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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 had 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 Yu, 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 BEIJING, 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.

am,

Wang Weiping -- female, a former student at Beijing Medical University. Died in Fuxing hospital at 12 June 4.

He Xiangping -- 54, female, a retired worker at Beijing Telecommunication Units Inc. She was reportedly walking home 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 have 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 ASIA 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, June 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 Fuxing hospital. Unknown -- 67, female, she was shot on her 13th floor balcony, later died in Fuxing 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

-

Huang Tao

a chemistry lecturer at Beijing University.

› -- 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.

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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 Sidney 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

1988

I

China's Forgotten Wall

By Ren Wanding

NET 1214/BELING

't has been 10 years since the democracy wall and "Beijing spring" came into being, only to disappear the next year. In this decade, great changes have taken place in China and elsewhere. Détente has replaced the cold war. The opening trend in China has become irreversible.

Linked to the "Beijing spring" were numerous groups, including ploneering art and music groups and nongovernmental publications, which sprang up like bamboo shoots across the country. They lasted until 1981, when they were banned. But in a larger sense the "Beijing spring" continues to show its significance and to guide the reform process.

China's political situation in 1978 and 1979 forced its people, who had been living under political suppres sion and material poverty for several decades, again to clamor for democracy and human rights.

It was the democracy wall that first suggested the "open-door policy" for China. It was the first to point out the crisis in China as the rest of the world leaves it behind. The "Beijing spring" pointed out the problem of Hifelong terms of office for our lead. ers. Some of our ideas, criticized as unrealistic, are being implemented.

Since the first cries arose in China for human rights and social reform, those who protested have been criticized and charged with crimes. A large number of talented people have been thrown in jail Even after servIng their terms of punishment, they continue to be discriminated against in their jobs and living conditions.

The nationwide student demonstra. Lions at the end of 1986 were the latest

Ren Wanding, a leader in China's democracy wall movement, was imprisoned from 1979 to 1983.

of a series of people's democraue movements since 1957. The students' movement was the biggest and most Inspiring demonstration of the peopie's demand for political participa tion in politics and direct democracy. It is the fruit of the democracy wall

But in general the student movement did not represent the workers' interests well The students chanted empty slogans, and the movement lost public support The students should push into the dark jails and speak for those who are jailed.

Why should there regularly be large-scale street demonstrations and protest movements in this socalled socialist country where the people are the masters? Why is it that in the Communist Party, after one group in power has replaced another

It ignited China's reforms.

group so many times, there still are democratic movements rising up?

The important historical develop ment is this: During the past 30 years, an army of tens of millions of manufacturing workers has emerged. They form the undercur rent of the student movement. Hurri canes and tidal waves will follow.

When the party says its interest is the same as the people's, it ignores' the vital difference between the party, which has been in power for decades, and the hundreds of millions of civilians who are passively under party administration.

When the party boasts of its socalled socialist system, it completely ignores the existence of social. classes, low productivity and the

backward methods of production.

It ignores the cruel fact the people have been deprived of the right to vote and other rights of citizenship in 1949, the party came to power through force; now it should let the people decide through the ballot box.

Now that the "Beijing spring" and the student movement are over, we may be sure that there will be student, peasant, worker or soldier unrest. Monday's incident in Nanjing. when students and workers marched through the streets shouting racist and democratie ́slogans, is just the most recent symptom. For the next few decades at least, China is likely to be confused and unstable. The party will become increasingly corrup The authorities have already reached an impasse and will find it hard to move further.

The economic aid and technical exchanges offered by industrially developed countries must take into account the reform of China's social struc ture, the expansion of democracy and the end of suppression of dissidents. This should be a basic condition for their investment

Businessmen should not be too simple minded in their dealings with the mainland, because making China 100 strong could upset the international balance. The increase in state power implies more suppression of the people, and, sooner or later, the people will react against foreign assistance.

China is neither democratic nor socialist. We are not trying to claim capitalism is superior to socialism. We are saying rural socialism is inferior to Western social structure.

The party overcame the last Emperor and the corrupt nationalists: That was justice. But putting dissidents in jail is unjust.

The people will forever remember those who have sacrificed themselves for democracy and socialism since 1949. The party's crimes and achivements — will remain engraved upon people's hearts.

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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.

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.

It 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; susension of the extraordinarily good deal Chinese textile imports aze in this country, a good deal that has contributed substantially the trade deficit we are currently running with China; suspenof Eximbank loans, and a collaborative effort with other countries to suspend credit and credit guarantees to the PeoRepublic. eve the value of these sanctions, if implemented, is not express moral indignation and to establish that, for ere are real costs associated with behavior we find opprothe extreme. As I have said, I think it is also the only tabish for other totalitarian regimes-who are doubtless

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