FBI transcripts resurrect Clinton-China questions

Human Events, Sep 3, 1999 by Park, Scott

Weldon Says Congress May Move on Reno Contempt Citation

Conversations captured by FBI wiretaps suggest that forces in the People's Republic of China may have attempted to direct a witness in the Justice Department's campaign finance investigation to mislead federal investigators.

Transcripts of FBI wiretaps of communications between Robert Luu and Democratic fundraiser Johnny Chung raise new questions about Atty. Gen. Janet Reno's much-criticized decision not to call for an independent counsel to be named to investigate foreign influence in the 1996 presidential election.

This case may also cause House Republicans to resurrect the contempt of Congress citation against Reno that the House Government Reform and Oversight Committee approved last year, but which then-House Speaker Newt Gingrich (R.-Ga.) never brought up for a vote on the House floor. The committee approved the citation when Reno flatly refused to comply with a subpoena demanding that she turn over to Congress a memo, written by then-campaign finance investigation task force director Charles LaBella, that detailed the reasons both LaBella and FBI Director Louis Freeh believed that the law required Reno to call for an independent counsel to investigate President Clinton and Vice President Gore.

"There's no doubt why they didn't go forward with the investigation," Rep. Curt Weldon (R.-Pa.) told HUMAN EVENTS. "Janet Reno knows it would be devastating to Clinton and she's covering for him.

"She knew this could be the silver bullet," said Weldon, who was a member of the Cox Committee that investigated Chinese espionage at U.S. nuclear weapons facilities. "They backed down last time, but I've spoken with Burton and the leadership, and before the end of this Congress, there will be a strong effort to release the contempt citation for a vote."

$300,000 From China

Weldon provided HumAN EVENTS with what he says are transcripts of wiretaps the FBI had on communications between Johnny Chung and Luu. Weldon says he was given the transcripts by another member of the press, and is convinced they are legitimate and accurate documents. "These are FBI wiretaps and nobody has refuted them publicly or privately," he said.

"The Taskforce continues to investigate, and it's fair to say they are, and have been, looking into every lead," said a Justice spokesman. FBI and Justice Department sources did not refute the credibility of the transcripts.

Chung and Luu spoke in Chinese, not English, so the transcripts are English translations of the conversations.

Chung, a Taiwan-born naturalized American, secretly made a plea agreement with the Justice Department last March. On May 11, Chung testified under oath before the House Government Reform and Oversight Committee that he was introduced to Peoples' Republic of China Gen. Ji Shengie by Lt. Col. Liu Chaoying.

Gen. Ji was the head of Chinese military intelligence. Lt. Col Liu was the daughter of Gen. Liu Huaging, a member of the Chinese Communist Politburo, and the top officer in the Peoples' Liberation Army. Lt. Col. Liu was also an executive of China Aerospace International, the Chinese government-- owned corporation most interested in acquiring U.S. missile technology.

Chung said that Ji told him: "We like your President very much. We would like to see him reelect. I will give you 300,000 U.S. dollars. You can give it to the President and the Democrat Party."

Chung testified under oath that he took the money and used part of it for contributions to the Democratic National Committee.

About the same time Chung met Gen. Ji he separately made the acquaintance of Lu-a nat_aed American bom of Chinese parents in Vietnam at a Beijing karaoke bar.

Release LaBella's Memo

After the Justice Department task force started investigating foreign money contributed to the DNC in the 1996 campaign, Luu contacted Chung in Los Angeles. When Chung started cooperating with the government, the FBI told him to tape any conversations he had with Luu. During one of the initial conversations between Luu and Chung, Luu brought up the term "Guniang" (Chinese for "country girl"), which had been Chung's code name for Lt Col. fLu.

"So, when he used the term `country gi' in Chinese, he knew exactly who he was talking about?," House Government Reform Chairman Dan Burton (R.-Ind) asked Chung when he testified. "Bingo;' said Chung.

In his testimony, Chung said that he understood the first message from Luu to be that he should say nothing about his contact with the Chinese government. After Clinton red from his Chinese summit in the summer of 1998, Luu told Chung that he could pin the blame for foreign contributions on the socalled Princelings, sons and daughters of Chinese Communist Party officials (see page 3). Chung was not to mention, however, Lt. Col. Liu or matters involving U.S. defense contractors Loral and Hughes.

In an FBI interrogation, according to the transcript, Luu claims that he was simply fabricating the whole thing. "When Mr Clinton came back from China," said an FBI agent, "all of a sudden you're telling Mr. Chung . . Don't hold back . . . just protect her and the two companies, you can tell about everybody else because they're all Taizidang [princelings], blame it on them"