'Smart bomb' technology moving to China from Indiana

Yet another article on the Magnequench factory and it's move to China. The factory is responsible for producing 80 percent of the rare-earth permanent magnets used in the guidance systems of U.S. "smart bombs," according to lawmakers. As noted in my earlier post HERE the Pentagon may very well be outsourcing this sensitive material. World Net Daily has written an extensive piece on the issue and of the valiant efforts of Senator Bayh and Rep. Pete Visclosky to prevent this breech in National Security. I strongly urge every American to read this article carefully. Because the article is lengthy and complete I am only going to post a few snipets.

Citing national-security concerns, two Democratic lawmakers are engaged in a last-ditch effort to halt plans for the transfer of an Indiana factory that produces critical technology used in the guidance systems of U.S. "smart bombs" to the People's Republic of China.

The Department of Defense denies any impropriety, but some observers are asking: Is it a case of politics as usual, or a cover-up?

"We deserve answers not only about the economic impact of this move, but also about the potential threat to national security that it creates," Bayh said.

The two lawmakers reportedly received no response from letters sent to President Bush on March 6 and May 1.

Two letters sent to Treasury Secretary John Snow (on May 20 and June 5) received a response turning down a request from the congressman for a meeting. Several phone calls also have received no response.

Rep. Pete Visclosky, D-Ind.

Visclosky sent a letter July 31 to the U.S. House of Representatives Armed Services Committee, requesting the committee review the contracts Magnequench currently holds with the U.S. Department of Defense.

"These contracts must be reviewed in order to verify the legality of the pending move to China," he said.

Bayh, who is a member of the Senate Armed Services Committee, backs the request for a review.

WorldNetDaily contacted the office of Sen. John Warner, R-Va., head of the Senate Armed Services Committee, and asked whether the committee was moving on this issue. At the time of the publication of this report, WND had not received a response.

On Aug. 1, Bayh and Visclosky also sent a letter to the U.S. Department of the Treasury demanding all the facts of its investigation into its review of Magnequench's 1995 sale to a consortium that included Chinese interests and Magnequench's 2000 acquisition of the Valparaiso facility.

To date, they have not received a response. WorldNetDaily contacted Snow's office and had not received a response by press time.

"Concerns raised by American officials about what they considered a clear case of the PRC attempting to obtain control of vital U.S. weapons technology were shot down, and CFIUS permitted the buyout," reported Insight magazine and WND.

As previously reported by WND and Insight, a second effort to halt technology transfer to China from Magnequench failed in 1999. Company officials sought U.S.-government approval to export equipment from the Magnequench plant in Anderson, Ind., that could enhance China's ability to enrich uranium for a nuclear weapon. "Stronger opposition to the transfer within government ranks again was stymied, and the high-tech computerized machine tools were moved to the company's new plant in mainland China." Insight writer Scott Wheeler reported.

According to Russia/China expert Dr. Alexandr V. Nemets, Chinese language explanations of 863 emphasize military goals above civilian goals.

As an example, Nemets quotes a translated sentence from Chinese media stating the 863 Program was necessary for "the development of new advanced technologies for defensive and offensive warfare."

It is Nemets' opinion that since 1986, through its 863 Program, China has been developing post-nuclear superweapons using knowledge gained from the "dragnet" of the eight fields of research.

Sun sets on Indiana workers

Meanwhile, in Indiana, a crowd of 150 angry Magnequench workers recently vented their frustrations at a Valparaiso protest, jeering the mention of Magnequench President Archibald Cox Jr.'s name.

Wearing t-shirts that read "No More Lousy Trade Deals," they cheered when union organizer Mike O'Brien called Cox "a traitor to this country," according to Northwest Indiana News.

"We're giving our enemies our defense technology and your 225 jobs," Visclosky said.

Evan Bayh National Security Military Iraq Pentagon Bush War Fair Trade China Pete Visclosky Magnequench Indiana Politics Democrats In The News