- The Washington Times - Monday, September 11, 2000

Bernard Schwartz has become as reliable a donor to the Democratic Party as his company, Loral Space & Communications Ltd., has been in giving sensitive missile technology to the Chinese military-industrial complex. For four years, a grand jury has been investigating the company in connection with information the company sent to the Chinese without obtaining State Department approval. The Democratic Party and Democratic presidential nominee Al Gore, however, continue to accept hundreds of thousands of dollars in political donations from Mr. Schwartz.
As Jerry Seper of The Washington Times reported last week, Mr. Schwartz has donated nearly $750,000 to the Democratic campaign since the beginning of last year. Between January 1999 and June 2000, the latest month for which records are available, Federal Election Commission data reveal that Mr. Schwartz's soft-money contributions totaled $245,000 to the Democratic National Committee, which has been financing issue ads attacking Mr. Gore's opponent, Republican presidential nominee George W. Bush.
Indeed, the flow of money from Mr. Schwartz's bank account into Democratic coffers has not abated even after the the Cox committee issued its unanimous, bipartisan report in May 1999. That panel concluded that Loral had "transferred missile design information and know-how to [China] without obtaining the legally required licenses" and had "violated export laws."
The Cox committee also concluded that President Clinton's March 1996 decision to switch authority over satellite-export licensing from the State Department to the Commerce Department a decision that reversed a policy endorsed by the State Department, the Pentagon, the National Security Agency and other U.S. intelligence agencies had "permitted the loss" of military-related technology to China. Interestingly, during the six months Mr. Clinton was considering whether to reverse the satellite-export licensing policy, Mr. Schwartz contributed more than $150,000 to the Democratic Party.
In July 1998, Charles LaBella, the Justice Department campaign-finance task force chief handpicked by Attorney General Janet Reno, strongly recommended the appointment of an independent counsel to investigate whether a quid-pro-quo agreement existed between President Clinton and Mr. Schwartz. "Hypothetically," he told a Senate subcommittee in May, "if you're going to investigate the person who gave the contribution because you think something was wrong with that because they were seeking a quid pro quo then it seems to me that part of the area of investigation would be the person who received the contribution" i.e., President Clinton.
Regrettably, Miss Reno rejected the independent counsel recommendations from both Mr. LaBella and FBI Director Louis Freeh, both of whom, it's worth noting, also strongly recommended an independent counsel to investigate Mr. Gore, who now has become the principal beneficiary of Mr. Schwartz's latest largesse. Should Mr. Gore be elected president, expect this administration's whitewash of Loral, and and the company's golden handshake with Mr. Gore, to continue.

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