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DATE=6/22/2000 TYPE=CORRESPONDENT REPORT TITLE=CHINA PENTAGON BUILDING (L-ONLY) NUMBER=2-263671 BYLINE=NICK SIMEONE DATELINE=STATE DEPARTMENT CONTENT= VOICED AT: INTRO: The United States is accusing the Chinese government of ignoring American law by failing to disclose plans to purchase a building close to the Pentagon. The building would house offices of China's state-run Xinhua news agency. Correspondent Nick Simeone has details. TEXT: The property in question is an apartment complex within eyesight of the Pentagon. The State Department says China knows is it required to seek permission for such purchases but did not do so. U-S officials consider Xinhua to be part of the Chinese government. Because of that, some members of Congress consider this a case of potential espionage. That's certainly how Republican Congressman Dana Rohrabacher, a member of the House Intelligence Committee, see it. /// Rohrabacher Act /// Having an intelligence arm of the Beijing government setting up an electronic spy nest just in this position overseeing the Pentagon is something that deserves our attention. /// End Act /// But a Chinese Embassy spokesman in Washington says Xinhua is a private company staffed by independent journalists - not part of the Chinese Embassy - and that therefore no laws were broken. State Department spokesman Phil Reeker says the matter is under discussion with the Chinese government. /// Reeker Act /// We had no record of them providing notification of the plan to purchase this Virginia property. The Xinhua news agency is considered tied to the government of the Peoples' Republic of China and therefore is under the relevant provisions of this act in terms of the restrictions. They're very aware of that. /// End Act /// Though there has been press speculation that the building could be used for electronic eavesdropping on the Pentagon, U-S officials say the Defense Department uses an array of devises to counter such threats. (SIGNED) NEB/NJS/JP 22-Jun-2000 17:41 PM EDT (22-Jun-2000 2141 UTC) NNNN Source: Voice of America .