O.  Some frequently quoted Chinese spy stories

Source:

    "Kang Sheng et les Services Secrets Chinois" 

       by Roger Faligot and Remi Kauffer

    "The Chinese Secret Service" (TCSS)  

       --- English version by Christine Donougher.

    This is a rather famous book, and after reading it,
I find it worth the fame.  Anyway it is one of the major reference
book by Mr. Eftimiades.  This book is of a different style, while Mr.
Eftimiades' book appears to be professional and impersonal, this book is
based on very personal stories and do not make statistics claims.

    Most of the stories are French experience as expected.  Most of
it is about Kang Sheng, only the last three chapters deals with the
so called "Deng Xiaoping era".

1.  Some history about the US export to China: (page 425 TCSS)

    China was classified as category "Y" for export after 1949, which 
is the same as the Soviet bloc, meaning that "transatlantic industrialists"
could not export to China.  After the Korean war, China was put to
category "Z", which means total embargo.  After 1972 Nixon's visit,
China was put back to "Y" again.  In 1980, Carter administration created
a special category "P" for China, which applies less control on 
technology transfers, including certain equipment with potential
military use.  In 1983, Reagan administration put China into category "V",
which is the category for western powers and countries friendly to the
US.  This, of course, does not mean that China can get everything.

2.  The story about the Chinese tie dipping delegation is indeed in
    this book. (also page 425 of TCSS)

    "This kind of spying may be relatively low-level but it is none 
the less harmful.  In the 1970's [Note the date --DX] French Military
Security investigators laughed when they discovered how the Chinese 
visitors took a close interest in the photographic processes of the 
German firm AGFA: delegates wearing very fine ties would dip them
nonchalantly into the developing bath.  Naturally, these ties were as
special as their owners, who cut the ends off them as soon as the
visit was over and them dispatched them to Beijing for analysis".

    I might add that they may have learned the trick from the
Japanese (finding the source will be interesting) but it seems to
be a fact.  However it has nothing to do with the CBS libel, just
a side note.

3.  Other examples that Eftimiades used from this book:

a)  Lin Kuang Shin and Da Chuan Zheng case (exporting radar components).
    They worked for the PLA to acquire US communications equipment,
    after the Falkland war rang a bell on PLA high ranking officials.
    They really had a network of businessmen that "virtually covered 
    the whole country" as Andrew K. Ruotolo Jr., the Fed Attorney who
    dealt with the case, was quoted. (page 426)

b)  Bernard Boursicot and Shi Peipu case (Ms. Butterfly) in France.
    (page 432)

c)  Yu Zhenshan (who allegedly related to both Chairman Mao and President
    Chiang Kai-Shek) and Larry W.T. Chin case. (page 443-452).

***

    While these stories are true, they by no means whatsoever confirm
what the CBS alleges.  These are isolated incidents, and as normal
as any other "western powers" or "countries friendly to the US" who
still keep an eye on the US secret technology developments.