Thursday, August 16


[Since the Democrats seem determined to nominate Hillary Clinton, we thought we would offer a little historical context from our time line of Arkansas and the Clintons, with particular emphasis on those things the mainstream media forgot to tell you]
1993 CONT'D
Clinton confidante Paula Casey is appointed US Attorney in Arkansas. She turns down a proposed plea agreement with David Hale in which he promises to reveal information concerning the "banking and borrowing practices of some individuals in the elite political circles of the State of Arkansas." Hale will later be charged with fraud.
Nine new criminal referrals on Madison Guaranty are forwarded to U.S. Attorney Casey. Casey will reject an earlier one and recuse herself from the latest cases.
Buddy Young, former head of Bill Clinton's security detail, is promoted to a senior position in FEMA paying $92,000 a year and moved from DC to Denton, TX, one day after Vince Foster's death. Will eventually become number two in the agency.
A package for Bill Clinton arrives from Arkansas containing a vial of something labeled as an allergy medicine. White House physician Burton Lee is instructed to inject the president with the serum. He refuses to do so without knowing more about the serum and seeing Clinton's medical history. When Dr. Lee calls Clinton's Arkansas doctor, she says she has to check with Hillary before releasing the records. Just one hour later, Dr. Lee is fired. In 1996 Richard Reeves will write that Clinton "tries to avoid heavy lifting or meetings after he has taken his allergy shots because he is so punchy; he has trouble thinking coherently."
John Huang and James Riady give $100,000 to Clinton's inaugural fund . . . February: Huang arranges private meeting between Mochtar Riady and Clinton at which Riady presses for renewal of China's 'most favored nation" status and a relaxation of economic sanctions . . . June: China's 'most favored nation' status is renewed. Price being paid by China Resources Company Ltd. for Lippo's Hong Kong Chinese Bank jumps to 50% above market value. The Riadys make $163 million.
Proposed poultry regulations would cost Tyson Food an estimated $57 million initially and $39 million annually. Tyson will later be found to have given illegal gifts to Clinton's Agriculture Secretary Michael Espy during the time these regulations were under consideration. Tyson will pay fines and cost of $6 million. Value of government contracts Tyson Food will still have: $200 million. Espy will get off because there is insufficient evidence that he did any favors in return for the bribes.
ROGER MORRIS & SALLY DENTON, PENTHOUSE - Prominent backers of Clinton's over the same years . . .  have themselves been subjects of extensive investigative and surveillance files by the D.E.A. or the F.B.I. similar to those relating to [Barry] Seal. . .
"This may be the first president in history with such close buddies who have NADDIS numbers," says one concerned law-enforcement official, referring to the Narcotics and Dangerous Drugs Intelligence System numbers assigned those under protracted investigation for possible drug crimes.
The government sees ATT's new tap-proof phone as a threat. Webster Hubbell is assigned by Janet Reno to deal with the secure phone issue. Assistant Attorney General Colgate writes Hubbell: "The FBI, NSA and NSC want to purchase the first production run of these devices to prevent their proliferation. They are difficult to decipher and are a deterrent to wiretaps." Webster Hubbell arranges to buy the entire production run of secure AT&T phones using a slush fund filled by drug war confiscations.
Part of the plan is to refit the phones with a new chip called Clipper that has been developed by NSA. This chip allows the government to tap the phone using a special key. A supply of these refitted phones is given to the Drug Enforcement Agency. Now other government agencies can tap the DEA. The plan also mandates Clipper chips for all American telephones. According to the Colgate memo to Hubbell, "FBI, NSA and NSC want to push legislation which would require all government agencies and eventually everyone in the U.S. to use a new public- key based cryptography method." The Clipper plan will eventually put on hold because of a large public outcry.
White House agrees to sell a Cray supercomputer to China in what was described as a good will gesture. Up to that point the fastest computer in China could do no more than 70 million calculations per second; the Cray has a speed of 958 million calculations per second. Before the China - Clinton connection is over, the president will have removed $2 billion in trade with China from national security scrutiny. Among the results: the Chinese will obtain 77 supercomputers that can scramble and unscramble secret data and design nuclear weapons. At least some of them will be used by the Chinese military.
President Clinton will also sign national security waivers to allow four US commercial satellites to be launched in China, despite evidence that China was exporting nuclear and missile technology to Pakistan and Iran, among other nations. One of these satellites belongs to Loral. Nine days later a Chinese Long March rocket carrying a $200 million satellite belonging to Loral fails in mid-flight. A subsequent law suit charges that the circuit board from the highly classified encryption device in the satellite was found to be missing when the Chinese returned debris from the explosion to US authorities even though a control box containing the circuit board was recovered intact. After the crash, NSA reportedly changes the encoded algorithms used by US satellites because of the apparent release of highly classified information. Throughout these dealings, the CEO of Loral, Bernard Schwartz, will contribute at least $1.5 million to the Democrats, making him the single largest contributor to these groups during the period in question.
Commerce Secretary Ron Brown treats his post as just another place to wheel and deal. On one occasion he okays the sale of new American engines for China to put in its Cruise missiles. The engines were built as military equipment but Brown reclassifies them as civilian. . . The Saudis want some American planes; Brown tells them: you want the planes you also want a phone contract with ATT. Cost of the planes and hardware: $6 billion. Cost of the phone contract: $4 billion. Part of the deal is an ATT side agreement with a firm called First International. The owner: Ron Brown


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