Chinagate: The Third-Way Scandal

by Richard Poe
Thursday, June 3, 1999

12:00 am Eastern Time

The Third Way: A Two-Part Series

Third Way or Third Reich?, May 18, 1999

Chinagate: The Third-Way Scandal, June 3, 1999

CHINAGATE IS fast going the way of every other Clinton scandal. It is being minimized, rationalized, covered up and forgotten. The only question is why.

Conservatives pin the blame on a vast leftwing conspiracy. They see liberal journalists shielding their favorite president, and lily-livered Republicans cringing before Clinton’s poll ratings.

If only it were as innocent as all that. Sadly, the evidence suggests that more sinister forces may be at work.

Chinagate is a new kind of scandal. It arises from the Big Business-Big Government partnership that Bill Clinton calls the “Third Way.”

Under this new style of governance, Democrats, Republicans, defense contractors, mass media and intelligence agencies all share a common interest in covering up Clinton’s misdeeds.

“I’m grateful that the Third Way seems to be taking hold around the world,” said Clinton in a September 21, 1998 speech at New York University. And well he should be. Without press or fanfare, world leaders from British Prime Minister Tony Blair to German Chancellor Gerhard Schroeder are quietly joining Clinton’s crusade for a new economic order that is neither capitalist nor communist, but something in between.

“Socialism and communism have passed away, yet they remain to haunt us,” writes Anthony Giddens in his book The Third Way. A leftwing British economist, Giddens is widely known as Tony Blair’s guru. “We cannot just put aside the values and ideals that drove them,” Giddens continues, “for some remain intrinsic to the good life that it is the point of social and economic development to create.”

The trick, Giddens explains, is to find a way to promote the good qualities of Marxism (whatever he imagines those to be) in a world that no longer trusts socialism.

Benito Mussolini faced a comparable dilemma 80 years ago. He resolved it in a way very similar to Giddens’ and Bill Clinton’s.

Originally a hardline communist, Mussolini recognized that he would gain more followers if he toned down his Marxist rhetoric. So, in 1919, he announced that he had found a “third way” between capitalism and communism. Mussolini called it fascism.

Under this system, Big Government would run the economy, while Big Business owned it. Adolf Hitler followed the same model in 1933, offering full employment to the masses and corporate welfare to the industrialists.

Now it is Clinton’s turn. Like Hitler and Mussolini, Clinton calls for a partnership between business and government. And, as with his jack-booted predecessors, Clinton’s Third Way has fostered corruption and favoritism beyond measure.

Consider the role of the CIA in the Chinagate coverup.

When the Cold War ended, the CIA took on a new job — helping U.S. corporations compete in the global marketplace.

Time magazine worried that CIA meddling might corrupt private business. On September 23, 1991, it wrote: “And how should [intelligence] agencies make information available without favoring one company over another — a prospect that opens the way to the possibility of corporations bribing American agents to get access to information that would give them an advantage over other American companies.”

Time was right to be worried. But who could have imagined, in 1991, that the bribery would go all the way to the top?

According to The Year of the Rat by Edward Timperlake and William C. Triplett, the top contributors to the 1992 Clinton campaign were Chinese agents. In 1996, the leading Clinton donors were U.S. defense contractors doing business with Chinese missile manufacturers.

Where was the CIA in all this? Right in the thick of it. According to the Cox Report, Congressional investigators sought the CIA’s help in probing Hughes Electronics for leaking missile technology to the Chinese.

But instead of helping, the CIA tipped off Hughes about the probe. It revealed the names of employees slated to be interviewed and told the company what questions they would likely be asked.

On another occasion, a CIA scientist named Ronald Pandolfi raised the alarm that Hughes might be leaking missile secrets. The CIA killed his report, according to The New York Times (December 7, 1998).

Chalk it up to the Third Way. Hughes Electronics — a division of General Motors Corporation — supplies the CIA with satellites and communications equipment. The mutual back-scratching that went on between these two organizations perfectly fulfills Clinton’s vision of public-private cooperation.

As for the Republicans, don’t expect much action from them. Defense contractors donate big bucks to the GOP too.

And don’t bother asking why the O.J. Simpson trial or the Littleton massacre merited non-stop media coverage while Chinagate doesn’t. The corporations that control the mass media — such as defense contractor and NBC owner GE — are no doubt just as eager to cash in on the Third Way as anyone else.

When business and government join hands, no power in the world can stop them. They can do what they like with impunity, be it selling missile secrets to China or building Volkswagens with slave labor.

The Third Way worked admirably for Hitler and Mussolini. God help us, it is working for Clinton too.

Cross-posted from 06.03.99

The Third Way: A Two-Part Series

Third Way or Third Reich?, May 18, 1999

Chinagate: The Third-Way Scandal, June 3, 1999

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