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Taiwan reviews impact of new US spy charges

Allegations that a Pentagon analyst passed information to a Chinese spy ring has sent Taiwan scrambling to determine whether the case compromises a critical new air defense system it is purchasing from Washington.

The system -- known in Taiwan as Bo Sheng (Broad Victory) is crucial in helping the military defend against a possible attack from China, which has more than 900 missiles aimed at Taiwan.

A Ministry of National Defense official said on Tuesday that the ministry was looking into the case of Kuo Tai-sheng (郭台生), 58, who was arrested in the US for allegedly providing information obtained from US Defense Department weapons systems policy analyst Gregg Bergersen, 51.

On Monday, the US Justice Department said Bergersen sold classified defense information to Kuo, a New Orleans furniture salesman. Kuo, a Taiwanese native and naturalized US citizen, then forwarded the information to the Chinese government, it said.

In an affidavit, the Justice Department said that Bergersen discussed with Kuo the Bo Sheng system -- a sophisticated command, control and communications network that Taiwan is purchasing from Lockheed Martin.

The affidavit said Kuo had "taken steps" to set up two companies in an effort to obtain subcontracts for Bo Sheng-related equipment.

Less than two years ago a former Taiwan-based Lockheed Martin employee was convicted in the US on charges of trying to provide weapons to China, though those charges did not relate directly to the Bo Sheng system.

The ministry official, who spoke on condition of anonymity because he is not authorized to talk to the press, said the ministry was trying to ascertain if the information Kuo allegedly supplied to China was related to Bo Sheng.

"We understand Mr. Kuo was not awarded any contracts connected with the command system," the official said. "The US Defense Department is handling our weapons purchases, and we are trying to understand [the case]."

A ministry statement did not refer specifically to the Lockheed Martin system, but said a task force had been set up to investigate possible damage to Taiwan that spies arrested in the US might have caused.

"The Ministry of National Defense is concerned whether the US has suffered a leak of classified information, and it is taking measures to deal with the situation," the statement said.

A defense official said Kuo was a son-in-law of the late admiral Hsueh Yueh (薛岳), who became famous for his part in several battles in China against Japan.

He said Kuo immigrated to the US several decades ago, where he worked as a tennis coach and restauranteur before starting his business in China a decade ago.

He said Kuo had not obtained any information about the Bo Sheng system.

The military also did not think Kuo had received any top level secrets, he said.
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