Records Detail Donor’s Access in China Matters

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 China in 1995 with a letter from the DNC, saying he intended to win the freedom of dissident Harry Wu. The year before, he went to Taiwan carrying a personal letter of endorsement from Clinton, the records indicate.

Chung was permitted to escort dozens of Chinese guests through the White House--making at least six 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 donors, even when a donor’s motives or intentions might be suspect. The Democrats’ fund-raising operation, which raised $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. In November, Chung said in a statement to The Times that his donations were entirely proper and that he had not received any favored treatment.

“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 on 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, Chung brought four Chinese government officials and a young entrepreneur into the Oval Office to attend Clinton’s live weekly radio address. The group presented Clinton with a carved piece of jade on behalf of Chung.

Clinton, according to White House officials, expressed reservations about Chung’s guests and whether the photos taken with the group might later prove embarrassing. They were ushered into the Oval Office at the request of Chung and the DNC without any clearance by White House officials.

Afterward, a White House aide wrote to an NSC official: “ . . . Give me your advice on whether we want these photos floating around? (FYI--these people are major DNC contributors and if we can give them the photos, the president’s office would like to do so).”

White House officials said the photos were not released to the group.

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.

“I want to express to you how essential your role has been in helping to bridge our country’s diverse communities,” Clinton wrote to Chung. “Your efforts to open lines of communication between our Administration and the Taiwanese American community are much appreciated.”

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 NSC. 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 Donald L. 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, the NSC Asian analyst. “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 July 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 Marc Lacey in Washington and Rich Connell and William C. Rempel in Los Angeles contributed to this story.