China Reform Monitor No. 312, June 12, 2000

American Foreign Policy Council, Washington, DC

Editor: Al Santoli

May 12: The Hong Kong-based Hutchison Whampoa ports firm intends to bid for

the administration of Peru's El Callao port terminal on the Pacific coast,

according to Peru's Foreign Ministry, reports the Beijing Xinhua news

agency. Hutchison Whampoa has invested more than $100 million to modernize

its ports on the Atlantic and Pacific ends of the Panama Canal. [Editor:

Hutchison Whampoa, which is part owned by China Resources Enterprises, has

been identified by the U.S. Senate as a front for Chinese military

intelligence and owner Li Ka Shing has close ties to the Chinese government.

Hutchison also operates the prominent Freeport facility in the Bahamas.]

May 16: "The Chinese are betting on Venezuela" said President Hugo Chavez,

following a 4-day visit by Chinese officials, reports Caracas El Universal.

"We are not just speaking empty words, but we are dealing with specific

issues," Chavez exclaimed. Since Chavez's visit to Beijing in October 1999,

"No less than five high-level government and private business commissions

have visited [Venezuela], as well as commissions comprising local

governments." Chavez said bilateral agreements were reviewed in such areas

as gas and oil, as well as agriculture and mining, plus the national

railroad plan.

The 14-member Chinese delegation was led by Li Ruihuan, chairman of the

National Committee of the Chinese People's Political Consultative

Conference. After meeting with the delegation, Venezuelan National

Legislative Commission president Luis Miqilena said his country, "has much

to learn and receive from China. We have not only opened our heart, but also

all sectors of our economy, all possibilities for hyper-development between

the two countries . . ."

May 29: The Canadian government ignored warnings by counter-intelligence

officials and permitted China's state-owned COSCO shipping company to make

Vancouver -- the only major port on the West Coast of North America without

a dedicated police force -- the gateway for its operations in North America,

reports Fabian Dawson in the Vancouver Province.

COSCO is intimately linked to China International Trust and Investment

Corporation [CITIC], a key fundraiser for the Chinese government and a

technology-acquiring source for China's military. U.S. Senate and Canadian

intelligence officials have described COSCO as the "merchant marine" for

China's military. COSCO vessels have been caught carrying assault rifles

into California and Chinese missile technology and biological-chemical

weapons components into North Korea, Pakistan, Iraq and Iran, according to

U.S. intelligence reports. In addition, Canadian law enforcement agencies

have warned that Chinese Triad criminal organizations are active in and

around Canada's ports.

June 1: Following a four day state visit to Havana by Chinese information

industry chief Wu Jichuan, China and Cuba signed cooperation accords for

Beijing to finance and modernize Cuba's telecommunications and electronics

industry, the London Financial Times reports. China's Great Dragon Group

formed a joint venture with Cuba's state-run Groupo Electronico, which is

headed by former Interior Minister Ramiro Valdes. A digital switching

telephone plant donated by China is already operating on Cuba's Isle of

Youth.

Copyright (c) 2000, American Foreign Policy Council