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ARRESTS OF ALLEGED TAIWANESE AGENTS

OU Zongyou, a Taiwanese businessman, was arrested on June 22 in Guiyang, according to Xinhua News Agency. He was accused of spying for Taiwan, spreading rumors, slandering the Chinese Communist Party, collecting banned publications and taking pictures of "anti-state demonstrations." According to UPI, Xinhua said Ou was a member of Taiwan's Military Intelligence Bureau and bad received espionage training in Hong Kong

Twelve other alleged Taiwanese agents were arrested on the same day, including WANG Changhong, 38, arrested in Beijing and accused of spreading rumors in Tiananmen Square; and ZHANG Yi, 25, and WI Jidong, 23, both arrested in Guangzhou. The others are LIANG Qiyang, QIAN Rongmian, QIU Liu, ZHAN Yan, CAO Weiqio, LU Zhengqing, FENG Jin, QIAO Xiaoshi and QU Zuojie.

RELEASES

The two Chinese graduate students studying in the United States who had returned to Beijing to support the democracy movement have been released from custody and are now back in Chicago and Los Angeles respectively. CHENG Yų, a graduate student at the University of Chicago, her baby, Payton Lee, and Tong Boning, a UCLA student, returned to the US on June 10.

Lee Chukyan, a Hong Kong resident reported arrested June 5, has been released.

FALSE RUMORS

The arrest of LI Dan, reported by Asia Watch, turned out to be a false rumor. We had reported that Li, a veteran announcer for English-language broadcasts of Radio Beijing, was reported to have been arrested while broadcasting news of the massacre in Tiananmen Square on Sunday morning, June 4. Li Dan was not the broadcaster in question and is not under arrest. The fate of the announcer is unclear.

REPORTED DEATHS IN BELJING, JUNE 3-4

The following deaths have been reported to Asia Watch, although we cannot independently confirm them. LUO Wei, a mechanic aged 30, was a worker in the Semi-Conductors Material Factory, Beijing. HAO Zi Jing, 29, was an assistant researcher in the Chinese Academy of Sciences. He had taken his wife to the hospital where she was about to give birth and returned home via Tiananmen Square to see what was happening. He never returned home. Other deaths reported by a new Chinese-language newspaper called Press Freedom Herald published in California include the following:

Zhong Qing -- male, a student at Qinghua University. He was reportedly shot in the head, died in Fuxing hospital at 1:30 am, June 4.

Wang Weiping -- female, a former student at Beijing Medical University. Died in Fuxing hospital at 12

am, June 4.

He Xiangping -- 54, female, a retired worker at Beijing Telecommunication Units Inc. She was reportedly walking bome when a bullet hit and went through her heart. Died at 1:30 am, June 4.

Yin Jing -- 35, male, an engineer. He was reported to bave been in his kitchen when a bullet from the PLA deployed in Beijing hit his nose and killed him.

Tang Zhiqiang -- male, died at 1 am, June 4, in Fuxing hospital.

UPDATE ON ARRESTS IN CHINA

NEWS FROM ASLA WATCH - 18

Wu Xiangdong -- 21, male, a worker at Beijing Dongfeng Television Inc. He was reportedly shot in the neck, and died at 1 am, Junc 4.

Guo Chunming -- 21, male, a biology teacher at No. 61 High School. He was shot in the back and died.

Ling Keqing --22, male, a graduate student at Chinese People's University, majoring in Journalism. He was reported to have been helping an injured person when he was shot. He later died in Furing hospital.

Unknown -- 67, female, she was shot on her 13th floor balcony, later died in Furing hospital.
Duan Changlong -- a chemistry major at Qinghua University.
Liu Xin -- an Environmental Engineering major at Qinghua University.
Sun Hui -- male, a chemistry major at Beijing University.
Yan Wen -- male, a student at Beijing University in the probability statistics department.
Xiao Buo -- a chemistry lecturer at Beijing University.
Huang Tao -- a chemistry major at Beijing University.
Wen Dan -- a History major at Beijing University.
Li Ping -- a student at Beijing Normal University. (class of 86)
Zhong Qing -- 20, a student at Qinghua University optical instruments department (class of 85)
Pei Jiandong -- 17, a student at Ministry of Aviation -- No. 5 Research Institute.
Li Hui -- 18, a student at Chinese People's University.
Li Hui -- a student of Beijing Law and Justice Institute. (class of 85)
Du Xiuping -- 55, female.
Huang Weijun -- 24, a student at Beijing Medical University. (class of 83)
Guo Yanchun -- 22, a student at Beijing Education Institute.
He Guo -- 27.
Du Zhijing -- 30.
Hao Xiuping -- 54, female.
Qi Wen -- 16, a freshman at Tielu No. 3 High School.
CUI Zhaozeng -- soldier

News from Asia Watch is a publication of Asia Watch, an independent organization that monitors and promotes human rights in Asia. The Chairman is Jack Greenberg. The Vice Chairmen are Matthew Nimetz and Nadine Strossen. The Executive Director is Sidacy Jones. Asia Watch is part of Human Rights Watch which is also comprised of Americas Watch, Helsinki Watch, Africa Watch and Middle East Watch.

UPDATE ON ARRESTS IN CHINA

NEWS FROM ASIA WATCH - 19

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democrate backward methods of production. By Ren Wanding movemenus since 1857. The students k lgnores the cruel fact the people

movement was the biggest and most have been deprived of the right 10 't has been 10 years since the ple's demand for political participa. 1949, the party came to power democracy wall and "Beljing ilon in politics and direct democracy.' through force; now it shouid let the spring" came into being, only It is the fruit of the democracy wall people decide through the ballot box Lo disappear the next year. In But in general the student move- Now that the "Beijing springa and this decade, great changes ment did not represent the workers the student movement are over, we

have taken place in China and Interests well the students chamed may be sure that there will be stu. elsewhere Détente has replaced the empty slogans, and the movement dent peasant, worker or soldier un. cold war. The opening trend in China lost public support The students rest Monday's incident in Nanjing. has become irreversible.

should push into the dark falls and when students and workers marches Linked to the "Beijing spring" speak for those who are falled. thmugh the streets shouting racist were numerous groups, including plo Why should there regularly be and democratic' slogans, is just the neering art and music groups and large-scale street demonstrations most recent symptom. For the next nongovernmenual publications, which and protest movements in this sa few decades at least, China is likely to sprang up like bamboo shoots across called socialist country where the be confused and unstable. The party the country. They lasted until 1981, people are the masters? Why is it that will become increasingly corrup: when they were banned. But in a In the Communist Party, after one The authoriues have already reached larger venne the "Beijing spring" group in power has replaced another an Impasse and will find it hard to continues to show its significance and

move further. le guide the reform procesi.

The economic aid and technical ex. China's political situation in 1978

changes offered by Industrially devel. and 1979 forced its people, who had

oped countries must take into account been living under political suppres.

the reform of China's sociai suruc. sion and material poverty for severa! China's

wre, the expansion of democracy and decades, again to clamor for democ.

the end of suppression of dissidents. ncy and human rights.

This should be a basic condition for It was the democracy wall that first reforms.

their investment Surgested the "open door policy" for

Businessmen should not be too siin. China. It was the first to point out the

ple minded in their dealings with the crisis in China as the rest of the world

mainland, because making China too leaves te behind. The "Beijing · group so many times, there still are strong could upset the International spring" pointed out the problem of democratic movements rising up? balance. The increase in state power Hilelong terms of office for our lead. The important historical develop implies more suppression of the peo. ers. Some of our ideas, criticized as ment is this: During the past 30 pie, and, sooner or later, the people unrcalistic, are being implemented. years, an army of tens of millions of will react against foreign assistance.

Since the first cries arose in China manufacturing workers has China is nelther democratic nor so for human righus and social reform, emerged. They form the undercurcialist. We are not trying to claim those who protested have been criti. rent of the student movement Hurti capitalism is superior to socialism. cized and charged with crimes. A canes and tidal waves will follow. We are saying rural socialism is inlarge number of talented people have When the party says its interest is, ferior to Western social structure boct thrown in jail Even atier serv. the same as the people's, it ignorts' The party overcame the last Eming their terms of punishment, they the vital difference between the peror and the corrupt nationalisus: continue to be discriminated against party, which has been in power for That was justice. But puiting dissi. la their jobs and living condltions. decades, and the hundreds of millions dents in jali Is unjust.

The nationwide student demonstra. of civilians who are passively under .The people will forever remember lions al the end of 1986 were the latest party administration.

those who have sacrificed themselves

When the party boasts of ils so for democracy and socialism since Ren Wanding, a leader in China's called socialist system, it completely 1949. The party's crimes – and democracy wall movement, was im- ignores the existence of social. achivements - will remain engraved prisoned from 1979 to 1983.

classes, low producţvity and the upon people's hearis.

Mr. SOLARZ. Thank you, Mr. Neier.

We will now hear, to complete this panel, Mr. Frank Gaffney. Mr. Gaffney, if you can possibly summarize your views in five or ten minutes orally, your statement will be included in the record.

STATEMENT OF FRANK J. GAFFNEY, JR. Mr. GAFFNEY. Thank you very much, Mr. Chairman.

I am really privileged to have an opportunity to contribute to your deliberations on what is, I believe, one of the most important security policy issues facing the country today. I suggest that it is that important not simply because of the significance of the People's Republic to American security interests around the world, but also because I am firmly convinced that the decisions we make in response to developments in China will, in fact, have a significant bearing upon future developments elsewhere around the world. Communist nations everywhere are wrestling with very similar domestic phenomena—the failure of their political systems, the bankruptcy of their economic systems, the pressure from their people for change and liberties that we cherish-and trying to come to grips with the reality that they cannot both accommodate those pressures and maintain control. So I would offer, Mr. Chairman, if I may, that by way of introduction to the remarks that will follow.

There are two papers that the Center for Security Policy has recently produced that amplify on some of these points, which I would also ask permission-they're very short-be inserted in the record at the conclusion of my remarks.

Mr. SOLARZ. Without objection.

Mr. GAFFNEY. Mr. Chairman, you asked me to address five questions, and I would propose to do so very quickly. The first deals with the adequacy of the Bush administration's sanctions in China. My feeling is that the Bush administration's sanctions administered to date are an insult to the intelligence of the American people and to the Congress. They are a placebo that offers the appearance of strong medicine, but no tangible therapeutic value.

In my prepared remarks before you I have tried to enumerate with some specificity how three of those provisions—those affecting the transfer of military technologies, those related to the provision of World Bank loans, and those related to OPIC guarantees-are essentially situations that were imposed by external forces, not that represent tangible American initiatives, let alone particularly meaningful American initiatives.

Consequently, I believe that if we are intent upon signaling to the Chinese people in some measure the outrage that I think every American feels about the brutl repression of those who aspire to nothing more than the freedoms and the institutional prerogatives that we cherish in this country, we must insist upon more meaningful sanctions. I am among those who very strongly support the leadership of this committee, the unanimous vote of the House of Representatives, and the nearly unanimous vote of the Senate, in overriding, disregarding-call it what you will—President Bush's urgent request that nothing more be done than the sanctions he has instituted.

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I would specifically like to urge that, of those initiatives the Congress has taken, that several make it all the way through the legislative process, and, if necessary, override a presidential veto. I think, for example, a freeze on technology that is being provided to the Chinese is a terribly important signal of our seriousness and will get the Chinese leadership's attention.

As you well know, the simple fact that China might not have access to modern technology developed in the West as the West's technology base continues to mature would ensure that the gap between Chinese and Western technology bases becomes even more acute. I am persuaded that the Chinese government is very much preoccupied with closing that gap, and the idea that it might grow, let alone not shrink further, I believe would have a very powerful effect upon them in the decisions they make about future behavior and policy.

I believe it is also worth considering stipulating that in future contracts

signed with businesses and government agencies of the People's Republic, that the technology the Chinese currently have access to not be made available to them in contracts signed after the 4th of June. This again will show a discriminate policy, one that makes it clear we are not violating contract sanctity with respect to contracts already in force, but that heretofore it is no "free lunch.” I think the congressional efforts to stipulate the conditions under which sanctions of this type would be lifted is a very useful and commendable initiative. I hope it, too, will make it through your process.

Turning to the question of is more in order, I think very much so. I would argue that there is no harm in indicating to the Chinese-or, indeed, to other nations currently experimenting with transformation of their systems, political and economic, from totalitarian Communist to something else—that the opportunity for a better access to American economic, financial and technology resources, and indeed, those of the West, is in prospect if those changes proceed. I believe that's very much what President Bush had in mind in his recent trip to Eastern Europe.

seems to me only logical that the reverse apply when progress is not being made toward genuine openness toward transformation of these systems, or, in fact, when regression is taking place of a type that's fully on par with some of the most repressive systems in the world today.

I would suggest in this respect you consider several additional sanctions. Suspension and I emphasize the word "suspension"-of most favored nation status for the People's Republic of China; suspension of the extraordinarily good deal Chinese textile imports have in this country, a good deal that has contributed substantially to the trade deficit we are currently running with China; suspension of Eximbank loans, and a collaborative effort with other OECD countries to suspend credit and credit guarantees to the People's Republic.

I believe the value of these sanctions, if implemented, is not simply to express moral indignation and to establish that, for China, there are real costs associated with behavior we find opprobrious in the extreme. As I have said, I think it is also the only way to establish for other totalitarian regimes—who are doubtless

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