Critics: Clinton let Magnequench jobs go to Chinese

Font Size:

BY JOE CARLSON
jcarlson@nwitimes.com
219.933.3364 | Thursday, May 01, 2008 | (44 comment(s))

U.S. Sen. Hillary Clinton stood in a Washington Township gymnasium last month and publicly said President George W. Bush was forcing the American military to rely on "Chinese spare parts" by allowing the sale of a Valparaiso defense contractor.

But fresh questions are being raised in the wake of Hillary's much-publicized comments questioning why Bush failed to stop Chinese investors from moving Magnequench to China and closing the Northwest Indiana plant.

For example, if the sale of the company to Chinese investors was going to jeopardize national security, why did President Bill Clinton's administration approve it in 1995?

Magnequench made the sophisticated magnets needed to guided "smart bombs." Today, bomb-makers have to buy the magnets from the Chinese.

Kevin Griffis, Indiana spokesman for U.S. Sen. Barack Obama, said Hillary Clinton's comments about Magnequench were part of "Washington game-playing" in which "people are willing to say anything to win an election."

Clinton spokesman Jonathan Swain said the 1995 sale was approved by the Clinton administration because several American companies at the time were making the type of "rare earth" magnets that the military needed for guided bombs.

But by 2003, when the Chinese investors announced they were closing the Valparaiso plant and moving its 225 jobs to China, Magnequench was the only American company left that was still making rare earth magnets.

"Between 1995 and 2003, the landscape changed," Swain said. "The conditions were no longer the same as when the sale was first approved."

A 1988 federal law called the Exon-Florio bill allows the U.S. Committee on Foreign Investment in the United States to examine national security risks when overseas companies buy American plants.

In 1995, a CFIUS under Bill Clinton allowed the sale of Magnequench to a consortium of two Chinese and two American companies.

The McClatchy News Service reported Wednesday afternoon that one of the American firms was Soros Fund Management, owned by investor George Soros, who has contributed vast sums to Democratic candidates including Hillary Clinton and Obama.

U.S. Sen. Evan Bayh, D-Ind., a critic of the sale and chairman of Hillary Clinton's Indiana campaign, has said the 1995 was approved contingent on an agreement that the plant continue to be operated on American soil until at least 2005.

"The investors promised to maintain U.S. production of the magnets but in 2003 backed out on that promise," Bayh said in an official news release that has since been taken off his Web site.

Swain said he was surprised that the story was being reinvigorated after so many tellings in the public, and in Indiana in particular.

He repeated Clinton's criticisms of the Bush administration, which he said did not even undertake a CFIUS review in 2003 even though Bayh and U.S. Rep. Pete Visclosky, D-Ind., had called for one.

Visclosky has released all of his paperwork in 2003 in which he encouraged the Bush administration to scrutinize the sale and prevent it, if necessary.

Back to story 44 comment(s)

Please note: Comments from readers will be screened and may not be posted immediately. If you don't see your comment perhaps:

It wasn't clear, concise or focused on the topic in the story.
It was a personal attack, vulgar, explicit or degrading, used actual or implied profanity or contained potentially libelous statements.
It accused someone of being guilty of a crime.
It promoted violence or illegal acts.
It contained telephone numbers or street addresses, or e-mail addresses and links to Web sites other than nwi.com or government agencies.

In no way do these comments represent the views of The Times or Lee Enterprises.

Passionate views, pointed criticism and critical thinking are welcome. Name-calling, crude and profane language and personal abuse are not welcome.

Reader comments will not be edited - they will be approved or declined. They may be used in the print edition of the newspaper.

If you feel a posted comment has violated these guidelines, please email our New Media team the commenter's name, the comment and a link to the article.

For more information please read our Terms of Service.

Peter wrote on Jun 13, 2008 6:50 AM:

" The process was inveted in Japan. The Chinese had the cxapability for years beforethe sale of Magnequench. The rerason it went to China was 70% of the busineswas in loss amking computer components. The only way to compete was to move out. As for Smart bomb magnets, I am sure everyone knows tt Magnaquench was not the only manufacturer. Magnet manufacture is not secret, and Magnequench were far from the best (VACstill manufacture in Europe and China) These stories are very amusing to read when oneactually knows the facts "

Vette wrote on May 4, 2008 3:20 PM:

" Little does the American people understand that is even more frightening, is the number of "deals" that President Clinton has orchestrated in "brokering the sell" of many of our US corporations to foreign governements and investors, i.e. Dubai, Saudi Arabi, China, and several eastern european countries. And you want to put him "back in the" white house. Talk about "a fox in the chicken coup." Read people... READ!!! The media is NOT responsible nor are there enough hours in the day to tell you all of the news. "

NK wrote on May 3, 2008 8:33 AM:

" Barack Obama is clearly the candidate who will fight to restore the middle class and repair the broken economy in a way that will help ordinary people. He is for ALL Americans. Hillary will just lead us in to more war and corporate abuse. She will say anything to win, but she doesn't listen to those who disagree with her. This means that she will not admit her mistakes, and that she wants to run things from the top without input from the citizens. Voters who want this kind of top down management style should stick with Hillary or McCain (same=same). Those of us who want to go back to the principles on which the country was founded, to have a government of the people, for the people and by the people will vote for Barack Obama. "

Teresa Martin wrote on May 2, 2008 9:15 PM:

" Did anyone hear about a memo sent from the Indiana Gov. to Clinton about the orginal sell? "

John wrote on May 2, 2008 1:47 AM:

" More lies out of Hillary. Why isn't anyone in the media doing anything about this? She is lying now in an almost bi-weekly basis, and she remains in the race??? Something very disturbing is going on here, and it's not just Billary's 'mis-statements'. "

Anita Mathur wrote on May 1, 2008 11:50 PM:

" I'm tired of the Clintons saying one thing and then doing another. Let's actually create some decent jobs here in the US, shall we?! Obama 08!!! "

Carrie G. wrote on May 1, 2008 11:14 PM:

" I am a MN voter who has been shocked that the major networks are not reporting this story. You really have to search to find more complete information on it. Clinton's campaign is trying to cover this up and I hope it will at least spread through IN so people can make an informed decision. Please people of IN look beyond what this dishonest woman is telling you and do some in- depth reading from various news sources online before deciding. "

Denny wrote on May 1, 2008 11:09 PM:

" This is just more of the same old dirty Clinton politics. "Goldilocks Hillary" found another fairy tale to tell -- or more appropriately lie about.

Barack gets my vote. "

Jim wrote on May 1, 2008 10:56 PM:

" What's this got to do with Wright. I thought that was the only issue of importance. Until I hear them talk about the war and the economy on TV I am voting on the Wright issue because that is what is going to impact my life. Who cares about jobs. Quit whining and go watch more YouTube videos about Wrignt "

John From Cape Cod Ma. wrote on May 1, 2008 8:43 PM:

" Must be another example of Clintonspeak..ie "misspeaking"

Is that a RED PHONE I HEAR RINGING???

"

SOLUTION wrote on May 1, 2008 8:26 PM:

" So you went to see Billy-Bob. What did he have to say? I know, Hillary is the best thing that will happen to this country since he left office. Yeah, right. Was he lying? Only if his lips were moving. "

Hey wrote on May 1, 2008 7:29 PM:

" I was just in Schereville to hear Bill Clinton. Hillary just received my vote!!! Quit complaining and hearing what other people say. You should have went today. "

To Bad wrote on May 1, 2008 7:25 PM:

" Hillary For President!! Who is telling lies Obama with his preacher that cant stand white people. His preacher kept on saying stuff about white people how bad we are and Obama sitting and listening to this guy. Are u guys nuts wake up America. Hillary for President or u will be sorry...smell the coffee. HILLARY CLINTON!!! "

janice wrote on May 1, 2008 7:05 PM:

" Every thing that comes out of the Clinton's mouth is a lie. Just yesterday she stated to be the first one that suggested a gas tax holiday. If you did not hear McCain say it, first time viewers would have believed her. She's a lier "

Help wrote on May 1, 2008 6:59 PM:

" I early voted and now I don't want to vote for Hillary after reading this (my god, this is insane). Can I go back in and change it? "

Michael wrote on May 1, 2008 5:46 PM:

" So who do you want answering the phone at 3 a.m.? Someone who can't remember if she was under fire in Bosnia or not and doesn't check facts even when her husband was in the White House. I agree, I don't want to have a liar in the White House anymore. "

Dena wrote on May 1, 2008 4:59 PM:

" Get this story to the rest of the states and Puerto Rico who haven't voted yet and get it to the superdelegates. A candidate who "misspeaks" when "sleep deprived" has no business in the White House. VOTE FOR BARACK OBAMA!! "

Complainers Unite wrote on May 1, 2008 4:33 PM:

" Over the past 7+ years I've heard Democrats and Republicans (including the ones who voted for Bush) whine and bellyache about how bad things are and have been. They've whined about losing jobs, seeing companies leave the state and the country for cheaper labor, whined about gas prices going through the roof and complained about the lies told about the Iraq war. Our country is in dire straits with our economy and infra-structure, but yet the Bush supporters or the proud Republicans want more of the same in status quo leadership with McCain instead of Bush at the helm. The American people have been out of the loop with politicians. We've elected them on their promises to make changes only to be laughed at after their elected. We've complained about not having a voice in Washington DC and not being listened to, but yet Republicans will vote for the same old leadership just because their Republicans. Clinton is similar with her lies and her show-boat performances at the gas pump. Wake-up America-change really does need to be made-we need brains & a level-headed leader-not empty words & promises. "

Carol wrote on May 1, 2008 4:31 PM:

" Hillary would like her vote back on Iraq now. over 4,000 dead thousands wounded and there life in chambles if thats what her experience brought watch out what her experience will bring if President. Bosnia and the ficticious bullets being shot at her, NFTA and being an abused women. Her life
wellsley college, on the board at Walmarta nounion business a govenors wife and a presidents wife common give me a break "

Perry Sheetz wrote on May 1, 2008 4:19 PM:

" Tired of voting for politicians such as Barack McClinton? Vote for statesman that walks the walk, look at voting records. A vote for Ron Paul next Tuesday is a vote for REAL change.
Not more of the same 'ol, same 'ol.
"

Lily wrote on May 1, 2008 3:25 PM:

" It amazes me that Hillary has repeated half truths and outright lies over and over, and some people still think that's ok. Even responding "So?" like Dick Cheney - I guess it must be a mindset of "That's what Clintons must do in order to win, so it's ok". What a darn shame - doesn't speak well of the candidate or the voters. "

Hey Brenda wrote on May 1, 2008 3:24 PM:

" Hillary DID say what she said.

Obama DID NOT say what reverend Wright said.

See the difference? Hillary tells lie after lie herself. Obama is being punished for what someone else had said.

Lets punish Hillary for things Bill had said, "I did not have relations with that woman, Ms. Lewensky, or how about "it depends what the definition of is, is".

Neither Billary or Bill can tell the truth, both are dishonest lying sacks! "

Chameleon Clinton wrote on May 1, 2008 2:23 PM:

" Clinton changes faster than a chameleon. She's a duck hunter in Pennsylvania, a beer drinker in Crown Point, a pickup truck rider in South Bend. She will say whatever she thinks people want to hear to get elected. Obama actually worked for years with people on the streets of Chicago as a community organizer. He and his wife worked their way through college and law school and have just now paid off their college loans. They actually do know what the working class needs. They don't need to fake it. Vote for Obama who is the only upright and honest candidate who tells it like it is! "

Christine wrote on May 1, 2008 2:07 PM:

" I voted for President Bill Clinton twice, and honor both of the Clintons for their service to this country. But I have had enough.

From NAFTA, to Colombia, to Bosnia, and now Magnequench, Senator Clinton has tried to win votes by saying one thing, while she and her operatives behind the scenes are doing another. I am saddened that Senator Clinton's shining star has become so dim. I had hoped for great things from her. Instead, I feel we have been left with a sad shell of the candidate (and maybe President) she could have been. "

Chelsea wrote on May 1, 2008 1:56 PM:

" Bill Clinton is here today (Schererville at 3:45)... anyone wanna ask him about this? I'd love to hear what he has to say! "

Valpo resident wrote on May 1, 2008 1:51 PM:

" It is nice to see that Clinton is being called out - and for something that voters should actually know and consider when deciding who to vote for. The media keeps focusing on Reverend Wright and other non-issue stories about Obama. "

CBK Hammond Indiana wrote on May 1, 2008 1:41 PM:

" "YOur word is your bond." We all get stories mixed up at times but this seems to becoming a bad habit of Senator Clinton. And I don't see the media trashing her in the News as a result of it. Fox, CNN, MSBC, I'm looking for equity in your reporting or simply begin reporting things of substance and not gutter news... "

Right away Nah... wrote on May 1, 2008 1:37 PM:

" She apologized right away for the Sniper fire story she told at least 4 times? Uh...no, she didn't. She kept telling it, then she said she misspoke. Then, she said she was "sleep-deprived" - not a good excuse for someone going into a job that would have her be sleep-deprived for 4, probably 8 years. (I'm sure we Dems will have another 2nd term president!). So no - it's not just Obama supporters making excuses, Obama supporters are only bringing them to light.

As for this, claim the Clinton presidency as your own, but claim all of it. NOT just the positives. This is and unfortunate situation, but fortunate that the true facts are coming to light - prior to the election.

Both are good candidates. Just be careful not to blame one for the faults of the other.

Undecided "

The more you read... wrote on May 1, 2008 1:01 PM:

" The more I read into this on the news sites that covered it, the more I can see who's to blame. The further you read the deeper it keeps getting and doesn't stop. "

Typical Clinton wrote on May 1, 2008 11:51 AM:

" Look at the venom from the Clinton supporters this morning. The reality of the situation is Clinton has spent the last two months trying to show why Obama can't win and hoping to pick up the nomination as the last woman standing. Her entire strategy has been to convince the electorate that she's all they have left so they might as well suck it up and vote for her when in reality that wasn't the case. So another Superdelegate leaves the Clinton camp for Obama. At this point this should not surprise you. They are just doing what Bill Clinton told them to do years ago. "If one candidate is trying to scare you, and the other's trying to get you to think; if one is appealing to your fears, and the other is appealing to your hopes -- it seems to me you ought to vote for the person who wants you to think and hope." Even if it means voting against Hillary.
RussG85 12:41 PM "

Brenda wrote on May 1, 2008 11:32 AM:

" So Hillary is a liar according to the Obama supporters. AS for the Walmart slogan, she didn't write it. She was on a board. As for the Bosnia thing she took that out of the book she wrote admitted that it wasn't true apoligised right away and the Obama supports will not let it rest.

You know what I have noticed today. We are not hearing anytyhing about Rev. Wright. It only took Obama 7 weeks to cut his ties and admit this guy is bad news. 7 Weeks...I dno't see the Hillary supports throughing that in your face.

They are both good candidates. They will both do whatever they have to do to get elected. That's politics. You think JFK didn't tell a lie or say what ever he needed to say to different groups to get their vote. Of course he did or he would not have been so successful at becoming a nominee.

What we have to hope for is that whoever gets into office can handle the job. Clinton has the experience and that is why she is getting my vote. "

Can I smell an Impeachment already wrote on May 1, 2008 11:30 AM:

" This woman keeps on lying, who would vote for her? Last thing I want to do is spend the next 4 years trying to decipher her lies. "

Christina wrote on May 1, 2008 11:07 AM:

" How is this story playing in Indiana? Do your friends and neighbors know about it? Is it being talked about in your local newspapers or tv? I first read of this story I think at the DailyKos but it isn't all of over the place as you'd expect. On Monday evening it was referenced on NPR's all things considered as an issue that was working in her favor! I guess because of the ad which seems to be dishonest, but she seems to have drawn attention to a liability. "

lee wrote on May 1, 2008 11:06 AM:

" FINALLY
I emailed all the major NEWS STATIONS
HOPEFULLY...it gets on the NETWORK NEWS

INDIANA...NORTH CAROLINA
BE SMART...CLINTON & BUSH SOLD OUT AMERICA! "

Says everything wrote on May 1, 2008 10:43 AM:

" While Hillary Clinton learned how to pump gas during a photo op in South Bend, Governor Mitch Daniels was across town welcoming a global distributer of dental products that is relocating here from its North American headquarters in Hillary's home state of New York. "

jesse wrote on May 1, 2008 10:10 AM:

" The gas-tax issue is just another clue that he is the best decision maker in the pack. I challenge you to step back and take another look at the man.

To those afraid to support Obama because they fear this nation is too racist to elect him...you are EMPOWERING RACISTS.

I believe that there is a bigger problem with the number of people afraid that the country is too racist than with the number of people who are actually too racist to vote for the best candidate out there.

DO NOT GIVE YOUR VOTE AWAY TO THEM!

Obama has whethered weeks of terrible illigitimate bad press and is still going strong. THis is unprecendented but there is a reason: He is the strongest candidate and he embodies those principles and qualities that are great about our nation. We are not fooled by distractions from dishonest campaigns and biased media.

Now think about this: A sniper fire Liar vs. a veteran war hero POW. The GOP are already focusing ALL of their efforts on Obama, and he is still going strong.
"

rustcity wrote on May 1, 2008 9:41 AM:

" Addiitional info: The Magnequench CEO was Archibald Cox, Jr, son of Watergate Special Prosecutor Archibald Cox, (and a descendant of a signer of the Declaration of Independence). Never has a truer American lived...to fill his wallet.

My take on this: China was buying the know-how, so even if there had been a zillion manufacturers of rare-earth magnets in the USA, it should have been technology not available for export.

Now compare this: The US Govt does not allow the sale of surplus standard 6TL lead acid truck batteries nor obsolete 35 year old oscilloscope backplanes (that can be purchased on eBay) because they are listed on the Iranian F-14 program from the '70's. "

SHE DOESNT LIE wrote on May 1, 2008 9:15 AM:

" She may mis-speak but she doesn't lie, just ask her. "

Valpo Rez wrote on May 1, 2008 8:01 AM:

" This is typical Clinton politics.

Obama for President! "

I wonder wrote on May 1, 2008 7:59 AM:

" why hasn't Hillary been called out for this huge lie. While she was on the board at Walmart their motto was "unions are blood sucking leeches" now she expects us to beleive she is pro union? please sheeple open your eyes, it's sad to see these unions embracing her when years back she was calling them leeches. unions have no guts anymore they've lost their credibility with most of the american public. "

Citizen wrote on May 1, 2008 7:53 AM:

" It is just typical of what you get with the Clintons. They lie so much they can't keep their stories straight. It's also kind of scary that husband Bill is appearing mentally unstable on the campaign circuit. "

Nice wrote on May 1, 2008 6:33 AM:

" Clinton only says what she wants you to hear. I'm ready to hear the truth. Thanks for the outsourcing Clinton.

Obama for President! "

Hello... wrote on May 1, 2008 5:57 AM:

" If it was an issue before how come it just made Hillary's fact page yesterday? She still wags the dog on the fact page trying to put the blame on Bush. "

Cora wrote on May 1, 2008 2:38 AM:

" So, she's either senile, or, she's a liar. Neither quality makes for a good President. "

Back to story 44 comment(s)

Post a comment Once your comments are approved, they will appear here.

Marketplace

Sections

Services

Other Publications

Search