A MESSAGE FROM OUR FOUNDER AND CEO -
Russian President Vladimir Putin owes much to Bill Clinton. Clinton, in his own charming way, is responsible for the latest generation of Russian nuclear tipped missiles - or at least the 800 Kiloton thermonuclear warheads.
In 2003, Mountain View-based Silicon Graphics pleaded guilty to two felony counts of illegal exports to a Russian nuclear weapons lab in 1996. In 1997 the GAO wrote a report on what Silicon Graphics exported.
"Silicon Graphics sold four computers to Chelyabinsk-70 in the fall of 1996 for $650,000," states the 1997 GAO report on supercomputer exports. Chelyabinsk-70 is well known as a major Russian nuclear weapons lab.
In fact, IBM and Silicon Graphics both sold supercomputers directly to Russian atomic weapons labs. IBM was fined $8.5 million on its $7 million sale.
Then-Commerce spokesman Eugene Cotilli pointed out in October 1998 that the Commerce Department investigation led to the IBM conviction. However, the Clinton administration did not start investigating until the Russian minister in charge of MINATOM (Ministry of Atomics) announced publicly that the U.S. computers would be used for nuclear weapons research.
It was no accident that supercomputers left America bound for nuclear labs in the Ural Mountains. In 1994, Silicon Graphics and several other major computer companies hired Tony Podesta to lobby for them. Tony Podesta is the brother of John Podesta, then the assistant to the president and staff secretary for Bill Clinton. Today, John Podesta is a top advisor to Democrat presidential candidate Hillary Clinton.
In 1994, John Podesta was charged with Clinton computer technology export policies such as high-speed computer systems. Podesta was also given a special Clinton signed presidential waiver from conflict of interest with his brothers firm. In short, everything John would do was perfectly legal.
In 1994, Sun, Silicon Graphics and Cray supercomputers were all suddenly authorized to travel with Ron Brown to Russia, India, China and other points on the globe.
In 1995, during John Podesta's employ at the White House, computer CEOs and a lobbyist from Tony Podesta's company attended a secret meeting at the White House on supercomputer exports. The group of computer companies then represented by Tony Podesta admitted in writing that they attended more than one "classified" briefing held by the Clinton administration.
According to a May 1995 document sent to the White House by the Podesta lobbyist, "controls on computer exports to Russia and China for commercial, civil end-users should be eliminated; controls on exports for actual military end-uses may be appropriate until there is greater certainty that neither country poses a threat to U.S. national security."
In 1996, President Clinton used his pen and through executive orders, changed the law and allowed advanced U.S. computer technology to be sold to foreign military users.
I must note that directly after the exports to Russia took place, John Podesta left the Clinton White House to work for – you guessed it – his brother at Podesta Associates.
In response to a series of questions about his interests in the super-computer exports, John Podesta replied through Clinton White House attorney Michael B. Waitzkin that he sought and was granted a waiver of conflict of interest from White House counsel in 1997, making the whole deal, or at least his part in it, 100% legal.
Of course, Russia was not the only nation to benefit from the new export policy. On Dec. 26, 1996, a Hong Kong reseller for Sun Microsystems, Automated Systems Ltd., sold a supercomputer to the Chinese Scientific Institute, a technical institute under the Chinese Academy of Sciences, a state laboratory specializing in parallel and distributed processing.
At some point after the sale but before delivery, the computer was re-sold to the Yuanwang Corporation. Yuanwang is an entity of the Chinese army unit COSTIND (Commission on Science, Technology, and Industry for National Defense). Yuanwang supplies equipment to the Chinese nuclear weapons labs at the Lop Nor atomic test site.
According to the Chinese Foreign Ministry, Sun Microsystems had been aware of this corporation's Chinese military ties. There is ample evidence that the Chinese were not lying.
According to a Congressional investigation report, the Chinese Ministry of Foreign Trade and Economic Cooperation (MOFTEC) explained that the actual buyer of the computer was the "Yuanwang Corporation" and that Sun was aware of "this corporation's PRC military ties."
According to the Commerce Department's own documents, several meetings with Chinese army-owned companies took placed prior to the super-computer export to Yuanwang. The documents include a list of Chinese military companies, compiled by Commerce and given to the Clinton administration by People's Liberation Army (PLA) Gen. Ding Henggao. Yuanwang is one such company.
Please note – remember General Ding. He will reappear later.
On April 6, 1994, an unclassified memo was sent from Defense Intelligence Agency (DIA) official Col. Blasko to Commerce officials Deliberti, Albanse and Isbell. The memo states that Yuanwang Corporation was a Chinese army-owned firm, along with other known PLA-owned companies such as China National Nuclear and China North, NORINCO.
In 1995, Commerce Department official Barry Carter sent a letter with attachments to Eden Woon, "Executive Director" of the Washington State China Relations Council. Carter included with his letter a Feb. 25, 1995, letter from Gen. Ding, complete with military contacts for business. Included in the list given to Woon was "YUANWANG CORP" – the PLA-owned company responsible for the illegal Sun computer transfer in 1996.
In 1999, the General Accounting Office released a scathing report critical of Clinton's high-tech export policy. According to the GAO, 48 super computers licensed to China were sold to "sensitive end-users or uses." The sensitive end-user being Chinese nuclear and missile weapons labs.
Still, the most damning document dates all the way back to 1994. The document number 656, one in nearly a thousand pages of classified materials obtained through the FOIA Act, describes then Clinton Defense Secretary William Perry and his meetings with Chinese military officials.
The joint U.S - Chinese meetings were to help foster "our bi-lateral military relationship" according to a personal letter from Secretary Perry addressed to Chinese Army General Ding.
Document 656 simply states:
"As a matter of public policy, the Clinton administration is dedicated to defense conversion in China just as in Russia and in the United States. Indeed, Defense Secretary William Perry helped establish a joint Sino-American commission on defense conversion, and during his October 1994 visit to Peking, he promised his Chinese partners extensive U.S. aid -- including a Cray supercomputer to be used directly by the Chinese nuclear weapons establishment to help design newer and safer nukes. Perry's Chinese co-chair is none other than Lt. Gen. Ding"
This document spells out the Clinton policy of relaxing export controls on the US supercomputers. They were deliberately changed to help China design a new generation of nuclear weapons.
CHARLES R. SMITH
CEO FOUNDER OF SOFTWAR INC.
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