Misplaced Pages

1996 United States campaign finance controversy: Difference between revisions

Article snapshot taken from Wikipedia with creative commons attribution-sharealike license. Give it a read and then ask your questions in the chat. We can research this topic together.
Browse history interactively← Previous editNext edit →Content deleted Content addedVisualWikitext
Revision as of 04:01, 27 July 2008 editNuclearWarfare (talk | contribs)Edit filter managers, Autopatrolled, Administrators83,665 editsm clean up using AWB← Previous edit Revision as of 23:09, 7 August 2008 edit undoAllanBColson (talk | contribs)102 edits restore lots of productive edits that seem to have gotten lost some time agoNext edit →
Line 2: Line 2:
<!-- FAIR USE of Gore-hsia.jpg: see image description page at http://en.wikipedia.org/Image:Gore-hsia.jpg for rationale --> <!-- FAIR USE of Gore-hsia.jpg: see image description page at http://en.wikipedia.org/Image:Gore-hsia.jpg for rationale -->
<!-- FAIR USE of Clinton-chung.jpg: see image description page at http://en.wikipedia.org/Image:Clinton-chung.jpg for rationale --> <!-- FAIR USE of Clinton-chung.jpg: see image description page at http://en.wikipedia.org/Image:Clinton-chung.jpg for rationale -->
]]] ]
The '''1996 United States campaign finance controversy''' was an alleged effort by the ] to influence domestic ] prior to and during the ] and also involved the ] practices of the administration itself. The '''1996 United States campaign finance controversy''' was an alleged effort by the ] to influence domestic ] during the 1996 federal elections.


While questions regarding the ]'s fund-raising activities first arose over a '']'' article published on ] ],<ref name=firstquestions>Miller, Alan C., , ''Los Angeles Times'', ], 1996</ref> China's alleged role in the affair first gained public attention when ] and Brian Duffy of '']'' published a story stating that a ] investigation into the fund-raising activities had uncovered evidence that agents of China sought to direct contributions from foreign sources to the ] (DNC) before the ]. The journalists wrote that intelligence information had shown the Chinese Embassy in ] was used for coordinating contributions to the DNC<ref name=embassy>Woodward, Bob and Duffy, Brian, , ''Washington Post'', ], 1997 The issue first received public attention in early 1997, with news that a ] investigation had uncovered evidence that agents of China sought to direct contributions to the ] (DNC) in violation of U.S. laws regarding foreign political contributions.<ref name=embassy>Woodward, Bob and Duffy, Brian, , ''Washington Post'', ], 1997
</ref> While the ] denied all accusations, twenty-two people were eventually convicted for ] or for funneling ]n funds into the United States elections.
</ref> in violation of ] forbidding non-] or non-] from giving monetary donations to United States politicians and political parties. A ] investigator of the controversy stated the Chinese plan targeted both presidential and ] United States elections, while Democratic ] said the evidence showed the Chinese targeted only congressional elections. The ] denied all accusations.

Twenty-two people were eventually convicted for ] or for funneling ]n funds into the United States elections. A number of the convictions came against longtime Clinton-] friends and political appointees.


==Background== ==Background==
===New China lobby===

{{wikisource|1997 Special Investigation in Connection with 1996 Federal Election Campaigns}} {{wikisource|1997 Special Investigation in Connection with 1996 Federal Election Campaigns}}
According to the United States Senate report ''Investigation of Illegal or Improper Activities in Connection with 1996 Federal Election Campaigns'', prior to 1995 China's approach to promoting its interests in the United States was focused almost exclusively on ], including ] and meetings with high-level ] officials. In these meetings, Chinese officials often negotiated with the United States government by using the appeal of their huge commercial market.<ref name = chinalobby/> According to the United States Senate report ''Investigation of Illegal or Improper Activities in Connection with 1996 Federal Election Campaigns'', prior to 1995 China's approach to promoting its interests in the United States was focused almost exclusively on ], including ] and meetings with high-level ] officials. In these meetings, Chinese officials often negotiated with the United States government by using the appeal of their huge commercial market.<ref name=chinalobby>, U.S. Senate, Retrieved: ], ]</ref>

United States companies were also known to ] the U.S. government on various issues involving their companies and China. In the 1990s, the news media reported on the phenomenon of U.S. companies lobbying for favorable trade policies regarding China and labeled this activity as the "]", which was contrasted with the "old" China Lobby that worked for the ]. The group consisted of representatives of businesses with trade and investment interests in China such as ], ], and ]. In addition, prominent Americans, including several former ], were reported to be involved in promoting increased economic relationships with China, including ] as well as ], ], ], ], and ]. This "New China Lobby" urged United States officials to protect China's trade relationship with the United States because American exports to mainland China were rapidly increasing and creating new American jobs.<ref name=lobby>Weeks, Jennifer, , Arms Control Association, June/July 1997, Retrieved: ], ]</ref><ref name=chinatown>Judis, John B., "China Town", '']'', ], ]</ref>

]The U.S. Senate report about the 1996 fund-raising investigation noted that American exports to China grew from $3 billion in 1980 to $38 billion in 1994.<sup><span style="color:#00f;font-variant:small-caps">N-</span></sup>{{ref label|Dollar|1|a}} Between 1991 and 1996, United States exports to ] increased by 90.5 percent, and the United States designated the PRC as one of the top ten "Big Emerging Markets" offering the largest potential for United States goods in future years.<ref name=markets>Dryfuss, Robert, , '']'', Vol. 8, Iss. 30, ], 1997–], 1997</ref> Total trade between the two countries had risen from $4.8 billion in 1980 to $63.5 billion in 1996, making China the fourth largest U.S. trading partner at the time.<ref name = chinalobby/>

Given the increase in trade, critics questioned whether China should still be seen as a geopolitical rival of the United States. One explanation, according to the Senate report, was the American people's negative attitude toward ], still marked by the Chinese government's suppression of democratic movements, such as the crackdown on anti-government protesters in ]. Another reason, from the Chinese government's perspective, according to the report, was that "the coming to power of a China-bashing U.S. Congress perceived as part of an increas anti-Chinese atmosphere in Washington." According to the Senate Committee, information discovered during its investigation supported the conclusion that the Chinese government, beginning in 1994, was concerned that decisions by Congress, including ] toward the ], would harm Chinese interests.<ref name = chinalobby/>


Around 1995, according to the Senate report, Chinese officials developed a new approach to promote their interests with the United States government and to improve China's image with the American people. The proposals, dubbed the "China Plan", were prompted by the United States Congress's successful lobbying of the president to grant a visa to Taiwan President ]. United States Secretary of State ] had previously assured his Chinese counterpart ] that granting a visa would be "inconsistent with unofficial relationship "<ref name=christopher>Ross, Robert S.,, '']'', 25:2, pp.87–123, Fall 2000, Retrieved: ], ] (PDF file)</ref> and the Clinton Administration's acquiescence to the Congressional resolutions led China to conclude that the influence of Congress over foreign policy was more significant than it had previously determined. When formulating the so-called plan, Chinese officials acknowledged that, compared to other countries, it had little knowledge of, or influence over, policy decisions made in Congress, which had a sizeable pro-Taiwan faction under the influence of a more established "China Lobby" run by the ].<ref name=chinalobby>, United States Senate, Retrieved: ], ]</ref>
===China plan===
According to the Senate report, Chinese officials eventually developed a set of proposals to promote their interests with the United States government and to improve China's image with the American people. The proposals, dubbed the "China Plan", were prompted by the United States Congress's successful lobbying of the president to grant a visa to Taiwan President ]. United States Secretary of State ] had previously assured his Chinese counterpart ] that granting a visa would be "inconsistent with unofficial relationship "<ref name=christopher>Ross, Robert S.,, '']'', 25:2, pp.87–123, Fall 2000, Retrieved: ], ] (PDF file)</ref> and the Clinton Administration's acquiescence to the Congressional resolutions led China to conclude that the influence of Congress over foreign policy was more significant than it had previously determined. When formulating the so-called plan, Chinese officials acknowledged that, compared to other countries, it had little knowledge of, or influence over, policy decisions made in Congress, which had a sizeable pro-Taiwan faction under the influence of a more established "China Lobby" run by the ].<ref name=chinalobby>, United States Senate, Retrieved: ], ]</ref>


The plan, according the Senate report, instructed Chinese officials in the U.S. to improve their knowledge about members of Congress and increase contacts with its members, the public, and the media. The plan also suggested ways to lobby United States officials.<ref name=chinalobby>, U.S. Senate, Retrieved: ], ]</ref> The plan, according the Senate report, instructed Chinese officials in the U.S. to improve their knowledge about members of Congress and increase contacts with its members, the public, and the media. The plan also suggested ways to lobby United States officials.<ref name=chinalobby>, U.S. Senate, Retrieved: ], ]</ref>


Over the years, China repeatedly denied these lobbying efforts involved financial contributions of any kind: Over the years, China has repeatedly denied these lobbying efforts involved financial contributions of any kind:
{{cquote|ome people and media in the United States speculated… about so-called participation by Chinese individuals in political donations during the U.S. elections. It is sheer fabrication and is intended to slander China. has never, nor will we ever, use money to influence American politics — China's ] spokesman, May 1998.<ref name=denial>Pomfret, John, , ''Washington Post'', ], ]</ref>}} {{quote|ome people and media in the United States speculated… about so-called participation by Chinese individuals in political donations during the U.S. elections. It is sheer fabrication and is intended to slander China. has never, nor will we ever, use money to influence American politics — China's ] spokesman, May 1998.<ref name=denial>Pomfret, John, , ''Washington Post'', ], ]</ref>}}


== Major fund-raising figures ==
Though the ultimate level of participation or non-participation by the Chinese government in the fund-raising schemes may never be fully known, investigations by the American media, the U.S. Justice Department, and the U.S. Congress, did prove there was a conspiracy by individuals to influence American elections with Asian funds prior to 1996.
=== Charlie Trie ===


The most significant activity by Trie was a $450,000 attempted donation by ] to Clinton's legal defense fund, which Trie delivered in two envelopes each containing several checks and money orders. The fund immediately rejected $70,000 and deposited the remainder, but ordered an investigation of the source. The investigation found that some of the money orders were sequentially numbered made out in different names but with the same handwriting. The fund then rejected the donation entirely, and returned the deposited funds two months after the initial contribution.<ref name=trie>[http://www.washingtonpost.com/wp-srv/politics/special/campfin/players/trie.htm Campaign Finance Key Player:
== Major fund-raising figures and groups ==
==== Yah Lin "Charlie" Trie and Wang Jun ==== Yah Lin 'Charlie' Trie] Washington Post, 4 March 1998</ref>
] at the White House in 1996]]


Born in Taiwan, Trie emigrated to the U.S. in 1974. He eventually became an American citizen and co-owner of a restaurant in ], ] where he befriended then ] Clinton. In addition to the attempted donation to Clinton's defense fund, Trie and his immediate family donated $220,000 to the DNC which was also later returned.<ref name=senate>, U.S. Senate, Retrieved: ], ] (PDF file)</ref>
The most significant one-time illegal foreign contribution was a $460,000 donation by ] to President Bill Clinton's legal defense fund. The donation was made by delivery of an envelope containing $460,000 in $1,000 contributions, some on sequentially numbered money orders made out in different names but with the same handwriting.<ref name=trie>, Editorial, ''Washington Post'', ], 1997</ref>

Born in Taiwan, Trie emigrated to the U.S. in 1974. He eventually became an American citizen and co-owner of a restaurant in ], ] where he befriended then ] Clinton. In addition to the donation to Clinton's defense fund, Trie and his immediate family donated $220,000 to the DNC which was later returned.<ref name=senate>, U.S. Senate, Retrieved: ], ] (PDF file)</ref>


Immediately after the donation to Clinton's defense fund, Trie sent a letter to President Clinton that expressed concern about America's intervention in tensions arising from China's military exercises being conducted near Taiwan. Trie told the President in his letter that war with China was a possibility should ] continue: Immediately after the donation to Clinton's defense fund, Trie sent a letter to President Clinton that expressed concern about America's intervention in tensions arising from China's military exercises being conducted near Taiwan. Trie told the President in his letter that war with China was a possibility should ] continue:
{{cquote|...nce the hard parties of the Chinese military incline to grasp U.S. involvement as foreign intervention, is U.S. ready to face such challenge... t is highly possible for China to launch real war based on its past behavior in ] and ] with ] — Charlie Trie in a letter to President Clinton, ], ]<ref name=trieletter>, U.S. Senate, Retrieved: ], ] (PDF file)</ref>}} {{quote|...nce the hard parties of the Chinese military incline to grasp U.S. involvement as foreign intervention, is U.S. ready to face such challenge... t is highly possible for China to launch real war based on its past behavior in ] and ] with ] — Charlie Trie in a letter to President Clinton, ], ]<ref name=trieletter>, U.S. Senate, Retrieved: ], ] (PDF file)</ref>}}


After questions arose regarding Charlie Trie's fund-raising activities during Congressional investigations in late 1996, he left the country for China.<ref name=senate>, U.S. Senate (PDF file)</ref> Trie returned to the U.S. in 1998 and was convicted and sentenced to three years probation and four months home detention for violating federal campaign finance laws by making political contributions in someone else's name and for causing a false statement to be made to the ] (FEC).<ref name=guiltyplea>, ''CNN.com'', ], ]</ref> After Congressional investigations turned to Trie in late 1996, he left the country for China.<ref name=senate>, U.S. Senate (PDF file)</ref> Trie returned to the U.S. in 1998 and was convicted and sentenced to three years probation and four months home detention for violating federal campaign finance laws by making political contributions in someone else's name and for causing a false statement to be made to the ] (FEC).<ref name=guiltyplea>, ''CNN.com'', ], ]</ref>


=== Johnny Chung===
In February 1996, Trie brought ], chairman of ], the chief investment arm of the PRC, and ] (a "] for the ]"<ref name=nti>, Retrieved: ], 2006</ref><ref name=poly>Russell, Richard L., , '']'', Vol. 9, No. 3, Article 6, Sep. 2005, Retrieved: ], ]</ref> that was later charged with smuggling 2,000 ]s into the U.S.), to a White House "coffee"<sup><span style="color:#00f;font-variant:small-caps">N-</span></sup>{{ref label|Coffee|2|a}} with the president.<ref name=trie2>Jackson, Brooks, , ''CNN.com'', ], 1997</ref><ref name = highlights/> President Clinton later admitted Wang's attendance at the White House was "clearly inappropriate."<ref name=jun>, ''Washington Post'', ], ]</ref><ref name=jun1>Duffy, Michael, , ''TIME'', ], 1997</ref> According to Clinton, the event attended by Wang was a small group discussion with people from "different walks of life."
Born in Taiwan, Chung went from being the owner of a ] business (an automated system that quickly sends out faxes to thousands of businesses) in ] to being in the middle of the Washington, D.C. elite within a couple weeks of his first donations to the Democratic Party. Called a "hustler" by a ] (NSC) aide,<ref name=chung>Jackson, David and Sun, Lena H., , ''Washington Post'', ], ]</ref> ]Chung made forty-nine separate visits to the White House between February 1994 and February 1996.<ref name=chung1>Isikoff, Michael, , '']'', ], 2004</ref> During one of the Commerce Department trade missions to China, Chung befriended former Chinese Lt. Col. ], then an executive at China Aerospace Holdings (China's main satellite launching company) and daughter of former General ].
{{cquote|I'd talk for five or 10 minutes and then we'd ... go around the table and let people say whatever they wanted to say. I'm not sure that ever said anything... I can tell you for sure nothing inappropriate came from it in terms of any governmental action on my part... We have to do a better job of screening people who come in and out of here — President Clinton, ], 1996.<ref name=potuswang>Yost, Pete, , '']'', ], 1996</ref>}}


Between 1994 and 1996, Chung donated $366,000 to the DNC. Eventually, all of the money was returned. Chung told federal investigators that $35,000 of the money he donated came from Liu Chaoying and, in turn, China's military intelligence.<ref name=chung>Jackson, David and Sun, Lena H., , ''Washington Post'', ], ]</ref>
Four days prior to Wang Jun's White House visit, the Clinton Administration granted Poly Technologies import permits that would allow the shipment of over 100,000 ] and millions of rounds of ] to a ] company (China Jiang An) that had ties to the Chinese military. Robert Sanders, a U.S. lawyer representing the company, could not explain why the special permits were granted. "All of a sudden, there was a breakthrough," Sanders said. "I can't account for it."<ref name=pistol>Daly, Michael, "This Prez Donor a Real Pistol", '']'', ], ]</ref><ref name=sanders>Hedges, Michael, , ], ], ], ]</ref>


Specifically, Chung testified under oath to the U.S. House Committee investigating the issue in May 1999 that he was introduced to Chinese Gen. ], then the head of Chinese ], by Liu Chaoying. Chung said that Ji told him: "We like your president very much. We would like to see him reelect . I will give you 300,000 U.S. dollars. You can give it to the president and the Democrat Party."<ref name=welike>Johnston, David, , ''New York Times'', ], ]</ref> Both Liu and the Chinese government denied the claims.<ref name=liudenial>, ''CNN.com'', ], ]</ref>
According to Wang, during a ] conference on ] in ] in 1995, he received an invitation from ] ] to attend a reception, but his schedule was fully booked. Wang had also met with Alexander Haig and Henry Kissinger (whom he called "a good friend") in addition to former President ] after he left office. During his two-day visit to Washington in 1996, Wang also held talks with President Clinton's ], ], whom he had met once before at a trade mission in ].<ref name=wangvisits>Mufson, Steven, , ''Washington Post'', ], ]</ref>


Chung was eventually convicted of bank fraud, tax evasion, and two misdemeanor counts of conspiring to violate election law.<ref name=justice1>, Department of Justice, press release, ], 2001, Retrieved: ], ]</ref> Chung asserts that, after his guilty plea, the Chinese government attempted to assassinate him with "hit squads" three times, but the efforts were foiled by the FBI.<ref name="realchung">Chung, Johnny, , '']'', ], ]</ref>
In 2007, the ] reported a ] with campaign financing for Hillary Clinton allegedly coming from a businessman, Mr. ] possibly being funneled through Chinese Californians to skirt the individual campaign contribution limits. In the same year, the ] reported that "the Clinton operation also has accepted what it later conceded were improper donations" from recent Chinese immigrants in New York.<ref name=hamburger> Peter Nicholas and Tom Hamburger, , ], ], ]</ref>


] (with back to camera) in the ]]]
=== Ron Brown and the Department of Commerce===
]]] A close business associate of Ron Brown testified in court in 1998 that Brown had told her that Commerce Department trade missions were used for partisan political fund-raising at the behest of President Clinton and the First Lady. Specifically, she said trade mission plane seats were sold to business people who gave at least $50,000 each to the DNC.<ref name=hill>Frieden, Terry, , ''CNN.com'', ], ]</ref>


=== John Huang and James Riady ===
A Commerce Department official reportedly threw away official government documents concerning the department's trade missions to China after a judge ordered they be turned over to ]<sup><span style="color:#00f;font-variant:small-caps">N-</span></sup>,{{ref label|judicialwatch|3|a}} a ] government watchdog group. According to the court: "No adequate explanation has been given as to why these documents were destroyed." Furthermore, the judge said: " misconduct in this case is so egregious and so extensive that... the agency fully accountable for the serious violations that it appears to have deliberately committed".<ref name=memoopinion>, ] for the ], Retrieved: ], ] (PDF file) Note: No longer online at original site. Retrievable from </ref>
] (pronounced "Hwä"), was another major figure convicted. Born in 1945 in ], ], Huang and his father fled to Taiwan at the end of the ] before he eventually emigrated to the United States in 1969. A former employee of the ]n company ]'s ] and its owners ] and his son ] (whom Huang first met along with Bill Clinton at a financial seminar in Little Rock, Arkansas in 1980), Huang became a key fund-raiser within the DNC in 1995. While there, he raised $3.4 million for the party. Nearly half had to be returned when questions arose regarding their source during later investigations by Congress.<ref name=riady>, ''Washington Post'', ], ]</ref>

Ron Brown died in a plane crash in ] in April 1996.<ref name=browninvestigation>Frieden, Terry, , ''CNN.com'', ], 1996</ref>

=== Johnny Chung, Liu Chaoying and General Ji===
] also attended some of Ron Brown's Commerce Department trade missions to Asia. Born in Taiwan, Chung went from being the owner of a ] business (an automated system that quickly sends out faxes to thousands of businesses) in ] to being in the middle of the Washington, D.C. elite within a couple weeks of his first donations to the Democratic Party. Called a "hustler" by a ] (NSC) aide,<ref name = chung/> ]Chung made forty-nine separate visits to the White House between February 1994 and February 1996.<ref name=chung1>Isikoff, Michael, , '']'', ], 2004</ref> During one of the Commerce Department trade missions to China, Chung befriended former Chinese Lt. Col. ], then an executive at China Aerospace Holdings (China's main satellite launching company) and daughter of former General ].

Between 1994 and 1996, Chung donated $366,000 to the DNC. Eventually, all of the money was returned. Chung told federal investigators that $35,000 of the money he donated came from Liu Chaoying and, in turn, China's military intelligence.<ref name=chung>Jackson, David and Sun, Lena H., , ''Washington Post'', ], ]</ref>

Specifically, Chung testified under oath to the U.S. House Committee investigating the issue in May 1999 that he was introduced to Chinese Gen. ],<sup><span style="color:#00f;font-variant:small-caps">N-</span></sup>{{ref label|GenJi|4|a}} then the head of Chinese ], by Liu Chaoying. Chung said that Ji told him: "We like your president very much. We would like to see him reelect . I will give you 300,000 U.S. dollars. You can give it to the president and the Democrat Party."<ref name=welike>Johnston, David, , ''New York Times'', ], ]</ref> Both Liu and the Chinese government denied the claims.<ref name=liudenial>, ''CNN.com'', ], ]</ref>

Chung was eventually convicted of bank fraud, tax evasion, and two misdemeanor counts of conspiring to violate election law.<ref name = justice1/> Chung asserts that, after his guilty plea, the Chinese government attempted to assassinate him with "hit squads" three times, but the efforts were foiled by the FBI.<ref name="realchung">Chung, Johnny, , '']'', ], ]</ref>

=== John Huang, James Riady and Lippo Group ===
] (with back to camera) in the ]]]] (pronounced "Hwä"), was another major figure convicted. Born in 1945 in ], ], Huang and his father fled to Taiwan at the end of the ] before he eventually emigrated to the United States in 1969. A former employee of the ]n company ]'s ] and its owners ] and his son ] (whom Huang first met along with Bill Clinton at a financial seminar in Little Rock, Arkansas in 1980), Huang became a key fund-raiser within the DNC in 1995. While there, he raised $3.4 million for the party. Nearly half had to be returned when questions arose regarding their source during later investigations by Congress.<ref name = riady/>


According to ] logs, Huang visited the White House 78 times while working as a DNC fund-raiser.<ref name=timeline>, ''CNN.com'', ], ]</ref> James Riady visited the White House 20 times (including 6 personal visits to President Clinton).<ref name=visits>, ''CNN.com'', ], ]</ref> According to ] logs, Huang visited the White House 78 times while working as a DNC fund-raiser.<ref name=timeline>, ''CNN.com'', ], ]</ref> James Riady visited the White House 20 times (including 6 personal visits to President Clinton).<ref name=visits>, ''CNN.com'', ], ]</ref>


Immediately prior to joining the DNC, Huang worked in President Clinton's Commerce Department as deputy assistant secretary for international economic affairs. His position made him responsible for Asia-U.S. trade matters. He was appointed to the position by President Clinton in December 1993. His position at the Commerce Department gave him access to classified intelligence on China. While at the department, it was later learned, Huang met 9 times with Chinese embassy officials in Washington D.C. The reasons for the meetings were never learned.<ref name=highlights>, ''CNN.com'', ], ]</ref> Immediately prior to joining the DNC, Huang worked in President Clinton's Commerce Department as deputy assistant secretary for international economic affairs. His position made him responsible for Asia-U.S. trade matters. He was appointed to the position by President Clinton in December 1993. His position at the Commerce Department gave him access to classified intelligence on China. While at the department, it was later learned, Huang met 9 times with Chinese embassy officials.<ref name=highlights>, ''CNN.com'', ], ]</ref>

Some DNC records suggested Huang started fund-raising before he left his government job which would have been a violation of the U.S. law known as the ], though no charges regarding this issue were ever brought.<ref name=riady>, ''Washington Post'', ], ]</ref> Huang eventually pleaded guilty to conspiring to reimburse Lippo Group employees' campaign contributions with corporate or foreign funds.<ref name=huangfelon>, ''CNN.com'', ], 1999</ref> James Riady was later convicted of campaign finance violations relating to the same scheme as well.
{{cquote|Your honor, mistakes have been made, which I regret. I did not have to come back here but I wanted to own up to what I did and put this all behind me. I am grateful for the opportunity to be here today — James Riady, ], ].<ref name=court>, '']News.com'', ], ], Retrieved: ], ]</ref>}}


According to the Justice Department, some of those "mistakes" included reimbursing contributions made by Huang and various employees of Lippo Bank with funds wired from a foreign Lippo Group entity into an account maintained by John Huang at a bank in Hong Kong. Shortly after Riady pledged $1 million in support of then-Governor Clinton's campaign for the presidency, contributions made by Huang were reimbursed with funds wired from a foreign Lippo Group entity into an account Riady maintained at Lippo Bank and then distributed to Huang in cash. Also, contributions made by Lippo Group entities operating in the United States were reimbursed with ]s from foreign Lippo Group entities.<ref name=justice1>, Department of Justice, press release, ], 2001, Retrieved: ], ]</ref> Huang eventually pleaded guilty to conspiring to reimburse Lippo Group employees' campaign contributions with corporate or foreign funds.<ref name=huangfelon>, ''CNN.com'', ], 1999</ref> James Riady was later convicted of campaign finance violations relating to the same scheme as well. Shortly after Riady pledged $1 million in support of then-Governor Clinton's campaign for the presidency, contributions made by Huang had been reimbursed with funds wired from a foreign Lippo Group entity into an account Riady maintained at Lippo Bank and then distributed to Huang in cash. Also, contributions made by Lippo Group entities operating in the United States were reimbursed with ]s from foreign Lippo Group entities.<ref name=justice1>, Department of Justice, press release, ], 2001, Retrieved: ], ]</ref>


An unclassified ] report issued in 1998 stated that both James Riady and his father Mochtar had "had a long-term relationship with a Chinese intelligence agency." According to journalist Bob Woodward, details of the relationship came from highly classified intelligence information supplied to the committee by both the CIA and ] (FBI).<ref name=riady1>Woodward, Bob, , ''Washington Post'', ], 1998</ref> An unclassified ] report issued in 1998 stated that both James Riady and his father Mochtar had "had a long-term relationship with a Chinese intelligence agency." According to journalist Bob Woodward, details of the relationship came from highly classified intelligence information supplied to the committee by both the CIA and ] (FBI).<ref name=riady1>Woodward, Bob, , ''Washington Post'', ], 1998</ref>
Line 86: Line 56:
The most well-known of John Huang's fund-raisers involved Vice President ], ], and the ] in California. The most well-known of John Huang's fund-raisers involved Vice President ], ], and the ] in California.


=== Maria Hsia and Hsi Lai Temple=== === Maria Hsia ===
Taiwan-born Maria Hsia (pronounced "Shyä"), a business associate of John Huang and James Riady since 1988, allegedly facilitated $100,000 in illegal Democratic campaign contributions through her efforts at ], a Chinese Buddhist temple in California. Hsia was eventually convicted by a jury in March 2000.<ref name=hsiaconviction>Eskenazi, Michael, , ''CNN.com'', ], ]</ref>
A close business associate of John Huang and James Riady since 1988, Taiwan-born Maria Hsia (pronounced "Shyä") began her association with Al Gore the same year as well. The association began after Hsia sent the then-senator a letter inviting him to come visit Taiwan: "If you decide to join this trip, I will persuade all my colleagues in the future to play a leader role in your presidential race..."<ref name = hsia/>


The Democratic National Committee eventually returned the money donated by the Temple's monks and nuns. Twelve nuns and employees of the temple, including the temple's abbess, refused to answer questions by pleading the ] when they were ]ed to testify before Congress.<ref name=witnesses>Abse, Nathan, , ''Washington Post'', ], ]</ref> Two other Buddhist nuns admitted destroying lists of donors and other documents related to the controversy because they felt the information would embarrass the Temple. A Temple-commissioned videotape of the fund raiser also went missing and the nuns' attorney claimed it may have been shipped off to Taiwan.<ref name=docdestoyed>, ''CNN.com'', ], 1997</ref>
Gore went, and the two began an eight-year relationship. Gore said his dealings with Hsia were strictly business in nature, but, at least at one point, Gore sent a letter to Hsia and Howard Hom (a business partner of Hsia) for support during a serious injury of Gore's son, Albert, writing "Thanks! You two are very special friends."<ref name=hsia>Suro, Roberto, , ''Washington Post'', ], 1998</ref>


The Temple event became particularly controversial, because it was attended by the Vice President Gore. He later stated
Their relationship came to an end when she was charged with money-laundering in early 1998. The Justice Department alleged Hsia facilitated $100,000 in illegal contributions to the 1996 Clinton-Gore reelection campaign through her efforts at ], a Chinese Buddhist temple in California. Hsia was eventually convicted by a jury in March 2000.<ref name=hsiaconviction>Eskenazi, Michael, , ''CNN.com'', ], ]</ref> The Democratic National Committee eventually returned the money donated by the Temple's monks and nuns. Twelve nuns and employees of the temple, including the temple's abbess, refused to answer questions by pleading the ] when they were ]ed to testify before Congress.<ref name = witnesses/> Two other Buddhist nuns admitted destroying lists of donors and other documents related to the controversy because they felt the information would embarrass the Temple. A Temple-commissioned videotape of the fund raiser also went missing and the nuns' attorney claimed it may have been shipped off to Taiwan.<ref name=docdestoyed>, ''CNN.com'', ], 1997</ref> Vice President Gore said he had no idea the Temple meeting was financial in nature:
{{cquote|I did not know that it was a fund-raiser. But I knew it was a political event, and I knew there were finance people that were going to be present, and so that alone should have told me, 'This is inappropriate and this is a mistake; don't do this.' And I take responsibility for that. It was a mistake — Vice President Al Gore on ] TV's '']'' show, ], 1997.<ref name=goremistake>, ''CNN.com'', ], 1997</ref>}} {{quote|I did not know that it was a fund-raiser. But I knew it was a political event, and I knew there were finance people that were going to be present, and so that alone should have told me, 'This is inappropriate and this is a mistake; don't do this.' And I take responsibility for that. It was a mistake — Vice President Al Gore on ] TV's '']'' show, ], 1997.<ref name=goremistake>, ''CNN.com'', ], 1997</ref>}}


], ]]]In response, the U.S. Senate Governmental Affairs Committee that investigated the controversy said: ], ]]]In response, the U.S. Senate Governmental Affairs Committee that investigated the controversy said:
{{cquote|The Vice President's staff... knew that the Temple event was a fundraiser. In March 1996, Deputy Chief of Staff David Strauss had helped arrange a meeting in the White House with the founder of the temple, ] – a meeting which Strauss believed would 'lead to a lot of $.' The White House staff repeatedly referred to the event as a 'fundraiser' in internal correspondence, and assigned to it a 'ticket price' of '1000–5000 head'.<ref name = hsia1/>}} {{quote|The Vice President's staff... knew that the Temple event was a fundraiser. In March 1996, Deputy Chief of Staff David Strauss had helped arrange a meeting in the White House with the founder of the temple, ] – a meeting which Strauss believed would 'lead to a lot of $.' The White House staff repeatedly referred to the event as a 'fundraiser' in internal correspondence, and assigned to it a 'ticket price' of '1000–5000 head'.<ref name=hsia1>, ''Washington Post'', ], ]</ref>}} Additionally, a memo written by John Huang to Vice President Gore's assistant Kimberly Tilley specifically mentioned the Temple meeting was a fund-raising event.<ref name=memo>Huang, John, , ], ]</ref> It is illegal for religious organizations to hold political fund-raising events in the U.S. due to their tax-exempt status.

Additionally, a memo written by John Huang to Vice President Gore's assistant Kimberly Tilley specifically mentioned the Temple meeting was a fund-raising event.<ref name=memo>Huang, John, , ], ]</ref> It is illegal for religious organizations to hold political fund-raising events in the U.S. due to their tax-exempt status.


The Senate Governmental Affairs Committee also said they learned that Hsia had served as an "agent" of the PRC government.<ref name=hsia1>, ''Washington Post'', ], ]</ref> Hsia denied the claim. The Senate Governmental Affairs Committee also said they learned that Hsia had served as an "agent" of the PRC government.<ref name=hsia1>, ''Washington Post'', ], ]</ref> Hsia denied the claim.


=== Ted Sioeng === === Ted Sioeng ===
Another notable figure involved in the affair was Ted Sioeng (pictured above with Vice President Gore) who illegally donated money to both Democrats and Republicans. Sioeng, an Indonesian ] who could not speak English, was invited to sit side-by-side with President Clinton or Vice President Gore at three different fund-raising events.<ref name=sioeng>, U.S. Senate, Retrieved: ], ] (PDF file)</ref> According to the U.S. Senate Committee on Governmental Affairs, $200,000 of the $400,000 that Sioeng and his family gave to Democrats was "funded by transfer from overseas accounts." All the money was eventually returned. Another notable figure involved in the affair was Ted Sioeng, an Indoenesian entrepreneur, who illegally donated money to both Democrats and Republicans. Suspect contributions associated with Sioeng include $250,000 to the DNC, $100,000 to Republican California State Treasurer ], and $50,000 to a Republican think tank. All the money was eventually returned.


Sieong sat with Bill Clinton or Al Gore at three fund-raising events.<ref name=sioeng>, U.S. Senate, Retrieved: ], ] (PDF file)</ref>
Also, from their report:
Sioeng also joined Fong at a meeting with then Republican ] ] in mid-1995. Gingrich called the meeting a "]".<ref name=photoop>, ''CNN.com'', ], ]</ref> Gingrich was the guest of honor at a Sioeng-organized luncheon the day after a Sioeng family company gave
{{cquote|n late July 1997... he Committee learned that Chinese government officials... were aware of, and possibly encouraged, Sioeng's purchase of a Los Angeles-based newspaper... in 1995 and succeeded in having the paper report from a pro-Beijing perspective. There was also information suggesting that Sioeng met with Chinese officials in 1995 and 1996.}}
the $50,000 think-tank donation, solicited by a Gingrich adviser.<ref></ref>

<!-- Deleted image removed: ] -->Furthermore,
{{cquote|Sioeng also may have been involved in directing or funding contributions to American political entities and campaigns. The public information obtained by the Committee suggests that Sioeng personally directed contributions to Republican California officials in 1995. According to public information, Sioeng was involved in these contributions, but the source of the contributions is difficult to determine. The non-public information suggests that approximately half of the just over $100,000 used for these contributions may have come from unknown sources in China. According to public information, one of the officials, Republican California State Treasurer, ], has returned the $100,000 he received from Sioeng.<ref name=senate3>, U.S. Senate, Retrieved: ], ]</ref>}}

Sioeng also joined Fong at a meeting with then ] ] in mid-1995. Gingrich called the meeting a "]".<ref name=photoop>, ''CNN.com'', ], ]</ref>


] ] and the directors of the FBI, CIA and ] (NSA) told members of the Senate committee they had credible intelligence information indicating Sioeng acted on behalf of China. A spokesman for Sioeng denied the allegations.<ref name=chinaagent>Woodward, Bob and Duffy, Brian , ''Washington Post'', ], 1997</ref> ] ] and the directors of the FBI, CIA and ] (NSA) told members of the Senate committee they had credible intelligence information indicating Sioeng acted on behalf of China. A spokesman for Sioeng denied the allegations.<ref name=chinaagent>Woodward, Bob and Duffy, Brian , ''Washington Post'', ], 1997</ref>


== Department of Justice investigation == == Department of Justice investigation ==
]The Justice Department opened a task force in late 1996 to begin investigating allegations of campaign fund-raising abuses by the Clinton/Gore re-election campaign. It expanded its internal investigation to include activities related to President Bill Clinton's legal defense fund in December 1996.<ref name=defense>, ''CNN.com'', ], 1996</ref> ] In late 1996, the Justice Department opened a task force to investigate allegations of illegal donations to the Clinton/Gore re-election campaign and to Clinton's legal defense fund.<ref name=defense>, ''CNN.com'', ], 1996</ref> Clinton announced in February 1997 that he thought there should be a "vigorous" and "thorough" investigation into reports that China tried to direct financial contributions from overseas sources to the DNC. "bviously it would be a very serious matter for the United States if any country were to attempt to funnel funds to one of our parties for any reason whatever," Clinton said.<ref name=serious>, ''CNN.com'', ], 1997</ref> Both FBI Director ] and Justice Department task force head ] unsuccessfully argued for appointment of an ]."<ref name=freeh>Lewis, Neil A., , ''New York Times'', ], ]</ref><ref name=labella>Thomas, Pierre, , ''CNN.com'', ], ]</ref><ref name=reno>, ''CNN.com'', ], ]</ref>


Ultimately, Justice Department prosecutors secured the conviction of several fund-raisers for various offenses. John Huang served 500 hours of community service and paid a $10,000 fine. Johnny Chung served 3000 hours of community service. Charlie Trie served four months of in-home detention. Maria Hsia served 90 days of home detention and paid a $5,300 fine. Indonesian billionare James Riady was fined $8.6 million. Ernest Green served three months home detention. Michael Brown served 150 hours of community service and paid a $5000 fine. In all, the Justice Department task force secured criminal convictions against 22 people by 2001.<ref name=justice>, Department of Justice, press release, ], 2001, Retrieved: ], ]</ref>
President Clinton announced in February 1997 that he thought there should be a "vigorous" and "thorough" investigation into reports that the People's Republic of China tried to direct financial contributions from overseas sources to the Democratic National Committee. The president stopped short of calling for an independent prosecutor, saying that was the decision of the Justice Department.

"bviously it would be a very serious matter for the United States if any country were to attempt to funnel funds to one of our parties for any reason whatever," President Clinton said.<ref name=serious>, ''CNN.com'', ], 1997</ref>

By July 1997, the administration determined that no evidence of any such thing had yet been proven.

"We have received the relevant briefings," ] ] said. "We believe there's no basis for any change in our policy toward China, which is one of engagement."<ref name = congressconcerns/>

"I do not know whether it is true or not," President Clinton stated. "Therefore, since I don't know, it can't... and shouldn't affect the larger long-term strategic interests of the American people in our foreign policy."<ref name = congressconcerns/>

Members of Congress of both parties reached opposite conclusions. According to the ''Washington Post'', Senator ] (a Republican from ]) and chairman of the committee investigating the fund-raising controversy, said he believed the Chinese plan targeted presidential and congressional elections while Democratic Senators ] and ] said they believed the evidence showed the Chinese targeted only congressional elections."<ref name=congressconcerns>Harris, John F., , ''Washington Post'', ], ]</ref>

=== Convictions ===
Several fundraisers were convicted of various offenses. John Huang served 500 hours of community service and paid a $10,000 fine. Johnny Chung served 3000 hours of community service. Charlie Trie served four months of in-home detention. Maria Hsia served 90 days of home detention and paid a $5,300 fine. Indonesian billionare James Riady was fined $8.6 million. Ernest Green served three months home detention. Michael Brown served 150 hours of community service and paid a $5000 fine. In all, the Justice Department task force secured criminal convictions against 22 people by 2001.<ref name=justice>, Department of Justice, press release, ], 2001, Retrieved: ], ]</ref>

=== Calls for an independent counsel ===
]President Clinton's FBI Director ] wrote in a 22-page memorandum to then Attorney General Janet Reno in November 1997 that "It is difficult to imagine a more compelling situation for appointing an ]."<ref name=freeh>Lewis, Neil A., , ''New York Times'', ], ]</ref>

In July 1998, the Justice Department's campaign finance task force head, ], sent a report to Janet Reno also recommending she seek an independent counsel to investigate alleged fund-raising abuses by Democratic party officials.<ref name=labella>Thomas, Pierre, , ''CNN.com'', ], ]</ref> The media reported that La Bella believed there was clearly an appearance of a conflict of interest by Reno.<ref name=lehrer>, ], transcript, '']'', ], 1998, Retrieved: ], ]</ref> In his report to Reno he wrote: " pattern suggests a level of knowledge within the White House&mdash;including the President's and First Lady's offices&mdash;concerning the injection of foreign funds into the reelection effort."<ref name=labellanote>La Bella, Charles,, Introduction, page 51, ], ], Retrieved: ], ]</ref> Additionally, La Bella stated: "If these allegations involved anyone other than the president, vice president, senior White House or DNC and Clinton-Gore '96 officials, an appropriate investigation would have commenced months ago without hesitation."<ref name=labellanote1>La Bella, Charles, , Introduction, page 14, ], ], Retrieved: ], ]</ref>

], who later became head of the task force, called on Reno in Spring 2000 to appoint an independent counsel to look into the fund-raising practices of Vice President Gore.<ref name=lehrer1>, NewsHour with Jim Lehrer, transcript, ''PBS'', ], ], Retrieved: ], ]</ref>

Janet Reno declined all requests:
{{cquote|I try to do one thing: what's right. I am trying to follow the independent counsel statute as it has been framed by Congress. If you had a lower threshold, then any time somebody said 'boo' about a covered person, you'd trigger the independent counsel statute — Janet Reno, ], ].<ref name=reno>, ''CNN.com'', ], ]</ref>}}

A '']''/'']'' poll taken in May 1998 found 58 percent of Americans felt an independent counsel should have been appointed to investigate the controversy. Thirty-three percent were opposed. The same poll found that 47 percent of Americans believed a '']'' existed between the Clinton administration and the PRC government.<ref name=poll1>Holland, Keating, , ''CNN''.com, ], ]</ref>

=== Criticism of investigation ===
In addition to partisan complaints from Republicans, columnists ], ], and ], as well as a number of FBI agents, suggested the investigations into the fund-raising controversies (which some dubbed '''Chinagate''') were willfully impeded.<ref name=critic>Krauthammer, Charles, (Opinion), ''Washington Post'', ], 1997</ref><ref name=chineseagents>Safire, William, (Opinion), ''New York Times'', ], 1999 </ref><ref name=critic1>Kondracke, Morton, (Opinion), '']'', ], 1999</ref>

FBI agent Ivian Smith wrote a letter to FBI Director Freeh that expressed "a lack of confidence" in the Justice Department's attorneys regarding the fund-raising investigation. He wrote: "I am convinced the team at... leading this investigation is, at best, simply not up to the task... The impression left is the emphasis on how not to prosecute matters, not how to aggressively conduct investigations leading to prosecutions." Smith and three other FBI agents later testified before Congress in late 1999 that Justice Department prosecutors impeded their inquiry. FBI agent Daniel Wehr told Congress that the first head U.S. attorney in the investigation, Laura Ingersoll, told the agents they should "not pursue any matter related to solicitation of funds for access to the president. The reason given was, 'That's the way the American political process works.' I was scandalized by that," Wehr said. The four FBI agents also said that Ingersoll prevented them from executing ]s to stop destruction of evidence and micromanaged the case beyond all reason.<ref name=critic2>, ''Associated Press'', ], 1999</ref>

FBI agents were also denied the opportunity to ask President Clinton and Vice President Gore questions during Justice Department interviews in 1997 and 1998 and were only allowed to take notes. During the interviews, neither Clinton nor Gore were asked any questions about fund-raisers John Huang, James Riady, nor the Hsi Lai Buddhist Temple fund-raising event led by Maria Hsia and attended by John Huang and Ted Sioeng.<ref name=neverquestioned>, ''Associated Press'', ], 1999</ref>


== Congressional investigations == == Congressional investigations ==
Line 155: Line 87:
] (Republican-])]]A ] investigation, headed by Republican ] focused on allegations of campaign finance abuse, including the contributions channeled through Chung, Huang, and Trie. The investigation was lengthy, spanning both the 105th and 106th Congresses, and according to a Democratic report had cost over $7.4 million as of ] ], making it the most expensive Congressional investigation ever (the Senate ] investigation cost $7 million in 1998 dollars).<ref name=cost>, U.S. House of Representatives, Retrieved: ], ]</ref> ] (Republican-])]]A ] investigation, headed by Republican ] focused on allegations of campaign finance abuse, including the contributions channeled through Chung, Huang, and Trie. The investigation was lengthy, spanning both the 105th and 106th Congresses, and according to a Democratic report had cost over $7.4 million as of ] ], making it the most expensive Congressional investigation ever (the Senate ] investigation cost $7 million in 1998 dollars).<ref name=cost>, U.S. House of Representatives, Retrieved: ], ]</ref>


The Burton investigation itself was controversial. A '']'' editorial in March 1997 characterized the committee's investigation as a "travesty" and a "parody".<ref name=nyeditorial>Editorial, ''New York Times'', ], ]</ref> A ''Washington Post'' editorial in April 1997 called the House investigation "its own cartoon, a joke, and a deserved embarrassment".<ref name=posteditorial>Editorial, ''Washington Post'', ], ]</ref> Norman Ornstein, a Congressional expert at the ] said in May 1998, "Barring some dramatic change, I think the Burton investigation is going to be remembered as a case study in how not to do a congressional investigation and as a prime example of investigation as farce."<ref name=partisian>Lacey, Marc, , ''Los Angeles Times'', ], ]</ref> In a May 5, 1998 letter to other Republicans on the committee, Burton admitted that "mistakes and omissions were made" in tape transcripts released to the public of phone calls made by ]. A committee investigator who was an advocate of releasing the tapes resigned at Burton's request.<ref>, ''CNN'', May 8, 1998</ref> The Burton investigation itself was controversial. A '']'' editorial in March 1997 characterized the committee's investigation as a "travesty" and a "parody".<ref name=nyeditorial>Editorial, ''New York Times'', ], ]</ref> A ''Washington Post'' editorial in April 1997 called the House investigation "its own cartoon, a joke, and a deserved embarrassment".<ref name=posteditorial>Editorial, ''Washington Post'', ], ]</ref> Norman Ornstein, a Congressional expert at the ] said in May 1998,
:"Barring some dramatic change, I think the Burton investigation is going to be remembered as a case study in how not to do a congressional investigation and as a prime example of investigation as farce."<ref name=partisian>Lacey, Marc, , ''Los Angeles Times'', ], ]</ref>


The U.S. Senate Committee on Governmental Affairs also held public hearings into the campaign finance issues from July to October 1997. During the hearings, there was considerable acrimony between the chair ] and the ranking minority member ], which reached a level of public disagreement between the two leaders of a Congressional committee seldom seen in recent years.<ref> New York Times, Sep 4 1997.</ref> The Thompson committee adopted a Republican written final report on a straight party-line 8-7 vote in March 1988. Thompson described the findings as "There's not any one real big thing. It's a lot of things strung together that paint a real ugly picture." The Democrats published a minority report dissenting with most of the conclusions of the final report, stating the evidence "does not support the conclusion that the China plan was aimed at, or affected, the 1996 presidential election." The U.S. Senate Committee on Governmental Affairs also held public hearings into the campaign finance issues from July to October 1997. During the hearings, there was considerable acrimony between the chair ] and the ranking minority member ], which reached a level of public disagreement between the two leaders of a Congressional committee seldom seen in recent years.<ref> New York Times, Sep 4 1997.</ref> The Thompson committee adopted a Republican written final report on a straight party-line 8-7 vote in March 1988. Thompson described the findings as "There's not any one real big thing. It's a lot of things strung together that paint a real ugly picture."


The Democrats on the Senate committee published a minority report dissenting with most of the conclusions of the final report, stating the evidence "does not support the conclusion that the China plan was aimed at, or affected, the 1996 presidential election." In particular, it stated {{quote|One of the most disturbing aspects of the Majority Report is that it suggests, on the basis of inconclusive evidence, that certain named individuals were spies or foreign agents. These serious charges are supported solely by weak circumstantial evidence and speculation &mdash; as acknowledged by the Majority's use of phrases like "may" and "if true."<ref></ref>}}
Congressional investigators said that the investigations were hamstrung due to lack of co-operation of witnesses. Ninety-four people either refused to be questioned, pled the Fifth Amendment, or left the country altogether.<ref name=witnesses>Abse, Nathan, , ''Washington Post'', ], ]</ref><ref name=yourcampaign>, ''Washington Post'', ], 1997</ref>


Congressional investigators said that the investigations were hamstrung due to lack of co-operation of witnesses. Ninety-four people either refused to be questioned, pled the Fifth Amendment against self incrimination, or left the country altogether.<ref name=witnesses>Abse, Nathan, , ''Washington Post'', ], ]</ref><ref name=yourcampaign>, ''Washington Post'', ], 1997</ref><ref></ref>
== See also ==
*]
*]
*]

== Notes ==
<div class="references-small">
<sup><span style="color:#00f;font-variant:small-caps">N-</span></sup>{{note label|Dollar|1|a}}All currency figures are in ]s.

<sup><span style="color:#00f;font-variant:small-caps">N-</span></sup>{{note label|Coffee|2|a}}A major element of the campaign fund-raising controversy was the DNC-organized "coffee" meetings with President Clinton, Vice President Gore and their wives. In January 1997, the Clinton administration released a list of 103 events held in 1995 and 1996, as well as lists of those invited to each coffee. The DNC collected an estimated $27 million from coffee guests, though only about a third of the invited guests were financial donors.<ref name=coffeelist>, ''Washington Post'', Retrieved: ], ]</ref>

<sup><span style="color:#00f;font-variant:small-caps">N-</span></sup>{{note label|judicialwatch|3|a}}After a nearly decade-long conflict with the Commerce Department over ] (FOIA) requests for documents, a federal appeals court ordered the Commerce Department to pay Judicial Watch nearly $900,000 for attorney’s fees and costs of their lawsuit related to the fundraising scandals.<ref name=watchpressrelease>, press release, Judicial Watch, ], ], Retrieved: ], ]</ref>

<sup><span style="color:#00f;font-variant:small-caps">N-</span></sup>{{note label|GenJi|4|a}}Gen. Ji was ] by PRC President Jiang Zemin in mid-2000 after being implicated in a smuggling scandal in China shortly after Chung testified before the U.S. Congress in 1999. A compromise sentence of 20 years in jail was eventually reached.<ref name=retreats>Wo-Lap Lam, Willy, , ''CNN.com'', ], ]</ref>
</div>


== References == == References ==
<small>
{{reflist|2}} {{reflist|2}}
</small>


== Bibliography ==
*{{cite book
| first = Bill
| last = Clinton
| year = 2000
| title = The Clinton Foreign Policy Reader
| publisher = M.E. Sharpe
| id = ISBN 0-7656-0584-8
}}
*{{cite book
| first = ]
| last = ]
| year = 2002
| title = The China Threat: How the People's Republic Targets America
| publisher = ]
| id = ISBN 0-89526-187-1
}}
*{{cite book
| first = ]
| last = ]
| year = 2003
| title = Beyond Tiananmen: The Politics of U.S.-China Relations, 1989–2000
| publisher = ] Press
| id = ISBN 0-8157-8206-3
}}
*{{cite book
| first = Edward
| last = Timperlake
| coauthors = William Triplett
| year = 1998
| title = Year of the Rat
| publisher = Regnery Publishing
| id = ISBN 0-89526-333-5
}}
*{{cite book
| first = ]
| last = ]
| year = 1997
| title = Living With China
| publisher = ]
| id = ISBN 0-393-31734-X
}}

== External links ==
* (PDF files)
*
* Archive of press releases and transcripts of speeches from the administration.
*
*
*
*
*
* Archive of articles, government reports and transcripts of speeches from members of Congress.
* Archive of lists from the FEC of who donated how much to whom in United States political campaigns.
*
*
*
* Archive of articles, editorials, and op-eds related to the controversy.


] ]
] ]
] ]
]
]


] ]

Revision as of 23:09, 7 August 2008

File:Potustrie.JPG
Bill Clinton with fund-raiser Charlie Trie

The 1996 United States campaign finance controversy was an alleged effort by the People's Republic of China to influence domestic American politics during the 1996 federal elections.

The issue first received public attention in early 1997, with news that a Justice Department investigation had uncovered evidence that agents of China sought to direct contributions to the Democratic National Committee (DNC) in violation of U.S. laws regarding foreign political contributions. While the Chinese government denied all accusations, twenty-two people were eventually convicted for fraud or for funneling Asian funds into the United States elections.

Background

According to the United States Senate report Investigation of Illegal or Improper Activities in Connection with 1996 Federal Election Campaigns, prior to 1995 China's approach to promoting its interests in the United States was focused almost exclusively on diplomacy, including summits and meetings with high-level White House officials. In these meetings, Chinese officials often negotiated with the United States government by using the appeal of their huge commercial market.

Around 1995, according to the Senate report, Chinese officials developed a new approach to promote their interests with the United States government and to improve China's image with the American people. The proposals, dubbed the "China Plan", were prompted by the United States Congress's successful lobbying of the president to grant a visa to Taiwan President Lee Teng-Hui. United States Secretary of State Warren Christopher had previously assured his Chinese counterpart Qian Qichen that granting a visa would be "inconsistent with unofficial relationship " and the Clinton Administration's acquiescence to the Congressional resolutions led China to conclude that the influence of Congress over foreign policy was more significant than it had previously determined. When formulating the so-called plan, Chinese officials acknowledged that, compared to other countries, it had little knowledge of, or influence over, policy decisions made in Congress, which had a sizeable pro-Taiwan faction under the influence of a more established "China Lobby" run by the Kuomintang.

The plan, according the Senate report, instructed Chinese officials in the U.S. to improve their knowledge about members of Congress and increase contacts with its members, the public, and the media. The plan also suggested ways to lobby United States officials.

Over the years, China has repeatedly denied these lobbying efforts involved financial contributions of any kind:

ome people and media in the United States speculated… about so-called participation by Chinese individuals in political donations during the U.S. elections. It is sheer fabrication and is intended to slander China. has never, nor will we ever, use money to influence American politics — China's Foreign Ministry spokesman, May 1998.

Major fund-raising figures

Charlie Trie

The most significant activity by Trie was a $450,000 attempted donation by Yah Lin "Charlie" Trie to Clinton's legal defense fund, which Trie delivered in two envelopes each containing several checks and money orders. The fund immediately rejected $70,000 and deposited the remainder, but ordered an investigation of the source. The investigation found that some of the money orders were sequentially numbered made out in different names but with the same handwriting. The fund then rejected the donation entirely, and returned the deposited funds two months after the initial contribution.

Born in Taiwan, Trie emigrated to the U.S. in 1974. He eventually became an American citizen and co-owner of a restaurant in Little Rock, Arkansas where he befriended then Governor Clinton. In addition to the attempted donation to Clinton's defense fund, Trie and his immediate family donated $220,000 to the DNC which was also later returned.

Immediately after the donation to Clinton's defense fund, Trie sent a letter to President Clinton that expressed concern about America's intervention in tensions arising from China's military exercises being conducted near Taiwan. Trie told the President in his letter that war with China was a possibility should U.S. intervention continue:

...nce the hard parties of the Chinese military incline to grasp U.S. involvement as foreign intervention, is U.S. ready to face such challenge... t is highly possible for China to launch real war based on its past behavior in Sino-Vietnam war and Zhen Bao Tao war with Russia — Charlie Trie in a letter to President Clinton, March 21, 1996

After Congressional investigations turned to Trie in late 1996, he left the country for China. Trie returned to the U.S. in 1998 and was convicted and sentenced to three years probation and four months home detention for violating federal campaign finance laws by making political contributions in someone else's name and for causing a false statement to be made to the Federal Election Commission (FEC).

Johnny Chung

Born in Taiwan, Chung went from being the owner of a "blastfaxing" business (an automated system that quickly sends out faxes to thousands of businesses) in California to being in the middle of the Washington, D.C. elite within a couple weeks of his first donations to the Democratic Party. Called a "hustler" by a U.S. National Security Council (NSC) aide,

File:Clinton-chung.jpg
Johnny Chung (far left) with the Clintons

Chung made forty-nine separate visits to the White House between February 1994 and February 1996. During one of the Commerce Department trade missions to China, Chung befriended former Chinese Lt. Col. Liu Chaoying, then an executive at China Aerospace Holdings (China's main satellite launching company) and daughter of former General Liu Huaqing.

Between 1994 and 1996, Chung donated $366,000 to the DNC. Eventually, all of the money was returned. Chung told federal investigators that $35,000 of the money he donated came from Liu Chaoying and, in turn, China's military intelligence.

Specifically, Chung testified under oath to the U.S. House Committee investigating the issue in May 1999 that he was introduced to Chinese Gen. Ji Shengde, then the head of Chinese military intelligence, by Liu Chaoying. Chung said that Ji told him: "We like your president very much. We would like to see him reelect . I will give you 300,000 U.S. dollars. You can give it to the president and the Democrat Party." Both Liu and the Chinese government denied the claims.

Chung was eventually convicted of bank fraud, tax evasion, and two misdemeanor counts of conspiring to violate election law. Chung asserts that, after his guilty plea, the Chinese government attempted to assassinate him with "hit squads" three times, but the efforts were foiled by the FBI.

File:Clinton-riady-huang.jpg
John Huang (center) with Bill Clinton, James Riady (right), and Clinton aide Mark Middleton (with back to camera) in the Oval Office

John Huang and James Riady

John Huang (pronounced "Hwä"), was another major figure convicted. Born in 1945 in Nanping, Fujian, Huang and his father fled to Taiwan at the end of the Chinese Civil War before he eventually emigrated to the United States in 1969. A former employee of the Indonesian company Lippo Group's Lippo Bank and its owners Mochtar Riady and his son James (whom Huang first met along with Bill Clinton at a financial seminar in Little Rock, Arkansas in 1980), Huang became a key fund-raiser within the DNC in 1995. While there, he raised $3.4 million for the party. Nearly half had to be returned when questions arose regarding their source during later investigations by Congress.

According to U.S. Secret Service logs, Huang visited the White House 78 times while working as a DNC fund-raiser. James Riady visited the White House 20 times (including 6 personal visits to President Clinton).

Immediately prior to joining the DNC, Huang worked in President Clinton's Commerce Department as deputy assistant secretary for international economic affairs. His position made him responsible for Asia-U.S. trade matters. He was appointed to the position by President Clinton in December 1993. His position at the Commerce Department gave him access to classified intelligence on China. While at the department, it was later learned, Huang met 9 times with Chinese embassy officials.

Huang eventually pleaded guilty to conspiring to reimburse Lippo Group employees' campaign contributions with corporate or foreign funds. James Riady was later convicted of campaign finance violations relating to the same scheme as well. Shortly after Riady pledged $1 million in support of then-Governor Clinton's campaign for the presidency, contributions made by Huang had been reimbursed with funds wired from a foreign Lippo Group entity into an account Riady maintained at Lippo Bank and then distributed to Huang in cash. Also, contributions made by Lippo Group entities operating in the United States were reimbursed with wire transfers from foreign Lippo Group entities.

An unclassified U.S. Senate Committee on Governmental Affairs report issued in 1998 stated that both James Riady and his father Mochtar had "had a long-term relationship with a Chinese intelligence agency." According to journalist Bob Woodward, details of the relationship came from highly classified intelligence information supplied to the committee by both the CIA and Federal Bureau of Investigation (FBI).

The most well-known of John Huang's fund-raisers involved Vice President Al Gore, Maria Hsia, and the Hsi Lai Buddhist Temple in California.

Maria Hsia

Taiwan-born Maria Hsia (pronounced "Shyä"), a business associate of John Huang and James Riady since 1988, allegedly facilitated $100,000 in illegal Democratic campaign contributions through her efforts at Hsi Lai Temple, a Chinese Buddhist temple in California. Hsia was eventually convicted by a jury in March 2000.

The Democratic National Committee eventually returned the money donated by the Temple's monks and nuns. Twelve nuns and employees of the temple, including the temple's abbess, refused to answer questions by pleading the Fifth Amendment when they were subpoenaed to testify before Congress. Two other Buddhist nuns admitted destroying lists of donors and other documents related to the controversy because they felt the information would embarrass the Temple. A Temple-commissioned videotape of the fund raiser also went missing and the nuns' attorney claimed it may have been shipped off to Taiwan.

The Temple event became particularly controversial, because it was attended by the Vice President Gore. He later stated

I did not know that it was a fund-raiser. But I knew it was a political event, and I knew there were finance people that were going to be present, and so that alone should have told me, 'This is inappropriate and this is a mistake; don't do this.' And I take responsibility for that. It was a mistake — Vice President Al Gore on NBC TV's Today show, Jan. 24, 1997.

The Hsi Lai Temple in Hacienda Heights, California

In response, the U.S. Senate Governmental Affairs Committee that investigated the controversy said:

The Vice President's staff... knew that the Temple event was a fundraiser. In March 1996, Deputy Chief of Staff David Strauss had helped arrange a meeting in the White House with the founder of the temple, Hsing Yun – a meeting which Strauss believed would 'lead to a lot of $.' The White House staff repeatedly referred to the event as a 'fundraiser' in internal correspondence, and assigned to it a 'ticket price' of '1000–5000 head'.

Additionally, a memo written by John Huang to Vice President Gore's assistant Kimberly Tilley specifically mentioned the Temple meeting was a fund-raising event. It is illegal for religious organizations to hold political fund-raising events in the U.S. due to their tax-exempt status.

The Senate Governmental Affairs Committee also said they learned that Hsia had served as an "agent" of the PRC government. Hsia denied the claim.

Ted Sioeng

Another notable figure involved in the affair was Ted Sioeng, an Indoenesian entrepreneur, who illegally donated money to both Democrats and Republicans. Suspect contributions associated with Sioeng include $250,000 to the DNC, $100,000 to Republican California State Treasurer Matt Fong, and $50,000 to a Republican think tank. All the money was eventually returned.

Sieong sat with Bill Clinton or Al Gore at three fund-raising events. Sioeng also joined Fong at a meeting with then Republican House Speaker Newt Gingrich in mid-1995. Gingrich called the meeting a "photo-op". Gingrich was the guest of honor at a Sioeng-organized luncheon the day after a Sioeng family company gave the $50,000 think-tank donation, solicited by a Gingrich adviser.

Attorney General Janet Reno and the directors of the FBI, CIA and National Security Agency (NSA) told members of the Senate committee they had credible intelligence information indicating Sioeng acted on behalf of China. A spokesman for Sioeng denied the allegations.

Department of Justice investigation

Attorney General Janet Reno

In late 1996, the Justice Department opened a task force to investigate allegations of illegal donations to the Clinton/Gore re-election campaign and to Clinton's legal defense fund. Clinton announced in February 1997 that he thought there should be a "vigorous" and "thorough" investigation into reports that China tried to direct financial contributions from overseas sources to the DNC. "bviously it would be a very serious matter for the United States if any country were to attempt to funnel funds to one of our parties for any reason whatever," Clinton said. Both FBI Director Louis Freeh and Justice Department task force head Charles La Bella unsuccessfully argued for appointment of an independent counsel."

Ultimately, Justice Department prosecutors secured the conviction of several fund-raisers for various offenses. John Huang served 500 hours of community service and paid a $10,000 fine. Johnny Chung served 3000 hours of community service. Charlie Trie served four months of in-home detention. Maria Hsia served 90 days of home detention and paid a $5,300 fine. Indonesian billionare James Riady was fined $8.6 million. Ernest Green served three months home detention. Michael Brown served 150 hours of community service and paid a $5000 fine. In all, the Justice Department task force secured criminal convictions against 22 people by 2001.

Congressional investigations

Representative Dan Burton (Republican-Indiana)

A House investigation, headed by Republican Dan Burton focused on allegations of campaign finance abuse, including the contributions channeled through Chung, Huang, and Trie. The investigation was lengthy, spanning both the 105th and 106th Congresses, and according to a Democratic report had cost over $7.4 million as of August 31 1998, making it the most expensive Congressional investigation ever (the Senate Watergate investigation cost $7 million in 1998 dollars).

The Burton investigation itself was controversial. A New York Times editorial in March 1997 characterized the committee's investigation as a "travesty" and a "parody". A Washington Post editorial in April 1997 called the House investigation "its own cartoon, a joke, and a deserved embarrassment". Norman Ornstein, a Congressional expert at the American Enterprise Institute said in May 1998,

"Barring some dramatic change, I think the Burton investigation is going to be remembered as a case study in how not to do a congressional investigation and as a prime example of investigation as farce."

The U.S. Senate Committee on Governmental Affairs also held public hearings into the campaign finance issues from July to October 1997. During the hearings, there was considerable acrimony between the chair Fred Thompson and the ranking minority member John Glenn, which reached a level of public disagreement between the two leaders of a Congressional committee seldom seen in recent years. The Thompson committee adopted a Republican written final report on a straight party-line 8-7 vote in March 1988. Thompson described the findings as "There's not any one real big thing. It's a lot of things strung together that paint a real ugly picture."

The Democrats on the Senate committee published a minority report dissenting with most of the conclusions of the final report, stating the evidence "does not support the conclusion that the China plan was aimed at, or affected, the 1996 presidential election." In particular, it stated

One of the most disturbing aspects of the Majority Report is that it suggests, on the basis of inconclusive evidence, that certain named individuals were spies or foreign agents. These serious charges are supported solely by weak circumstantial evidence and speculation — as acknowledged by the Majority's use of phrases like "may" and "if true."

Congressional investigators said that the investigations were hamstrung due to lack of co-operation of witnesses. Ninety-four people either refused to be questioned, pled the Fifth Amendment against self incrimination, or left the country altogether.

References

  1. Woodward, Bob and Duffy, Brian, "Chinese Embassy Role In Contributions Probed", Washington Post, Feb. 13, 1997
  2. ^ Investigation of Illegal or Improper Activities in Connection with 1996 Federal Election Campaigns, Minority Report, Chapter 2, U.S. Senate, Retrieved: April 14, 2006 Cite error: The named reference "chinalobby" was defined multiple times with different content (see the help page).
  3. Ross, Robert S.,"The 1995–1996 Taiwan Strait Confrontation: Coercion, Credibility, and Use of Force", International Security, 25:2, pp.87–123, Fall 2000, Retrieved: April 14, 2006 (PDF file)
  4. Pomfret, John, "China Denies Contribution Charges", Washington Post, May 20, 1998
  5. [http://www.washingtonpost.com/wp-srv/politics/special/campfin/players/trie.htm Campaign Finance Key Player: Yah Lin 'Charlie' Trie] Washington Post, 4 March 1998
  6. ^ 1997 Special Investigation in Connection with 1996 Federal Election Campaigns: Section 3, pp. 11–14, U.S. Senate, Retrieved: April 14, 2006 (PDF file) Cite error: The named reference "senate" was defined multiple times with different content (see the help page).
  7. 1997 Special Investigation in Connection with 1996 Federal Election Campaigns: Section 20, page 13, U.S. Senate, Retrieved: April 14, 2006 (PDF file)
  8. "Fund-raiser Charlie Trie pleads guilty under plea agreement", CNN.com, May 21, 1999
  9. ^ Jackson, David and Sun, Lena H., "Liu's Deals With Chung: An Intercontinental Puzzle", Washington Post, May 24, 1998
  10. Isikoff, Michael, "Cash and Kerry", Newsweek, Feb. 9, 2004
  11. Johnston, David, "Committee Told Of Beijing Cash For Democrats ", New York Times, May 12, 1999
  12. "Chinese Aerospace Official Denies Giving To Dems", CNN.com, May 21, 1998
  13. ^ "James Riady Pleads Guilty", Department of Justice, press release, Jan. 11, 2001, Retrieved: April 14, 2006
  14. Chung, Johnny, "The Real Johnny Chung", WorldNetDaily, April 7, 2000
  15. "Campaign Finance Key Player: John Huang", Washington Post, July 27, 1997
  16. "The Democratic Fund-Raising Flap: Timeline", CNN.com, July 1, 1997
  17. "The Democratic Fund-Raising Flap: Cast of Characters", CNN.com, July 1, 1997
  18. "Highlights of U.S. report on alleged China spying", CNN.com, May 25, 1999
  19. "Former Democratic fund-raiser John Huang pleads guilty", CNN.com, Aug. 12, 1999
  20. Woodward, Bob, "Findings Link Clinton Allies to Chinese Intelligence", Washington Post, Feb. 10, 1998
  21. Eskenazi, Michael, "For both Gore and GOP, a guilty verdict to watch", CNN.com, March 3, 2000
  22. ^ Abse, Nathan, "A Look at the 94 Who Aren't Talking", Washington Post, June 9, 1998
  23. "Buddhist Nuns Admit Destroying Documents", CNN.com, Sep. 4, 1997
  24. "Gore Admits Temple Fund-Raiser Was A 'Mistake'", CNN.com, Jan. 24, 1997
  25. ^ "Senate Governmental Affairs Committee's Majority Report Executive Summary", Washington Post, March 8, 1998
  26. Huang, John, "Memo for Kim Tilley", April 11, 1996
  27. China Connection: Summary of Committee's Findings Relating to Efforts of PRC to Influence U.S. Policies and Elections, page 9, U.S. Senate, Retrieved: April 14, 2006 (PDF file)
  28. "FBI Probes Businessman As Possible Chinese Agent", CNN.com, May 12, 1997
  29. Response To Majority Report
  30. Woodward, Bob and Duffy, Brian "Senate Panel Is Briefed on China Probe Figure", Washington Post, Sept. 12, 1997
  31. "Justice To Expand Inquiry To Clinton's Legal Fund", CNN.com, Dec. 19, 1996
  32. "Clinton Wants Probe Of Possible Chinese Involvement", CNN.com, Feb. 13, 1997
  33. Lewis, Neil A., "Freeh Says Reno Clearly Misread Prosecutor Law", New York Times, June 16, 1998
  34. Thomas, Pierre, "Reno Aide Recommends Independent Campaign Finance Probe", CNN.com, July 23, 1998
  35. "Reno Defends Independent Counsel Decision", CNN.com, December 4, 1997
  36. Ernest G. Green Pleads Guilty to Tax Violations, Department of Justice, press release, Dec. 21, 2001, Retrieved: April 14, 2006
  37. Cost of Congressional Campaign Finance Investigations to the U.S. Taxpayer, Minority Report: page 8, U.S. House of Representatives, Retrieved: April 14, 2006
  38. Editorial, New York Times, March 20, 1997
  39. Editorial, Washington Post, April 12, 1997
  40. Lacey, Marc, "House Probe of Campaign Fund-Raising Uncovers Little, Piles Up Partisan Ill Will", Los Angeles Times, May 2, 1998
  41. Anger Flares as Focus Shifts to Campaign Remedies New York Times, Sep 4 1997.
  42. Response To Majority Report
  43. Remarks by Senator Fred Thompson before the Senate Governmental Affairs Committee, Washington Post, Oct. 8, 1997
  44. washingtonpost.com: Campaign Finance Key Player – John Glenn

Categories: