Plot to Sell F-14 Plans and Missiles to China Alleged

NEWARK, N.J. —  A businessman linked by the government to Chinese diplomats at the United Nations attempted to export TOW and Sidewinder missiles and plans for F-14 fighter aircraft to China, U.S. authorities alleged in documents disclosed in court Wednesday.

The disclosure came during a detention hearing for businessman Chang-Yao Chi, 65, of Flushing, N.Y., who was arrested Sunday and charged with conspiracy to illegally export arms.

Chi has links to “high-ranking members of the United Nations (Chinese) delegation and the People’s Republic of China,” Assistant U.S. Atty. Mark S. Olinsky said.

According to the complaint, all of the negotiations were with a government undercover agent, and no missiles or plans changed hands.

U.S. Magistrate Stanley R. Chesler ordered Chi detained without bail after finding him a risk to flee because of his diplomatic and government contacts.

According to a complaint, Chi met with an individual named Charles Chang on Sept. 7 to discuss shipment of the stolen missiles.

Chang was arrested in August in the alleged scheme and agreed to record the conversation in which the two discussed the shipments, with Chi serving as the representative for Chinese officials, the complaint said.

Lawyer Alan Zegas said Chi had been a resident of the United States for nine years and lived in Taiwan for 30 years before that.

He denied that Chi was involved in the plot, and said a transcript he had prepared of the taped conversation, which was in Chinese, varied significantly from the government version.

The twin-seat F-14, which can fly at twice the speed of sound, is the Navy’s primary fighter jet and has never been sold to China.

A Sidewinder is a short-range, air-to-air dogfighting missile with an infrared guidance system and can be used on most fighter jets.

The TOW, a U.S. Army weapon normally fired from either a personnel carrier, Jeep or tripod, is the most powerful anti-tank missile used by the infantry. It also can be mounted on Army Cobra helicopters.

U.S. Atty. Samuel A. Alito would not comment on the case. U.S. Customs Service Agent Richard Mercier said only that the investigation is continuing.

Officials at the Chinese mission to the United Nations had no comment.