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President Clinton greets Democratic donor Bernard Schwartz, head of Loral Space and Communications Ltd. (AP)
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Bureaucracy, Bungled Report Collide at Loral (May 31)

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Lott Says China Probes Won't Be Political Tool

By Guy Gugliotta and Juliet Eilperin
Washington Post Staff Writers
Wednesday, June 3, 1998; Page A04

Despite "serious concern" about possible breaches of national security in missile technology transfers to China, Senate Majority Leader Trent Lott (R-Miss.) said yesterday that the Senate does not intend to use its China investigations as a political club against the Clinton administration.

"We're not approaching it from that standpoint," Lott told reporters after the first meeting of the eight-member GOP task force overseeing four separate Senate China probes. "Our greatest concern, at least initially, is . . . national security. Beyond that, we'll see where it leads us."

Lott's cautious remarks contrasted sharply with a series of nearly unanimous House votes last month rebuking President Clinton for failing "to act in the national interest" by granting a waiver early this year to allow Loral Space and Communications Ltd. to launch a commercial satellite aboard a Chinese rocket.

Asked if he expected a similar onslaught on the Senate floor, Lott replied, "We would not like to have a whole raft of amendments -- we'll see what's most effective . . . the Senate has a little time, and typically we like to let things cool off a little bit."

Lott acknowledged, however, that the Loral affair "could have an effect" on the Senate's willingness to extend most-favored-nation trade privileges to China, a request expected to be made by the administration today. Other senators, however, said the measure was in no serious danger.

Lott's task force is designed to oversee separate Senate investigations in the Intelligence, Armed Services, Foreign Relations and Governmental Affairs committees. The kickoff session will come Thursday, when the Intelligence Committee will hear closed testimony from CIA Director George J. Tenet and Attorney General Janet Reno.

In the House, the main effort will come from a select committee chaired by Rep. Christopher Cox (R-Calif.), a member of the GOP leadership. Leadership sources said committee appointments have been delayed because House Speaker Newt Gingrich (R-Ga.) has not decided whether to accept Minority Leader Richard A. Gephardt's (D-Mo.) wish to change the ratio of Republicans to Democrats on the panel from 5 to 3 to either 5 to 4 or parity.

Democrats say they will place more partisan lawmakers on the panel if they receive a smaller proportion of slots, but this threat has not yet swayed the GOP. "The minority gets to choose who they put on the committee, not how many they put on," said a GOP leadership aide.

The investigators have before them a large menu of concerns regarding the Loral waiver, granted by Clinton despite an ongoing Justice Department investigation into whether Loral gave the Chinese sensitive information in a report on a failed 1996 satellite launch. Republicans have accused the administration of granting the waiver as a favor to Loral CEO Bernard L. Schwartz, a large Democratic contributor.

The Senate also plans to investigate allegations that more than $35,000 in campaign contributions were channeled through Democratic fund-raiser Johnny Chung from Chinese aerospace executive Liu Chaoying, the daughter of the former Chinese Army commander, retired Gen. Liu Huaqing.

"We have serious concerns," Lott told reporters. "The appearance of what happened is not good." He said, however, that the Senate would focus on national security concerns. "We will not jump to conclusions," he said.

The White House has said it welcomes the investigations and maintains the waiver was a carefully considered decision made after much internal debate and in the context of a technology transfer policy that began during the administration of President Ronald Reagan.

Both sides have muted the partisan outbursts in recent days, although Senate Minority Leader Thomas A. Daschle (D-S.D.) yesterday named his own eight-member Democratic task force as a "partisan advisory group" mirroring Lott's. Daschle said he was concerned the investigations "could become partisan very quickly."

Statements by GOP lawmakers and aides suggest the two houses will use very different approaches.

Republican aides say the four Senate committees will conduct a broad-gauge inquiry that could begin with discussions of technology transfer policy before homing in on whether the administration abused national security in specific instances.

In the House, by contrast, Cox said he plans to stay "closely focused" on Loral's alleged wrongdoing" regarding the failed 1996 launch. "If we head off in several different directions, we'll be like Leonardo da Vinci, starting everything and finishing nothing," he said.

"If you want to get into what went wrong, you need to get into the specifics," said House Select Intelligence Committee Chairman Porter J. Goss (R-Fla.), likely to be named to the select committee. Such a probe differs from one examining "the policy question of whether the Clinton administration has consistently put our economic considerations above national security," Goss added.

© Copyright 1998 The Washington Post Company

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