D.卡尔顿 罗西
D. Carlton Rossi

National Security



                             

           USS BUCK ammo transfer to HMCS HAIDA off Korean Peninsula



                                                   A New Paradigm

It was the longest naval blockade in modern history; although, it was also regarded as a siege. The Blockade of Wonsan lasted 821 days from February 16, 1951 to July 27, 1953. The blockade successfully denied the North Korean navy--which consisted of several small warships--access to its port on the south-east coast. Truman had initially called for a full, naval blockade of North Korea after the Korean People's Army crossed the 38th parallel. He was shocked to learn that " the U.S. Navy no longer had the warships with which to carry out his request." Furthermore, he was aware that the Soviet Union had about 85 submarines in the vicinity of the peninsula. Today, the United States is considering--as one of its options--a naval blockade of North Korea. Presumably, it would be intended to fully cut-off North Korea's access to the sea thus putting pressure on the Hermit Kingdom to dismantle its nuclear program. There is no question that the United States has the ability to undertake an extended naval blockade of North Korea; although, it will weaken its ability to respond elsewhere. However, it would be a strategic error to conduct a blockade without the support of China which may regard a blockade of its long-standing ally as an act of war.

The reader may justifiably point out the inconsistency of the argument by asking a question.Why would China participate in the blockade of its ally if it theoretically regarded a U.S. blockade as an act of war? The immediate answer to that question is that it might prevent an unimaginable nuclear confrontation on the Korean peninsula ending with the total annihilation of its ally and the beginning of WWIII.

To some extent the Korean situation reminds one of NATO's problem during the height of the Cold War with the Soviet Union. The Soviets had an overwhelming superiority in terms of the number of tanks at its disposal. It was apparent that the only way to stop those tanks in the event of an invasion was with tactical nuclear weapons. However, this might result in a nuclear retaliation by the Soviets.

On the Korean Peninsula the problem is not North Korean tanks. The problem is North Korean artillery perhaps coupled with chemical and biological agents. This artillery can pound Seoul causing massive casualites. The most effective, initial way to deal with this artillery might be a string of MOAB (mother of all bombs). This type of bomb was recently tested in Afganistan and proved its reputation.

However, if MOAB failed as well as jets attacking the artillery from behind their covering hills and other missile strikes then it appears the last resort would be a string of atomic bombs down the artillery line. One might have initially resisted using them because of the fallout danger to Seoul and the unwillingness to escalate to a nuclear solution. In the longer run, it would create a highly toxic, radioactive zone which, in effect, would be another kind of DMZ.

It hasn't been quantified, but a nuclear war would certainly not involve just a single bomb. It would probably consist of multiple bombs raining down on North Korea. It is anyone's guess as to how many bombs would be dropped on Pyongyang. Missile sites would also be prime targets. Half a dozen nuclear refinement sites could not be ignored to prevent the material falling into the wrong hands. Chemical facilities are targets. Airfields are a priority, too. The list goes on and on.

Anyone in his or her right mind might dismiss the preceding scenario as hysterically fantastical except for the fact that it was contemplated in an eerily similar way more than 65 years ago at the beginning of the Korean War. It must be remembered in what was known as "The Forgotten War" that while hostilities began on June 25, 1950 that it was shortly thereafter in July that President Truman sent two groups of B-29 bombers which carried atomic bombs to the U.K. and Guam."They were complete except for their fissile plutonium cores which remained in the United States". On December 06, 1950, the headquarters of the U.S. military in Tokyo considered three nuclear options. These scenarios were basically designed to contain communism of both Russia and China and to secure the safety of Japan.


                           

General MacArthur was the main proponent of the use of atomic weapons  He called for the use of between 30 and 50 atomic weapons which would have represented approximately 10% of the U.S. stockpile. He wished to drop them on the neck of Manchuria as a means to begin a war with China. In addition, he asked the Pentagon to "grant him a field commander's discretion to employ nuclear weapons as necessary".

This last request was the final act of his insubordination which led to the firing of MacArthur by Truman. In other words, MacArthur had challenged Truman's authority and extent of power. However, keep in mind that Truman himself had not sought congressional approval for the war and its status remained as a "police action".

It is ironic today that the situation seems reversed with those who hope General James Mattis (Secretary of Defence) and General John F. Kelly (White House Chief of Staff) who were coincidentally both born in 1950 will provide some kind of check on the President's ability to wage nuclear war against North Korea. It is unclear if there is a willingness of Congress to constrain President Trump's ability to launch a nuclear war on instinct or even if constraint is desirable considering the potential dire threat posed by the North Korean regime. Would it be out of line to use 10% of the nuclear stockpile of the United States against an enemy which has nuclear weapons and threatened to use them against U.S. territory?



                                



In order to answer the question of how many nuclear bombs might be dropped on North Korea one might point to the capability of one Ohio class Trident II submarine. It can carry 24 ballistic missiles with nuclear warheads. A complete salvo can be fired in less than a minute. Each Trident II can split into eight independent re-entry vehicles to attack 24 targets. The U.S. has fourteen of these submarines. They are just one part of a large and extensive nuclear arsenal.

The problem on the Korean Peninsula has been regarded as north-south oriented. The DPRK is more familiarly known as North Korea while the ROK is called South Korea.The Korean Peninsula was administered under the trusteeship of the Soviet Union in the north occupation zone and the United States in the south occupation zone after the Japanese surrendered South Korea. There was a brief but ill-fated attempt by the military governor to appoint the Japanese as temporary colonial administrators.The north-south zones were separated by the 38th parallel. Soviet forces withdrew in 1948 while American forces withdrew in 1949.



                       


The Korean War began when Kim Il-sung led the Korean People's Army in a southerly direction across the demarcation line. They were assisted by both Soviet and Chinese forces. They were opposed by South Korean, U.S., Commonwealth and UN forces. An amphibious force led by MacArthur undertook an attack at Incheon and cut-off North Korean troops. The Allied forces then proceeded across the 38th parallel into North Korea up to the Yalu River on the southern border of China. At this point, massive numbers of Chinese troops pushed the Allied troops south over the 38th parallel. Seoul changed hands four times.

While all of these movements tend to reinforce the view of a north-south orientation over the Korean Peninsula it seems that the regional orientation is perceived to be west-east. For example, the capital city of North Korea is roughly on the 39th parallel. If one proceeds westward across Korea Bay one meets the city of Dalian on its peninsula. Further west one crosses the Yellow Sea, the Bohai Sea and then one comes to Tianjin on the mainland coast of China. A rather short distance from the port of Tianjin is the capital of Beijing.

To the east of North Korea is the Sea of Japan also known as the East Sea. It only takes a few minutes for a North Korean missile fired from the east coast of the country to reach Japan. Two missiles have flown recently over Japan while several have fallen into the Sea of Japan. North Korea has threatened to send an ICBM armed with a nuclear weapon over Japan and explode it over the Pacific Ocean in order to demonstrate its capability of striking the United States. It is clear that China's North Korean ally is terrifying one of China's largest trading partners or Japan and threatens its largest trading partner or the United States. While China has historically been North Korea's largest trading partner; yet, it falls way down the list of China's trading partners.

It is ironic that an important criterion for determining exactly when the United States would launch a nuclear attack on North Korea is which way the wind blows. The prevailing winds are southeasterly in summer and northwesterly in winter (ie. come from the north-west). If everything else is equal the United States would choose to launch in summer. In that event, northeast China would unfortunately be covered in fallout. However, the head of the CIA says that Korea is now on the cusp of war. Winter is coming.

During the winter months the winds come from the north-west and are quite strong. This means that South Korea would be the recipient of fallout. If the winds were westerly then Japan would receive fallout. If one merely considers self-interest then the United States would choose to launch if winds blew in other directions. This is another reason for China to join a blockade to prevent a nuclear war on the Peninsula.

However, more study needs to be done on the wind issue. Conceivably, hundreds of nuclear bombs could target sites in North Korea at different locations. How will this affect the wind patterns?


                


The west-east orientation in East Asia which seems to center on the Korean Peninsula was reinforced with Japan's invasion of China and Korea. The surrender of Japan to the United States did not take place though until two nuclear bombs were dropped on the country. However, the restoration of Japan was not undertaken for its own sake, but rather as a check to Chinese communism and revolution. In the same way, west Germany was restored to check Soviet Bolshevism and expansion in another west-east regional orientation.

If the United States with or without its allies were to undertake a full blockade of North Korea which might be termed "hard sanctions" then it would be bound to fail because there has been no indication so far that sanctions have done anything but strengthen the resolve of the North Korean regime to pursue its nuclear program. Secondly, the DPRK may need less than a year to develop these programs so that it is capable of launching an ICBM at the U.S. mainland.

This type of naval blockade also is restricted to a north-south orientation. It may be appropriate for the Peninsula, but it does not take into account the regional west-east orientation. For example, the DPRK has launched a missile eastward over Japan. It also does not deal with the PRC's reaction to the proximity of U.S. ships in the Korean Strait and in the Yellow Sea with regard to its territory. Finally, it means that if there were an easterly wind then fallout would cover Beijing.

The options open to the PRC are various. For example, the Chinese might try to run the blockade. However, the most obvious recourse is one of enclosure. You may wish to recall the strategic game called "wu ji" which involves enclosure. For example, a line of mines placed behind the naval blockade might enclose the blocker.

However, a joint, naval blockade undertaken by the Chinese and Americans might be capable of success. This kind of blockade would satisfy the demands of the west-east regional orientation. The Chinese navy would lay off the west coast of North Korea while the American navy would be situated off the east coast of North Korea. They would both operate independently and yet in concert simultaneously. These forces are balanced harmoniously at "arm's length". The primary goal is to prevent nuclear war. The secondary goal is to force the dismantling of North Korea's nuclear programs. The tertiary goal is "hard sanctions".

It is uncertain how Russia would react to a joint Chinese-American naval blockade since it continues to supply North Korea from its northeast region. It is most probable that Russia would try to advance its own west-east regional interest. This would centre around the Ukraine and strategic Black Sea area during a Korean conflict.

On the other hand, if there were a Chinese naval blockade on the west coast of North Korea along with a blockade on the east coast by the U.S. navy then it would be an entirely new development that might convince North Korea to dismantle its nuclear program. The balance of power would shift overnight. The Chinese presence along the coast could be interpreted in two ways; namely, to assist its ally or to enforce sanctions. Ultimately, though, it would help its ally denuclearize and prevent a nuclear peninsula and Far-East. A joint blockade may be the last chance to avert nuclear Armageddon.

If China is left out of the equation as far as a blockade goes then it may concentrate its efforts on Taiwan. If the reader recalls there was an operation launched against an island of Taiwan prior to the Korean War. It was called the Battle of Kinmen (金門戰役; Jīnmén Zhànyì). The battle was fought over Kinmen in the Taiwan Strait during the Chinese Civil War in 1949. Furthermore, according to CIA records, there was a possible invasion of Taiwan planned by the Chinese in the month of October 1950. However, when the U.S. and its allies crossed the 38th parallel though the Chinese priority changed to pushing back those who were perceived to be aggressors.

If a North Korean missile launch were to be judged as an act of war on U.S. or allied territory; or if the U.S. were to launch a pre-emptive or preventive nuclear attack on North Korea; or if the North Korean threat were no longer guaged to be existential but rather imminently substantial then casualties would be horrendous on both sides. The reaction and responses of Russia and China could be anticipated to a certain extent as they would not lie idle in their respective regions with China at least concentrating on Taiwan and Russia focused on the Ukraine. The outcome would potentially become a cataclysmic catastrophe. Simply stated, WWIII could be triggered.


D.卡尔顿 罗西
D. Carlton Rossi

2017年29月10日


Other variations, implications, and complications of a joint blockade will be discussed later in more detail through a question and answer format in Part B.




The One U.S. Submarine That Could Completely Destroy North Korea

April 27, 2017

https://en.wikipedia.org/wiki/Korean_War



http://nationalinterest.org/blog/the-buzz/the-one-us-submarine-could-completely-destroy-north-korea-20377


https://www.strategic-culture.org/news/2017/09/09/atomic-bomb-and-first-korean-war.html






                              


                                How the East was Won

The reader may recall that in 2003, at a time between the arrest of Sun and his trial, the author set up fifty websites on Webspawner. They were set-up so that if one were compromised then the others would survive. SUN Dawu could not speak for himself as he was held incommunicado and his website shut down; however, many others--including the author--came to his defence. The author tried to hire the leading, international, human rights lawyer from New York to plead Sun's case. The author's audience at that time were Chinese. Sun was portrayed by the author as he saw him; namely, a Confucian entrepreneur of integrity. Images of Sun, as well as his name, were censored by Chinese authorities so the author provided them on his sites. In retrospect, it is clear that Sun was among the leaders of the civil rights movement in China which began in 2003.

Over the years though the author cultivated a western audience by concentrating on Dawu Group's Private Family Enterprise System established in 2004 with its elections every two years, the model village to become a city established at the Xushui County, Hebei location and the prosperity of an enterprise oriented to people rather than profits. There have been subsequently other private family enterprise systems set-up in China, but Dawu Group's was the first. In 2015 and 2016, for example, Sun attended two conferences held in Beijing which attracted both Chinese and international interest. It is clear that the Dawu Group's system is oriented to the peasant base as well as the peasant migrating workers; although, other systems may have different orientations.

Generally speaking, though, Canadian governments have ignored peasant issues in China, the efficacy and efficiency of Chinese entrepreneurship and the model of rule of law and constitutionalism as established by the Dawu Group in 2004 which has resulted in six democratic elections. In theory, there is an understanding of how private enterprise creates jobs--perhaps 80% of new jobs in China, but in practice there is a continuing reliance on top down models that begin with the Canada-China Business Council (CCBC) and elitist Canadian executives of major corporations. The result is that private entrepreurship in Canada is struggling to survive.

There has been only lip service paid by the Canadian government and unwarranted comments made by the CCBC in the dire cases of John Chang and his wife who are Canadian entrepreneurs arrested for an alleged commercial violation and then charged criminally when they professed their innocence rather than confess. The former conservative Prime Minister Brian Mulroney and the current Liberal government made the case of the billionaire and CCP member Xiao Jianhua a priority since they wish to diversify and intensify trade with China as a supplement to free-trade under NAFTA. However, they marginalized the case of John Chang through indifference. The author whole-heartedly supports the Chang family because it reminds him of the case of SUN Dawu which involved private, family entrepreneurs involved in farming who produced a first-class product, but who were oppressed by a corrupt system.

It was apparent in China that as power was concentrated in the body of one Party and the hands of one, core leader that opposition was not tolerated. The purge may have begun earlier with the Falun Gong, but it now extends to any source of opposition which included religious minorities, press, constitutionalists, lawyers, peasants and civil rights activists among others. The reality of modern China is that lawyers and the military must pledge sole allegiance to the Party. Imagine this situation happening in a Canada where lawyers do not pledge to uphold the constitution and rule of law and the military does not pledge to defend Canada, but both groups pledge to be loyal to a particular Party.

Currently, the concerns of the author centre on Canada and how a Chinese totalitarian system may impact our country. The Chinese government says to us that western support of human rights in China involves interference. It pledges that if we do not press this issue then it will not interfere in our internal affairs. However, keep in mind that Chinese interference in Canadian affairs is rarely direct but rather indirect and less obvious. For example, the Chinese Ambassador to Canada says to Canadians not to politicize the case of John Chang who is a Canadian citizen--since it is an internal matter. The author respectfully replies that that depends on the definition of politicization. To the author the morphing of a civil case falling under GATT commercial rules at the time of "exploratory" China-Canada free-trade talks to a criminal case of smuggling which may result in a life sentence is a classic example of politicization.

In terms of the political situation in Canada with regard to foreign policy the author is disenchanted. Both the Conservative and Liberal Parties supported BO Xilai and his Mafia henchman until they were arrested. The repercussions are still being felt in Chongqing with the dismissal of SUN Zhengcai who was recently the Communist Party secretary of Chongqing and is under investigation over suspected “grave violations of discipline". "Sun also came under political pressure this year after party inspectors accused him and other Chongqing officials of not doing enough to root out the “toxic residue” of Mr. Bo’s influence".

The strongest opposition to FIPA or the Foreign Investment Protection Agreement came from the NDP and the Green Party. However, FIPA was passed by the Conservative government of Harper with virtually no debate. The Liberal Party has used FIPA as the basis to conduct "exploratory" free-trade talks with the Chinese. The author does not understand how the current Liberal leader of a so-called liberal party is cozing up to a communist dictator of the CCP, state-owned monopolies of China and billionaries affiliated with the Party or sympathetic to the Party. The leader of the Liberal Party seems enamoured if that is the correct term with the Core Leader of China and with regard to the prospects of China-Canada free-trade which is progressing with a full speed ahead and damn the torpedoes approach.

Recently, the Conservative Party led by Scheer has adopted an opposition to free-trade platform based principally on security issues. They have also co-opted environmentalist issues of the Green Party and labour concerns of the NDP. The Chinese authorities reacted strongly to the Conservative platform, though, this shouldn't be inferred as an example of politicized interference or should it? However, in the Conservative platform there is no mention of the FIPA agreement as if they wish to satisfy Harper conservatives on the matter. However, FIPA is the root of the issue and needs to be readdressed. The Conservative Party cannot truly distinguish itself from the Liberal Party unless they disavow the China-Canada FIPA and distance themselves from Mulroney.

With respect to the Liberal government's foreign policy with regard to the United States it seems to be that they can't relate to a President who makes decisions on whim and who flouts rule of law and apparently flaunts obstruction of justice. Therefore, they try to connect with those who might influence the President. Perhaps few of them recognized that President Trump may be the first president who became a lame duck on the day of inauguration because he lost credibility and trust when he presented an alternate version of real rain at the time of his speech and the number of people in attendance.

The Liberal government instead prefers to deal with a dictatorial leader of China because he can get things done without opposition. They called on the pre-Harper, conservative, former Prime Minister Mulroney to help introduce them to influential Republicans in the United States. However, he is also used or is it vice-versa to advance the free-trade agenda with China?

Free-trade with China is not conducted to supplant trade with the United States, but rather to supplement it. For example, if Canada has had trouble with American special interest groups that want to protect their softwood lumber industry then turn to China which will solve this problem. Forget about how China promotes and protects its cement industry and steel industry rather than wood. Forget about how the company Sino-Forest which was dubbed "See No Forest" swindled Canadian investors on a mammoth scale. If you continue to pursue free-trade with China then you will see neither Canadian forest nor jobs.

The Liberal government has come to the conclusion that it is not productive to side with a low-level Communist. It must support the highest level Communist. Incidentally, that leader makes decisions on whim, flouts rule of law and launches an anti-corruption program which never seems to end or run out of prosecuting corruption cases--especially of political opponents.

At any rate, the author now concentrates on how Canada and Canadians may be affected deleteriously in three ways; namely, by FIPA, China-Canada Free-Trade and a potential extradition treaty. FIPA has taken away our sovereignty. China-Canada Free-Trade will take away our souls which to the materialist Chinese government do not exist. Finally, an extradition treaty will undermine the Charter of Rights and Freedoms. Through a series of strategic acquisitions the Chinese government will weaken Canadian sovereignty and Canada's ability to guard itself. It has already impinged on and infringed upon Canadian sovereignty and protection in the fentanyl crisis, by the virtual dismantling of Northern Telecom and the hacking of the National Research Council to name just a few circumstances.

In conclusion, the author will briefly explain the title. Perhaps the reader thinks he has made an error and that it should read "How the West was Won" since we regard ourselves as of the West. You will recall that the eastern civilization moved west to the American frontier through literally a slash and burn policy of trees, overwhelming numbers, treaty violations, mining exploitation and war with Native Indians. Canadians preferred a more "benign" starvation and cultural assimilation to colonize indigenous peoples.

The Chinese Communist Party (CCP) was established on July 1, 1921 or nearly 100 years ago. As such it may be the longest lived, continuous political party. It won over China through rebellions, revolutions, a famine and wars. It holds on to power through authoritariansim and ruthless treatment of opposition. In words, it says it is socialist, but in deeds it is a system of crony capitalism according to Minxing PEI which misappropriates public property and expands state-owned companies while in addition exhibiting unchecked political power as said by Yan SUN.

While direction is relative one must consider that North America is east to the Chinese if one considers the positon of the Pacific Ocean. The CCP now moves East to the shores of North America. It will use a form of asymmetrical warfare so subtle that Canadians and Americans will not even know who their enemy is. You will smile during the process of assimilation without even realizing what is happening. You will be overwhelmed by a ruthlessly corrupt, authoritarian regime and welcome it. You will bask in sunshine while your land, resources and water are appropriated and your innocence is expropriated.



D.卡尔顿 罗西

2017年8月2日




Former Political Star in China Is Under Party Investigation

By CHRIS BUCKLEY

JULY 24, 2017


https://www.nytimes.com/2017/07/24/world/asia/china-xi-jinping-sun-zhengcai.html



"An overwhelming majority of Canadians oppose the sale of two domestic technology companies with military customers to Chinese investors and believe these takeovers should be a top priority for national security reviews...." Nearly four in five Canadians oppose the sale of Montreal's ITF. "ITF once participated in a university-level research project with a Canadian spy agency on the science behind making messages more resistant to hacking.which uses quantum cryptography to make advances in a field where experts try to produce coded messages that are difficult or impossible to crack."



                          


China sets new record for quantum entanglement
en route to build new communication network


China has scored a victory against hackers and spooks as it surges ahead of other world powers in a new kind of space race.

Nick Whigham

News.com.au

In a bid to build an entirely new kind of internet — completely secure and impervious to hackers — China has pulled off a major feat in particle physics.



It appears to the author that some of the technology used by the Chinese to develop hack proof communication technology using quantum entanglement may have been developed at ITF Technologies. If this supposition is true then the Chinese have a leading edge in both the commercial and military application of this technology. It may mean that the recent agreement signed by the Liberal government for both Canadians and Chinese to refrain from hacking each other in the commercial area may be mute on the Canadian side if they will not have the capability to hack Chinese commercial sites. It also appears the Liberal government sacrificed Norsat International to get the agreement.
 
Norsat International's products and services are used extensively by telecommunications services providers, emergency services and homeland security agencies, military organizations, health care providers, news organizations and Fortune 1000 companies. Customers include NATO, the United States Department of Defense, Marine Corps, Army, Navy and Air Force; FOX News, CBS News; Boeing, Reuters, Motorola, TESSCO, General Dynamics and others.

In other words, the purchase of ITF and Norsat International seem to go hand in hand. The Chinese may want to forestall and prevent through patent law the above organizations from using quantum entanglement methods which they have developed. Furthermore, they may wish to build an internet firewall around the PRC to keep out foreign ideas of human rights, rule of law and constitutionalism.




Poll finds most Canadians oppose sale of high-tech firms to China

ROBERT FIFE AND STEPHEN CHASE

Ottawa

July 3, 2017


https://www.theglobeandmail.com/news/politics/canadians-oppose-sale-of-high-tech-firms-to-chinese-investors-poll/article35531306/







CSIS, Defence warned Ottawa on China laser technology deal

STEVEN CHASE

OTTAWA — The Globe and Mail

Jan. 23, 2017


https://www.theglobeandmail.com/news/politics/csis-department-of-national-defence-warned-ottawa-on-china-deal/article33699963/



China sets new record for quantum entanglement
en route to build new communication network


Nick Whigham

News.com.au

http://www.news.com.au/technology/science/space/china-sets-new-record-for-quantum-entanglement-en-route-to-build-new-communication-network/news-story/e528da0cf68b2e63bbe093cab49ec507



Canadians are very, very angry about the sale of ITF.  However, if you want a bit of cheer then console yourself that the Chinese have not perfected the "Illudium PU-36 Explosive Space Modulator" or planet-killing laser cannon created by Marvin the Martian over a period of 2000 years.



                          

Marvin the Martian and Bugs Bunny
Warner Brothers Animation (C)
Educational Purposes only



Marvin the Martian in Space Modulator


https://www.youtube.com/watch?v=XvjR9n5EQHc  






                       


Marvin the Martin's Laser Beam song

Marvin the Martian and Bugs Bunny
Warner Brothers Animation (C)
Educational Purposes only



https://www.youtube.com/watch?v=fnKV3Hvd5ac






                                      



Canada and China strike corporate hacking deal


Robert Fife And Steven Chase

OTTAWA — The Globe and Mail


June 26, 2017


"The two sides agreed that neither country’s government would conduct or knowingly support cyber-enabled theft of intellectual property, including trade secrets or other confidential business information, with the intent of providing competitive advantages to companies or commercial sectors,” an official communiqué drawn up between China and Canada says.

For years, according to U.S. officials, Chinese hackers have stolen valuable intellectual property and other business secrets from Western high-tech firms, drug makers, financial institutions and other companies.


https://www.theglobeandmail.com/news/politics/china-agrees-to-stop-conducting-state-sponsored-cyberattacks-targeting-canadian-private-sector/article35459914/




            Security Agreement on Intellectual Property


This agreement is meaningless for the following reasons.



1. China has already stolen trade secrets in a flurry of activity since China-Canada free-trade talks were announced last fall. 

They have already got what they wanted. This agreement is like closing the barn door after the horses have left.



The author will cite three examples from personal experience of Chinese methods to secure sensitive data from Canadian sources.

a) Chinese nationals were rummaging the scrap metal bins of Alberta pipeline companies. The purpose was to secure samples of non-corrosive steel pipe. This behaviour was reported to the Canadian embassy in Beijing. However, within a day, it was clear to the author that there had been a leak at the embassy so that the source was now aware of the report.

b) The author met a Chinese individual at the University of Waterloo. He held a masters degree in library studies. He was researching processes that could be reverse engineered. He reported to a Washington firm.

c) Contiguous to the Graduate School in the Chaoyang District of Beijing was the Lido Fandian or four star hotel. At the time there was a popular Starbucks where foreigners congregated. The staff was brazen enough to install listening devices in the false ceiling as the author sat enjoying his coffee. There were also listening devices planted in the bushes along the walkway near the hotel.



2. Canada does not steal trade secrets from China

Why would Canada steal trade secrets from the Chinese? It would only be acquiring trade secrets that had already been stolen from Canada or other foreign countries? Therefore, what concession did Canada have to make to secure this agreement. The Chinese give nothing for free. They are expert negotiators.


3. The source of hacks is mostly anonymous

The WannaCry virus spread quickly throughout the world within a matter of hours. It is conjectured that its source was China because of the language used. Indeed, China is where most bit mining is done. How does Canada know that this virus or others like it are not state-sponsored or approved? There is no Made in China stamp on any virus program.


4. Wishful thinking

A senior government official, who took part in Friday’s talks, said the agreement should nevertheless be seen as a potentially important step toward addressing the broader problem of Chinese espionage.

“This is something that three or four years ago [Beijing] would not even have entertained in the conversation,” according to the official, who is not authorized to speak on the record for the government.

No wonder the senior government official is unnamed. If anyone thinks that Chinese espionage will be curtailed then they need a reality check.

This kind of thinking is similar to those who believe that a Canadian program to train Chinese lawyers will help promote rule of law in China. It isn't happening. Human rights lawyers and their lawyers and their lawyers are arrested and sentenced. As of March 22, 2012 lawyers must pledge allegiance to the CCP.

"In its ongoing efforts to tie the Chinese legal profession as tight as possible to the Chinese Communist Party (CCP), China’s Ministry of Justice (MOJ), the government agency that oversees the legal profession, announced its new initiative on Wednesday: every new lawyer in China must pledge allegiance to the CCP."


http://chinalawandpolicy.com/tag/legal-daily/



5.  Buy Sensitive Firms without full Security Review


Why should China hack Canada's most sophisticated firms when it is allowed willy-nilly to buy firms without a full security review on the excuse of protectionism? 

"The Hytera-Norsat approval comes just three months after Bains gave the go-ahead to Hong Kong-based O-Net Communications to buy out Montreal's ITF Technologies. ITF makes fibre-laser technology for communications and industry which can be used in direct-energy weapons."



6.. Compensation

The theft of intellectual property, including trade secrets or other confidential business information comes at a cost to Canadian businesses and enterprises. Canadian don't want empty promises about how the Chinese won't steal intellectual property in the future. We want compensation for what they have already stolen. For example, the demise of Northern Telecom as Canada's leading hi-tech company began with the theft of trade secrets. We want more, more, and more. We want billions and billions, and billions of dollars in compensation for all theft of intellectual property over the decades.



D.卡尔顿 罗西

2017年6月29日




                                                  Take me to your leader!

                                       


Marvin the Martian and Bugs Bunny
Warner Brothers Animation (C)
Educational Purposes only

 

June 29, 2017    
                                     

Did the Liberal government with its platform of hugs for thugs really trade-away Norsat for a limited hacking agreement in secret exploratory free-trade talks before the summer doldrums?


The Village Twit


D. Carlton Rossi   2017  (C)













                        


                                                           Ren Zhengfei


The founder of Huawei says the Chinese tech giant is moving its U.S. research center to Canada due to American sanctions on the company.

In an interview with Toronto’s Global and Mail newspaper, Ren Zhengfei said the move was necessary because Huawei would be blocked from interacting with U.S. employees.

Huawei Technologies Ltd. is the No. 2 global smartphone brand and the biggest maker of network gear for phone carriers. U.S. authorities say the company is a security risk, which Huawei denies, and announced curbs in May on its access to American components and technology.






                      


Markham headquartered Huawei Canada has already invested in 5G Research and Development in Ontario through a Markham Research Lab under the Liberal Wynn government


A new Huawei research center is not welcome in Canada until a decision by Canadians through an immediate, binding referendum is made concerning the Huawei 5G network. The  approach through economic concessions by Huawei to establish a research center while its executive is under arrest in Canada is too obvious a pandering to our Pandaesque minority government which see everything in terms of a black-white, mercantilist-monopolist state reflecting China's State Owned Enterprises. While Huawei is not state-owned it is state controlled which amounts to the same thing.

Intelligent Canadians and the Canadian Intelligence Security Service are quite aware of the risks already posed by Huawei's funding of research centers at Canadian universities. These partnerships could lead to the weaponization of patents. To compound the problem by establishing a new Huawei research center (probably in Vancouver where Mdme Meng is held) is to confound logic.

The incrementalist approach of Huawei takes advantage of the minority government's decision not to make a decision in order to present Canadians with a fait accompli through its own disguised, undercover, piecemeal actions such as floating a trial balloon of a prisoner trade without any moral or legal basis. The government is a minority because it did not listen to Canadians. It does not represent Canadians but rather represents a cabal of vested, Canada-China business interests.








                         




                      


No room for communication monopolies in Canada to decide on the Huawei 5G issue. No room for backroom politics in Canada to settle the Huawei issue. No room for an alleged dispute between two Canadian intelligence agencies to delay decisions on the Huawei issue. Finally, no room for a minority government in Canada which got fewer votes than another party to choose or not to choose Huawei's participation in 5G across Canada.

A poll conducted by The Research Co. finds 68 per cent think the federal government should not allow Huawei to participate in the development of Canada’s 5G mobile networks. That should be enough indication that Canadians don't want Huawei 5G. However, to confirm the poll the author calls on the minority government to undertake without delay a binding referendum whether or not to allow Huawei to participate in Canada's 5G mobile networks. Also, the best way to settle a pipeline decision on another kind of infrastructure project is to add the question on the same ballot. Our election dealt with no substantive issues: let the referendum solve that inadequacy and insufficiency. Canadians deserve better than the worst possible outcomes.









              
                                      



                The almost unpronounceable Huawei



This teacher is retired. He does not wish to give a lesson to Liberal politicians (nor would it be welcomed) on how to pronounce the word "Huawei" in Chinese. He does not wish to remind them of the difference between the words "private" and "collective" as it applies to Huawei and, by the way, what is the meaning of the term "State-Owned Enterprise" in China. He regards it as a futile exercise to politely remind politicians that Canada's premier technological and by far its largest company called Northern Telecom was seemingly pillaged and plundered by Chinese agents leading coincidentally and apparently unconnected to the rise of Huawei. 


Do you honestly think that you can control an enterprise like Huawei by allowing them to sponsor testing facilities in Canada? Can you possibly comprehend the amount of data and information that is now being siphoned and sucked off under your noses as this company co-operates with universities and companies on state-of-the-art 5G networks? Surely, you are not naïve enough to believe that its activities are not part of the One Belt and One Road Program whose goal is world domination?
Are you so oblivious to common sense that you ignore how this situation may pose a threat to this nation's security and, in addition, undermine the security of the United States whose defence umbrella you depend on.  Our Minister of Innovation, Science and Economic Development is obviously oblivious to reality. 


It should be noted that lifting of American tariffs on Canada's steel and aluminum exports to the U.S. was not part of free-trade negotiations. An important reason these tariffs were imposed was because the Americans were particularly concerned about Chinese and Russian steel entering the United States from Canada. Of course, this is not ultra high-tech stuff, but basic manufacturing. 


The Americans claimed their imposition of tariffs was based on national security concerns without explicitly delineating those issues. Canadian Liberal politicians said this was ridiculous. They cited historical instances of how Canadians fought side by side with Americans in several wars. However, they totally ignored and sidestepped takeovers of ITF Technologies and Norsat International by Chinese concerns. Let the author ask a hypothetical question. Wouldn't a company like Huawei or other Chinese concern want to ensure that ITF and Norsat were in control of Chinese hands before it progressed with its 5G network in Canada? 


If one totally banned Huawei from Canada it would assuage American concerns about national security issues. It would allow Canada to remain in the Five Eyes intelligence network. You will remember how the old Northern Telecom building or headquarters of the DND had not met the standard for the Five Eyes Group since 2013 when it was reported that electronic eavesdropping devices were found at the Carling Campus. If the author recalls correctly it was said that DND staff switched from computer to handwritten notes. This is not a remake of Back to the Future but rather a journey to Pellucidar in Back to the Stone Age. 


Finally, with the banning of Huawei, you would see how American tariffs on Canadian steel and aluminum would miraculously disappear when proper safeguards were put in place and the arrangements were properly negotiated. By that it is meant, in part, that there would have to be a co-ordination of implementation in both countries of the Magnitsky Act. Currently, it is not being fully applied in Canada with regard to a steel company controlled by a Russian oligarch.  


D.卡尔顿 罗西

D. Carlton Rossi

2018年11月12日







                                                



           The Global 5G Race and Internet of Things


Huawei data will certainly be available to Chinese government: Bremmer

BLOOMBERG WALL STREET WEEK



21 February 2020


By: Ian Bremmer

Ian Bremmer, Eurasia Group's president and founder, discusses the relationship between Beijing and Huawei and how it can impact the US And Europe. He speaks with Gillian Tett of the Financial Times and host David Westin on "Bloomberg Wall Street Week."

2:33 minutes

https://www.eurasiagroup.net/live-post/huawei-data-will-certainly-be-available-to-chinese-government-bremmer





Ian Bremmer, founder and president of Eurasia Group and GZERO Media, joins BNN Bloomberg from the Canada 360 Economic Summit to weigh in on Canada's approach to Huawei and 5G, as well as Canada-China relations.

BNN Bloomberg

January 30, 2020

4:04 minutes


https://www.eurasiagroup.net/live-post/suicidal-for-canada-not-to-follow-us-on-huawei-5g-ian-bremmer

 





'Suicidal' for Canada not to follow U.S. on Huawei and 5G: Ian Bremmer

January 30, 2020

12:11 minutes




'Suicidal' for Canada not to follow U.S. on Huawei and 5G: Ian Bremmer http://fw.to/wsSbO7k










                                                   




孙大午

12月6日 14:26 来自 iPhone客户端

但愿任总安好!其实任总早该退位的,现在似乎都有点晚了!

@工业科技迷

(任正非:#华为研发中心将从美国迁至加拿大) 3日,华为创始人任正非在接受加拿大媒体《环球邮报》采访时表示,因为华为目前和美国员工不能打电话、不能发邮件、不能接触,这样的话美国的发展就受到了阻碍,所以华为计划将其研发中心从美国转移至加拿大。你认为华为的研发能力会越来越强吗?




Sun Dawu

December 6 14:26 from iPhone client

I hope Ren Zong'an is well! In fact, Ren should have abdicated, it seems a little late now!

@ 工业 科技 迷

[Ren Zhengfei: #Huawei R & D Center will be relocated from the United States to Canada #] On the 3rd, Huawei founder Ren Zhengfei said in an interview with Canadian media "Global Post" that Huawei and U.S. employees cannot call, email, or In this way, the development of the United States is hampered, so Huawei plans to transfer its research and development center from the United States to Canada. Do you think Huawei's R & D capabilities will become stronger and stronger?


truncated interview in Chinese with Ren Zhengfei


http://t.cn/AigeUFQA?m=4445471508319500&u=1231317854





                         


                                              Screen shot Ren Zhengfei



REN Zong'an (REN Zhengfei) has recently confirmed Meng Wanzhou's position as CFO. However, it is difficult to see how Ren Zhong'an could step down as CEO to be replaced by his daughter. The reason is that his daughter is under arrest and under possible extradition to the United States.

Ren has announced that he will shift research from hostile US to Canada. He says this almost as if it were a fait accompli; yet, no one including the Prime Minister, Minister of Innovation, Science and Economic Development, Defence Minister or the Minister of Public Safety and Emergency Preparedness has said boo. Am I to understand that the CEO of Huawei and the Chinese ambassador to Canada are setting policy for the Canadian government?

Can the interview between CEO Ren and a reporter actually have taken place in Canada? More than likely it was in Shenzhen. I'm sure that he would like to see his daughter in Canada, but might not he have some concerns, too? Yet, the research "center" from the United States will become a research "centre" in Canada; so, center becomes centre. It's sort of a back door to the United States, isn't it?

I do too wish Ren Zong'an well. I agree with him that his daughter is being held as a "bargaining chip". Actually, I would go further and say Mdme Meng is being held as a hostage. Also, the Canadians held in prison are hostages, too. I have consistently said that it is a moral issue rather than a legal one. A year ago, I considered the arrest of Mdme Meng as immoral with respect to either Western values or Confucianism. I recommended in several articles that on moral grounds, based on the values of the family, she should be traded for all Canadian hostages in China. The list initially was limited to five hostages which included John Chang. That is how early I argued from a moral perspective. It then expanded to other hostages which included Kovrig and Spavor among others. The arguments I made were strictly on moral grounds; although, in late January 2019, I warned about the possible economic implications that the arrests might trigger. That was about the time I tried phoning our Justice Minister and Andrew Scheer. Earlier, on this website, I offered my services on two separate occasions to the Canadian government to meet personally with the Chinese ambassador in Ottawa to settle the issue on a moral basis. I included my contact information.

What has our government learned. Nothing. What has our government done. Nothing. It is now arguing through surrogates that pragmatic, economic issues between China and Canada are the only ones to be considered, but they don't mention possible economic repercussions from the United States. Our government dithers and delays on the Huawei 5G decision in the hope (and I remind them that hope is not a strategy) that M will be traded exclusively for M & M based on a cost-benefit analysis. That approach hasn't worked in one year. How pragmatic is that? How profitable is that? One doesn't need pragmatic ideas. One needs pragmatic ideals. Pierre Trudeau was a pragmatic idealist. Justin Trudeau is a relativist. For example, as a relativist Justin Trudeau supports a UN resolution that Nikki Haley describes as "a deal with the devil" in order to gain a seat on the Security Council.

Mon Dieu! The moral argument is as true today--Trudeau--as it was one year ago. It is the only argument. Return Mdme Meng for Spring Festival so she can be with her family, and in return, all Canadian prisoners in China will be sent back for the holidays. Surely you haven't forgotten the day on which you were born. It was December 25th. It is a holiday and a holy day to be celebrated with family and friends.  Now, "that's a strategy for staying sacred" as Ambassador Dominic Barton might say.




https://www.theglobeandmail.com/world/video-meng-wanzhou-a-bargaining-chip-for-us-to-attack-huawei-ceo/








                                                                   



                                    Security

The reader will find in this report various disparate elements strung together under the general thread of security. One might justifiably argue that national security is a priority for Canadians; so, it would be reasonable to begin there. This might be followed by personal security with which the individual is most concerned. Finally, a short analysis of cyber security will be provided by dealing with a particular problem which is symbolic of the growing on-line threat faced by Canadians. The December edition of Popular Mechanics rates fear or terror of corrupt politicians to be felt by 74.5% of the population. In other words, it is believed that the government doesn't solve the problem of terror--it creates it. The perception of multiple security threats is real for many people as they pertain to national, personal and cyber security.


                        

                                  Mr. Michael Kovrig

The author submits to the reader that the detainment of Michael Kovrig is a matter of national security. The reason is simple. He is an expert on "conflict prevention on the Korean peninsula, with a focus on Chinese ideas for de-escalating tensions between Washington and Pyongyang". One might deduce from his arrest that the Chinese are not interested in conflict prevention or resolution, but rather they revel in it through the use of bully tactics and terror. As Kovrig is tortured in a black jail, Kim Jong Un arrives in Beijing by armoured train. The Chinese and North Koreans would very much like to know what Kovrig knows from a western perspective about the Korean Peninsula. Their idea of harmony sounds like a screech of chalk on an old black board. It is imperative to get him released in the most expeditious, expedient and effective manner which is a swap of seven Canadian prisoners for Mdme Meng. Today, John Manley who is a former, foreign affairs minister said that the extradition process could drag on for a year while the Canadian detainees are held in prison.

Let the author agree with Justin Trudeau that Mr. Kovrig is not a diplomat. Let the author agree with Justin Trudeau who says Mr. Kovrig is a diplomat. A few hours ago the Chinese Foreign Ministry said that he does not have diplomatic immunity. Whether or not he has diplomatic immunity it is most important is that Mr. Kovrig be returned home as quickly as possible. On the basis of human rights though and equality under the rule of law, the other six detainees should be released at the same time. All seven need to be returned at the same time.


               

                        One day Retrial of Schellenberg


There was breaking news a few minutes ago. Schellenberg has just been sentenced to death according to Vanderklippe of The Globe and Mail. The court has ruled that Schellenberg was a core member of an international drug trafficking conspiracy. If the government had acted earlier on a swap of prisoners this trial needn’t have happened. The author reiterates what he has said. Trade immediately all seven Canadians for Mdme Meng. The Schellenberg case will have to be settled separately.

The author has described in great detail how he was held under house arrest in 2003 at the time Sun Dawu and six other employees (for a total of seven) of the Dawu Group were arrested and held in jail. The author joins a long list of individuals who have been held under house arrest. They include the wife of Liu Xiaobo and Mao Yushi.


               

                    Mao Yushi is seated second from right


Mao Yushi is the founder of the liberal economic think-tank called Unirule. In 1960, he was sent to the countryside based on a speech given by Mao Tse-tung based "On the Correct Handling of Contradictions Among the People". He was labelled an ultra-rightist. This was during the worst famine in modern history induced by government planning. On May 17, 2018 he was locked-out of his office as the think-tanks from all over the world discussed the officially approved One Belt One Road with one voice. However, he was also prevented from leaving home for the duration of the conference. In a variation of the locked-out approach, members of Unirule were locked-in their offices in August 2018 as the doors were welded.


                         

          Unirule employees are welded into their office
                              like caged animals


The author wishes today to wish Mao Yushi a Happy Birthday! He was born on January 14, 1929. The main celebration for today's birthday was actually held earlier in 2018. It is surmised that the liberal economist didn't want ultra-leftists who support the Mao Tse-tung faction of the Party to interrupt those who celebrated the anniversary of his birthday. It so happens that in 2017 at the time of his birthday his website was shutdown.



               

              Peter Garrett in front of his coffee house 


One might say with respect to Kovrig and Spavor that they were in the wrong place at the wrong time. Spavor was arrested in Dandong on the China-North Korean border. That was where the Garretts were arrested. In fact, the harrowing accounts of the Garretts' arrest, his trial and forced confession had just been published before the arrest of the two Canadians. The title is Two Tears on the Window

Kovrig was actually sent into the lion's den by our own Prime Minister to deal with the Huawei crisis involving the detention of Meng Wanzhou. If Kovrig were sent to China without a diplomatic passport then his security risks increased exponentially. That is why his status as a diplomat was so important. If he were a diplomat then he would have had a diplomatic passport as Bains did when he had trouble over his turban at the Detroit airport.

However, the real crisis with Huawei did not happen overnight nor was it by happenstance. It was a designed crisis over years of failed policy of the Liberal government led by Prime Minister Justin Trudeau. In spite of continuous warning from security experts, Trudeau proceeded with the development of the 5G Huawei network in Canada. He has not renounced it yet, nor will he be likely to as long as Meng Wanzhou is under detention. The security of the seven hostages is jeopardized in the meantime.


              


The liberal Scott Bradley who had failed to gain a seat in his election campaign chose to leave BCE Inc. and join Huawei. Coincidentally, BCE became one of the major purchasers of Huawei equipment. Bradley recently resigned from Huawei. If Huawei is judged to be a national security risk then BCE may be left with losses from its investment in the 5G infrastructure of Huawei. Those potential, substantial tax losses along with those of Telus may be borne by the Canadian taxpayer. If we are forced to bear the burden of these tax losses then the author demands "proof positive" that the used equipment cannot be resold but must be scrapped. Under no circumstance should it be sold directly or indirectly to Huawei at fire sale prices.

It must be said though that the Garretts, Kovrig or Spavor had no public websites dedicated to civil rights, democracy, rule of law and republicanism within the People's Republic of China as did the author. It is true that the emphasis of the sites transitioned from the mainland to the homeland with regard to China-Canada relations; however, the mainland was never neglected. For example, he has always lent support to Mao Yushi who was declared a traitor by the Maoists. If there is one thing the Maoists don't like is another Mao by the same name. The risk to the author's personal security increased with the arrests of intellectuals, civil rights activists and lawyers beginning in 2015. These arrests have not been arrested in 2019--pardon the pun. They were all reported and commented upon by the author.

My readers have been briefly apprised of the author's decision not to work as a teacher at Dawu Group in September 2018. He was offered a Letter of Invitation by the Group. In effect, the position would have offered an "iron rice bowl" providing airfare, apartment, hospital and drug plans as well as pension benefits. The author's standard of living would have improved immeasurably. He would also have rejoined friends.


               

               Eight apartment buildings seized arbitrarily


However, when the author refused the position he cited the Garrett's and John Chang's arrest as the reason. He judged the probability of his arrest as high if he were in the wrong place at the wrong time. Keep in mind that 8 apartment buildings of the Group had just been seized as bargaining chips (or if one wants to use an anthropomorphism) as eight hostages by the local government.

The author had a strong, nostalgic desire to visit the Group with a visitor's visa in October as part of an overall tour of China. He had been invited by the Group to attend the International Festival held at that location. However, he declined the offer again because of personal security concerns. He again cited security concerns with the shuttering of doors of the Unirule Institute. It may be said that the Group did not fully understand his concerns. They do so now with the arrest of Meng Wanzhou along with the Canadians Kovrig and Spavor. Instead, he asked the Group to visit him in Canada and hinted at his ability to facilitate their visa through a professional Canadian immigration service.

For the first time, though, the author discloses publically his private security concerns regarding a business proposal which exceeded one hundred million Canadian dollars. In other words, he would either enter China with a business visa along with a government delegation or conduct business in Canada with guests from the mainland along with Canadian government officials. The scope of the project involved investments in the mainland and homeland in the areas of manufactured food associated with glucose, generation of diesel fuel from cellulose, building projects involving hundreds of laborers and educational projects at both the high school level and in the vocational area.

Because of security concerns the author preferred that the business meeting was to take place in Canada. He therefore visited the local Liberal constituency office. He was given no encouragement and was given every reason why nothing could be done with respect to business. He never was given the opportunity to meet the Liberal member.

The closest he came to the member was a 19 minute telephone conversation with the member's male secretary in Ottawa. The author explained that he wished the government to extend a Letter of Invitation to the Chinese enterprise since this would guarantee the issuance of Canadian business visas. The secretary responded that the author could write the letter of invitation himself thereby implying the Liberal government had no interest in the matter. Finally, the author responded to the secretary that he was laissez-faire. There was a long pause from the secretary as if he didn't understand the phrase or its application. The author had to define its meaning to him.

There are two reasons that the author mentions this proposal now. First, he doesn't want to give the impression that he is merely a critic of the Liberal government. He tried to work with them to create jobs and opportunities in Canada. Second, the proposal included provisions about how to deal with his concerns about personal security if he were to visit China.

In the proposal to the enterprise (of which the government was given a copy) there were provisions stipulated regarding the author's personal security if he were arrested for any reason on the mainland. The corporation was to guarantee the provision of $US 1 million for his legal defense. This money would be used to hire the best civil rights lawyer in New York to represent him. It would ensure that the case would garner international attention and that he would get the best legal defense. The second provision was that a lawsuit would be filed against the Chinese government on behalf of the defendant and the corporation under terms of the Canada-China FIPA agreement. It would seek US$5 million in compensation.


             

                       Sun Dawu and D. CarltonRossi
                   just three weeks before their arrest


The latter provision explains why the author would only visit China under a Chinese business visa. He had no diplomatic immunity. He needed a way to protect himself if he were arrested, for example, under a charge involving National Security. Remember that he had been threatened with a charge of National Security with his arrest in 2003. The underlying purpose of these provisions were to discourage his arrest by Chinese authorities who would be aware of them. They would face international scrutiny, legal repercussions and financial consequences if he were arrested for arbitrary reasons concerning National Security. The author has no doubt that if he had been in China at the wrong time and place during the Huawei crisis he would have been arrested along with Kovrig and Spavor.

The author will now touch on one aspect of cyber security which may interest some of his readers who tweet. In the past, he has cautioned tweeters to not provide hypertext links to articles in the South China Morning Post or SCMP. Simply quote or paraphrase some sentences and leave the decision to the readers whether or not they will search for the article. In recent years, the internet version appears to get more information than it gives--particularly when the reader scans human rights issues, protests and arrests. In other words, it seems to mine data. They appear to learn more about you than you will ever learn from the article.

Recently, the author read an article about the arrest of Meng Wanzhou on the internet version of the SCMP. On two separate occasions his internet connection was cut. One might say this was coincidence. However, there was also a coincidental effort to access a Chinese backup program called EASEUS To Do Backup free 11.5 on the author's computer. This program was developed by CHENGDU Yiwo Tech Development Co., Ltd. They have garnered a good reputation in the backup field since 2004. However, when the connections were cut someone through something was trying to access the bin of EASEUS. Furthermore, the shredder settings had been changed from a military level US DoD 5220.22-M Algorithm to a weaker Pseudorandom Algorithm. In short, a program was designed to read deleted material.

The writer will let the reader in on what is now an open secret by its disclosure. He doesn't worry about these kind of trite, technical issues any more. He has learned from his Chinese experience. If a typical Chinese has a software issue then he formats his computer. Everything is wiped out. In a comparable way, the author adapted this approach to his cyber security if it were threatened. He has organized a collection of various makes and models of computers which he uses. They are regarded as disposable. If there is a technical issue on one computer that cannot be solved then the computer is literally crushed. It is wiped out of existence.

In conclusion, security risks involving national, personal and cyber security are high. Many of the risks are associated in one way or the other way with China. It is sad for the author to see how things that he experienced or was aware of in China over more than two and a half decades now influence the everyday lives of Canadians. Canadians are unaware of these threats as they should be and do not know how to deal with them.

The worst scenario is how the Liberal government under Trudeau is jeopardizing the national security of Canada with its intimate involvement with Huawei 5G technology despite warnings from security experts and paradoxically the arrest of Meng Wanzhou at the request of the politically motivated Trump administration. In some respects, the Huawei 5G debacle in Canada is an outcome of secret Free-Trade talks with China and parallels the secret collusion of Trump with Russian officials in the area of oil sanctions. Both 5G and oil infrastructures are critical to the national security of China and Russia respectively. No wonder the greatest fear of an overwhelming majority of citizens in the United States and Canada is of corrupt government officials at the expense of your national, personal and cyber security.


D.卡尔顿 罗西
D. Carlton Rossi

2019年1月14日











                                    


                                                                 Confucius



Shuling He was the father of Confucius or Kong Qiu 孔丘.  In the Zuo zhuan he is portrayed as a man exhibiting a critical feat of strength in the midst of a military siege. pg 3

All references to him in the historical record concern military actions under Lu command.  pg 14


http://www.iub.edu/~p374/Kongzi.pdf





                        

                                       The Analects


1.5  The  Master  said:  To  guide  a  state  great  
enough to possess a thousand war chariots: be
attentive  to  affairs  and  trustworthy;  regulate  
expenditures  and treat  persons  as  valuable;  
employ  the  people  according  to  the  proper  
season.


The Analects of Confucius
R. Eno, revised  2015 


https://archive.org/stream/AnalectsOfConfucius_201606/Analects%20Of%20Confucius_djvu.txt










                                           



The Thirty Six Stratagems


The prevailing view is that the Thirty-Six Stratagems may have originated in both written and oral history, with many different versions compiled by different authors throughout Chinese history. Some stratagems reference occurrences in the time of Sun Bin, approx. 150 years after Sun Wu's death.


Illustration of One Method


明修棧道,暗渡陳倉/明修栈道,暗渡陈仓

Deceive the enemy with an obvious approach that will take a very long time, while surprising him by taking a shortcut and sneak up to him. As the enemy concentrates on the decoy, he will miss you sneaking up to him.                   




http://wikipediaaudio.com/Thirty-Six_Stratagems





                                


According to Ralph D. Sawyer and Mei-chün Sawyer, who created one of the latest translations, the Seven Military Classics include the following texts:


Jiang Ziya (Taigong)'s Six Secret Teachings (六韜)

The Methods of the Sima (司馬法)
(also known as Sima Rangju Art of War)

Sun Tzu's The Art of War (孫子兵法)

Wu Qi's Wuzi (吳子)

Wei Liaozi (尉繚子)

Three Strategies of Huang Shigong (黃石公三略)

Questions and Replies between Tang Taizong and Li Weigong

(唐太宗李衛公問對)


https://en.wikipedia.org/wiki/Seven_Military_Classics





                          


Jiang Ziya (Taigong)'s Six Secret Teachings (六韜)


The Civil Strategy

Moral, effective government is the basis for survival and the foundation for warfare.


The Military Strategy

The ruler must visibly cultivate his Virtue (德) and embrace government policies that will allow the state to compete for the minds and hearts of the people; the state will thus gain victory without engaging in battle.


http://wikipediaaudio.com/Six_Secret_Teachings




                             
                           


The Methods of the Sima (司馬法)

(also known as Sima Rangju Art of War)



The writers of the Methods stress that the Virtue (德) of the people will decline both when civilians act in ways that are appropriate for soldiers, and when soldiers act in ways that are appropriate for civilians.


http://wikipediaaudio.com/The_Methods_of_the_Sima





                                                     


Sun Tzu's The Art of War (孫子兵法)


故曰:知彼知己,百戰不殆;不知彼而知己,一勝一負;不知彼,不知己,每戰必殆。


So it is said that if you know your enemies and know yourself, you will not be put at risk even in a hundred battles.

If you only know yourself, but not your opponent, you may win or may lose.

If you know neither yourself nor your enemy, you will always endanger yourself.


http://wikipediaaudio.com/The_Art_of_War





                             


Wu Qi's Wuzi (吳子)


Harmony and organization are equally important to each other: without harmony, an organization will not be cohesive; but, without organization, harmony will not be effective in achieving collective goals.


http://wikipediaaudio.com/Wuzi




                                


Wei Liaozi (尉繚子)


According to the text, agriculture and people are the two greatest resources of the state, and both should be nurtured and provided for. Although the Wei Liaozi does not specifically mention Confucianism, the text advocates a government based on humanistic values, in line with that school of thought. The ruler should be the paradigm of virtue in the state.


http://wikipediaaudio.com/Wei_Liaozi





                          


Three Strategies of Huang Shigong (黃石公三略)


Philosophically, the book is a synthesis of Confucian, Legalist, and Daoist ideas. Confucian concepts present in the text include an emphasis on the importance of the commander's cultivation of benevolence (仁) and righteousness (義), humanitarian government via the promotion of the welfare of the people, rule by Virtue (德), and promotion of the Worthy (賢人). Legalist concepts present in the text include an emphasis on strengthening the state, the implementation of rewards and punishments through the strict and impartial enforcement of the law, and the assumption that power is best concentrated in a single, majestic sovereign. The book's general Daoist perspective is recognized by its emphasis on a passive, harmonious social ideal, the ideal of achieving victory without contending, the importance of preserving life, the importance of Dao and De, and the fundamental evilness of warfare.



http://wikipediaaudio.com/Three_Strategies_of_Huang_Shigong




                    


Questions and Replies between Tang Taizong and Li Weigong

(唐太宗李衛公問對)



http://wikipediaaudio.com/Questions_and_Replies_between_Tang_Taizong_and_Li_Weigong






     

                     China's Strategic Acquisition Program

                                              
                                                       Quantum Entanglement



Professor Burton has recently said that "China's interest in Canada goes beyond trade to a commitment to establish a “strategic partnership” between our nations. This encompasses a broad range of non-economic elements, raising the possibility of Canada becoming more economically reliant on Chinese trade and investment. This author is in agreement with Professor Burton in terms of broad strokes. However, the Canadian government has consistently termed the three sets of negotiations "exploratory free-trade" talks. Are they oblivious to the obvious?

While China may want a strategic partnership it appears to the author though that what it really intends is strategic acquisition. The author would like to explore in more detail what strategic acquisition might encompass with regard to strategic assets of Canada. He will deal at first with the Chinese acquisition of ITF Technologies.  ITF makes fibre-laser technology for communications and industry which can be used in direct-energy weapons. The technology can also apply to information processing with regard to quantum computing. "A review of photonic industry research between 2005 and 2009 shows CSE, the NRC and DND were affiliates, along with ITF, in a project that uses quantum cryptography to make advances in a field where experts try to produce coded messages that are difficult or impossible to crack. The research project concerned “absolutely secure optical fibre networks using quantum cryptography.”

However, in July 2014, Canada accused China and a sophisticated state-sponsered actor of attempting to break into the files of the National Research Council. The word "attempting" is an underestimation and underreporting. They broke into the files and stole them using emails, hacking and malware. That action would not be covered of course by the recently signed commercial anti-hacking agreement between China and Canada because it does not apply to governments.

It so happens that one of the prime areas of research of the NRC is in the area of quantum computing through photonics whose goal is to create unbreakable code. That general information is available to the public through the website of the NRC. However, the Canadian Ministry of Science, Information and Technology punishes the Chinese for their intrusive attack into private and secure files of the NRC by allowing them to buy Canada's leading company in the area of photonics (unbreakable code) or ITF Technologies? It rewards the Chinese for their hacking of the NRC by signing a commercial hacking agreement between China and Canada? All the author can say is "Nuts". That was the word used by the besieged commander of the Bastogne garrison in the German advance during the Battle of the Bulge.



D.卡尔顿 罗西

2017年7月13日






Montreal firm targeted in Chinese takeover did research with Canadian government

Steven Chase

OTTAWA — The Globe and Mail

Jan. 13, 2017



https://www.theglobeandmail.com/news/politics/montreal-firm-targeted-in-chinese-takeover-did-research-with-canadian-government/article33613518/


Canada accuses China of hacking into National Research Council CNE

Don Reisinger

July 30, 2014


https://www.cnet.com/news/canada-accuses-china-of-hacking-into-national-research-council/




This piece is part of The China Debates series for Inside Policy, with commissioned articles from leading world experts exploring different elements of China’s rise as a great power.

Charles Burton, July 7, 2017



http://www.macdonaldlaurier.ca/engaging-china-poses-potential-risk-to-canadas-national-security-charles-burton-for-inside-policy/





                                  

                              China's Strategic Acquisition Program

2. Norsat International


The sale of Norsat International without an in-depth national security review to a Chinese firm is so egregious and notorious it is incomprehensible. A government's strongest duty is to protect its citizens. The Liberal government has effectively relinquished its duty and sanctioned what may be regarded as a fifth column or Trojan horse on Canadian soil and in the skies.

The acquisition of Norsat also marks the end of the foreign policy established more than half a century ago by Zhou Enlai at the Bandung Conference in 1955. Two principles affirmed were non-interference and respect for the sovereignty of others. The Norsat acquisition interferes with the protection of Canada's vital and critical communications network under the aegis of Norsat as well as infringes and impinges on our sovereignty. The Chinese have complained about barriers of trade protection while 40% of their industry is state-controlled; but, it is Canada's security and state of emergency protection which is at stake.

In the Norsat acquisition, China is also pursuing a divide and conquer strategy. They are fully aware that if Canada will not initiate a full in-depth security review then a statutory review will be made by the Committee on Foreign Investment in the United States (CFIUS). It may be that customers such as the U.S. Department of Defence, U.S. Marine Corps, U.S. Army and independently NATO will decide to reconsider their contracts. Canadian companies concerned with emergency services may be pressured by the government to remain as customers, but what if the emergency stems from without rather than within. These Canadian companies will probably be joined by Chinese companies which deal with sensitive security matters, too.

It is troubling to the author that a decison on Norsat happened at the same as a dispute with Boeing. The aircraft manufacturer complained that Bombardier's jet was unfairly subsidized. Boeing is a customer of Norsat. Boeing may be adversely affected by the takeover with regard to its communications.

China has strongly expressed that it wishes Chinese firms to be considered for all government contracts--including military. Canada has announced a large military program which includes aircraft and ship purchase; however, it hasn't explained how it will pay for it. It would be a misguided error of enormous proportions to allow China to bid on contracts with the promise of low interest loans and saddle Canada with indebtedness to an authoritarian regime. To counter this prospect the author suggests purchasing two aircraft carrier (helicopter and fixed wing) from the Japanese to protect the Canada's sovereignty of the Northwest Passage which the Chinese regard as an international passage and through which they may clandestingly intend to extend their territorial sovereignty.



D.卡尔顿 罗西

2017年7月18日





Chinese firm expelled from trade association
days before takeover of Canadian high-tech company

The Globe and Mail

Robert Fife and Steven Chase

OTTAWA

July 21, 2017

A Chinese telecom giant at the centre of a controversial takeover of a Canadian high-tech firm has run afoul of China's powerful Ministry of Public Security.

Hytera Communications – whose principal shareholder is billionaire chairman Chen Qingzhou – has had long-standing close ties to the ministry that oversees China's police and security agencies. It has won numerous contracts to supply mobile and digital radio systems to Chinese police departments and local governments.

But last month, just days before it closed a deal to buy Vancouver-based Norsat International, Hytera was suddenly expelled from a mobile-technology trade association run by the ministry for its involvement in disputed bidding on a police contract.

The expulsion is unrelated to the takeover of the Canadian satellite communications company, but critics say Hytera's past connections to Chinese security authorities and its questionable business dealings should have raised red flags in Ottawa.

Aside from the security concerns raised by the Hytera takeover, Mr. Burton said he was puzzled over why Ottawa allowed the deal to proceed given Hytera's ties to China's public-security ministry.

"It is clear that Hytera is complicit in developing technologies for the use of police communications," Mr. Burton said. "Canada has in past been unwilling to transfer technologies for Chinese police use due to the pervasive reports of Chinese police violations of human rights through gross invasion of privacy of communications in investigations and use of torture in interrogation."

excerpts


https://beta.theglobeandmail.com/news/politics/chinese-firm-expelled-from-trade-association-days-before-takeover-of-canadian-high-tech-company/article35758019






                           China's Strategic Acquisition Program

                                          


3. The Port of Churchill

Comments on the Port of Churchill have already been made prior to the disaster it faced recently in terms of rail transportation and are included below. The author will recapitulate his views in summary form regarding the necessity to nationalize the port and introduce some new arguments. The Hon. Navdeep Bains has been assigned the portfolio to deal with the disaster. It will be remembered that Bains was responsible for handling the Norsat International acquisition by the Chinese firm Hytera which opened up a hornet's nest of official opposition and condemnation by Canadians.

It is contended by the author that the Port of Churchill should be nationalized. The port holds strategic importance regarding its position relative to the Northwest Passage. It appears the government holds the contrary view that both the entrance and egress of the passage is of strategic importance. In doing so it has neglected to examine the importance of the Port of Churchill. A foreign country which controls the port effectively controls the entrance and egress because it would have carte blanche to enter or leave Hudson's Bay through the passage.

Canada and the people of Churchill must be in control of the port so that development benefits the country, nearby region and the town. However, keep in mind the example of the Port of Darwin, Australia. A Chinese owned company has been granted a 99 year lease at the Darwin port which the navy regards as vitally important and from which border operations are conducted. This is another example of China breaking course with its non-interference principle as it uses subterfuge.


This means at the Port of Churchill that China may try to maximize to the fullest extent its state-controlled monopolies in cement, steel, coal, rail and electricity. Not only is the Liberal government not objecting to the involvement of state-owned and controlled monopolies, but appears to embrace their involvement in various projects such as a contemplated swap of heavy oil for wind turbines (steel). Misguided souls believe that environmental degradation will be balanced by environmental preservation. However, if one mixes brown and green colours then one get brown.

Both the Liberal and Communist governments may try to decide Churchill's fate in secret exploratory talks without the encumbrances of public scrutiny in open free-trade talks. Both countries are prolonging secret exploratory talks which are in fact free-trade talks by any other name since they are both committed to free-trade. There is no doubt about Canada's and China's acceptance of free-trade. There is no doubt according to the present trend that the Liberal government will accept an extradition treaty in order to gain free-trade and also to sacrifice security interests to achieve the same end based on the ITF and Norsat examples.

China and the United States hold the view that the Northwest Passage is an international passageway. However, what if the Chinese were willing to support the Canadian view that its section of the passageway was Canadian territory in the same way that the South China Sea was Chinese territory? The Chinese claim to the South China Sea seems to be tacitly acknowledged or at least not denied by the Liberal government. This potential strategy of the Chinese would again utilize the divide and conquer approach in order to separate Canada from American influence and ultimately to weaken American power. It arguably would be a strategic partnership based on the Chinese acquisition of the Port of Churchill converted into a commercial/naval port whereby China would enforce Canada's claim to the passage with its navy and keep it open for trade with its icebreakers.

The author concedes this may be a far-fetched scenario. However, consider how the Trudeau dynasty has been non-judgemental of authoritarian regimes in both Cuba and China. Consider how a Marxist-Leninist is the chief advisor to the President of the United States. In addition, the President inexplicibly shows fondness for Putin while his son and son-in-law have met with Russians during an election concerning Hillary's emails.

Let's not forget the proposal by Huang Nubo who was a former official of the Communist Party's Propaganda Department to build a golf course at Grimsstadirg, Iceland. The business plan was not very convincing. "The area’s relative proximity to deep fjords on Iceland’s northeast coast near offshore oil reserves fueled speculation about a Chinese push for a naval facility and access to the Arctic’s bountiful supplies of natural resources."


                                       

                                 The Hudson Stone

There was a recent discovery made concerning the death of Henry Hudson who was an explorer. It is to be remembered that his expedition was searching for the Northwest Passage, but he found a large bay which was named Hudson's Bay. His ship became blocked by ice in James Bay and the crew demanded through mutiny that the ship return. The ship sailed without Hudson and a few shipmates. Apparently, Hudson made it to Chalk River in the Ottawa Valley. A stone was found on February 5th, 2014 inscribed "H.H. 1612 Captive". Will a future stone be found in Ottawa inscribed "CA 2517 Captive"?


D.卡尔顿 罗西

2017年7月19日




                          

                                    
The Port of Churchill


                           The Tragedy of Churchill



An unexpected tragedy has happened at Churchill, Manitoba. At least it is unexpected as far as the effects of global warming can be. For the moment, one does not have to worry about melting of the permafrost. Spring run-off has undermined the rail lines into the port. There is no short-term fix to the problem. The rail lines are owned by an American concern which has been trying to sell the port.

The Chinese were invited to Churchill earlier. They have keenly expressed interest in the port. It is just the kind of infrastructure project that they thrive on to expand their state-owned steel enterprises. It will give them strategic control of the Arctic. By the way, they recommend that the local people learn Chinese.

However, the citizens of Churchill want to control their own destiny. The NDP representative has proposed on their behalf that the port be nationalized. They had wanted to see grain from the prairies by rail loaded onto ships during the short period that the port was open, but their hopes were dashed because the federal government was not receptive to their request.

Can the hope of the citizens of Churchill be any less than the citizens of Canada who want to control their own destiny? That hope can be realized through the nationalization of the port. The government of Canada can then control the development so that it benefits all citizens. No longer will the interest of citizens fall second place to foreign interests whether they be American or Chinese.

Ultimately, the Chinese want the port as their own. They can then make Hudson's Bay their own pond. Of course, they are not interested in the fur trade which historically was one of the pillars of the country that was to become Canada. It is probable that they want to control Hudson Bay since three provinces border it. They then have access to those three provinces and they will control the north of those three provinces.

The Churchill River is the ninth longest in Canada. It flows through Alberta, Saskatchewan and Manitoba into Hudson Bay. It is also known by the Cree name Missinipi, meaning "big waters". The Chinese will argue that it is foolish to let the river flow completely into the bay as it then mixes with salt river. They will want to see the bay become salt water even though it will upset the ecological balance of the region. They will want to take the fresh water by tanker to China. The issue of water involves environmental, indigenous peoples and national security issues. 

Most importantly though they will want the port to establish their claim to the Northwest Passage as an international passageway or eventually as their own. As such they can simply say that they want to go to their port and they have the right to go to their port without restriction. If they own the port then who can stop them docking their navy at the port and building support facilities for it and an airport capable of handling military transport or fighter jets.

The author is reminded of the town of Narvik, Norway prior to World War II. Churchill warned the British of its strategic, military importance because of its vast resources of iron ore. Those resources would be critical to any war effort against Nazi Germany. However, with Paris about to fall in a matter of days. Churchill writes "In Norway it appeared that Narvik was likely to be captured by us at any moment, but Lord Cork was informed that in the light of the the news from France no more reinforcements could be sent to him". On June 2, Narvik was evacuated and the evacuation of Dunkirk began. As a result, Nazi Germany gained control of the iron ore resources for its war effort.

The decision about the port of Churchill will come to Innovation, Science and Economic Development Minister Navdeep Bains. This minister was intimately connected to the decision on the now infamous Norsat giveaway to the Chinese who claimed any decision to not allow the sale was protectionist (even though 40% of their industries are state-controlled monopolies). The Chinese must not be allowed to purchase this port. Before the decision to allow a sale to the Chinese a full national security review must be done with the lessons of the port of Darwin to be kept in mind regarding national defence and security implications.

It should be noted that the Liberal Prime Minister William Lyon Mackenzie King paid a visit to Hitler prior to the great conflagration. He told Hitler that he was proud to be born in a city which had been called Berlin, Ontario. He praised Hitler and sought to ingratiate himself to the dictator. King may have become lulled by Hitler's assurances of peace and a lullaby sung by his dead mother in seance. He appeased. Appeasement, today, is not an option.

In summary, if the citizens of Churchill wish to control the port and the citizens of Canada wish to control their own destiny then the port must be nationalized. Citizens can then direct what they want and what they don't want with the port. It is time that the Liberal government begin to think strategically and long term about the interests of Canada and go beyond the narrow interests of some Canadian executives who act as piratical piranha; otherwise, we will not be celebrating our 200th anniversary.


D.卡尔顿 罗西

2017年6月21日





                            

                                             Quantum Teleportation


                             China's Strategic Acquisition Program



4. HREE (Heavy Rare Earth Element)

a. Holmium


The author has been acquainted with the heavy rare earth elements for a considerable length of time. Around the year 1978 the author purchased shares of Highwood Resources which was a Canadian company that had discovered HREE at Thor Lake in a 1976-1979 exploration program. To put this date into perspective it wasn't until 1987 that Deng Xiaopeng predicted that the Inner Mongolia Autonomous Region would be in the front-ranks of rare earth development. Deng was quoted as saying “中東有石油,中國有稀土.” (The Middle East has its oil, China has rare earth) in a speech he made in January 1992. He also said that "it is of extremely important strategic significance; we must be sure to handle the rare earth issue properly and make the fullest use of our country's advantage in rare earth resources.”However, today, the Liberal government has still not recognized that REE's are a strategic material and that holmium may be the most critical HREE element.

Why does the author come to this conclusion concerning Holmium? The Liberal government allowed the sale of ITF Technologies to the Chinese despite the fact or perhaps because of the fact that the previous government had disallowed it. Holmium plays a critical role in both lasers and quantum entanglement in which ITF was involved.

In the article called "Holmium: Key Element in the Future of Warfare" it is said by Mark Stokes that Holmium is used in China's laser program where almost 40% of R&D is used for military purposes. It is speculated that advanced lasers may have been used in the blinding of a U.S. surveillance satellite by the Chinese. Lasers also are used in direct energy weapons and rail gun technology and it seems that these were the particular concern of security analysts regarding the Chinese purchase of ITF Technologies.


                  

                                       Quantum Computer

In a pioneering paper, Bell discussed quantum entanglement with regard to the behaviour of electrons that "have interacted in the past and then moved apart". It has been realized since that the Holmium atom can be regarded as the world's smallest magnet. As such it can store information in a state of quantum entanglement. Chinese scientists at the University of Science and Technology in China over a period of 14 have made a breakthrough discovery by sending pairs of photons in entanglement through a laser beam from the satellite Micius to ground stations separated by 1203 kilometers. In other words, they have sent a message that cannot be broken by cryptographers and there exists the probability for the Chinese to break other codes. This represents a landmark advance in quantum computing and unbreakable codes which can be used in warfare.


                        

                                   Nancheng County, Jiangxi

The Chinese have large deposits of HREE at many sites of ionic clay; although, they may be depleted in about 20 years because of increased demand. However, the Chinese have strategic reserves of LREE and HREE. They most assuredly include Holmium due to its critical military importance.

The Chinese have tried to buy several Australian rare earth companies. However, for example, the Australian Foreign Investment Review Board quenched a bid for a 51% stake in Australia's Lynas Corporation which owns the most developed rare earth mine. The Board has also limited Chinese acquisition to JV. It is a fact that China does not allow foreign ownership of REE resources, but it does everything it can to force JV as it controls market and price of REE. The Liberal government of Canada has no definitive policy on foreign acquisition of REE companies let alone REE strategy. It does not protect REE, it rejects protection of REE and therefore it projects weakness on REE.

Currently, it said that the global production of Holmium is 10,000 US tons. A Canadian company called Matamec Explorations has estimated that its Kipiwa deposit is expected to produce an average 31.2 tons per year of Holmium oxide over the life-of-mine. Varok who is a knowledgeable investor of MAT has said in a blog on March 03, 2017 that "If I take your 30000 (US) tons a year as factual, it represents 27215542 kilograms. Therefore, at 49 dollars US a kilo (2017 US price) it would be about 1.3 billion US dollars annually for holmium oxide sales for Matamec and not taking into account other oxides. The mine life is estimated at 15.2 years.

What is the Liberal government's policy to protect this company whose shares sell for .04 under the symbol V.MAT from a takeover by a Chinese firm? The Chinese will cry "protection" if the government prevents the sale. However, the company really does need to be protected for the sake of Canadians by the government from the Chinese who hold 97% of the processing of REE. The author contends that if the Chinese overwhelmingly control processing of REE that any involvement in overseas acquisition of REE resources, reserves and technology represents interference in those country's internal affairs.

China regards HREE as strategic minerals so they protect them in various ways.

1) Approval from the State

In 1990, the Chinese Government declared rare earths to be a protected and strategic mineral. As a consequence, foreign investors are prohibited from mining rare earths and are restricted from participating in rare-earth smelting and separation projects except in joint ventures with Chinese firms. All projects for rare-earth mining and smelting, whatever their size, required approval from the State Development and Planning Commission (SDPC) (formerly the State Planning Commission), which included the Rare-Earth Office. Sino-foreign joint-venture projects had to be approved by both SDPC and the Ministry of Commerce (MOC); prior to 2003, the Ministry of Foreign Trade and Economic Cooperation (MOFTEC) approved Sino-foreign joint ventures in rare earths. Refer to updated information on site.

USGS 2011


2) Stockpiling

For this year, a total of roughly 5,000 tons of nine types of rare-earth metals are expected to be set aside as commercial reserves in three installments. Refer to latest organizations which grant approval.

In addition, Beijing plans to create a separate national reserve by purchasing rare-earth metals from the six major suppliers. The initial scale of this stockpile is estimated at 15,000 tons. The combined 20,000 tons in national and commercial reserves is a significant amount, considering China's total annual output is said to be roughly 100,000 tons.

Asia Nikkei, June 16, 2016


3) Direct subsidies

China decided to provide direct subsidies to struggling producers. The subsidies are between $35-million and $40-million for the industry annually, according to Financial Times calculations - they underline Beijing's determination to reshape the industry in a way that allows the state to have greater control over prices and supply. Over the past year, regulators have encouraged rare earths stockpiling to help boost prices. Under the new Chinese scheme, licensed rare earths miners and processors will receive subsidies of 1,000 yuan ($160) per tonne of ore mining capacity, and 1,500 yuan per tonne for processing capacity.

Financial Times, March 26, 2017


4) Business and Family

Deng’s Shanghai Wangchao Investment Co. bought a 30 percent stake in Jiangxi Rare Earth for 450 million yuan ($71 million) in 2008, according to a bond prospectus. Deng owned 60 percent of Shanghai Wangchao. A copy of Deng’s Chinese identity card found in company registry documents matches one found in filings of a Yuanwei subsidiary. Yuanwei group-linked executives held the posts of vice chairman and chief financial officer in Jiangxi Rare Earth, the filings show. The investment came as China, which has a near monopoly on production of the metals, was tightening control over production and exports, a policy that led to a more than fourfold surge in prices for some rare earths in 2011.

The Confluence of Business and Politics, June 30, 2012


                    

                                       Baotou Wasteland

5) Lax Environmental Law and Enforcement

“The refinery on the other side of the lake is the largest rare earth plant on the planet and all the waste material from this process is dumped here. It is an ocean of black mud continually pumped out from a long line of plastic pipes,” he says. This toxic waste was found to have radiation levels three times the background radiation level and was made up of a cocktail of acids, heavy metals, carcinogens and radioactive material used to process the 17 most sought after minerals in the world, says Davies.

Baotao is the world's largest supplier ...


                     
                 
                        Detention of Chinese Fishing Vessel

6. Export Restrictions

Sharply raising the stakes in a dispute over Japan’s detention of a Chinese fishing trawler captain, the Chinese government has blocked exports to Japan of a crucial category of minerals used in products like hybrid cars, wind turbines and guided missiles.

Chinese customs officials are halting shipments to Japan of so-called rare earth elements, preventing them from being loading aboard ships at Chinese ports, industry officials said on Thursday.

Amid Tension, China Blocks...



The current complaint involves restrictions on rare earths, tungsten and molybdenum, which were imposed by China in 2006 and tightened since then.

“Despite the very clear W.T.O. ruling earlier this year in the first raw materials case, Beijing has not taken steps to remove these export restrictions,” Mr. De Gucht said in a statement. “We regret that we are left with no other choice but to solve this through litigation.”

US, Europe and Japan Escalate...



How can Canada hope to pursue research and development of quantum computers, lasers and entanglement of unbreakable code if they do not totally control the whole REE cycle? It is defined as rare earth exploration, smelting, processing, trade and research. Perhaps the government wishes Canada though to remain a hewer of wood, a drawer of water and a miner of Holmium. In other words, no science, no technology and no development. Is Canada going to "be sure to handle the rare earth issue properly and make the fullest use of our country's advantage in rare earth resources"?

In his current assessment of the Canadian rare earth companies the author favours by far a company called Ucore Exploration. It is a Canadian company under the symbol V.UCU which trades for .28. It really has its act together. The company's reserves and probable resources are located at its Bokan mine in Alaska.

What impresses the author is three-fold. First, they have extensive concentrations of HREE which include Dysprosium, Erbium, Terbium and Holmium. These HREE have application in green technology, high-tech and defence areas. For example, in the defence area, Holmium is used in laser range finders and target designators.


                 

                           HREE are in gold at the bottom

Secondly, they have developed a successful proprietary method to separate Dy and Ho through a firm called IBC Advanced Technologies, Inc. The following description provides details.

"The separation of Next Door Neighbors Dy and Ho is one of the most difficult and time consuming separations for Legacy Separation Technologies. Highly selective, green chemistry separation of the Dy and Ho Sub-Groups from each other replicates previous lab work and makes available the individual separation of Heavy CREE, as desired. The total amount of REE recovered in the Dy and Ho Sub-Groups plus that recovered earlier in the LREE Class plus Sc is, within 1%, the same as the total REE content present in the original PLS. Minimal amounts of REE have been lost to the commons in previous separation steps using the MRT procedure. The recovery of REE at 99%+ by MRT contrasts sharply with recovery rates achievable by Legacy Separation Technologies, where large amounts of the initial REE may be lost as waste in tailings alone. Conservation of REE through the separation process preserves a valuable resource, avoids environmental contamination, and markedly reduces operating and capital expenses."

Thirdly, Ucore announced on March 16, 2017 an option to purchase IBC Advanced Technologies Inc. They have paid USD $650,000 in consideration for the Option. This means potentially that separation methods devised by IBC Advanced Technologies Inc might be applied in other areas such as oil sands or other rare earth projects.

If the Chinese were to purchase Ucore then it could have strong implications for US and Canadian defence. For example, the Chinese might just sit on the mine as they have done with a Canadian indium, tin and tungsten mine. They might charge exorbitant prices for the material which will undergo final processing in China. The material might then be subject to further administration, tariff, environmental or strategic restrictions thus limiting its export to the United States or even Canada. The Chinese might export an inordinate amount to China even if it is not required immediately in order to stockpile it and control the price and market. Furthermore, the Chinese might limit export to Japan and South Korea. Basically, it is a nightmare scenario for the West and its allies with respect to their ability to protect themselves.

The general theme of the series called China's Strategic Acquisition Program is for China to avoid targeting a hard shell  such as the United States in the military and security sense through concentrating on a soft target like Canada. In other words, Canada is the means and the United States is the end. The Chinese have consistently used this method of divide and conquer. Therefore, Ucore is the perfect target in the REE area. It is a Canadian company with a US property.

The Chinese targeted ITF because it was a Canadian company whose expertise resided in lasers which could be weaponized against the US. Potentially, it could restrict US laser development through its patents rather than sell technology to the US. With respect to the Canadian company called Norsat International it could compromise the satellite communication system used by the Pentagon, other military targets and Canadian entities.

                         

                     Upside Down Turtle in Middle of Highway


Therefore, it is logical to assume that the Chinese will target Ucore Exploration as a means to an end whose HREE are of critical and strategic military importance. Basically, Ucore might be regarded metaphorically by the Chinese as a turtle with a soft underbelly comprised of Canadian ownership, weak foreign investment rules concerning small exploration companies, a naive government, provincial control of minerals and no REE policy. Did you notice the Sherlockian dog that did not bark? The Liberal government has no Minister of Rare Earth Elements. Worse yet it has The Hound of the Baskervilles without teeth and without bite.

The ultimate goal of the Chinese is to avoid the hard shell of American military and security concerns. The DOD in the United States is becoming aware of the critical role in which REE's play in the nation's defence and security. It realizes it must develop its own REE resources to break dependence on a potential enemy which has an overwhelming monopoly in REE processing; although, China does not have all the reserves. In other words, the American military establishment is coming to the realization that it must break the REE monopoly as it did the Middle East monopoly of oil by expanding US production of oil and gas or in the REE case by controlling the entire REE cycle.

To their credit the Centre for Operational Research and Analysis of the Defence R&D Canada have recognized the strategic importance of REE, but who in the Defence Department or Liberal government is listening? The Centre mentions that countries like Canada may find it necessary to sell REE to the Chinese. The author though looks at the Japanese who have no resources of REE. He considers it a logical choice to concentrate on the Japanese in terms of strategic partnership, low interest loans, technology, and market.



D.卡尔顿 罗西

2017年7月23日




References

Amid Tension, China Blocks Vital Exports to Japan

Keith Bradsher

September. 22, 2010


http://www.nytimes.com/2010/09/23/business/global/23rare.html



As China’s Leader Fights Graft, His Relatives Shed Assets

Michael Forsythe

June 17, 2014


https://www.nytimes.com/2014/06/18/world/asia/chinas-president-xi-jinping-investments.html




Black sludge is pumped into a toxic lake — byproducts of the ingredients that make up most of our technology.

Rowena Ryan

news.com.au


http://www.news.com.au/travel/world-travel/asia/baotou-is-the-worlds-biggest-supplier-of-rare-earth-minerals-and-its-hell-on-earth/news-story/371376b9893492cfc77d23744ca12bc5



Breakthrough holmium data storage solution piques Matamec’s interest

March 15, 2017

Henry Lazenby

Creamer Media Deputy Editor: North America



http://www.miningweekly.com/article/breakthrough-holmium-data-storage-solution-piques-matamecs-interest-2017-03-15/rep_id:3650



China to subsidize rare earths producers

LESLIE HOOK

BEIJING

FINANCIAL TIMES

MARCH 26, 2017

NOVEMBER 22, 2012


https://beta.theglobeandmail.com/report-on-business/economy/economy-lab/china-to-subsidize-rare-earths-producers/article5553215/ USGS



China's Rare Earth Industry Open–File Report 2011–1042

U.S. Department of the Interior

U.S. Geological Survey

Pui-Kwang Tse



http://tvernedra.ru/RedkozemKit.pdf




Chinese satellite beats distance record for quantum entanglement

New Scientist

Daily news

June 15, 2017


https://www.newscientist.com/article/2134843-chinese-satellite-beats-distance-record-for-quantum-entanglement/




Fortunes of Elite

By Bloomberg News

Jun 29, 2012


http://www.abc.net.au/mediawatch/transcripts/1413_bloomberg2.pdf




Is Quantum Entanglement Real?

David Kaiser

NOV. 14, 2014


https://www.nytimes.com/2014/11/16/opinion/sunday/is-quantum-entanglement-real.html



Defence R&D Canada

Centre for Operational Research and Analysis

China Team

Strategic Joint Staff

June 16, 2016

The Strategic Implications of China's Dominance of the Global Rare Earth Elements (REE) Market

Donald A. Neill

Elizabeth Speed

Strategic Analysis Section



http://cradpdf.drdc-rddc.gc.ca/PDFS/unc121/p536767_A1b.pdf




Quantum Computer Technology May Advance Using Rare Holmium Atoms, Scientists Say

Jesse Emspak

November 14, 2013



http://www.huffingtonpost.com/2013/11/14/quantum-computer-technology-holmium-atoms_n_4273500.html



Matamec Explorations Inc. V.MAT

Rare Earths

What are rare earth elements?



http://matamec.com/vns-site/pressdetail-2017_03_15_matamec_welcomes_breakthrough_discovery-en.html




Ucore Separates Dy and Ho Sub-Groups at 99%+ Purity via SuperLig(R)-One Pilot Plant

Investing News Network

July 5, 2016



http://investingnews.com/daily/resource-investing/critical-metals-investing/rare-earth-investing/ucore-separates-dy-ho-sub-groups-99-purity-via-superligr-one-pilot-plant/
Xi Jinping Millionaire Relations Reveal



Fortunes of Elite

By Bloomberg News

Jun 29, 2012


http://www.abc.net.au/mediawatch/transcripts/1413_bloomberg2.pdf




U.S., Europe and Japan Escalate Rare-Earth Dispute With China

Paul Geitner

JUNE 27, 2012



http://www.nytimes.com/2012/06/28/business/global/us-europe-and-japan-escalate-rare-earth-dispute-with-china.html




Xi Jinping, Rare Earths, Export Quotas and the Confluence of Business and Politics

Tim Worstall , Contributor

June 30, 2012



https://www.forbes.com/sites/timworstall/2012/06/30/xi-jinping-rare-earths-export-quotas-and-the-confluence-of-business-and-politics/#49b48eaa77af



https://www.statista.com/statistics/450166/global-reo-holmium-oxide-price-forecast/






                                      



China's Strategic Acquisition Program


5. Tungsten

a. Predatory Pricing
 

It could be a clue voiced by the Canadian John Treveky on the gameshow Jeopardy. "This metal resists attack by oxygen, acids and alkalis. At 3410 °C it has the highest melting point of any metal." The answer "What is Tungsten?" might pose a challenge to the audience, but its importance cannot be overestimated. It is critical for a manufacturing industry since without hardened tools and dies manufacturing dies. It is of utmost importance to the steel industry because a steel-tungsten alloy is exceedingly strong. It is necessary to make oilfield and mine drill bits, as well as metal cutting equipment. Think about this for one second. Without these bits our Canadian resource and manufacturing industry comes to a standstill. However, our tungsten mines are idle principally because of the predatory pricing of the PRC--predatory pricing is illegal in the United States and Canada, but not in China. The end goal is strategic acquisition of Canada's tungsten properties.

Recently, the author was clearing out a property for scrap metal. He came across an exceptional hand-made tire iron made of pure nickel. It was saved rather than scraped. He recognized it as nickel because he had processed the metal at the nickel refinery. At head office of INCO he had delivered mail to the department in charge of alloy sales. If the tire iron had been a nickel-tungsten alloy then it would have been one of the strongest man-made alloys. It is presumed that a diamond drill would have had to be used to hollow out the tool by a millwright.

China has a monopoly on tungsten since it produces about 85% of the world's supply. In this respect, China's monopoly resembles it stranglehold on rare-earth elements. China has dumped tungsten on the market at well below cost for between 20 and 30 years in order to control the market. The effect is to put foreign producers out of business.


                      

                    North American Tungsten's Mactung 


The author is aware of China's predatory pricing since he has been a shareholder of various tungsten producing properties. "Predatory pricing is the practice of deliberately setting prices so low that competitors cannot compete, and so are driven from the marketplace." For example, in the 1970's, the author was a shareholder of Canada Tungsten which then later became North American Tungsten (NAT). The author was also a shareholder of NAT. The predecessor was driven into bankruptcy in large part by low tungsten prices. North American Tungsten is currently in the process of trying to restructure. It has the largest tungsten property outside China.

                                

                                          Malaga


The author has been a shareholder of Malaga (MLG) which had the largest tungsten property in the Americas at its Peru mine. Malaga is also a Canadian company which has been hurt by predatory pricing policy of China. It, too, is trying to restructure.


                                               
                                    Adex Mining Inc.


Finally, he owned shares in Adex Mining (ADE) which has a mine in New Brunswick, Canada. Adex is known to own the largest indium deposit in the world. It has the largest tin deposit in North America. It also has large deposits of other metals such as tungsten, manganese, antimony, and REE's. Great Harvest Canadian Investment Company Limited (“Great Harvest”) in October 2010 gained effective control of Adex. Great Harvest is a Hong Kong-based investment company principally engaged in the mineral resource development, mineral trading and marine transportation industries. It seems though its registration has changed to an offshore company. Basically, the Chinese have sat on the deposit. It got the technical expertise to develop the deposits for free. To date, there is scant evidence of any development or job creation.

The Adex properties show diverse mineralization which includes tungsten, molybdenum, indium, zinc, tin, bismuth, copper and REE's. In 2008, China's Ministry of Land and Resources issued guidelines for development of the country's mineral resources for the period 2008 to 2015. They designated tungsten, tin and rare earths as protected mineral commodities; exploration for and production was to be strictly controlled. The production of indium, molybdenum and zirconium and other minor metals must follow the Ministry's guidelines. China had production quotas for tungsten, molybdenum and rare earths among others. It also had export quotas for these metals as well as indium. It is believed the export quota still applies to indium as of the date of this report.


                          

                Japanese coastguard seizes Chinese fishing trawler
                                     on Sept. 08, 2010


The author would like now to draw the reader's attention to a possible correlation which seems to have been missed--at least publicly--between the Senaku Islands incident between China and Japan which resulted in the PRC imposing export restrictions of REE's, tungsten and molybdenum and the private placement at Adex Mining. The New York Times on September 22, 2010 reports that China blocked vital exports to Japan. In October 2010, Adex shareholders approved transactions, including a private placement, with Great Harvest Canadian Investment Company Limited to fund the development of Mount Pleasant.

In the author's opinion, the Chinese were not only blocking tungsten, molybdenum and REE's through export restrictions, but may have been preventing the development of those metals and also indium at the Adex properties at Mount Pleasant, New Brunswick. The Chinese may have realized that the Japanese would probably lodge a complaint under GATT regulations. This would entail a lengthy process and in the meantime the Adex properties might be developed by foreign interests to fill the gap. This may explain to some degree why the Chinese simply sat on the Adex properties or in other words to prevent its development.

"In 2012, the United States, European Union and Japan (complainants) requested consultations with China about its rare earth mineral (tungsten and molybdenum) export restrictions which included export duties, export quotas, minimum export price requirements, and export licensing requirements. To give one an idea of the timeline involved a panel was established on July 23, 2012 and the panel report circulated on March 26, 2014 (followed by an appeal) which ruled against the Chinese export restrictions. This means that for the period between October 20, 2010 to March 26, 2014 the Chinese seem to have effectively blocked development of the Adex properties by others which may have weakened the Chinese "export blockade".

The complainants to the dispute basically claimed that the export restrictions were protectionist. They said that the restrictions protected the Chinese REE, tungsten and molybdenum industries thereby giving unfair advantage to Chinese industry while injuring foreign parties which depended on Chinese exports. It set-up a dual pricing system wherein Chinese industry was given a discount and foreign imports faced a higher price. Ilaria Espa wrote in a paper called Export Restriction on Critical Metals and Minerals that "The use of export taxes and other tax measure such as the withdrawal of Value Added Tax (VAT) determined a situation whereby Chinese companies were paying 31% less for rare earth materials than their foreign competitors in 2008. Yet China's export of rare earth elements de facto created a dual pricing regime leaving China's rare earth processors with a competitive advantage. The same was true for Chinese downstream producers of tungsten articles."

There may be another reason why Adex Mining has not developed the Mount Pleasant site other than Chinese export controls, general investment climate and prices of tungsten. The reason is that ammonium paratungstate is for all intents and purposes priced in Chinese yuan. Jack Lifton who is an expert on REE's and whom the author met about six years ago at a two day seminar along with leading experts in the REE field had expressed the view in 2007 that the Chinese may be waiting for the Chinese yuan to appreciate. This would mean that they could buy all the tungsten or tungsten properties they want from mines such as North American Tungsten (NAT), Malaga (MLG) and Adex (ADE) whose costs would be in $US; although their balance sheets might be stated in Canadian dollars. In effect, this would be another way to achieve a dual-pricing system since their stockpiles and production in China would also be priced in yuan.

One may ask why the Chinese ignored Malaga or North American Tungsten in the autumn of 2010? The reason is that these companies had several things in common during September 2010. First, they were ordering new equipment which meant that they intended to ramp up production to meet additional demand from China. Interestingly, Malaga had just received after a delay of several months high-performance magnets made from rare earths, with a magnetic field three times higher than traditional electromagnets. Second, they had contracts to fill. Third, they were benefiting from higher Tungsten prices which had increased, for example, from MB European APT which had risen 98% from July 2009. This would mean the purchase price of the companies for the Chinese would be outside of their buying range. Then, the Chinese probably realized that there would be too many objections raised by the Americans and Japanese who were facing Chinese export restrictions. It was safe for the Chinese to takeover Adex Mining whose properties had not had an operating tungsten mine for decades and it would be years before tungsten production might start. Finally, according to a Kaiser report MLG had the financial backing of Denver based Resource Capital Funds since May 2010 and an off-take agreement with Global Tungsten & Powders Corp . NAT's bank facilities had been renewed in September 2010 with HSBC including an operating loan facility of up to $8.0 million and NAT was probably considering a private placement and convertible debenture which actually were successfully placed at the end of October.

The Canadian government and provincial regulators allowed the Chinese to conduct a private placement of Adex Mining shares despite US and Japanese concerns over export restrictions on the sale of tungsten. The export restrictions made international headlines so it was not as if the government was unaware of the situation. The author recalls that the Japanese government pressed the Canadian Embassy in Tokyo for assistance in the REE, tungsten and molybdenum export restrictions. The Canadian government must have been aware or should have been aware that the Chinese regulated the production of tungsten concentrates by forbidding foreign investment in tungsten exploration and mining according to a 2011 USGS report. However, neither the federal or provincial government discouraged the Chinese reorganization of Adex Mining.

China is stockpiling tungsten along with other minor metals, minerals and REE's. The purpose is to create a floor price while they prepare for the long term. The Chinese government regards these materials as strategic and critical. On July 19, 2015, China Molybdenum also announced a three billion yuan fund to build a major commercial tungsten reserve.

In retrospect it seems that the reorganization of Adex Mining Inc. in October 2010 was a creeping, strategic acquisition at the very time China had imposed export restrictions while preventing foreign firms from acquiring Chinese tungsten firms. The Chinese did not acquire North American Tungsten nor Malaga during the GATT dispute. However, as a result of predator pricing distorting supply and demand of tungsten along with the GATT decision the price of tungsten has slumped. Currently, NAT and MLG are not going concerns. They will face continuing difficulty to reorganize if the price of tungsten remains low. This means that NAT and MLG are prime targets for strategic acquisition. It means China will continue to protect its overwhelming monopoly in tungsten through predatory pricing while telling the Liberal government not to protect its tungsten industry. Ultimately, the Chinese may be waiting for the renminbi to appreciate so that they can re-establish a dual-pricing system in a different form.



D.卡尔顿 罗西

2017年7月31日




References

Adex Mining

http://www.adexmining.com/file/pdf/Adex_presentation.pdf


http://www.adexmining.com/fileupload/pdf/2015-03-05_Adex_Mining_Announces_Repayment_of_Great_Harvest_Loans.pdf

https://en.wikipedia.org/wiki/Adex_Mining

http://www.thibault-process-engineering.ca/wp-content/uploads/2015/12/Speciality-Metals-New-Brunswick-Presentation-Nov-4-2013.pdf



Amid Tension, China Blocks Vital Exports to Japan

The New York Times

Keith Bradsher

September 22, 2010


http://www.nytimes.com/2010/09/23/business/global/23rare.html



China Loosening its Grip on Tungsten

Tungsten Market Update

Vivien Diniz

July 6, 2012


http://investingnews.com/daily/resource-investing/critical-metals-investing/tungsten-investing/china-loosening-its-grip-on-tungsten/



China may cancel export quotas on tungsten, molybdenum-analysts

Reuters

Polly Yam

OCTOBER 30, 2014


http://www.reuters.com/article/us-northkorea-missiles



China Molybdenum tungsten stockpile plan seen creating a price floor at the cost of time

Company's 3b yuan stockpile plan could yield profit but it will take time, analysts say

SCMP

July 19, 2015


http://www.scmp.com/business/commodities/article/1841264/china-molybdenum-tungsten-stockpile-plan-seen-creating-price



CHINA – RARE EARTHS

(DS431, 432, 433)

Parties, Agreement, Timeline of the Dispute



https://www.wto.org/english/tratop_e/dispu_e/cases_e/1pagesum_e/ds431sum_e.pdf




China's Quest for Resources

Testimony of W. David Menzie

Chief, Global Minerals Analysis Section, National Minerals Information Center

U.S. Geological Survey, U.S. Department of the Interior

Before the U.S.-China Economic and Security Review Commission

Hearing on "China's Global Quest For Resources And Implications For The United States"


https://www.doi.gov/ocl/hearings/112/ChinaMinerals_012612



China's Rising Demand for Minerals and Emerging Global Norms

and Practices in the Mining Industry

Jennifer C. Li

Working Paper No. 2 2006


http://www.fess-global.org/workingpapers/chinas_rising_demand_for_minerals.pdf



China's stranglehold on tungsten

China's edge on the vital metal is a disadvantage for the U.S.

Commodities Corner Archives, Market Watch

Myra P. Saefong

Nov. 10, 2006


https://secure.marketwatch.com/story/chinas-stranglehold-on-the-tungsten-market



The Economics and Politics of Tungsten Mining Investing in North America

Jack Lifton

December 14, 2007


http://www.resourceinvestor.com/2007/12/13/economics-and-politics-tungsten-mining-investing-north-america




Malaga may sell Peruvian tungsten assets as financial woes deepen

Creamer Media

Henry Lazenby

May 21, 2013


http://www.miningweekly.com/article/malaga-could-sell-peruvian-tungsten-assets-as-financial-woes-deepen-2013-05-21



Malaga recommended as a core proxy for the tungsten sector

Publisher: Kaiser Research Online

John A Kaiser

Nov 1, 2010

Malaga: Corporate Update on Tungsten Production at Pasto Bueno, Peru

[Marketwire]

September 29, 2010


https://www.yahoo.com/news/Malaga-Corporate-Update-on-ccn-3939590363.html
Malaga recommended as a core proxy for the tungsten sector



Kaiser Research Online

John A Kaiser

Nov. 1, 2010


https://secure.kaiserresearch.com



Management Discussion and Analysis

For the Quarter Ended: December 31, 2010

Report Dated: March 1 2011


http://www.natungsten.com/i/pdf/2010-Dec-31-MDA.pdf



Predator Pricing https://www.accountingtools.com/articles/2017/5/16/predatory-pricing


Rare Earth Metals & China

Christopher Blakely, Joseph Cooter, Ashu Khaitan, Iclal Sincer, Ross Williams

Gerald R. Ford School of Public Policy


http://sites.fordschool.umich.edu/china-policy/files/2012/09/Rare-Earth-Metals-China.pdf



Tungsten

Chemical properties of tungsten - Health effects of tungsten - Environmental effects of tungsten


http://www.lenntech.com/periodic/elements/w.htm


http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/FlagPost/2014/June/WTO_rules_Chinese_rare_earth_minerals_export_limits_breach_the_GATT_1994




U.S., Europe and Japan Escalate Rare-Earth Dispute With China

Paul Geitner

JUNE 27, 2012


http://www.nytimes.com/2012/06/28/business/global/us-europe-and-japan-escalate-rare-earth-dispute-with-china.html



USGS 2011 Minerals Yearbook

Tungsten: Advance Release

Kim B. Shedd


https://minerals.usgs.gov/minerals/pubs/commodity/tungsten/myb1-2011-tungs.pdf




The WTO Case Against China’s Export

Restraints on Rare Earths, Tungsten,and Molybdenum

A Perspective from the U.S.

Terence P. Stewart

Law Offices of Stewart and Stewart

March 13, 2012


http://www.stewartlaw.com/stewartandstewart/Portals/1/Douments/3-30-2012-3.pdf









                          




                                                  The Fentanyl Crisis


There is a serious fentanyl crisis in Canada. Generally speaking, the fentanyl comes from China. Various entities in China are working together to smuggle fentanyl into Canada. The purpose is twofold. 1. undermine our national security and stability 2. achieve an extradition treaty.


The Trudeau government has ignored the problem which the author and others have outlined in great detail some time ago. The author had even regarded it as a problem of national security. Since that time thousands more have died. Since that time new problems have emerged such as money laundering from the profits of illegal drugs. Two main avenues of money laundering have been casinos and housing. The involvement of drug dealers in the housing market has caused sky rocketed housing prices.


The government has concentrated its efforts on pursuing (out of greed) an ill-advised free-trade deal with China. It has tried to please the Chinese by listening to arguments for an extradition treaty. Misguided hopes for a free-trade deal have been dashed. Yet, Chinese party members doggedly keep pursuing an extradition treaty agenda by holding as hostage five Canadians and intensifying the fentanyl crisis in Canada.


Trudeau has soft pedaled marijuana as an election promise and then carried through the implementation of the program through its legalization. Chinese party members proposed to Trudeau that they would help curb fentanyl smuggling if Trudeau could prevent marijuana from entering China. Basically, the Chinese contrived a problem in China which didn't exist. One might rhetorically ask why China doesn't have a fentanyl problem? They have exported it.


Our government has concentrated on marijuana for political reasons rather than fentanyl. More voters support marijuana than those who wish to curb fentanyl. Also, our goverment did not wish to curb fentanyl at a time when they were trying to encourage marijuana acceptance. It might open up the old argument that soft drugs lead to hard drugs.


The author asks four provocative questions. Where did all the money come from to develop marijuana on an industrial basis in Canada. No one has really considered this issue. Secondly, could it have come from fentanyl profits? It seems more than a coincidence that the fentanyl problem developed in British Columbia and more particularly in Vancouver where marijuana has long been accepted. Both the marijuana and fentanyl industries may have then spread from West to East in tandem.
What was the role that the importation of Chinese bitcoin machines into Canada played in money laundering of fentanyl profits. How did purchases of high-end houses in Vancouver launder fentanly profits. In other words, the money may have come from the same place for marijuana, fentanyl, bitcoin and housing; namely, it came from China.



It seems that Trudeau faces a problem at least comparable in scope to that faced by Pierre Elliott Trudeau in 1970. It is the fentanyl crisis. We are in the midst of a drug war. It is not a win-win situation. We are either winners or losers. Extreme measures must be undertaken. We are watching you--Justin.


D.卡尔顿 罗西
D. Carlton Rossi

2018年12月3日