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Chinese Woman Denies U.S. Donation

May 19, 1998

BEIJING (AP) _ The daughter of a man who was once China’s most powerful military officer has denied making contributions to political campaigns in the United States, an official said today.

Democratic Party fund-raiser Johnny Chung has told U.S. Justice Department investigators that $100,000 he gave to the party came from the Chinese army and was funneled to him by Chinese aerospace executive Liu Chaoying.

Liu is the daughter of retired Gen. Liu Huaqing, who was the military’s top representative on the ruling Communist Party Politburo. She also is the deputy president of a Hong Kong-listed company controlled by China Aerospace Corp., a Chinese state-owned firm.

A China Aerospace spokeswoman said Liu denied having made any political donations. But she said she was not clear about the relationship between Liu and Chung.

``Liu Chaoying has said clearly herself that this never happened, that it is purely rumors,″ said the spokeswoman, Zhang Lihui. ``No one in China Aerospace has any need to make political donations to America.″

The Christian Science Monitor today quoted Zhang as acknowledging in a separate interview that Liu did give money to Chung.

The donation ``was done by Liu Chaoying acting as an individual,″ the newspaper quoted Zhang as saying. ``She used her own financing rather than China Aerospace funds.″

But in a telephone interview with The Associated Press in Beijing, the spokeswoman denied the remarks attributed to her.

``I never said that Liu Chaoying gave this money,″ she said.

China Aerospace, in a separate report today by the official Xinhua News Agency, said internal investigations found that no company employees had been involved in political fund-raising.

The Foreign Ministry said China has never used money to influence U.S. politics and expressed indignation at the allegations of Chinese involvement in campaign fund raising.

``There are some people in the U.S. who are not willing to see the improvement in U.S.-China relations,″ ministry spokesman Zhu Bangzao said at a regular twice-weekly briefing.

``They went so far as to resort to rumors and lies,″ Zhu said. ``But their political plot will never get anywhere.″

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