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Chung testimony: I'm not a Chinese agent

May 10, 1999
Web posted at: 8:27 p.m. EDT (0027 GMT)

WASHINGTON (AllPolitics, May 10) -- Former Democratic Party fund-raiser Johnny Chung says he is not a Chinese agent and feels the Clintons "used me as much as I used them," according to an advanced copy obtained by CNN of some of the testimony Chung will deliver to a House committee Tuesday.

Chung, a Taiwanese-born American who has pleaded guilty to tax violations, will tell lawmakers that he never acted as an agent for the Chinese government.

"I have never sought to do anything that might facilitate any sinister attempt to undermine the interests of my country," Chung wrote in his opening statement to the House Government Reform Committee, chaired by Rep. Dan Burton (R-Indiana).

When Chung testifies before the panel Tuesday, he'll detail his contacts with Gen. Ji Shengde and other Chinese intelligence officials. Chung will reportedly tell lawmakers that Ji was behind $300,000 in payments that were used, in part, as a means of funneling illegal contributions to the Democratic National Committee (DNC).

Chung, who runs a broadcast fax business in Torrance, California, is the first Asian-American fund-raiser to publicly testify about his dealings with elite Chinese business and political figures.

In his testimony Tuesday, Chung notes that between 1994 and 1996 he received more than $2 million dollars as a result of his business relationships in China. Chung will say less than 20 percent of that sum wound up as donations to political causes.

Chung is expected to say that much of the money went to pay for his own business expenses as well as the costs associated with entertaining the various Chinese business groups that sought to do business with him.

In his testimony, Chung will take politicians of both parties to task for the campaign finance system, noting that while he assumes some responsibility in the matter, "If you really want to do something about this, then change the system that allowed me to, with a few selected donations, attract the head of Chinese military intelligence. ... I think you should look to yourselves and ask yourselves if you really want to do something about this."

Referring to President Bill Clinton and first lady Hillary Rodham Clinton, who have both been photographed with Chung, the businessman says: "I know I have caused a lot of trouble ... but I can't help but think that they used me as much as I used them."

Chung will also lash out at the DNC, saying: "They should be ashamed of themselves for attempting to jump on me and hide from the fact that they aggressively solicited me for money from August 1994 until the campaign finance controversy came to light in 1996."

"I now realize that they took my money with a smile and made fun of me when I turned my back," Chung's statement says.

Chung, described by one National Security Official as a "hustler" who could "do some damage to U.S. diplomacy" with Beijing, donated $360,000 to the DNC and sought access to senior government officials, including the president. He made about 50 visits to the White House, often taking groups of Chinese business officials with him.

Last year, he pleaded guilty to election law violations and began cooperating with the Justice Department's investigation into alleged 1996 fund-raising irregularities. In December, he was sentenced to probation and community service.


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Monday, May 10, 1999

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