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Corrupt Chinese state companies should not be financing, building or operating the Alaska LNG mega project

Last November in Beijing, under the approving nod of  President Trump and China's unelected President Xi Jinping, a non-binding Joint Development Agreement, or JDA, was signed by Alaska Gov. Bill Walker and Alaska Gasline Development Corp. President Keith Meyer. Chinese signatories included Bank of China (as lender), China Investment Corp. (as investor) and Chinese oil giant Sinopec. The three Chinese signatures were blocked out on the document for "privacy" reasons. First omen.

Working with the human rights organization "Investors against Genocide" (which is very familiar with Sinopec), we engaged the governor's office, by letter and follow-up discussion, expressing grave concerns about the selection of Sinopec as a key partner for the State of Alaska, because the JDA listed Sinopec not merely as a buyer of LNG, but also in other major roles in the project, including development, engineering, design, project management and construction. We pointed out that Sinopec should be disqualified as a partner for the State of Alaska because of Sinopec's substantial and long-term support for four of the worst regimes in the world — Sudan, Syria, Iran and Burma. In addition, we highlighted Sinopec's long record of many other extremely serious issues, including corruption, bribery, pollution, a deadly oil spill and explosion, labor abuses, and environmental abuses. We emphasized the importance of acquiring any needed expertise from other oil or gas companies that would be much better partners for this project, partners that deserve our trust and business, and partners of which we need not be ashamed.

We asked for reassurance and confirmation that Sinopec's role would be strictly limited to being a "buyer." Clarification was not forthcoming. Meanwhile, this project is being fast-tracked by AGDC officials with little legislative oversight or public input. Discussions proceed behind closed doors, decisions are being made, reporter's questions go unanswered and glib consultants are being hired to sell the project to D.C. and the public. It's time to blow the whistle on Sinopec.

[Here are 5 big questions about Alaska's gas line deal with China]

Sinopec is a majority state-owned entity that answers to the Chinese government, ie: the Chinese Communist Party. Its glowing self-portrayal on its website and its actions in China and worldwide are poles apart. In addition to the issues noted above, Sinopec has been charged with labor rights/worker safety and health violations in Alberta, Canada. Back in China, under cover of an un-free press, former Sinopec chairman Chen Tonghai received a suspended death sentence for extensive bribery. Also in China, Sinopec was excoriated for a fake online PR campaign (sound familiar?) at the behest of Beijing to garner public support for higher retail fuel prices. In early 2017 Indonesian police announced that Interpol issued red notices for three Sinopec executives. And as of last summer, U.S. authorities were probing Sinopec over Nigeria bribery allegations. One could go on ad nauseum. Is this who Alaska wants to take on as a major partner?

Want to get more personal? Ask former Chinese billionaire Tiangang Sun, who played by Sinopec's rules, bested them on a deal and was wrongfully imprisoned by Sinopec's parent company, the Beijing dictatorship. They seized all his assets, raided the homes of his family and relatives, and basically framed him. Today he lives in semi-seclusion in the LA area, always looking over his shoulder for the Chinese agents who occasionally show up and knock on his door after midnight.  Is this the kind of company Alaska wants to team up with?

Last, but not least, national security concerns? China has a long record of cyber and other espionage activities in the U.S. (just ask Dupont, Lockheed Martin or Coca-Cola). Only recently, the Committee on Foreign Investments in the United States, or CFIUS, convinced President Trump to block Singapore's Broadcomm from taking over U.S. chipmaker Qualcom. Why? Because it could possibly result in Chinese companies like Huawei Technologies becoming the dominant supplier in the next generation of wireless technology. So, let's say tensions boil over in the South China Sea or the U.S. military has to come to Taiwan's defense against a Chinese incursion. Could Beijing be just a few keystrokes away from shutting down the flow of natural gas to interior Alaska in mid-winter? Not implausible if spyware is in place from Prudhoe Bay to Nikiski (pipeline infrastructure and operation is highly dependent on digital systems/computer technology). We wouldn't even consider partnering with a Russian company because of valid fears like this. CFIUS should closely examine this Alaska-China LNG deal.

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Time to take off the blinders and stop being charmed by China's deified dictator-in-the-making Xi Jinping. Time for a reality check. Alaska may be fiscally dysfunctional, but we're not stupid and certainly not morally bankrupt.  Alaskans should be worried and concerned about this project. Very worried and very concerned.

William M. Cox is a retired radiologist who practiced almost 31 years in Alaska.  He has been involved in Tibet-China-Taiwan human rights issues since a private meeting with the Dalai Lama in India in 1992.     

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