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CNN Live Saturday

Listening Devices Found in China's Presidential Airplane

Aired January 19, 2002 - 16:09   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JEANNE MESERVE, CNN ANCHOR: U.S.-China relations may be facing yet another hurdle. Two newspapers report that more than 20 listening devices have been found in China's new presidential airplane, which was built by Boeing in Seattle. CNN's Beijing bureau chief Jaime Florcruz has been following that story.

(BEGIN VIDEOTAPE)

JAIME FLORCRUZ, CNN CORRESPONDENT (on camera): The Chinese government has yet to issue its official reaction to the Western reports that the Americans have attempted to bug the presidential plane. However, the analysts and government officials that we have talked with say that while they find it ridiculous that the U.S. will try to do that, they are not totally shocked. As one analyst puts it, "it's only natural for governments to spy on each other, and that even the U.S. and its allies spy on each other." He also says that it shows national interest is the most important in bilateral relations.

However, Chinese government officials says that even if these reports were true, China will not be distracted from pursuing good government relations with Washington. He says that this is only a small matter, even if it's true, and that China will stick to the major issues in discussing when President George Bush visits Beijing next month.

Jaime Florcruz, CNN, Beijing.

(END VIDEOTAPE)

MESERVE: The White House is declining to comment on the allegations, which come just one month before the president travels to Beijing to meet his Chinese counterpart. CNN White House correspondent Kelly Wallace has the latest for us -- Kelly.

KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT: Well, Jeanne, this is one story filled with more questions than answers, a story that is very difficult to get to the bottom of, in part because U.S. officials simply are not commenting. A White House spokesman telling CNN, quote, "we never discuss these types of allegations."

Lots of questions here. Number one, were there devices actually planted on that plane? Number two, were they, if they were, the work of U.S. officials? And then number three, if this is all true and it is the work of U.S. officials, what impact could that have on U.S.- China relations?

As you mentioned, the story coming out just a month before President Bush gets ready to have his first summit meeting with President Jiang Zemin in Beijing. The two leaders did meet for the first time back in the fall; that was an economic summit meeting in Shanghai. Talking to experts today and even a former U.S. ambassador to China, the consensus is that this story, if it turns out to be true, won't really have a big impact on relations between the two countries, because, as Jaime just said, the two countries spy on each other. It is a well-known fact that the United States spies on the Chinese and other countries, and that the Chinese spy on the Americans.

And also, the consensus is that this issue will not be as problematic or as serious as what we saw back in April, last April, that was the standoff between the two countries after a U.S. surveillance plane collided with a Chinese fighter jet. That plane was forced to land on Chinese territory. The Chinese detaining the American flight crew for a number of days. U.S. officials, though, say after that crisis was resolved and with China's support in the war against terrorism, relations between the two countries have been growing and getting better.

Now, there is one other issue here, certainly, just exactly the background here. This plane was sold by Boeing to the Chinese in June of 2000, and then the Chinese had the plane flown from Washington state to San Antonio, Texas, where it was upgraded for about a year before the plane made its way to China.

We spoke to a spokeswoman with Boeing, and she tells us, quote: "Boeing isn't even going to address the listening device rumor. We don't discuss rumors. We delivered that airplane from a commercial facility in June of 2000, and that was the last contact Boeing had with that airplane."

Jeanne, I guess one other question could be, if this story is true, and if it impacts U.S.-China relations, could the Chinese respond by not purchasing additional Boeing aircraft? Could that hurt Boeing in the end? This spokeswoman would not even address that issue, because she said there is no sign that there is any problems just yet. And again, right now, most analysts we talked to believe this will just be a little blip on the screen if it turns out to be true. The two countries will continue working together, and I guess keeping an eye on each other as well.

Jeanne, back to you.

MESERVE: An eye and a ear. Thank you, Kelly.

WALLACE: Sure.

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