Followup to A Clear and Present Danger : LUSENET : TimeBomb 2000 (Y2000) : One Thread

The upshot of this is that Y2K disruptions could become the precursor to full scale war. In the previous post, I pointed out that China/Russia have agreed on $1.95 billion fighter jet deal, the significance of Hutchinson Whampoa taking over control of the Panama Canal, as well as various other topics. In addition, last year Russia/China held joint naval training missions. Pay special attention to the quiet implamentation of Panamanian Law #5. This I believe is the real threat to the future. Not simply "how much spam should I buy?"

Hutchison Whampoa and Li Ka Shing's Ties to the Communist Chinese Government

In its worldwide operations, the Chinese Hong Kong company that was awarded the 25 year lease of the Panama Canal's ports, Hutchison Whampoa, through its Hutchison International Terminals [HIT] subsidiary or Panama Ports Company, has substantial links to the Chinese communist government and the People's Liberation Army.

The Panama Ports Company is 10 percent owned by China Resources Enterprise [CRE], which is the commercial arm of China's Ministry of Trade and Economic Co-operation. In its investigation into China's attempts to influence the 1996 U.S. presidential campaign, the U.S. Senate Government Affairs Committee identified CRE as a conduit for "espionage--economic, political and military--for China." Committee Chairman Senator Fred Thompson said that CRE has "geopolitical purposes. Kind of like a smiling tiger; it might look friendly, but it's very dangerous."

The Senate Committee also revealed that Hutchison Whampoa's subsidiary, HIT, has business ventures with the China Ocean Shipping Company, which is owned by the People's Liberation Army. COSCO has been criticized for shipping Chinese missiles, missile components, jet fighters and other weapons technologies to nations such as Libya, Iraq, Iran and Pakistan. In 1996, the U.S. Customs Service seized a shipment of 2,000 automatic weapons aboard a COSCO ship at the port of Oakland, California.

The man identified as the arms dealer, Wang Jun, is the head of China's Polytechnologies Company, the international outlet for Chinese weapons sales. Jun also sits on the Board of CITIC, the China International Trust and Investment Corporation, the chief investment arm of the Chinese central government. It is also the bank of the People's Liberation Army, providing financing for Chinese Army weapons sales and for the purchase of Western technology. Jun's fellow CITIC Board member is Mr. Li Ka Shing, chairman of Hutchison Whampoa Ltd.

Li Ka Shing has profound ties to the Beijing regime. Li has invested more than a billion dollars in China and owns most of the dock space in Hong Kong. In an exclusive deal with the People's Republic of China's communist government, Li has the right of first refusal over all PRC ports south of the Yangtze river, which involves a close working relationship with the Chinese military and businesses controlled by the People's Liberation Army.

Li has served as a middle man for PLA business dealings with the West. For example, Li financed several satellite deals between the U.S. Hughes Corporation and China Hong Kong Satellite [CHINASAT], a company owned by the People's Liberation Army. In 1997 Li Ka Sing and the Chinese Navy nearly obtained four huge roll-on/roll-off container ships, which can be used for transporting military cargo, in a deal that would have been financed by U.S. taxpayers.

A June 1997 Rand report, "Chinese Military Commerce and U.S. National Security," stated, "Hutchison Whampoa of Hong Kong, controlled by Hong Kong billionaire Li Ka Shing, is also negotiating for PLA wireless system contracts, which would build upon his equity interest in Poly-owned Yangpu Land Development Company, which is building infrastructure on China's Hainan Island." In 1998, Li Ka Shing attempted to issue $2 billion in bonds, through his Hutchison company, in the United States. According to the Dow Jones Newswire, Hutchison revealed that 50 percent of the bonds would be used through a subsidiary known as Chung Kiu Communications Ltd., which had signed agreements to provide cellular services and equipment to joint ventures between the People's Liberation Army and the Chinese Ministry of Posts and Telecommunications.

Quietly Implemented and Controversial Panamanian Law Number 5

The port business in Panama has both commercial and strategic importance. With its strength, Hutchison Whampoa is becoming the dominant force in Panama. Hutchison, through its operations in Hong Kong, will control the movement of merchandise from Japan, Korea and other Asian exporters headed for the U.S. and Europe.

In addition, under the controversial Law Number 5, secretly implemented by the Balladares regime, the Chinese Hutchison Whampoa company has the right of first refusal on other Canal facilities, including past strategic facilities and former U.S. bases such as the Rodman Naval Station port.

Some of the measures harmful to U.S. security and economic interests under Law No. 5 include:

Article 2.1, which grants Hutchison Whampoa "first option" to take over the ports at Rodman Naval Station. U.S. warships could be shut out. Article 2.8, which authorizes Hutchison Whampoa to "transfer contract rights" to any third party "registered" in Panama. This could be Cuba, Iraq, Iran or Libya or another country that is hostile to the United States. Article 2.12a, which grants Hutchison Whampoa priority to all piers, including private piers, at Balboa and Cristobal, plus an operating area at Albrook Air Force Station. Article 2.12i, which guarantees Hutchison Whampoa the "right" to designate their own Canal pilots, change the rules for boarding vessels and add additional pilots--if clients claim dissatisfaction.

-- Rainman (, October 24, 1999


By the way... Mr. Bill plans on attending the ceremonies when the canal (and possibly our future) is turned over to the commies.

-- Rainman (, October 24, 1999.

The Chinese are emulating the steps the old Soviet leaders took in this hemisphere. Establish a beach head, then promote your own objectives.

-- no talking please (, October 24, 1999.

Well if the balloon goes up we'll just have to take em back. Just put the cost on BJ's tab (materiel, guys, gals, etc).

-- jes a very disgusted footballer (nighttr@in.lane), October 24, 1999.

Rainman: The cost of taking the Canal back once the Chinese brcome entrenched will be extremely heavy indeed. As usual it will be American military personnel who will pay the price! You can start your thanks for this situation with Jimmy Carter and then every President since. Stupidity knows no particular political affiliation, color, level of wealth or IQ.

-- Neil G.Lewis (, October 24, 1999.

Neil, I don't think we have the military strength to take anything back anymore. This administration has decimated the military, cut tremendous numbers of personnel, armaments, and has destroyed morale of those who are left. Besides, we are spread too thin playing defender of the world. This coup by the Chinese can theoretically prevent us from using the Panama Canal, while opening up a Pandora's Box of trouble.

-- Rainman (, October 24, 1999.

Thanks, Rainman. I have read about this on this forum before, but you have more details here which are of grave concern. The one sentence I do not understand, and wonder if you can elaborate upon is: "In 1997 Li Ka Sing and the Chinese Navy nearly obtained four huge roll-on/roll-off container ships, which can be used for transporting military cargo, in a deal that would have been financed by U.S. taxpayers." How did the taxpayers finance this?

Also, on this forum I've read that the Chinese are seeking permission to build a railroad from the Panama Canal to Canada. This also is of grave concern. Link, anyone?

-- Elaine Seavey (, October 25, 1999.

Moderation questions? read the FAQ