Congressional Record: May 16, 2001 (House) Page H2253-H2255 NATIONAL SECURITY The SPEAKER pro tempore. Under a previous order of the House, the gentleman from Pennsylvania (Mr. Weldon) is recognized for 5 minutes. Mr. WELDON of Pennsylvania. Mr. Speaker, I rise today to share with my colleagues two items of concern relative to our national security. First of all, about this time last year, we heard a lot of ranting and raving in this Chamber and on national TV, allegations of massive fraud in our missile testing program. In fact, Mr. Speaker, 53 of our colleagues signed a letter to the FBI demanding an investigation of a fraud that was alleged by an MIT professor. The MIT professor said there was abuse, there was waste, that the Defense Department deliberately lied and so did TRW. We said let us get to the bottom because the investigation of this issue was done before. We have not heard anything from those 53 of our colleagues, Mr. Speaker, but a front page story in Bloomberg Press by Tony Capaccio cites the FBI in February throwing the whole thing out, saying it was nothing but a bunch of hogwash. Mr. Speaker, I include for the Record the Bloomberg news story, ``FBI Clears TRW of Fraud Charge in Missile Defense Test,'' and the actual FBI document. The Department of Defense has been completely exonerated. For those 53 colleagues and for Ted Postol, I think you owe the Department of Defense an apology. [[Page H2254]] [From Bloomberg.com: Top Financial News, May 2001] FBI Clears TRW Inc. of Fraud Charge in Missile Defense Test (By Tony Capaccio) Washington, May 4, (Bloomberg)--The Federal Bureau of Investigation cleared TRW Inc., of allegations it manipulated the test results in a program for the U.S. missile defense system, according to a government document. It's the second time the allegation has been dismissed. A 1999 review by the Justice and Defense departments in a separate whistleblower lawsuit dealing with the same charge also found no basis for fraud in TRW's testing. Last June, 53 members of the U.S. Congress asked the FBI to investigate charges by Massachusetts Institute of Technology professor Theodore Postol that TRW and Pentagon officials committed ``fraud and cover-up,'' by tampering with the results of program's first test flight to conceal that company's warhead can't distinguish between decoys and the real thing. Postol and another antimissile critic, Dr. Nira Schwartz, alleged that TRW and the Pentagon manipulated the results of a June 1997 flight test. Military and TRW officials said the company's warhead succeeded. Postol and Schwartz claimed the data was manipulated to indicate success after the test failed. The test was conducted in a competition between TRW and Raytheon Co., which TRW eventually lost. Their charges were aired in March and June 2000 front page New York Times articles that became the basis for the congressional request and fodder for arms control critics. The FBI closed the case in late February, saying Postol's charges were ``a scientific dispute and Postol's attempts to raise it to the level of criminal conduct had no basis in fact.'' The FBI's action removes a cloud over the missile defense program just as the Bush administration presses ahead with plans to expand it. A spokesman for TRW said the company hadn't been told of the finding and is ``delighted'' if it's true. Both Postol and Rep. Dennis Kucinich, an Ohio Democrat who organized the congressional opposition, said they too were unaware. trw's role TRW is a top subcontractor on the National Missile Defense program managed by Boeing Co. TRW provides the command and control system, or electronic brains, that receive and process target information to missile interceptors carrying Raytheon Co. hit-to-kill warheads. The TRW system has performed well in the three missile intercept tests to date, though two of them ended in failure after glitches in technology unrelated to the basic system. Postol argues the Pentagon's system is fundamentally flawed and is incapable of distinguishing decoys from real warheads. He alleged the Pentagon watered down its decoy testing, substituting simpler and fewer decoys that were easier for the warhead to recognize. The Pentagon has acknowledged shortcomings in its decoy testing and says it plans improvements. ``The program needs to ensure the ability of the system to deal with likely countermeasures,'' Pentagon program manager Army Gen. Willie Nance wrote in an April 12 review. `No Federal Violation' ``The investigation failed to disclose evidence that a federal violation has been committed,'' the FBI said in a February 26 memo to the Justice Department, ``Since all logical investigation has been completed, this matter is being closed.'' The allegation was first made by Schwartz in an April 1996 False Claims Act whistleblower suit. Schwartz was a senior staff engineer who worked on the project for 40 hours, according to TRW. The federal government declined to join her lawsuit after determining there was no evidence to support criminal charges. The case is pending. Schwartz would received a monetary award if TRW was found guilty. Schwartz alleged that TRW ``knowingly and falsely certified'' as effective discrimination technology that was ``incapable of performing its intended purpose.'' ``Dr. Schwartz's allegations were scientific in nature and concerned false claims made by TRW regarding the data obtained from the first test flight,'' said the FBI memo. ``Postol expanded Schwartz's allegations to include criminal conduct. Investigation revealed that Postol's claim that data had been altered was unfounded.'' GAO Review Postol said in an interview he was surprised by the FBI's decision because he was under the impression that the Bureau would wait to wrap up its review until the General Accounting Office completed a separate non-criminal technical review of the charges. The GAO review, which was requested by two Democrats, Representative Ed Markey of Massachusetts and Howard Berman of California, won't be finished until later this year. I am amazed the FBI would have done this without checking with the GAO,'' Postol said. ``It looks to me that the FBI was simply not interested in doing anything except covering its back.'' Kucinich, who organized the June letter that prompted the FBI inquiry, said he hadn't heard of the FBI's conclusion. ``It is interesting that the day after the president announced plans to spend billions more dollars on a missile defense system, it's revealed that the FBI had terminated its fraud investigation of the missile defense program--despite plain proof this technology doesn't work and substantial evidence suggesting that the Ballistic Missile Defense Organization covered it up,'' he said in a statement. Kucinich was referring to President George W. Bush's May 1 speech outlining his plans for a missile defense shield that will likely include the ground-based system. TRW spokesman Darryl Fraser in a statement said ``if this report is accurate, we are delighted to hear that the FBI has vindicated TRW for the years of hard work.'' ____ [U.S. Department of Justice, Federal Bureau of Investigation, Feb. 26, 2001, Washington, DC] NATIONAL MISSILE DEFENSE SYSTEM FRAUD AGAINST THE GOVERNMENT-- DEPARTMENT OF DEFENSE In a June 15, 2000, letter to Director Freeh, Dennis J. Kucinich, U.S. House of Representatives, and 52 other members of Congress requested an FBI investigation into allegations that the Department of Defense (DOD) covered up fraud relevant to the experimental failure of testing involving the National Missile Defense System. This anti-missile defense system is designed to defeat nuclear warheads launched at the United States by inexperienced nuclear powers such as Iran, Iraq and North Korea by intercepting the warhead carrying missiles in the air. Specifically the Congressional letter detailed allegations by anti-missile critic Dr. Theodore Postol, a respected scientist from the Massachusetts Institute of Technology, that not only is the S50 billion National Missile Defense System incapable of distinguishing between warheads of incoming missiles and decoys, but the DOD and its contractors have altered data to hide the failure. Dr. Postol also contended that his letter to the White House, its attachments, and all the information and data he used to draw his conclusions of fraud and coverup, were derived from unclassified material and were subsequently classified by the DOD in an effort to conceal the fraud and wrongdoing. The Washington Field Office (WFO) of the FBI opened a preliminary inquiry into allegations of fraud in the National Missile Defense System to specifically address the following items: (1) coordinate with Defense Criminal Investigative Service (DCIS) and obtain copies of material alleging fraud and coverup prepared by Dr. Postol; (2) address DOD's justification for classifying Dr. Postol's information and; (3) obtain details of a DCIS Qui Tam inquiry that precipitated Dr. Postol's criticism of the National Missile Defense System. WFO opened up a preliminary inquiry into allegations of fraud in the National Missile Defense System on July 25, 2000. Contact was made with the DCIS who agreed to work jointly with the FBI in conducting the preliminary inquiry. WFO obtained a copy of Dr. Theodore Postol's letter to the White House from Philip Coyle, Director, Operational Test and Evaluation, at the Pentagon. Postol had sent Coyle a copy of his letter to the White House. The Director of Security for the Ballistic Missile Defense Organization (BMDO) requested a line by line review of Postol's package when it was suggested that classified material may be attached to Postol's letter. This line by line review revealed that four pages of Attachment B to Postol's letter contained previously classified data, and Attachment D contained 12 previously classified figures and one classified table. All this material had been previously classified and was not newly classified. Postol had obtained this information from other individuals involved in a Qui Tam law suit against TRW. Those involved in the Qui Tam suit believed that the information they had was unclassified. A good faith effort had been made by a DCIS investigator to declassify a report that had been previously classified. In the process, certain classified information was inadvertently left in the report. Postol used this information believing it to be unclassified. Postol's information was based on data he received from Dr. Nira Schwartz, a scientist and former employee of TRW, a defense contractor involved with BMDO. Schwartz had filed a Qui Tam action in the Western District of California alleging wrongful termination and false claims on the part of TRW. Dr. Schwartz's allegations were scientific in nature and concerned false claims made by TRW regarding the data obtained from the first test flight, IFT-1A. Postol expanded Schwartz's allegations to include criminal conduct. Investigation revealed that Postol's claim that data had been altered was unfounded. As to Postol's claim that the system is incapable of distinguishing between warheads and decoys, there is a dispute among scientists about the ability of the system to discriminate based on scientific grounds. This is a scientific dispute and Postol's attempt to raise it to the level of criminal conduct had no basis in fact. A Department of Justice civil attorney and an Assistant United States Attorney in the Central District of California, both advised that during the Qui Tam investigation, there was no indication of fraud or criminal activity. The joint FBI/DCIS investigation failed to disclose evidence that a federal violation has [[Page H2255]] been committed. Since all logical investigation has been completed, this matter is being closed. Mr. Speaker, I also want to point my colleagues to a story that ran just the last few days where we now have seen that Danny Stillman has evidence and material he collected that shows that the Chinese were aggressively trying to acquire supercomputers so that they could miniaturize their nuclear weapons. Up until 1996, China had no supercomputers. That was the year President Clinton lowered the standard and within 2 years China acquired 700 supercomputers. The information Danny Stillman allegedly has gives us the details as to how China uses the supercomputers we gave them to build miniature weapons, nuclear weapons to be used against us and our allies. Right now, the Department of Defense and Department of Energy are refusing to allow Danny Stillman's notes to be made public. I am today writing Secretary Rumsfeld and the administration to demand that these questions be answered. As a member of the Cox Committee that looked at this issue in depth, we need to know for sure what impact the President's decision in 1996 had to allow China to develop miniature nuclear weapons which they could use against America today. Mr. Speaker, I include for the Record the letter to Secretary Rumsfeld. May 3, 2001. Donald H. Rumsfeld, Secretary of Defense, Defense Pentagon, Washington, DC. Dear Secretary Rumsfeld: I am writing with regard to today's article in the Washington Post entitled, ``U.S. Blocks Memoir of Scientist Who Gathered Trove of Information.'' As a member of the Select Committee on U.S. National Security and Military/Commercial Concerns with the People's Republic of China, I am alarmed and concerned that the Committee was never informed about Danny B. Stillman or provided with the materials he collected over the years. The article states: Stillman said Chinese physicists told him that they had begun research on miniaturization during the 1970s, but could not complete it because they lacked the computing power to carry out massive calculations. When the Chinese physicists got access to supercomputers, they pulled out their old research, ran the numbers and designed the new devices. These supercomputers not only benefited the Chinese advanced conventional weapons programs but also their weapons of mass destruction programs. Now these weapons are targeted at the United States and our friends and allies in the region. Please answer the following questions: 1. Where did the Chinese get the supercomputers? 2. What other weapons systems did they use the supercomputers on? 3. Were export control officers made aware of the importance of supercomputers to the Chinese weapons programs? 4. When did the previous Administration learn of this? 5. Why was Congress not informed? The article also states: In all, Stillman said he collected the names of more than 2,000 Chinese scientists working at nuclear weapons facilities, recorded detailed histories of the Chinese program from top scientists, inspected nuclear weapons labs and bomb testing sites, interviewed Chinese weapons designers, photographed nuclear facilities--and then, each time he returned home, passed the information along to U.S. intelligence debriefers. Please provide to me Stillman's trip reports, notes, photographs, videos, the list of Chinese scientists and a draft of his book. Along with a list of all DOE employees who have visited Chinese nuclear weapons facilities. Sincerely. ____________________