MONDAY JANUARY 21 2002

Row over US bugs in Chinese plane

FROM ROLAND WATSON IN WASHINGTON AND OLIVER AUGUST IN BEIJING

US DIPLOMATS were preparing for a significant diplomatic spat with Beijing yesterday after the discovery of more than 25 listening devices on the new American-built aircraft of the Chinese President.
The bugs were found throughout Jiang Zemin’s customised aircraft, including in the headboard of the presidential bedroom and his bathroom. The Boeing 767 was built at the aircraft company’s Seattle plant before undergoing a luxury refit to Beijing’s specifications in San Antonio, Texas. Both stages were monitored by Chinese officials.

Chinese officials have announced an unscheduled press conference for this morning at which Beijing may detail its accusations. US officials were waiting to see if Beijing would exploit the incident domestically by encouraging nationalist sentiment, or would play down its significance for the sake of maintaining good relations with Washington.

Chinese officials have accused the US intelligence services, creating an atmosphere of Sino-US tension not seen since last year when an American spy plane was forced to land in China and its crew was detained for 11 days.

The listening devices were described as being extremely advanced, needing to be triggered by a satellite communication. They were found shortly before the aircraft’s maiden flight last October, and the aircraft has since lain on tarmac at a military airfield.

The White House, State Department and CIA all refused to comment on the issue. Donald Rumsfeld, the US Defence Secretary, used an appearance on NBC’s Meet the Press to try to play down the significance. Mr Rumsfeld said that he had “no knowledge” of the incident, but said that he doubted that it would affect relations between the two countries. “We are two big countries. We have lots of interests in common, and I suspect life goes on.” Senator Carl Levin, a senior Democrat on the Select Committee on Intelligence, said, however, that such a venture was “foolish”.

The revelation threatens to overshadow President Bush’s long-awaited state visit to China next month, although Beijing will be reluctant to undermine a trip that could set the tone for Sino-US relations for years to come.

Some officials in Washington took heart from the fact that China had not made an immediate issue of the discovery in October.

More than 20 Chinese Air Force officers and government officials have been arrested amid allegations of corruption. US companies involved in the aircraft’s refit, which equipped it with beige leather chairs that convert into beds, a large presidential suite, satellite communications and anti-missile defence systems, received $10 million (£7 million), yet $30 million was apparently spent on the project.

Mr Jiang was said to be furious at the discovery of the listening devices, which were found when the aircraft emitted a static whine during test flights in China in September.

There has been no confirmation as to who planted the devices, but analysts said that there was little doubt that US intelligence officers must have been involved in the bugging when the aircraft was customised by Boeing and one of its sub-contractors, Dee Howard Aircraft Maintenance, of Texas.

The impact of the discovery on US business could be catastrophic for Boeing and other parts of the US aerospace industry because China is one of the fastest-growing parts of the world aviation market.

European companies have repeatedly questioned whether US intelligence services pass on material gathered from European companies to their American competitors. If the CIA were to eavesdrop on Airbus corporate communications, information on sales negotiations and future design plans could be extremely valuable to Boeing.

The use of listening devices to spy on other governments has a dishonourable history. In 1985 the US halted construction of its new embassy building in Moscow after listening devices installed by Soviet construction workers were discovered throughout the building.In 1999 a Russian spy was discovered outside the State Department in Washington listening to a bugging device planted in a conference room.