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Special Report:


by Frank Miller

China's modern day rise to power can be mirrored by the concurrent decline of America and much of the West.  Are our leaders being wise by closing bases and downsizing our military?  Or are they cozying up to these communists at our expense to make a fast buck?

This is a story of treason at the highest levels of the U.S. Government as Clinton officials have transferred (for profit) America's most-guarded military technology and weapons systems to a communist power which by its own pronouncements is dedicated to global hegemony and the destruction of the United States.  Our government sits by while communist spies are given free access to America each year, and allows the Chinese red Army to establish military bases in America and in Panama at both ends of this most strategic canal.

It is also a story of ruthless human rights abuses:

  • 8 to 10 million Chinese are used in slave labor camps and factories (the loagai) to produce goods for affluent American consumers;
  • tens of thousands of pro-democracy dissidents are jailed, tortured, and/or executed each year, as millions of Chinese women are forced to have abortions each year; 
  • tens (or hundreds) of thousands of babies, (especially baby girls) are slain each year as part of China s population control program; as thousands of body organs are harvested (some from live victims) and sold to recipients in the West;
  • the ongoing persecution of Catholics in China has, in 1997, increased greatly with fines, their houses destroyed, beatings, torture, long imprisonment, lack of medical treatment or death while in prison. In November 1996, the Chinese Government issued a 15 page directive to “eradicate” the Catholic Church in China. 
  • all forms of dissent and basic freedoms are ruthlessly suppressed.

Lastly, it is the story of the moral and spiritual bankruptcy of America, its political and business leaders and a complacent, affluent, materialism-corrupted American public who can no longer recognize the difference between good and evil let alone oppose that evil.

China's leaders are hard-core Marxist/Leninist/Stalinists who still believe that the United States is the number one obstacle to be removed between them and Communist world domination. They consider Americans to be greedy, decadent, capitalistic pigs, but ““officially”” they will tell us everything we want to hear —— that they love us, that they want to be our partners and emulate us in every way. They do this in order to manipulate us into transferring to them massive amounts of U.S. aid, trade, high technology, military know-how, etc.

Probably the single most important point to be made is that: the red Chinese leadership despises America and ultimately, when they are (with America's help) strong enough, plan to destroy us (with a little help from their Russian and Islamic friends).  America has helped to create an economic/military superpower which will threaten the world balance of power and America itself in the next decade.

The Building of a Chinese Superpower

Lenin said greedy businessmen would sell the Communists the rope with which the latter would eventually hang the former.

The Clinton Administration, expanding on the pro-China policies of the Bush Administration, has brazenly accepted huge bribes and payments from the red Chinese government. If it is allowed to continue, we will reap the whirlwind and may well fall from our lofty position as the world's top superpower.

Clinton has even gone so far as to approve (and promote) a Chinese naval base in Long Beach, California. This is an act tantamount to treason.  Long Beach is one of the most sensitive areas in the U.S.

Here are just a few of the differences the MFN status will provide our Communist "FRIENDS":

China's U.S. trade surplus has risen from $3 billion in 1989 to $40 billion in 1996 and in January of this year was growing at a $50 billion annual rate.  Through February, the U.S. trade deficit with China was running 37% higher than during the same period in 1996. U.S. tariffs on Chinese exports to America average 2% while Chinese tariffs on U.S. goods exported to China average 35%. Contrary to the myth of the great China market for U.S. goods China takes 1.7% of our exports (less than Singapore), while we take 33% of theirs. Red China is now America's largest trading partner, with 170,000 American jobs involved in U.S./Chinese trade and ten million Chinese jobs depending on it. The $105 billion in hard currency China has amassed from our trade deficits (up 43% over the past year) is being used to buy Russian submarines, ships, planes, and anti-ship missiles, all targeted on the U.S. 7th Fleet.

Every year the debate comes up in Congress on whether or not to renew China's Most-Favored-Nation (MFN) trade status –— which gives the Communists very low tariff rates for their exports to America. Such status funds their growth as an economic power and as a threat to national security. A coalition of conservatives, some liberal groups, House Minority Leader Richard Gephardt (a liberal Democrat), and other human rights groups who are repulsed by China's massive ongoing atrocities: torture, executions, slave labor, arms proliferation, intimidation of Hong Kong and Taiwan, etc. have mounted opposition to extending MFN trade status to China this year.  Lobbying for China to gain the MFN status is the Clinton Administration (led by its point man on China, Al Gore), Newt Gingrich and much of the liberal Republican leadership, including Bob Dole, Bush, Rockefeller, Kissinger, Haig, and a group of corporate lobbyists – like those companies listed "China Lobby" below.

The Transfer of U.S. High Technology to China

The Clinton Administration and their globalist corporate comrades are in the process of transferring almost all of America's high technology (civilian and military) to the Communist government of Red China.  The liberalization of American high tech exports to China actually began under the Reagan Administration, accelerated dramatically under Bush, and even more so under Clinton. Between 1982 and '86, the U.S. exported to China powerful computers, telecommunications equipment including fiber optics and mobile radio systems and more sophisticated equipment for manufacturing semiconductors.

In March, according to an article in FDA Week, it was announced that U.S. Patent Commissioner Bruce Lehman agreed to provide the Communist Chinese Patent Office the ““entire”” U.S. patent data base on magnetic tape free! This is no way to protect national security. According to the article, Commissioner Lehman has "offered to provide the Chinese the entire collection of U.S. patent documentation covering over 160 years of patents in digital form.”1

On 2/7/96 the Los Angeles Daily News wrote that President Clinton had cleared the way for G.M., Hughes Electronics, Lockheed Martin Corp. and Loral Corp. to sell hundreds of millions of dollars worth of satellites to China.  Clinton also waived export restrictions on U.S. satellite technology going to China.

In 1994 McDonnell Douglas signed a huge contract with China to build commercial (civilian) aircraft in the Peoples Republic of China (PRC) i.e. Mainland Communist China.  U.S. satellite photos have revealed that Catic, the Chinese state-owned enterprise that McDonnell Douglas contracted with, illegally took the McDonnell Douglas equipment used in the fabrication of our B-1 bombers, and relocated it for use at a missile factory 800 miles from Beijing at a facility deliberately built to house it.

China's number one priority at present is the acquisition of the most advanced Western technology, especially ““dual use”” technology that can be used for both civilian and military purposes.  One way China does this is by requiring foreign companies to manufacture in China some of the components that go into the products sold there.

To continue doing business in China, an American company is required not only to transfer advanced manufacturing technology to China, but also to train a Chinese workforce in the manufacturing of the product (setting up the Chinese to be able to produce it themselves later).

The McDonnell Douglas venture became a model for China's deals with other high-tech companies. "No multinational, be it AT&T Corp. or General Motors Corp. can expect an entry pass without divulging technology early and often" said the Wall Street Journal.

Boeing, who sold $1 billion in aircraft to China last year, has received orders to build five 777 jets in China. This will enable the Chinese to quickly acquire Boeing's aircraft manufacturing technology, just as they did that of McDonnell Douglas over the past decade.  It should be remembered that much of the technology for building military aircraft is identical to technology for building commercial aircraft.

Peoples Liberation Army: the Engine of red China

A great number of the companies which Americans do business with in China, and which China owns and operates in America, are actually part of the Chinese People's Liberation Army (PLA), which owns and operates over 15,000 separate enterprises.

Forbes magazine wrote (3/24/97): ““Since the PLA began marching into business in the early 1980s, with approval from the Chinese leadership, it has built a sprawling network of businesses.  These enterprises do everything from raising pigs to running airlines and hospitals, mining coal to owning hotels and operating paging and cellular networks.

"Their research institutes and factories develop and produce munitions as well as aerospace, electronics, ships, satellites, and nuclear weapons.  Three of the 12 teams in China s new professional basketball league are owned by units of the PLA, units of which also own several of the country s largest textile and pharmaceutical manufacturers ... The Peoples Liberation Army is an octopus controlling much of Chinese industry and commerce."

From this, it follows that when the American people buy Chinese products, they are helping to finance the expansion of the Chinese red Army, to procure more sophisticated weapons in huge quantities, all of which will one day be used in a war against the United States.

PLA-controlled companies enable China's military to infiltrate hundreds of thousands of intelligence agents into every nook and cranny of America and the West —— into businesses, universities, research centers, high tech laboratories, the U.S. government itself, where they are stealing hundreds of thousands of high tech (civilian and military) secrets.

Their "legitimate" businesses (like the Mafia-controlled "legitimate" businesses) give the PLA "cover" to conduct widespread espionage in America, smuggling of weapons to American street gangs and terrorists within the U.S., and to conduct electronic spying on the U.S. military. PLA-controlled companies are now popping up near or around U.S. military bases all over the country.

An AFL-CIO study examining shipping records of companies with direct export rights, found: "Not only are the larger PLA departments and military regions involved in trade, but the PLA Navy, Air Force, the 2nd Artillery, all of the military districts (i.e., there are 28 of them) and many of the group armies (there are 24) also manage their own import/export entities."

Jeffery Fielder, an official of the AFL-CIO, testifying before the Senate Foreign Relations Committee in June '96, said: ““Allowing Chinese military companies to do business in the U.S. ... is tantamount to subsidizing the modernization of the Chinese military.””

How the U.S. Establishment Profits from Trade with China

Ever since Richard Nixon and Henry Kissinger initiated American rapprochement with China in 1972, powerful Establishment figures have been cashing in with huge financial rewards from the China-U.S. relationship.  Collectively, this Establishment group has reaped hundreds of millions of dollars (probably billions) in payoffs, commissions, finders fees, kickbacks or outright bribes from the Chinese Communist government and from U.S. multinational corporations wishing to do business in China.  They (along with over 1,000 U.S. corporations they represent, who need the skids greased for doing business in, and with, China) represent a powerful pro-China lobby in Washington which coerces and manipulates the U.S. government into making incredible unilateral trade concessions, high tech giveaways, military aid to the PLA, etc.

Also the United States-China Business Council, representing about 300 companies, trades with Beijing.  Kissinger and Haig (both former Republican Secretaries of State) are the two most powerful and active figures in this formidable pro-China lobby.  Former Clinton advisor George Stephanopoulos recently said that America's pro-China foreign policy is heavily influenced by the Council on Foreign Relations.

Even the supposedly conservative Heritage Foundation and libertarian Cato Institute have been drawn into the pro-China lobby.  The U.S. Chamber of Commerce is also a powerful arm of this lobby, as is the Business Round Table and the National Association of Manufacturers.  Top Republican politicians such as Newt Gingrich, Trent Lott, Dick Armey, Tom Delay, Bob Dole, etc. have also joined the pro-China lobby.

A.M. Rosenthal wrote in the N.Y. Times (10/29/96) "Wake up America!" Wake up to the truth that Bob Dole and the Republican leadership are partners with President Clinton and the Democratic leadership in building up the Chinese Communist dictatorship and its armed forces.

The New American (4/28/97) wrote: "The 'New China Lobby' is led by former U.S. government officials, such as former Secretary of State Henry Kissinger (CFR), who are ‘‘counselors' to companies doing business in China. The role of these outside advisers is to forge contacts between American businesses and the Communist oligarchy in China"”

Known as ‘‘Mr. China’, Mr. Kissinger has defended Beijing while promoting his view of diplomatic and commercial ‘‘engagement’ with the authoritarian regime.  After the 1989 Tiananmen Square massacre of pro-democracy students, Mr. Kissinger publicly defended Beijing's action against the demonstrators and opposed calls for U.S. sanctions.

Insight Magazine (4/21/97) wrote: "Kissinger and Haig stand to profit richly from contracts with China that, in some cases, put the United States in a vulnerable position, according to current and former national security officials.”

Fialka's book War By Other Means claims that nearly 450 Chinese firms are under federal investigation for stealing technology and transferring it to the PLA.

China Buys Political Influence in America

Potentially the biggest political scandal in U.S. history has broken over the Clinton White House and the Democratic National Committee. An avalanche of evidence has begun to pour forth that red China bought favorable trade policy by pouring millions of dollars into the re-election of Bill Clinton and other Congressional Democrats. The National Security Agency intercepted communiques indicating that China was targeting 30 Congressional candidates (mostly Democrats) for influence buying campaign contributions. Republican House Speaker Newt Gingrich was one of those candidates.

On 3/17/97, Senator Orrin Hatch said in the Washington Times that the Clinton Administration was warned in 1995 that China was unlawfully trying to buy influence, but Democrats continued China-linked fundraisers in the 1996 campaign.

The Washington Times (3/17/97) in an article entitled" China's Gifts Part of Espionage," wrote: "China's government pumped cash into Democratic campaign coffers in the last election as a calculated extension of its ongoing economic espionage program in the United States, say federal investigators and a former U.S. ambassador to China"

James F. Lilley, U.S. ambassador to China in the Bush administration and a former CIA officer, "confirmed the Chinese economic espionage connection to Democratic fundraising in the 1992 and 1996 campaigns, ‘‘They've been doing it in the United States.  To them it is logical –— a greedy system that feeds itself in money`. ”

"Mr. Lilley said the Chinese have perfected the art of laundering money internationally in 100 years of financing military and economic espionage.”

"They know how to move money through the Chinese bamboo network.  The money goes from Singapore to New York banks.  It moves in the form of investment.  It is at the disposal of the local representative, who, in turn, gives it to somebody who, in turn, gives it to the politician.”

In the book Chinese Intelligence Operations, Mr. Nicholas Eftimiades said agents of Beijing's Ministry of State Security target the large community of Chinese-Americans to recruit spies.

In a 12/20/96 editorial in the Rocky Mountain News entitled "Money Trail Leads To The Top" William Safire wrote: "Never in the history of the White House has so much influence been for sale for so much money to so many foreign connections" Safire points out that all through the 96 Clinton campaign, as dirty (illegal) money poured into the campaign from the Asian connection (i.e., red China and other Asian sources) that Bill and Hillary knew all about the sources of the funds to the Democratic Finance Committee, didn't lift a finger to stop them, and then participated in an illegal cover-up.

Evidence continues to mount that the Clinton administration has been heavily influenced by Chinese money (i.e., Clinton's support for MFN trade status for China and for admission of China to the W.T.O. the Clinton transferring of our best military technology to the Peoples Liberation Army; Clinton pressuring for PLA-connected COSCO to lease the Long Beach, California naval air station; the Clinton acceptance of the PLA taking over both entrances to the strategically vital Panama Canal; Clinton liberalization of U.S.-Chinese trading; and much more.)

And as if to give Clinton a quid pro quo, China became the largest foreign buyer of U.S. treasury paper last year, helping to keep U.S. interest rates down and the U.S. dollar strong –— which of course helped the U.S. stock market and Clinton's re-election efforts.

The Buildup of the Chinese Communist Military

"All warfare is based on deception." — The Art of War — Sun Tsu

China has embarked on a major buildup of state-of-the-art military might, including its first aircraft carriers, designed to give the People s Liberation Army capability of defeating U.S. forces and threatening U.S. interests in Asia and the Western Pacific and projecting red Chinese power at least 1000 miles out into the Pacific.  Last year, China spent $87 billion on armaments and military expansion. With cheap (or slave) labor and a lower cost for building weapons, that expenditure could be worth two to three times that amount in U.S. military spending.

The Chinese military (the PLA) is presently shopping the world in a massive buying splurge (financed from trade with the U.S.) for ships, missiles, and submarines.  China already has the world's third largest nuclear arsenal in terms of delivery vehicles - some of which can hit Los Angeles (as a PC official threatened the U.S.A. in early '96) and the West Coast.  The Office of Naval Intelligence report says: "China has begun seeking high quality advanced technology weaponry and has focused its military strategy of projecting power along its 10,000 nautical miles of coastline as part of a ‘Two Island Chain' strategy."

The strategy calls for beefing up naval and air forces to project power from China's east coast to cover two sets of islands.  One stretches south from Japan through Taiwan and all the way to Indonesia and Singapore.  The other embraces a huge swath of the Pacific Ocean that includes all of Japan's islands, areas beyond the Mariana Islands and a line extended southward hundreds of miles west of the Philippines.

The Chinese red Army is emerging as the single most powerful and richest institution in the country. It is not inexact to say  the Chinese government is the PLA. China s economic colossus is the PLA; and China's future is the PLA.

The U.S. Arms red China

Wall Street Journal article (12/6/96) by U.S. defense analyst Michael Ledeen, entitled Our Suicidal Policy of Arming China, stated: ““The issue that may well turn out to be the most important for our future: our active complicity in arming the People's Republic of China, and, through the PC, the 'rogue' nations that seek our destruction ... today China is building a formidable military force with American super-computers, night vision systems, multi-axis machine tools that make cruise missiles and attack aircraft stronger and more precise, sensitive underwater sensing systems that make it harder for us to track their submarines and easier for them to track ours. This suicidal policy was begun under the Bush Administration, and then greatly expanded and accelerated by Bill Clinton, Ron Brown, William Perry and Warren Christopher.””

In December, President Clinton hosted at the White House, General Chi Haotia, the Chief of Staff of the People's Liberation Army, who personally planned and executed the Tiananmen Square assault which massacred at least 4,000 democracy demonstrators in June, 1989.  Chi the "Butcher of Tiananmen," a hard-line Maoist Communist who also killed U.S. troops in Korea, was introduced outside the Pentagon by Defense Secretary Perry as "my colleague"”.  All of this "strategic partnership" is going on in spite of the fact that the Chinese Communist leaders consider America to be their number one enemy, and are preparing for war against us – after we have built them up to be our military equals or superior.

The Sino-Soviet Alliance Emerges

In recent months ties have grown stronger with Chinese President Jiang Zemin visiting Boris Yeltsin in Russia and signing agreements which they called a "strategic cooperative partnership". Both Communist Leaders agreed that their "strategic partnership" must strive to stop NATO expansion eastward and to jointly oppose the global power and influence of America. Part of this agreement included a greatly reduced military presence along Russia's and China's 4,000 mile border, freeing up hundreds of thousands of Chinese troops to be moved to the Eastern provinces nearer Taiwan and other Asian countries the PC wants to sink its communist claws into.

Russian and Chinese leaders have also met with Iranian, Iraqi, Syrian, Indian and Belarusian leaders to forge a new alliance to oppose NATO and America.

A China Naval Beachhead in Long Beach, California

President Clinton is even going so far as to attempt to lease out the Long Beach naval base to the Chinese Government. Closed down by Clinton military cutbacks, the U.S. Naval Station at Long Beach was given by the Navy (which had poured $150 million in improvements into the base over the past 10 years) free of charge to the city of Long Beach. The city says it's worth $65 million, environmentalists say it's worth $300 million. The city of Long Beach, pressured by Clinton (who says COSCO was ““an attractive tenant””) agreed to pay $200 million for improvements (i.e. the building of a 145-acre cargo terminal) and to lease the base in the heart of the Port of Long Beach to COSCO (i.e. the Chinese government) for $14.5 million per year.  The base is to become COSCO's major shipping hub on the West Coast.

Giving the red Chinese military a naval base in the heart of the Los Angeles/Long Beach metro area, which is loaded with defense plants, military bases, and hundreds of high tech companies, would open the floodgates for Chinese Communist espionage, for smuggling spies and electronic spying equipment into America, for close monitoring of all our naval activity (i.e. Southern California is the center of the lion's-share of U.S. naval activity), for smuggling of arms and weapons into the U.S. and in times of war or confrontation (like the Taiwan Strait crisis last year), for sabotage.

Senator John Kyl calls the COSCO in Long Beach gambit "a huge PLA operation that greatly enhances the activities of the Chinese military and intelligence services to penetrate this country and work against its interests".

The Chinese Communist Threat to the Panama Canal

The Panama Canal is one of the most critical of over a dozen strategic naval choke points in the world.  It has long been part of Soviet naval doctrine that in time of war, if they could control or dominate a number of these maritime choke points, then they could restrict the movement of U.S. (and Western) commercial and naval shipping and quickly shift the balance of military power in their favor.

The most critical of these naval choke-points for America is the Panama Canal.  America does not really have a two-ocean navy, especially with the downsizing in recent years from 550 to 350 ships.

So, the ability to rapidly move our navy, our armed forces and supplies (not to mention commercial shipping) between the Atlantic and the Pacific Oceans — through the Panama Canal — is vital.

This incredible development positions red China to dominate the Panama Canal from both the Atlantic and Pacific sides, and in time of war, to block U.S. (or other Western) transit through the canal. She would no doubt have help in that endeavor from her Russian partner – which presently has a bigger navy than America's.

Not surprisingly, President Clinton has said the PC has every right to run these ports under the Panama Canal treaties and that he and his advisors do not think China running both ends of the Panama Canal is a national security issue for America.

Non-existent Human Rights in China

To call red China an abuser of human rights is the understatement of the century. To trade with them as we now are, is criminal in essence. The Chinese Communist regime under Mao and then Deng Xiaoping has systematically massacred 50 to 80 million of its own people from 1949 until the present, according to Harry Wu and other Sinologists. They are the greatest mass murderers and destroyers of humanity in the history of the world - greater than Genghis Khan; greater than Hitler, greater than the Russian Communists.

Every year as part of China's strict one-child-per-family policy, there are over a million forced abortions (many as late as eight months). And as if that were not enough, there is also cannibalism of aborted babies. In China, the consumption of aborted babies as a "health benefit" was reported in the Hong Kong Eastern Express, which published the findings of reporters from its sister magazine Eastweek on 4/12/95.

Unfortunately, this is only the tip of the iceberg of China's atrocities against God and humanity.

With the rapid growth of China's military might, the open public renewal of its military, diplomatic and financial support from Russia, with the expansion of Chinese strategic position (particularly the Panama Canal) it is clear that the long term plan of Lenin and Stalin to strangle the U.S.A. is proceeding on schedule.

Just as British Prime Minister Neville Chamberlain after visiting Hitler proclaimed to the world in 1938, "Peace in our time", so too, our present day politicians proclaim the same lie - despite the obvious facts of the military preparations for war - just as Hitler's war machine was being prepared in 1938 for all to see.

Today China — and Russia — —continue to arm at a very great pace. Already the joint forces of China and Russia are much stronger than the U.S. and Europe. It should be obvious to any serious student of these facts that Our Lady of Fatima is to be understood literally when She tells us the whole world, including the United States, will be overcome by Russia (and its allies) unless we obtain the conversion of that poor nation. It is obvious today that Russia is not converted - witness the new anti-Catholic law passed by the Duma and signed into "Law" by Yeltsin on September 26, 1997.

The time of our destruction is very near if we do not heed Our Lady of Fatima. Read Fatima: The Only Way to World Peace by Frere Francois and World Enslavement or Peace by Father Nicholas Gruner.

1. For a more complete report on the dangers China presents, see the articles and books cited in this article. Also read the May 1997 McAlvany Intelligence Advisor, – a source of much information in this article.