Week of December 1, 2000

The U.S. and China This Week


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INTERNATIONAL: Canada Holds Chinese Smuggling Kingpin

SUMMARY: Canadian police arrested Lai Changxing and his wife last Tuesday on an immigration warrant. Lai is considered to be the man
behind Chinaís biggest ever corruption scandal, involving hundreds of government officials and billions of dollars in lost tax revenue.

Though China and Canada do not have a formal extradition treaty, China is undergoing talks with Canada in order to secure the extradition
of Lai.  Officials in China have remained silent over whether or not they have encountered difficulties in their request to obtain Lai, especially
since Lai would face an almost certain death penalty if he is sent back.

During a four year operation run by Laiís YuanHua Group, goods including cars, oil, and cigarettes were smuggled through the port of
Xiamen in Chinaís Fujian province, totaling some $6.6 billion dollars.

Following a 15-month investigation and arrests, a total of 14 senior government officials and YuanHua Group employees were sentenced to
death for their involvement in the scam.  Another 70 people were sent to jail, receiving sentences between three years to life.

Lai fled to Hong Kong, then to Canada, in August 1999 after a senior police officer tipped him off about the impending arrests.
 


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INTERNATIONAL: Japanese Company to Pay Wartime Compensation

SUMMARY: The Japanese construction company Kajima Corp. following recommendations from a Tokyo court, agreed to settle its wartime past by
paying 500 million yen (4.6 million dollars) to nearly 1,000 Chinese forced into labor in its northern Japanese Hanoaka copper mine.

The out-of-court settlement ended a five-year battle and also marked the first pay-out to forced Chinese laborers from a Japanese company. The
settlement particularly relates to the treatment of 986 Chinese prisoners who were forced to work in miserable and dangerous conditions.

Though the compensation, which is about 4,600 dollars for each victim, was a step forward in Japanís recognition of its past, some Chinese are disturbed
that the Kaijima company has stated it does not owe any legal responsibility.

In June 1995, the Hanaoka plaintiffs became the first Chinese war victims to file a lawsuit in Japan. The outcome is generally regarded as groundbreaking
due to Japanese companies?previous outright refusal to demonstrate remorse for wartime behavior.
 


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INTERNATIONAL: China Pressures Chen to Accept One-China Policy

SUMMARY: China has again demanded that Taiwanís president Chen Shuibian commit to the unification between the two sides by endorsing an
eight-year old agreement that facilitated earlier talks.

Beijing also strongly rejected Chenís comments about involving the U.S. to help restore cross-strait dialogue. ďThe Chinese people are entirely capable of
handling this issue on their own. There is no need for other countries to participate or interfere in this question,?said Foreign ministry spokeswoman
Zhang Qiyue.

Chen, from the Democratic Progressive Party, has been facing possible impeachment from a KMT controlled Legislature, due his handling of the
economy and the China Policy.  Moreover, Beijing has been focusing its attention on KMT officials it an attempt to place more pressure on Chen and
shrink his maneuverability in dealing with the One China Policy issue.
 


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The U.S. and China This Week
The U.S. and China This Week

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