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CHINA E-LOBBY UPDATE: JUNE 30, 2004


Dragon in the Dark: How and Why Communist China Helps Our Enemies in the War on Terror is now available: here, at Amazon, or call 1-888-280-7715.

TOP STORY: ASSAILANT FIRES AT FG PRACTITIONERS IN JOHANNESBURG

DID CADRES� HAVE A ROLE IN ATTACK TO QUIET SPIRITUAL MOVEMENT ABROAD?
An unknown assailant fired at a group of Falun Gong practitioners visiting Johannesburg in support of a possible lawsuit against visiting cadres for persecuting their faith.  The target of the gunmen was David Liang, who just happened to be �the only person in the car wearing clothing identifying him as a Falun Gong practitioner� (Epoch Times, HK).

This led practitioners to suspect the perpetrators were hired by Communist China.  If true, it would be the most dramatic example yet of how far the PRC�s tyrannical arm can reach.  It would not, however, be the first such occurrence: �practitioners in the U.S. have had their cars broken into and in one case fire bombed.�

There�s more: �their phones were tapped and their conversations replayed over their answering machines, their homes have been broken into, they have been threatened with death for filing lawsuits, they have had visas refused, their families in China have been threatened, and they have been blacklisted when traveling to other countries.�

Last year, one practitioner in New York was beaten by a group coming out of a meeting with a PRC cadre at the Palace 88 restaurant (see
7/2/03 Update).

OTHER NEWS ON THE FALUN GONG WAR
NEW BOOK OUT ON COMMUNIST PERSECUTION OF FALUN GONG
The World Organization to Investigate the Persecution of Falun Gong has released a new book documenting Communist China�s brutal persecution of the spiritual movement, which began five years ago next month.  The book, called A Collection of Investigation Bulletins (Volume I), �provides a great deal of in-depth and concrete evidence� (Epoch Times).

WORLD PSYCHIATRIC ASSOCIATION AGREES WITH PRC DENIAL OF ABUSE
The World Psychiatric Association (WPA) signed an agreement with the Chinese Psychiatric Association �that denies the systematic psychiatric abuse of Falun Gong practitioners in China� (Epoch Times).  The shocking statement was quickly derided by China Mental Health Watch, whose honorary chair called the agreement �Chamberlain-like appeasement.�

The WPA had planned to inspect Communist China�s mental institutions, but reversed course three months ago (see
3/31 Update).  Now we know why.

NEWS ON COMMUNIST CHINA, EAST TURKESTAN, AND THE TERRORIST WAR

Check out the Communist China and the Terrorist War page.
COMMUNISTS BLAME UIGHURS FOR KUNDUZ ATTACK
It took them long enough, but the Communists have finally reverted to form and blamed the Uighurs of occupied East Turkestan for the attack in Kunduz with killed eleven workers from the PRC (see 6/10 Update).  The World Uighur Congress immediately blasted the Communists for making such a claim (Central News Agency, Taiwan, via Epoch Times).

Communist China has repeatedly blamed the Uighurs, who have suffered brutally under PRC repression in East Turkestan since the occupation began in 1949, for acts of violence, only to have the facts contradict their claims (see
7/10/02 and 5/5 Updates).

The PRC has also charged the Uighurs of being supporters of Osama bin Laden, a laughable accusation disproved by both the Uighurs themselves � arguably the most pro-American Muslims on Earth � and the fact that the Communist-sponsored �Islam� is a close copy of bin Laden�s Wahhabism (see
10/17/01, 12/21/01, 10/23/02, 11/5/03, and last Updates).

NORTH KOREA NEWS
Sign up for Monday�s North Korea Report.
U.S. CAVES IN TO NORTH KOREA, BUT THE STALINISTS HOLD OUT FOR MORE
The Bush Administration caved in to North Korea during the third round of talks on the regime�s nuclear weapons, offering fuel oil � albeit from its allies - and �provisional security assurances� (Voice of America via Epoch Times), i.e., no military action against NK.

Peaceful liberation was not ruled out (
Cybercast News), contrary to reports cited in the last Update.  However, the Administration has never publicly endorsed liberation of any kind for the people of northern Korea, so this means little, if anything.  In return, the North would �dismantle� its nuclear weapons programs, to be checked by �international monitors� (CNN).

The North would still have three months to hide their nuclear weapons � ahem, �seal� their nuclear facilities � before the inspectors, the same folks who missed Iran�s nuke program for a decade, would arrive. 

The Stalinist regime rejected the offer, demanded the aid for nothing more than a second �freeze,� and repeated their threats of a nuclear test (
Washington Times).  However, after the talks ended on Saturday, they put a positive spin on the talks, saying �common elements helpful to making progress in the talks were found there� (BBC).

In other words, the U.S. didn�t concede enough, but it was getting close.  Another round of talks is scheduled for September, meaning the North can play this game for another three months as it continues to build its nuclear arsenal.


JAPANESE WHO AIDED NK REFUGEES SENT TO PRC PRISON
Communist China has sentence Takayuki Noguchi, a Japanese citizen who was caught trying to help two North Korean refugees escape, to eight months in jail.  The Communists send back any North Korean refugees they find, which forces them to live as nonpersons unless they can escape the PRC.  Reports: BBC, United Press International via Washington Times

OTHER AMERICAN-RELATED NEWS
Sign the petition for an American boycott of the 2008 Beijing Olympic Games.
COMMUNIST CHINA ANGRY AT U.S. SENATE FOR DEMANDING DEMOCRACY IN HONG KONG
The United States Senate passed a resolution stating �people in Hong Kong should be free to determine the pace of constitutional developments� and calling for �universal suffrage and democratic elections� according to the wishes of the Hong Kong people.  Communist China called this act of concern for the people of Hong Kong �rude interference� (BBC).

Of course, Communist China has reason to be sensitive: tomorrow the people of Hong Kong will return to the streets in a commemoration and repeat of the pro-democracy march of last July (see
7/2/03, 7/9/03, and 7/16/03 Update).

HOUSE OF REPRESENTATIVES COMMEMORATES TAIWAN RELATIONS ACT
The House of Representatives, meanwhile, passed a resolution on Thursday commemorating the 25th Anniversary of the Taiwan Relations Act and making note of �its serious concern over mainland China's military modernization, arms-purchasing plan and its some 500 deployed missiles aimed at Taiwan� (CNA via Epoch Times).

OTHER HUMAN RIGHTS AND FREEDOMS NEWS
COMMUNIST CHINA DENIES ARRESTING BISHOPS
Communist China shot back at Vatican charges that three bishops had been arrested, calling them �groundless� (BBC).  One of the bishops is still missing; the PRC claims he �voluntarily attended a course on religious policy which lasted until mid-June� (see last Update).

Communist China has its own, regime-controlled, �Patriotic Catholic Church,� but at least eight million Catholics remain loyal to Pope John Paul II.  The Communist ban on that loyalty forces them to worship secretly in �underground� churches.

LOCAL COMMUNISTS USE THUGS TO DRIVE HOMEOWNERS OFF SEIZED LAND
Cadres in Xi An city have brought in enforcers � �several hundred thugs, mostly between ages 14-30� (Broadcasting Corporation of China via Epoch Times) � to drive away residents whose homes are on land the cadres would rather use for a development scheme.  The Communist police are doing nothing to stop the thugs from beating the residents.

CORRUPTION NEWS
SAFETY CADRES IN SHENYANG ALLOW SICK AND DEAD PIGS TO BE SOLD
A pig market has become a pit of corruption and disease in Shenyang, as safety officials are paid to look the other way as �sick pigs and dead pigs can be openly traded� (Epoch Times).  Shenyang is the capital of the thoroughly corrupt and Mafia-tainted Liaoning Province (see 9/13/00, 12/27/00, 6/20/01, 10/17/01, 3/13/02, and 12/24/03 Updates).

FUNDS FOR OLYMPIC CONSTRUCTION EMBEZZLED
In what will certainly come as a shock, Communist China has discovered �money for Olympic projects has been siphoned off from China's 2003 budget� (BBC).  The money for Olympic construction �has gone into the hands of staff members or to office building construction,� all the more reason why American athletes should not be there.

CADRE GETS LIFE IN JAIL FOR BRIBES; HEAD OF PRC-OWNED FIRM GETS 14 YEARS
Liu Fangren, formerly the party boss in impoverished Guizhou province, will spend the rest of his life in prison for taking nearly $800,000 in bribes (BBC 6/29).  Meanwhile, Huang Yantian, head of the Guangdong Province-owned Gitic investment firm �that collapsed in 1999 owing $5bn� (BBC 6/30), was sentenced to 14 years in jail for fraud.

OTHER MAINLAND NEWS
JIANG ZEMIN PROMOTES FIFTEEN GENERALS TO SHOW HE�S STAYING PUT
Central Military Commission Chairman Jiang Zemin strengthened his power base by giving a fourth star to fifteen officers in the People's Liberation Army and its paramilitary arm, the People's Armed Police.  Jiang�s action makes it clear he intends to remain the true power in Communist China for quite some time.  Report: VOA via Epoch Times

2,600 FOOD COMPANIES LOSE EXPORT LICENSES
Communist China yanked the export licenses of 2,600 food companies due to �food products (that) did not meet the required sanitation standard for export� (Epoch Times).  This raises the question: why did the regime allow these companies to export for so long?

SALARIES FOR GRADUATES IN PRC PLUMMET, NEARLY A MILLION WON�T HAVE JOBS

Average starting salaries for college graduates in Communist China �in 2003 were 30-40 percent lower than those of 2002� (
Epoch Times), and will fall another �25-30 percent� this year.  However, that�s the good news, for those who can find a job; roughly 800,000 graduates will instead �join China's unemployment rolls.�

GENDER IMBALANCE IN PRC CONTINUES TO WORSEN
Communist China�s shortage of girls and women is growing.  At present, there are over seven boys for every six girls in the PRC.  While this may not sound bad, the trend is leading to �30 to 40 million Chinese young men who will be unable to find marriage partners,� according to analyst cited by the Epoch Times.

INTERNATIONAL NEWS
ISRAEL IS BACK IN THE PRC ARMS SALE BUSINESS
Geo Strategy Direct (via World Net Daily) reports that Israel �restarted Israeli arms transfers to China in March 2004,� probably during or just after an Israeli military delegation visited Beijing (see 3/31 Update).  Already, Israel �has become China�s largest arms and weapons technology supplier after Russia.�

The military items sold to the PRC include �Tavor personal assault weapons, pilot training systems, advanced communications and surveillance gear and several types of (unmanned aerial vehicles).�  Some Israeli gear, including HARPY anti-radar drones, has already been used in PRC military drills.  Make no mistake; this is a major setback for anti-Communists. 


KAZAKHSTAN WELCOMES HIGH-RANKING CADRE
Li Changchun, a member of Communist China�s Politburo Standing Committee (only the Central Military Commission is more powerful in the PRC), visited Kazakhstan last week (United Press Intl. via Washington Times).  The Communists are keen to keep Kazakhstan happy; the Kazakhs are building an oil pipeline to the PRC (see 2/25 and 3/24 Updates).

HUTCHISON WHAMPOA EXPANDS INDIA OPERATIONS
Hutchison Whampoa, the conglomerate run by pro-PRC tycoon Li Ka-shing, is planning to buy the Aircel phone company, adding over 1 million subscribers to its Hutchison Essar joint-venture in India (CNN).  HW, which controls two container ports on the Panama Canal, nearly bought U.S. telecommunications giant Global Crossing last year (see 5/7/03 Update).

EU SAYS COMMUNIST CHINA NOT A MARKET ECONOMY . . .
Those who still think Communist China is just capitalist by another name may be surprised to hear the European Union has sent he light and �is reportedly set to deny China �market economy� status because the state plays too big a role� (BBC).  The EU also cited �weak rule of law and poor corporate governance� as reasons for its decision.

. . . BUT FIRMS STILL �DOING BUSINESS� THERE; PRC TOPS IN FOREIGN INVESTMENT
Mega-bank HSBC will hand the PRC $1 billion for �a 20% stake in Shanghai-based Bank of Communications� (BBC 6/24).  Meanwhile, the makers of Yorkshire Tea won a contract to import, package, and re-export Communist Chinese tea (BBC 6/28-1).  More foreign investment ($53 billion) came into the PRC than anywhere else in the world (BBC 6/28-2).

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