Undersecretary of Commerce William Reinsch


  • CHINESE LONG MARCH & CSS ICBM



  • William Reinsch Bio For Big Emerging Markets '95.



    William Reinsch & Hidden Documents


    UNITED STATES DEPARTMENT OF COMMERCE
    The Under Secretary For Export Administration
    Washington, D.C. 20230
    
    July 6, 1998
    
    The Honorable Floyd Spence
    Chairman, Committee on National Security
    House of Representatives
    Washington, D.C. 20515
    
    Dear Mr. Chairman:
    
    During the joint International Relations Committee / National
    Security Committee hearing on June 18, a number of members asked
    questions to which I agreed to respond in writing.  I have the
    answers to all but one question and, rather than delay my
    answer, I wanted to respond to the Committees with the other
    information.
    
    Congressman Gibbons referred to three satellite waivers dated
    October 24, 1995, December 4, 1995, and December 8, 1995, that I
    recommended be signed, and he implied incorrectly that they
    related to the 1996 Loral launch which exploded - I would like
    to correct that misconception.  They did not.  The waiver
    authorizing the 1996 Loral launch was signed by President Bush
    on September 11, 1992.  The waiver recommendations that I signed
    were for different satellite exports.  Copies of those
    recommendations are attached. All three are classified and
    contain information subject to Section 12(c) of the Export
    Administration Act, and may not be included in the printed
    hearing report.
    
    Congressman Burton asked about the Yuchai America ease.  As I
    stated at the hearing, I and other BXA officials discussed this
    case extensively with his Governmental Affairs Committee staff
    over a year ago; however, I committed at the hearing to review
    the matter.  I have done so and determined that the license was
    properly issued.  The export license application was handled
    through the established licensing process, a full interagency
    review was conducted, and the license was issued by interagency
    consensus.  I am attaching a chronology of that case. The
    information contained therein is subject to the provisions of
    Section 12(c) of the Export Administration Act.  It should not
    appear in the printed hearing report.  Section 12(c) provides
    that this information may not be further disclosed unless the
    full Committee determines that withholding of the information is
    contrary to the national interest.  In providing this
    information to you, I would underscore the importance of
    protecting it from further disclosure.  The information provides
    details of U.S.  exporters' business transactions.  Among other
    concerns, release of the information could discourage exporters
    from participating, or being fully candid, in the export
    licensing process.
    
    Congresswoman Fowler asked about a March 21, 1996, license to
    China Electronic Systems Engineering Corp., which she believed
    authorized the export of ground stations.  A careful search of
    our licensing records shows no such license being issued, nor
    any exports to China Systems Engineering Corp.  I would also
    point out that in March 1996 the export of a ground station
    which contained encryption would have been under the
    jurisdiction of the State Department
    
    Congressman Hunter asked whether Hughes met with the Chinese as
    part of the 1995 launch failure investigation.  Hughes undertook
    a launch failure analysis in order to satisfy insurance
    requirements, which it provided to the Commerce Department.
    Commerce determined that analysis did not contain information
    that exceeded the scope of the approved Commerce license.
    Commerce authorized release of the analysis, which subsequently
    was provided to a consortium of Western insurance companies and
    to the Chinese launch service provider.
    
    Hughes worked with the Chinese launch service provider to
    assemble data on the failure but has indicated it prepared the
    final analysis independently.  In that analysis, Hughes concluded
    that the satellite itself was not responsible for the launch
    failure.  The data in the analysis was not detailed design or
    manufacturing data for the satellite or the launch vehicle and
    was focused on showing that the satellite did not cause the
    failure.
    
    The outstanding issue is Congressman Gibbons request for a
    list of companies and chief executive officers of the Computer
    Systems Policy Project, when the group's meetings at the White
    House occurred, and who attended them.  The Department of
    Commerce does not have all of this information and must obtain
    it from other sources.  We are assembling the information and
    will provide it to the Committees once we have it.
    
     Sincerely,
    
    William A. Reinsch
    
    Enclosures
    



    SOME OF THE HIDDEN FILES FROM IRA SOCKOWITZ


    Folder labelled Space Luanch [sic]
    
    Cover sheet for classified info; memo to Bettie Baca from
    William Reinsch re National Interest Waiver for XXXXXX
    Communication Satellite Project with attachments - 4 pages
    classified documents and 10 pages unclassified documents and
    Executive Secretariat Clearance Sheet
    
    Group of documents: telephone message dated 12/12/95 from Ann
    Marie Thurber; 2-page memo from Sockowitz dated 12/11/95 re OPIC
    and TRW; 4-page fax dated 12/11/95 to Sockowitz from Kimberly
    Farner; 1 page e-mail from Kim Farner to Sockowitz dated
    12/11/95 re US- Russia launch agreement language; 3-pages
    handwritten notes by Sockowitz (one page is scrap or newspaper
    stapled to one of other pages) 17-page document dealing with
    telecommunications satellites (Russia and Kazakhstan)
    
    Cover sheet for classified info; memo to Bettie Baca from
    William Reinsch re National Interest Waiver for XXXXXX
    Communication Satellite Project w/attachments - 5 pages
    classified documents and 3 pages unclassified documents
    
    Cover sheet for classified info; memo to Bettie Baca from
    William Reinsch re National Interest Waiver for XXXXXX
    Communication Satellite Project with attachments - 3 pages
    classified documents and 10 pages unclassified documents and
    Executive Secretariat clearance Sheet
    
    Classified transmission from National Security Council - 
    Message No. 2565, NSC LOG # 9508646; cover Sheet for classified
    documents; 4 part of Classified Material dated 12/01/95
    [double-sided]
    
    Yellow Post-it dated 11/O5/96; Secretarial
    Correspondence Clearance Form - 4 parts of Classified Material
    Receipt dated 22/04/95 (double-sided) cover sheet for
    classified material; folder containing memo (with classified
    attachments) from William Reinsch dated 11/02/94 re Draft GAO
    Report - MTCR/China and notes on 5 yellow Post-its
    
    Folder labelled:  Remote Sensing
    
    Yellow post-it note marked "Remote Sensing" on a cover letter
    from Ginger Lew to Conrad Harper with courtesy copy of Notice of
    Inquiry submitted to the Office of the Federal Register
    [attached by binder clip to Doc # 318]
    
    Copy of handwritten notes referencing draft letter sent to
    Ambassador McNamara by Sue Eckert attached to unsigned letter
    from Eckert to McNamara, Concurrence Record dated 08/24/95,
    undated letter from Iain Baird to Martha Harris, undated letter
    from Iain Baird to David Tarbell, and undated copy of Final Rule
    re Transfer Of Certain Remote Sensing Satellites from the U.S.
    Munitions List to ECCN 9A04A on the Commerce Control List
    (attached by binder clip to Doc # 317)
    
    Cover sheet for classified documents; Secretarial correspondence
    Clearance form; yellow Post-it with handwritten notes; Document
    dealing with Remote Sensing with attached draft State Department
    Cable
    
    Classified Material Receipt (double-sided) Cover sheet for
    classified documents; draft one page memo from Keith
    Calhoun-Sengor dated O4/18/96; draft seven-page memo from Keith
    Calhoun-Sengor dated 04/19/96
    
    Cover sheet for classified documents with orange post-it
    containing handwritten notes attached; 4 parts of Classified
    material Receipt dated 04/17/96 (double-sided); 1 page
    handwritten notes; yellow Post-it with handwritten notes draft
    one page memo from Keith Calhoun-Sengor dated O4/17/96; draft
    five-page memo from Keith Calhoun-Sengor dated 04/19/96
    
    Cover sheet for classified documents; 4 parts of Classified
    Material Receipt dated 04/18/96 (double-sided) Draft State
    Department Cable dated 04/17/96
                                                       
    Cable from American Embassy Tokyo [002655] (double-sided) 
    
    End of Folder labelled: Remote Sensing 
    



    Presidential Satellite Waivers For China Since 1992


    PRES.    SATELLITE SYSTEM                    STATUS
    ================================================================
    BUSH     SPACE SYSTEMS LORAL INTELSAT 708    LONG MARCH   
    9/11/92                                      CRASHED 2/15/96
    
    BUSH     MARTIN MARIETTA ASIASAT 2           LONG MARCH 11/28/95
    9/11/92
    
    BUSH     ALCATEL AFRISTAR                    ARIANE 4
    9/11/92                                      SCHEDULED 9/98
    
    BUSH     STARSAT                             PROGRAM CANCELED
    9/11/92
    
    BUSH     DFH 3-1 VARIOUS U.S. COMPANIES      LONG MARCH 11/29/94
    9/11/92  DFH 3-2 VARIOUS U.S. COMPANIES      LONG MARCH 5/11/97
    
    BUSH     HUGHES APSTAR 1  MADE BY LORAL      LONG MARCH 7/21/94
    9/11/92  HUGHES APSTAR 2  MADE BY LORAL      CRASHED 1/26/95
             HUGHES APSTAR 1A MADE BY LORAL      LONG MARCH 7/3/96
             HUGHES APSTAR 2R MADE BY LORAL      LONG MARCH 10/16/97
     
    CLINTON  MOTOROLA IRIDIUM 42, 44             LONG MARCH 12/8/97
    7/2/93   MOTOROLA IRIDIUM 51, 61             LONG MARCH 3/25/98
             MOTOROLA IRIDIUM 69, 71             LONG MARCH 5/2/98
    
    CLINTON  LOCKHEED MARTIN INTELSAT 801        ARIANE 4 2/28/97
    7/2/93   LOCKHEED MARTIN INTELSAT 802        ARIANE 4 2/28/97
             LOCKHEED MARTIN INTELSAT 803        ARIANE 4 2/28/97
    
    CLINTON  LOCKHEED MARTIN ECHOSTAR 1          LONG MARCH 12/28/95
    7/13/94
    
    CLINTON  SPACE SYSTEMS LORAL MABUHAY/AGILA   LONG MARCH 8/19/97
    2/6/96
    
    CLINTON  HUGHES CHINASAT 7                   LONG MARCH 8/18/98 
    2/6/96                                       LAUNCH FAILED
    
    CLINTON  LOCKHEED MARTIN CHINASTAR 1         LONG MARCH 8/19/97
    2/6/96
    
    CLINTON  HUGHES APMT                         SCHEDULED FOR 2000
    6/23/96
    
    CLINTON  SPACE SYSTEMS LORAL GLOBALSTAR      RUSSIAN ZENIT & SOYUZ
    7/9/96                                       1998 ZENIT FAILED 12
                                                 SATELLITES DESTROYED
    
    CLINTON  SISE (CHINA WITH HARRIS CORP.)      SCHEDULED 10/98   
    11/19/96
    
    CLINTON  EURA SPACE (JOINT PRC/GERMAN/USA)   SCHEDULED 7/98    
    11/23/96
    
    CLINTON  SPACE SYSTEMS LORAL CHINASAT 8      SCHEDULED 1998
    2/18/98
    



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