DATE=5/23/98 TYPE=NEWS ANALYSIS NUMBER=5-40480 TITLE=CHINA / U-S / SATELLITE BYLINE=ROGER WILKISON DATELINE=BEIJING CONTENT= VOICED AT: INTRO: ONE MONTH BEFORE THE FIRST VISIT BY A U-S PRESIDENT SINCE THE CRUSHING OF THE 1989 PRO-DEMOCRACY MOVEMENT -- CHINESE OFFICIALS ARE IRRITATED ABOUT ALLEGATIONS A U-S SATELLITE COMPANY HELPED IT IMPROVE ITS MISSILE TECHNOLOGY. V-O-A'S ROGER WILKISON REPORTS BEIJING DENIES ALL SUCH ALLEGATIONS AND IS BLAMING "CHINA-BASHERS" IN WASHINGTON FOR STIRRING UP THE FUSS. TEXT: THE PROSPECTS FOR A SUCCESSFUL U-S / CHINA SUMMIT NEXT MONTH WERE CLOUDED WHEN THE "NEW YORK TIMES" REPORTED LAST WEEK DEMOCRATIC PARTY FUND-RAISER JOHNNY CHUNG TOLD FEDERAL INVESTIGATORS TENS OF THOUSANDS OF DOLLARS HE CONTRIBUTED TO MR. CLINTON'S 1996 CAMPAIGN WERE FROM CHINA'S PEOPLE'S LIBERATION ARMY. MR. CHUNG SAID HE RECEIVED THE MONEY FROM LIU CHAOYING -- A CHINESE AEROSPACE EXECUTIVE WHO IS ALSO AN ARMY LIEUTENANT COLONEL AND THE DAUGHTER OF A FORMER TOP GENERAL. MS. LIU DENIES THE ALLEGATION. AGGRAVATING THE SITUATION IS A MOVE BY THE REPUBLICAN-CONTROLLED HOUSE OF REPRESENTATIVES TO HALT AEROSPACE AND OTHER TECHNOLOGY TRANSFERS TO BEIJING. REPUBLICAN CONGRESSMEN QUESTION A DECISION BY PRESIDENT CLINTON LAST FEBRUARY TO WAIVE U-S SANCTIONS AGAINST CHINA TO ALLOW A U-S FIRM TO LAUNCH ITS SATELLITES ABOARD CHINESE ROCKETS. THE FIRM -- LORAL SPACE AND COMMUNICATIONS -- IS RUN BY BERNARD SCHWARTZ: THE BIGGEST CONTRIBUTOR TO MR. CLINTON'S DEMOCRATIC PARTY DURING THE 1996 PRESIDENTIAL CAMPAIGN. REPUBLICANS ACCUSE LORAL OF GIVING THE CHINESE INFORMATION TO IMPROVE THEIR MISSILES' ACCURACY AFTER A CHINESE ROCKET CARRYING A LORAL SATELLITE EXPLODED IN 1996. LORAL DENIES THE CHARGE. THE WHITE HOUSE, TOO, SAYS THERE WAS NO IMPROPER TRANSFER OF ADVANCED TECHNOLOGY. BUT WITH THE JUSTICE DEPARTMENT AND CONGRESSIONAL COMMITTEES BOTH OPENING INVESTIGATIONS INTO THE MATTER, CHINA IS WORRIED WASHINGTON'S NEWEST SCANDAL WILL CAST A PALL ON THE SUMMIT. BEIJING HAS OFFERED TWO AEROSPACE EXPERTS TO DENY IT OBTAINED U-S TECHNOLOGY AFTER THE 1996 LAUNCH FAILURE. SATURDAY, CHINA'S OFFICIAL XINHUA NEWS AGENCY QUOTED LI JIANZHONG -- PRESIDENT OF THE CHINA ACADEMY OF LAUNCH VEHICLE TECHNOLOGY -- AS SAYING CHINESE SCIENTISTS, THEMSELVES, WERE ABLE TO DETERMINE THE CAUSE OF THE LAUNCH FAILURE AND DID NOT NEED ROCKET-LAUNCHING TECHNOLOGY FROM OTHER COUNTRIES. A DAY EARLIER, LIU ZHIXIONG -- THE VICE PRESIDENT OF CHINA GREAT WALL INDUSTRY CORPORATION, THE FIRM THAT LAUNCHED THE DOOMED ROCKET -- SAID FOREIGN SCIENTISTS INVESTIGATING THE EXPLOSION MERELY REVIEWED RESULTS OF A CHINESE INQUIRY INTO THE MATTER AND DID NOT PASS ON ANY TECHNOLOGY. MR. LIU SAYS THE FOREIGN SCIENTISTS NEVER SHOWED THEIR REPORT TO THEIR CHINESE COUNTERPARTS. IN ADDITION TO DENYING ALL THE ALLEGATIONS ABOUT CAMPAIGN CONTRIBUTIONS AND TECHNOLOGY TRANSFERS, BEIJING HAS INDICATED IT SUSPECTS A DARK PLOT BY ANTI-CHINA DIEHARDS IN THE UNITED STATES. THURSDAY, FOREIGN MINISTRY SPOKESMAN ZHU BANGZAO URGED THE CLINTON ADMINISTRATION TO BLOCK THE RESOLUTIONS PASSED BY THE HOUSE OF REPRESENTATIVES -- SAYING A HANDFUL OF PEOPLE IN WASHINGTON ARE ALWAYS TRYING TO OBSTRUCT THE SMOOTH DEVELOPMENT OF U-S / CHINA TIES. DIPLOMATS IN BEIJING SAY CHINA HOPES MR. CLINTON'S VISIT WILL NOT BE OVERSHADOWED BY THE ALLEGATIONS. BUT THEY SAY MR. CLINTON WILL HAVE TO WALK A POLITICAL AND DIPLOMATIC TIGHTROPE WHILE IN CHINA -- SHOWING THE AMERICANS THAT HE CAN BE TOUGH WITH BEIJING WHILE SHOWING THE CHINESE THAT HE WANTS CONTINUING IMPROVEMENT IN U-S / CHINA RELATIONS. (SIGNED) NEB / WD / WD 23-May-98 6:27 AM EDT (1027 UTC) NNNN Source: Voice of America .
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