On October 17, 1998, H.R. 3616, the Fiscal Year 1999 Defense Authorization Act was signed by the President and became law.

Among the measures contained in the law is a provision, authored by Congressman Duncan Hunter (R-CA), denying the President the authority to issue a waiver allowing the China Ocean Shipping Company (COSCO) to lease a terminal at the former Long Beach Naval Station.

According to a report by the House Task Force on Terrorism, "Although presented as a commercial entity, COSCO is actually an arm of the Chinese military establishment. COSCO provides services to the logistics and and transportation arms of the PLA's [People's Liberation Army] Navy and Air Force."

The Task Force also found that "COSCO is purchasing, under a commercial cover, both cargo ships and, more recently, transport aircraft the PLA cannot purchase for military uses. . . COSCO ships serve as a vehicle for the transportation of strategic material to allies of the PRC is support of their strategic programs -- development of ballistic missiles, nuclear weapons, chemical and biological weapons. COSCO not only carries military and strategic cargoes from the PRC and North Korea to such countries as Pakistan, Iran and Syria -- but also carries strategic items and materials illegally purchased in Western Europe to these countries while concealing the ultimate destination."

This new law was necessary because a previous law (which was also written by Rep. Hunter) was weakened by a compromise with the Senate which allowed President Clinton to issue a national security waiver allowing COSCO to take over the terminal.

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A civil suit filed by a group of concerned Californians may be the only remaining hope for keeping the Long Beach Naval Station out of Communist Chinese (COSCO) hands. Clinton lobbied hard for Chinese interests sending an economic advisor to pressure Long Beach officials to go forward with the COSCO deal. This came after the president, a beneficiary of China's campaign largesse, entertained one of COSCO's top officials and invited him to a White House radio address, reports The Washington Times/INSIGHT Magazine.

Senate Democrats recently defeated the Hunter-Inhofe amendment to the Defense Authorization Bill, which would have prevented COSCO from leasing the Long Beach port. But Sen. James Inhofe (R.-OK), syas he is far from finished. While the bill passed overwhelmingly in the House, it needs some revision to pass the Senate. Recently Inhofe set up a committee to find a way to advance the bill. Inhofe's press secretary, Gary Hoitsma, says of the measure: "It's not dead yet. We're pushing along."

Insight has found that many of the Long Beach citizens are not buying a Defense Department analysis that claims COSCO poses no threat contrary to the advice from military and intelligence experts who fear that Chinese intelligence agents will increase their surveillance of U.S. military activities. Considering the FBI is now investigating some 450 cases involving Chinese espionage, a potential spy nest in the port is not something law enforcement agents are looking forward to.

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JULY 1998


On June 4, 1998, RNC Chairman, Jim Nicholson, called on President Clinton to refuse to allow Chinese government-run China Ocean Shipping Company (COSCO) a lease on Long Beach Naval Station in California because of COSCO's long record of trafficking nuclear weapons materials and other artillery.

President Clinton signed a law in 1997 to prohibit transfer of Long Beach property to COSCO or any of its subsidiaries without a presidential waiver. "The United States should not be a layover for China's arms deals," said Nicholson. "Long Beach Naval Base is in a very strategic location for wartime activities. President Clinton should not allow COSCO, an arm of the Chinese military estab;ishment, to control their own terminal at Long Beach."

The Port of Long Beach is seeking to lease a terminal on the old naval base at Long Beach; such control would be unprecedented. In addition, the Mayor of Long Beach asked President Clinton to sign a waiver to allow the lease.

Nicholson added "China has 13 nuclear-tipped missiles pointed at the United States. Are we going to allow them to have control of a California seaport as well?

"President Clinton said last week that 'our partnership with China has persuaded the Chinese not to transfer missile technology and other dangerous materials to nations that we believe should not have them.' Apparently he doesn't know about COSCO's track record, or he doesn't care about it."

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JUNE 1998


In the next week or two the U.S. Senate will vote on an amendment to the Defense Appropriations bill which would bar the transfer of the Long Beach Naval Station to the Chinese Communist government's shipping company, COSCO. COSCO previously made news when one of its ships was intercepted off of the coast of California with thousands of fully automatic AK-47's which were destined for sale to the street gangs of Los Angeles. President Clinton and Sen. Diane Feinstein (D-CA) have been enthusiastic proponents of the transfer of this base to COSCO. Rep. Duncan Hunter (R-CA) introduced an amendment on the House bill which has been passed. Sen. James Inhofe (R-OK) introduced an identical amendment in Committee in the Senate which was killed by Sen. Carl Levin. (If both the House and the Senate pass identical language, the issue can not be "conferenced" and changed before final passage.) Sen. Inhofe intends to introduce his amendment on the Senate floor when the bill is up for debate in the next week or two.

When Sen. Abraham visited East Tawas on May 29, he indicated that he was not sure of the status of the Inhofe Amendment, but indicated that he had introduced legislation which would restrict the ability of the Chinese to do business in or with the U.S.A. if they were found to have violated any U.S. law. If you wish to express your opinion to either or both of our Senators, you can call the Capitol toll-free at 1-800-504-0031. Sen. Abraham's aide who services this area is Chris Pavelich and can be reached at (517) 7522-4400, FAX (517) 752-4492. Sen. Abraham recommended contacting Chris for best service.

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