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.

                          ____________________