WASHINGTON-In an unexpected development that could further complicate President Clinton’s China visit this week and hurt him when he returns home, U.S. officials last week disclosed security concerns prompting them to temporarily block export approval of a $750 million satellite built by Hughes Electronics for an Asia-Pacific mobile telephone network to be operated by a Chinese-Singapore government-private sector partnership.
The Hughes mobile satellite export was approved in 1996 by Clinton, who is under fire for alleged satellite technology transfers to Communist China that Republicans believe were influenced by Democratic campaign contributions and that ultimately improved Beijing’s nuclear missile capability.
The original export license applications accompanying Clinton’s approval were pending when U.S. officials asked Hughes to reapply.
“It was a routine reapplication,” said Don O’Neal, a Hughes spokesman. He said Hughes reapplied for an export license in May.
But some government officials see the reapplication as anything but routine.
The State Department, Commerce Department and Pentagon fear the commercial satellite’s antenna could enable China to intercept electronic communications for military purposes.
“The larger the antenna, the better it can receive signals from small transmitters like cell phones,” William Reinsch, a top Commerce Department export official, told a joint hearing of the House National Security and International Relations committees.
Reinsch said that means the Hughes mobile satellite should be considered an arms export rather than a commercial export.
“The capability of the satellite has changed,” said John Holum, acting undersecretary of State for political affairs. “As a result, the exporter has to come in and apply for a new license.”
The Hughes mobile satellite concerns are different than those involving satellite launch technology, which initially triggered the formation of special House and Senate committees to probe the possibility that technology transfers have occurred.
National security and intelligence officials within the administration differ on whether sensitive technology was actually transferred to China. U.S. wireless firms deny any intentional wrongdoing that may have led to technology transfers that improve China’s military standing.
However, some officials said the United States benefits from satellite trade with China because intelligence is gathered on China’s military technological status.
Satellites manufactured by Hughes, Loral Corp. and Motorola Inc. have launched from Chinese rockets, which offer an economical and time-saving launch alternative to anything offered by the U.S. government.
As such, some critics pin the ultimate blame for any technology transfers on NASA for emphasizing manned space flights over space commercialization, leaving American firms little choice but to contract overseas for satellite launches.
Dual-use satellite technology is among a host of radioactive issues orbiting around the president’s trip to China, the most populous nation and potentially the largest emerging wireless market in the world.
Also hovering overhead are controversies regarding human rights, religious freedom, Tibet liberation and ongoing investigations into allegations that China illegally funneled into Democratic campaigns in 1996 in hope of influencing the outcome of elections and U.S. policy.
“This is the most advanced eavesdropping equipment that has ever been sold outside the United States, allowing the Communist China to monitor ground-based interception systems throughout Asia-and the Chinese general in charge of the project has managed to get his own son on board as project manager [for Hughes],” said Jim Nicholson, chairman of the Republican National Committee.
“I hope the Commerce Department puts U.S. security interests ahead of political and financial ties to the Clinton-Gore campaign,” Nicholson added.
