In 1994 Bernard Schwartz, CEO of Loral Aerospace, went to China with Commerce Secretary Ron Brown. Bernard Schwartz, by co-incidence, also donated just over a million dollars to the DNC. When Mr. Schwartz flew to China he hoped to make a sale or two, perhaps to offset the large DNC donation checks he had just written. His company, Loral, makes some pretty high tech equipment, so the China - low-tech - market had great appeal. For example, Loral manufactures satellites, radars, global navigation and world wide secure communications systems. All the fine things a "wannabe" super-power would desire.

In 1994, just prior to traveling with Brown, Mr. Schwartz had his LORAL staff prepare a shopping list for the Chinese and Ron Brown. This list, complete with very big pictures, would make LORAL's large ticket items easier to understand and digest at Ron Brown's (executive) level. However, the same list would also make anyone familiar with military equipment go bananas.

On that day Ron Brown stopped being Secretary of Commerce and started his new career as an international arms dealer. The items LORAL carried to the meeting with Ron Brown resemble a JANE'S Defense catalog of high tech weapons. Some of the Loral suggested "red" ticket items up for sale included "Airborne Reconnaissance Cameras, Weapon Delivery, Target Acquisition, Missile Guidance, Shipboard Target Acquisition, Radar Warning, Missile Warning, RF Jamming, IR Jamming..." and so on.

Please note - Anything that starts with "weapon", "missile" or "target acquisition" does NOT qualify as a civilian application.

The result of the 1994 China trade trip?

Today, China is using Loral satellites to perform all weather bombing using a "western" based navigation system in their modified Russian SU-27 FLANKER jet fighters. These navigation aids were originally sold to China under the condition they would be used on "civilian" airliners. Of course, now that the satellites are under PRC control, their civilian operation has been shifted slightly. The SU-27s are made in Russia (soon to be copied by license in China) and they are not going to complain about the navigation gear being tuned to Schwartz's satellites. Thus, the next bombs to fall in anger from a PLA warplane will come courtesy (and with great accuracy) via the USA.

Another US, high-tech, upgrade for the benefit of China's Generals and Commissars is their new secure military communication system. China is now using US built secure encoding systems to protect their military satellite and global communications. This 21st century system is a decades leap forward for the Chinese, who previously depended on former Soviet built analog scramblers to protect their highest military orders. The great leap forward for the PRC did not come at the end of years of costly R&D followed by careful deployment. Instead, the Princes in Beijing can now issue nuclear launch code orders using C4 (Command, Control, Communications, and Computers) systems that rival the best in the free west. Basically, this is because their system was built in the free west.

So who is responsible for this? A dead Ron Brown? A very much richer Bernard Schwartz?

We have Bill Clinton to thank for arming the Chinese this time around. Bill Clinton personally tasked Bernard Schwartz on a "PRESIDENTIAL BUSINESS DEVELOPMENT MISSION" for Red China. Schwartz actually carried papers of authorization from his friend Bill with him to China. Thus, it comes as no surprise that once in China, Schwartz met with Shen Rong-Jun, Vice Minister for COSTIND (Commission of Science, Technology, & Industry for National Defense). I do not know if Rong-Jun is related to Wang Jun, the Chinese arms dealer who paid his way into the White House at about the same time. However, I do know that COSTIND is an arm of the People's Liberation Army; note the ND stands for "National Defense". In the end, Rong-Jun and Wang Jun were really working for the same boss... The People's Liberation Army.

Additional proof of who authorized the military exports to China comes not from a SOFTWAR FOIA but from a recently published GAO report on US weapons exports to China. The GAO published a report on May 7, NSAID-98-171, which states "According to State (Department) officials, since 1990, 11 Presidential waivers have been issued removing export restrictions on 21 satellite projects. Presidential waivers were also granted to permit the export of encryption equipment controlled on the Munitions List".

Thus, Bill Clinton determined it was in our national interest to arm Red China. He wrote the waivers. He authorized the sales... He took the donations.

The following items were listed by LORAL for "Secy Brown Mgt" prior to the August 1994 Trade Trip to China. This list was obtained by Softwar using the Freedom of Information Act.


FOR SECY BROWN MGT Next Generation Meteorological Satellite (GOES II) Space Sensors - AIRS, GBI, HIRDLS,SBI Space Ground Stations Globstar Navigation/Communications Satellite Airborne Reconnaissance Cameras Syntheic Apeture Radar Weapon Delivery Target Acquistion Missiles - MLRS, Army TCMS, LOSAT, ERINT, AIM-9, Chaparral, Predator Missile Guidance - Javelin Seeker, Tomahawk DSMAC, ASARG Seeker Target Acquistion - FLIR/Laser designator, Pave Tack, F-18 FLIR, Nite Hawk FLIR Shipboard Target Acquistion - SAR-8 Radar Warning - ALR 56C & M Missile Warning - ALQ-199, AAR-47, Silent Attack Warning System RF Jamming - ALQ-178 IR Jamming - ALQ-157, Matador, Challenger


U.S. satellites lead the world - launch vehicles have lost out
to European 'Ariane',

                                    %           GOV.       COMMERCIAL
& ROCKET          USE      PRICE    MARKET      1993-1998  1993-1998

McDonnel          small    $50M     10%         20         10  
Douglas DELTA     GEO      

GENERAL Dynamics  midsiz   65M-85M  12%         15         10
Atlas Centaur     GEO

Martin Marietta   Larger   135M     -           16         -
Titan             GEO

Arianespace       All      $60M-    65%         10*        20*
Ariane 4 & 5               120M

Krunichev         Larger   $45M -   5%          20         5-(15?)
Proton w/Lockheed GEO      70M

Great Wall        Larger   $45M     8%          10         10-(15?)
Enterprise        GEO
Long March

* Multiple satellites per launch

Memo Many small rockets coming on scene from SDIO Limited commercial

Trade deals need to prevent "dumping" of Russian, Chinese
rockets.  STILL, U.S.  will lose out to France/Europe until some
bold new rocket is developed - may be unaffordable, require
international cooperation (like giant Boeing airliner).

Continued U.S. leadership in satellites may depend on occasional
use of Russian or Chinese rockets.  Europeans will fight this.

                                             SPACE SYSTEMS/LORAL

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