1998-09-15 - IP: VP GORE’S CHINA SCANDAL

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From: Robert Hettinga <rah@shipwright.com>
To: cypherpunks@cyberpass.net
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UTC Datetime: 1998-09-15 01:03:44 UTC
Raw Date: Tue, 15 Sep 1998 09:03:44 +0800

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From: Robert Hettinga <rah@shipwright.com>
Date: Tue, 15 Sep 1998 09:03:44 +0800
To: cypherpunks@cyberpass.net
Subject: IP: VP GORE'S CHINA SCANDAL
Message-ID: <v04011712b2242429a42f@[139.167.130.246]>
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Delivered-To: ignition-point@majordomo.pobox.com
Date: Tue, 15 Sep 1998 05:33:46 -0400 (EDT)
To: ignition-point@majordomo.pobox.com
From: softwar@us.net (CharlesSmith)
Subject: IP: VP GORE'S CHINA SCANDAL
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Reply-To: softwar@us.net (CharlesSmith)

http://www.worldnetdaily.com

According to Chinese General Sun Tzu "All war is based on
deception."  Tzu wrote those words over 2,000 years ago and his
first rule of war still applies today.

For example, a hidden November 1994 letter written by DNC donor
Sanford Robertson to President Clinton that clearly details the
sale of Commerce trade trips for campaign donations.  Robertson
was so bold as to include a telling "P.S." where he notes for
Clinton that "Bob Rubin" turned out the "Silicon Valley" at a
Robertson sponsored fundraiser that took in "$100,000" for
California Senator Feinstein.  Of course, neither Robertson nor
current Treasury Secretary Rubin expected that letter to be
revealed.

In November 1995, Vice President Gore called Sanford Robertson
from the White House and asked for a $100,000 donation.  In
January 1996 Robertson obliged and kicked in $80,000 soft and
$20,000 in so-called "hard" donations to the Clinton/Gore
campaign.  The fact that Gore made the call from inside the
White House is the least of his legal problems.

In 1993 Clinton named Gore to head U.S. export policy for
encryption technology in a TOP SECRET order written by National
Security advisor Anthony Lake.  A 1996 secret memo on a secret
meeting of DCIA Deutch, FBI Director Freeh and Attorney General
Janet Reno states "The Vice President chairs the senior group
that set the Administration's encryption policy; since Februarcy
1994 it has been supported by a working group co-chaired by NSC,
and OMB, composed of NSA, CIA, FBI, State, Commerce (BXA, NIST),
and Justice."

In 1995 Sanford Robertson also had a big financial interest in
the U.S. computer security industry.  Robertson's investment
firm had hundreds of millions of dollars tied up in a
Massachusetts based computer company named Security Dynamics
Inc. (SDI).  Thus, in 1995 Gore had direct control of policy
that also affected Robertson financially.

Security Dynamics was able to import computer security hardware
manufactured in China.  SDI secured Hong Kong electronics maker
RJP Industries to produce electronic computer security cards for
sale in America.  The Chinese manufactured cards are sold to
major defense contractors, medical institutions and the U.S.
government.

Hong Kong millionaire Raymond Hung also owns RJP.  Hung
manufactured the security cards in two factories leased directly
from the China National Electronics Import/Export Company
(CNEIEC), a business owned by the People's Liberation Army.
Thus, the computer security cards imported and sold here in the
U.S. were built on a Chinese Army assembly line.

Hung also owned a U.S. based company called Quorum International
that went bankrupt in 1996.  The company left millions in bad
debt in Arizona and California.  Yet, Hung was able to donate
over a million dollars to the Special Olympics, donate a temple
to communist China, and have his photo taken with Arnold
Schwarzenegger all only days before declaring bankruptcy.

Hung is also reported to have set up dozens of shell "front
companies" offshore.  These companies allegedly sell cheap
Chinese products imported by Hung who declares bankruptcy,
citing Chinese taxes on the imports.  Hung, of course, splits
the "taxes" with the Chinese government, and returns to America
to purchase hard assets such as real estate.  Despite all this
Hung remains un-investigated by the Clinton administration.

Hung's close working relationship with China and the Clinton
administration raises another question...  Could there be a
"secret" back door embedded in imported hardware or software,
waiting like a TROJAN HORSE, brought safely inside the secure
walls by a paying customer?  Could a hidden SNIFFER be hunting
down passwords, code keys and sensitive data?

"Absolutely," stated Info-warfare expert Winn Schwartau.  "I
call it 'pro-active' defense - you'll find it referenced in my
original book (Information Warfare)."

"Chips are made of silicon," explained Schwartau.  "If you buy
hardware the only way to tell exactly how it works is with a
destructive test.  You tear the chip apart, layer by layer.
This is not only difficult but expensive.  Can it happen?  Just
look at the multitude of hardware and software products
maintained outside of the United States.  How many of them are
'proprietary' designs that have never been viewed inside the
U.S.?"

"It is possible," agreed Forrest Mimms, a leader in the U.S.
electronics engineering and well-known author.  Mimms is best
known to electronics hobbyists worldwide for his series of books
that populate Radio Shack.

"I would not be surprised to find a back door put in by the
Chinese government," stated Mimms.  "Go to Wal-Mart and you'll
find hundreds of commercial electronics products made by Chinese
government factories.  In fact, I would not be surprised to find
a back door put in by an independent [rouge or criminal]
operation."

"Yes.  It is always possible to slip a Trojan horse into
cryptography products, both hardware and software," stated Bruce
Schneier, President of Counterpane Systems and author of the
best selling book on computer security APPLIED CRYPTOGRAPHY.

"Unless the user takes the time to reverse-engineer the product
- - much easier to do in software than in hardware - - he is
essentially trusting that the manufacturer is behaving
honestly," stated Schneier.  "The NSA has been rumored to have
convinced several cryptography hardware companies world-wide to
install Trojan horses that effectively 'leak' secrets as the
hardware is used."

The Chinese Army, Sanford Robertson, Al Gore and Ron Brown
shared an interest in computer security technology.  California
based RSA Inc. is the only U.S. company that has ever been able
to secure any export deal on encryption with China.
Documentation held by the Commerce Department and taken by
former DNC fundraiser Ira Sockowitz shows that RSA was able to
obtain a trade deal with the Chinese government through a
Commerce sponsored trade conference to Beijing in October 1995.
In fact, both the Chairman of RSA, Jim Bidzos, and Ron Brown met
in October of 1995 with Madam Wu Yi, head of China's MOFTEC
(Ministry of Foreign Trade and Economic Cooperation).

Al Gore also had previous legal contact with RSA Inc. in 1994.
According RSA CEO James Bidzos, in March 1994 Gore sent
government lawyers to RSA in a failed effort to purchase patents
on encryption technology held by his company.  Curiously, the
envoy Gore selected to send was John Huang's boss, Commerce
Counsel Ginger Lew.  Even more curious is the fact that Lew
claimed to know nothing about encryption in her deposition for
Judicial Watch.

Her lack of computer security knowledge is puzzling because Lew
also possessed a 1994 document detailing penetrations of U.S.
government computers using "back-door" and "SNIFFER" programs
installed by unknown hackers.  The document was returned in
response to a Freedom of Information Request.  Ms. Lew currently
works at the Small Business Administration and has refused my
request for an interview.

In February 1996, only days after Robertson had kicked in his
$100,000 to the Clinton/Gore campaign, RSA announced the China
encryption export deal.  In April 1996, Robertson's Security
Dynamics Inc. bought RSA for $296 million above the stock value.
Robertson's investment firm was paid $2 million just to write
the merger document.  Thus, Robertson financially benefited from
the same company that Gore had previously engaged in secret
government negotiations.  Robertson gained $2 million for a
$100,000 investment in less than 90 days.

How deeply involved was Robertson with party officials?
Perhaps, the real question is which party?  Democrat or
Communist?  In an April 1994 letter Robertson reminded Brown of
scheduled money-raising events for the DNC and of his efforts
for DNC candidates.  "P.S." Robertson wrote to Brown.  "It has
been fund raising season out here for the Senate and we've had
events at our home for Feinstein, Lieberman, and Cooper.  I wish
you were still head of the DNC for the December elections, but
you are obviously doing a great job at Commerce."

In the same letter Robertson also noted his influence in the
Chinese communist party.  In April 1994 Robertson informed
Brown of his successful effort to hire the son of a major
Chinese Communist leader.  "We have recently hired Bo Feng the
son of Feng Zhijun the vice chairman of the China Democratic
League and a member of the Standing Committee of the National
People's Congress."

On August 18, 1998 this author filed suit in Federal Court
against the Clinton administration for illegally withholding
documents.  The documents in question were discovered at the
Commerce Department in response to a Freedom of Information
Request on Loral CEO Bernard Schwartz and DNC donor Sanford
Robertson.

At first, the Commerce Department refused to release the "22"
documents because they were being withheld by unspecified "other
agencies" for "consultation".  On May 18, 1998 the Commerce
Department released one of the 22 documents.  The single
document returned was the bio of W. Bowman Cutter, Deputy
Assistant to the President for Economic Policy, written by the
White House.

"Bo" Cutter, "Bob" Rubin, Al Gore and Ron Brown were all tasked
to encryption export policy in the 1993 Top Secret order from
Bill Clinton written by Tony Lake.  Bo, Bob, Al and Ron were
part of the encryption task force detailed in the 1996
CIA/FBI/DOJ meeting.  "Bo" Cutter's boss, now Treasury Secretary
"Bob" Rubin, raised the 1994 $100,000 from Sanford Robertson
while working inside the White House - just like Al Gore in
1995.  All of these fine gentlemen were also making secret
export policy... including Sanford Robertson.

In addition, according to the Commerce Department FOIA officer,
the remaining 21 documents were being withheld by the White
House.  However, the White House is NOT an agency.  My source on
this legal "Catch-22" is the White House legal counsel for Vice
President Al Gore.  In response to a 1997 FOIA request Vice
President Gore's Deputy Counsel Elizabeth Brown wrote "Please be
advised that FOIA applies to only records maintained by
'agencies' with in the Executive Branch.  The Office of the
President and the Vice President ... are not 'agencies' for the
purposes of this law.  Therefore, your request must be denied."

The Clinton administration caved instead of facing embarrassment
in court.  The remaining documents withheld by the White House
have been released.

Both Bernard Schwartz and Sanford Robertson were given the
detailed dossiers of the Chinese leadership from President Jiang
Zemin, and MOFTEC's Madam Wu Yi - down to the local communist
mayor of Shanghi.  The new documents include information on such
communist officials as Hu Qili - Minister of Electronics
Industry - a former radical Red Guard member of the Chinese
Youth movement.  According to the hidden documents, Qili argues
"that military electronics are a key technology necessary for
winning modern warfare."

According to Sun Tzu, all war is based on deception.  War,
according to Von Clausewitz, is also merely an extension of
politics.  The war of Clinton deception continues to this day.
The administration and its agencies are continuing to withhold
documents from this author, the House National Security
Committee, and the House Government Oversight Committee.  The
White House is engaged in a cover-up of illegal activities.
Evidence hidden in a deliberate and planned scheme to conceal
crimes by officials currently in power.

==============================================================
source documents * = new

- Robertson letters to Brown & Clinton

http://www.softwar.net/rscot.html  <--- text version
http://www.softwar.net/rsco.html   <--- jpeg version

- SECRET 1993 order on encryption by Anthony Lake

http://www.softwar.net/not4u2c.html

- Secret 1996 DCIA Deutch/FBI Freeh /AG Reno meeting

http://www.softwar.net/docciat.html  <--- text version
http://www.softwar.net/doccia.html   <--- jpeg version

- * Snips from the SEC - official RSA/SDI merger document
RJP, China, MFN treaty & $2,000,000 payment to Robertson
& Stephens for writing merger document.

http://www.softwar.net/sdi.html

- * Raymond Hung with Arnie, wife with $1,000,000 check, wife
with Shriver, temple donated to PRC and article ref.

http://www.softwar.net/quorum.html

- Interview of RSA CEO James Bidzos

http://www.softwar.net/bidzos.html

- * Documents held by Ginger Lew on back-doors and sniffers

http://www.softwar.net/lew.html

- * Documents on encryption written by Al Gore & 1997 FOIA
rejection by Gore's legal counsel

http://www.softwar.net/al2000.html

http://www.softwar.net/gore.html

http://www.softwar.net/vp.html

- * Ron at CHINA WORLD - Oct. 1995 JCCT meeting with Wu Yi

http://www.softwar.net/ron.html

- * White House Bio of "Bo" Cutter

http://www.softwar.net/boknows.html

- * snips from White House documents & SOFTWAR action, bios
of Jiang Zemin, Wu Yi, Hu Qili, and Huang Ju (mayor of Shanghi)

http://www.softwar.net/white.html

================================================================
1 if by land, 2 if by sea.  Paul Revere - encryption 1775
Charles R. Smith
SOFTWAR         http://www.softwar.net      softwar@softwar.net
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57401400416BC39E
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SOFTWAR EMAIL NEWSLETTER                            09/15/1998
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-----------------
Robert A. Hettinga <mailto: rah@philodox.com>
Philodox Financial Technology Evangelism <http://www.philodox.com/>
44 Farquhar Street, Boston, MA 02131 USA
"... however it may deserve respect for its usefulness and antiquity,
[predicting the end of the world] has not been found agreeable to
experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire'





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