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In Case You Missed It…

Friday, May 15, 1998

From today's New York Times


Democrat Fund-Raiser Said to Detail China Tie

By Jeff Gerth

"A Democratic fund-raiser has told Federal investigators he funneled tens of thousands of dollars for a Chinese military officer to the Democrats during President Clinton's 1996 re-election campaign, according to lawyers and officials with knowledge of the Justice Department's campaign finance inquiry.

"The fund-raiser, Johnny Chung, told investigators that a large part of the nearly $100,000 he gave to Democratic causes in the summer of 1996 - including $80,000 to the Democratic National Committee - came from China's People's Liberation Army through a Chinese lieutenant colonel and aerospace executive whose father was Gen Liu Huaquing, the officials and lawyers said.

"General Liu was then not only China's top military commander but also a member of the leadership of the Communist Party...

"Mr. Chung's account, coupled with supporting documents like bank records, is the first direct evidence obtained by the Justice Department that elements of the Chinese Government made illegal contributions to the Democratic Party. Under American law, foreign governments are prohibited from contributing to political campaigns.

"…investigators regard the identification of Ms. Liu as a breakthrough in their long search for confirmation of a 'China Plan.' The hunt was prompted after American intelligence intercepted telephone conversations suggesting that Bejing considered covertly influencing the American elections…

"At the time, President Clinton was making it easier for American civilian communication satellites to be launched by Chinese rockets, a key issue for the Chinese army and for Ms. Liu's company, which sells missiles for the military and has a troubled space subsidiary."


Contact the RNC Press Office at 202-863-8550 for more information.

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