From The Washington Times:
U.S. intelligence agencies informed a Treasury Department-led review committee recently that a merger between 3Com and a Chinese company would threaten U.S. national security, The Washington Times has learned.Obviously a lot, because even thew government still doesn't get it. All Chinese companies have the Chinese government as the chief shareholder, we cannot treat them like every other company in the world. China has stolen a lot of our secrets already and we must get serious about safeguarding our technology from China who will use it against us. our CIA has become politicized, leaking our secrets to the press for their Left wing political agenda. Doesn't that upset you? the CIA should not be political, and if it was it shouldn't be a socialist/communist agenda! what happened to fighting communism? Our CIA has been infiltrated with socialists! We have got to get our government back under the control of the U.S. Constitution and we have got to go back to rooting out communism in this country before we all start calling people comrade.
Bush administration intelligence officials said the Office of the Director of National Intelligence (DNI) recently submitted a required threat assessment to the Committee on Foreign Investment in the United States, known as CFIUS, which is conducting a 30-day investigation of the proposed deal between 3Com and China's Huawei Technologies.
The assessment, which is classified, described the deal as posing a "threat" to U.S. national security, according to officials familiar with the document. [snip...]
The proposed $2.2 billion merger was announced quietly in October, with 3Com stating that the main purchaser would be the international investment firm Bain Capital Partners — an apparent bid to play down the role of Huawei, China's main producer of computer network equipment and an international supplier.
Reports in The Times about Huawei's past illicit activities — including bribery, economic espionage and violating U.N. sanctions — led Bain to voluntarily submit the deal to the Treasury Department for review.
3Com manufactures computer network intrusion-prevention equipment used by the Pentagon and U.S. government agencies. Intelligence officials are concerned that the technology China would gain from 3Com will boost the Chinese military's computer warfare capabilities.
Asked about the assessment, DNI spokesman Ross Feinstein said, "In accordance with the statute, the intelligence community prepares threat assessments for the CFIUS process, but we do not comment on these assessments." [snip...]
The proposed deal has generated opposition from congressional Republicans.
A group of House Republicans introduced a resolution in October calling on the Bush administration to block the deal.
The resolution stated that evidence shows that "the proposed transaction involving Huawei threatens the national security of the United States and should not be approved by the Committee on Foreign Investment in the United States."
Huawei has been accused of a range of illegal activities, including bribes related to cellular telephone contracts in post-Saddam Hussein Iraq, and of violating U.N. sanctions against Iraq by building a fiber-optic network that was used to link Iraqi air defenses, at a time when U.S. warplanes were patrolling the country.
Huawei also was linked to industrial espionage against Cisco Systems and Japan's Fujitsu several years ago, the officials said.
Huawei also constructed a telephone system in Kabul for Afghanistan's extremist Taliban government, which was ousted in October 2001. [snip...]
John J. Tkacik Jr., a Heritage Foundation specialist on China, recently said that Huawei is closely linked to the Chinese military and that China probably already has gained valuable 3Com secrets from a joint venture called HC3, which ended last year after 3Com purchased the Huawei stake.
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