Donor’s White House Access Used in Asia, Records Show

Despite strong warnings from national security officials, the Clinton Administration provided extraordinary access to a Torrance, Calif., fax machine dealer who used the White House to ingratiate himself with Chinese government officials and Asian clients, internal records released on Friday show.

Johnny Chien Chuen Chung, a Taiwanese American entrepreneur who donated $366,000 to the Democratic National Committee during last year’s election campaign, traveled to Taiwan in 1994 carrying a personal letter of endorsement from Clinton. The following year, he went to China with a letter of support from Democratic National Committee Chairman Donald L. Fowler, proposing to win the freedom of dissident Harry Wu.

Chung was permitted to escort dozens of Chinese guests through the White House--making at least 10 visits after administration officials cautioned that he was using his connections to strike questionable business deals overseas.

“I think he should be treated with a pinch of suspicion,” Robert L. Suettinger, a National Security Council expert on Asian affairs, wrote in April 1995. “My impression is that he’s a hustler, and appears to be involved in setting up some kind of consulting operation that will thrive by bringing Chinese entrepreneurs into town for exposure to high-level U.S. officials.”

Chung’s case illustrates how far the Clinton administration sometimes went to cater to large campaign contributors, even when a donor’s motives or intentions might be suspect. The Democrats’ fund-raising operation, which collected more than $120 million last year, is under investigation by the Justice Department. Investigators are probing reports that the Chinese government may have sought to direct illegal foreign contributions to the Democratic Party.

The Times disclosed in November that Chung made at least 49 visits to the White House, often bringing prominent Chinese guests, between early 1994 and June of last year. Chung often flashed a thick portfolio including a dozen photos of him with the president and first lady in his sales pitch to clients interested in his fax system business.

Administration and DNC officials acknowledged once again Friday that they failed to initiate any background checks or screen donors who were referred to the White House to pose for photographs or sip coffee with the president.

“We’ve instituted new vetting procedures to ensure that only appropriate individuals are included in events with the president in the future,” said White House spokesman Lanny Davis.

As for Chung himself, White House Press Secretary Mike McCurry said: “You’re not going to see him around here any time soon.”

The Torrance businessman was included among 51 prominent figures and corporations that were issued subpoenas this week by the Senate Government Affairs Committee.

Chung could not be reached Friday at his business or residence and his lawyer declined to comment. In November, Chung said in a statement to The Times that his donations were entirely proper and that he had not received any favors.

“While I am honored and privileged to have met the president and various officials, neither I nor my company have received any preferential treatment from the White House or any government official--merely occasional words of encouragement.”

The internal records released by the White House Friday consisted of documents submitted to the Senate Intelligence Committee in connection with the nomination of Anthony Lake, Clinton’s national security advisor, to be CIA director. Committee members have expressed concerns about possible contacts between donors and officials of the National Security Council.

The documents show that Chung took advantage of the numerous invitations he received to White House events and of other opportunities at fund-raising dinners to introduce Chinese associates to Clinton.

In March 1995, the DNC arranged at the last minute for Chung and six Chinese officials to watch Clinton’s live weekly radio address in the Oval Office. The president’s aides allowed the group to attend, “not knowing anything about them except that they were DNC contributors,” according to an e-mail message by an NSC official. “It turns out they are various Chinese gurus and the [president] wasn’t sure we’d want photos of him with these people circulating around,” one administration aide wrote.

“(FYI--these people are major DNC contributors and if we can give them the photos, the president’s office would like to do so).”

Suettinger, the NSC Asia expert, responded: “I don’t see any lasting damage to U.S. foreign policy from giving Johnny Chung the pictures. And to the degree it motivates him to continue contributing to the DNC, who am I to complain?”

In October 1994, Chung received a personal note from Clinton that he apparently used to impress potential clients and government officials on his travels to Taiwan, the records indicate.

Chung requested another “credential letter” from the president in July of 1995 for a trip to China, during which he hoped to negotiate the release of Wu.

“Mr. Chung plans to represent to the president of China that he is sanctioned by President Clinton in his efforts to get Mr. Wu released,” White House official Janice Enright wrote to Lake. She added that Chung mentioned his China mission to Clinton during a brief conversation in California and that according to Chung, “ . . . the president was supportive.”

Wu has been one of the most vocal critics of China’s Communist regime, which imprisoned him in a labor camp for 19 years before he was allowed to emigrate to the San Francisco area. He was arrested again in June 1995, sparking an international outcry and heightening U.S.-Chinese tensions.

The notion of Chung, a 41-year-old, onetime engineering student who has left a trail of closed companies, creditors and lawsuits in recent years, conducting sensitive negotiations with Chinese government officials, set off alarms at the National Security Council. Clinton, acting on the advice of NSC officials, declined to issue a credential letter to him.

But Chung, whom acquaintances describe as “gregarious” and “outgoing,” turned to the Democratic National Committee and got a favorable letter. It marked the second time in four months that DNC Chairman Fowler had issued such a note to Chung.

Before White House officials could react, Chung was en route to Beijing. Administration officials were furious.

“Johnny Chung’s intent to try and get Harry Wu released is very troubling, in part because I was not able to contact the DNC in time to get them to discourage Chung from involving himself in this diplomatically difficult and high-stakes issue,” wrote Suettinger. “All we can do is hope the Chinese recognize Chung’s credentials are thin, and that his message should be treated with caution.”

There is no indication that Chung played any role in the Chinese government decision to release Wu in August 1995. Negotiations were conducted through official channels by authorized representatives.

Jeff Fiedler, a national AFL-CIO official who led the effort to win Wu’s freedom, expressed outrage at Fowler’s actions on behalf of Chung.

“They [the DNC] knew what his purpose was, and then they give him a sort of nonsense letter . . . “ Fiedler said. “Why let the guy go at all? Why encourage him at all? Because he gave $300,000 and you don’t want to make him angry? That’s garbage. . . . A man’s life was at stake here. It’s not a game.”

Wu, reached in Northern California on Friday, was equally dubious of Chung.

“I don’t think [Chung] was concerned about my life, just about using me for a bargaining chip for his own benefit,” Wu said.

Times staff writers Ralph Frammolino and Marc Lacey in Washington and Rich Connell and William C. Rempel in Los Angeles contributed to this story.