ministry of Science and Technology. Broad technology policy directives originating in the upper levels of the Communist Party hierarchy are fine-tuned and implemented by the State Council and its institutions."

TECHNOLOGY ACQUISITION IS A TOP GOAL FOR PRC

"The ministry oversees the ‘863 Program,’ an aggressive science and technology acquisition program first launched by Deng Xiaoping and funded and controlled by the Chinese government. It is formally known as the National High Technology Research and Development Program of China. Its name comes from the month (March) and year (1986) it was implemented.
"U.S. government reports indicate the ‘Super 863 Program’ (as it was called after 1996) calls for continued acquisition and development of technology in a number of areas of military concern, including machine tools, electronics, petrochemicals, electronic information, bioengineering, and nuclear research, aviation and space. …"

"SUPER 863" IS A MILITARY THREAT TO U.S.

"About the 863 Program, the 1999 congressional Cox Report noted, ‘These projects could advance the PRC’s development of materials, such as composites, for military aircraft and other weapons.’ Potential dual-use of exotic materials acquisitions were said to be a key area of military concern.’ … According to Russia/China expert Dr. Alexandr V. [Nemetz], Chinese language explanations of 863 emphasize military goals above civilian goals. …"

RED CHINA – NOT IRAQ – IS THE REAL THREAT TO U.S. SECURITY AND SURVIVAL

"It is Nemetz’s opinions that since 1986, through its 863 Program, China has been developing post-nuclear superweapons using knowledge gained from the ‘dragnet’ of the eight fields of research.
"Nemetz, who refers to the West as ‘geostrategically lobotomized,’ has been highly critical of the Bush administration’s war on Iraq, faulting it for not focusing on what he considers to be the far greater threat of strategic developments in China.
" ‘Project 863 has at its disposal not only everything necessary for its development of non-machine post-nuclear superweapons, but also the scientific manpower of the entire world,’ said Nemetz. Nemetz is a consultant to the American Foreign Policy Council and co-author of ‘Chinese-Russian Military Relations, Fate of Taiwan and New Geopolitics.’ A former student of the Moscow Institute of Steel and Alloys, Nemetz worked at the Presidium of Academy of Sciences USSR as an expert on the economic and technological development of China and Japan, and published several dozen articles and booklets in the Soviet scientific media. …

"In a January 2003 interview with [Insight writer Scott] Wheeler, Magnequench President Cox initially denied but later confirmed having a contract for the production of rare-earth magnets for the JDAM – the U.S. Joint Direct Attack Munitions project commonly referred to as ‘smart bombs.’ " 

 Source: Sherrie Gossett, WorldNetDaily.com, 8/12/03