ABC Corrects Clinton's Indiana Tale Blaming Bush for Closed Factory
Over and over again, Clinton blames President Bush for dropping the ball on a national security issue -- including in a new TV ad....What Clinton does not say is that her husband could have stopped it because the Chinese bought Magnequench in 1995 when he was President. And his administration approved the deal despite national security concerns...As for “one of Senator Clinton's main arguments” -- that “the Chinese now know our secrets” -- Tapper relayed how “former Magnequench Vice President Andrew Albers says that's false. By the 2003 move, he says, the Chinese already knew everything” so no secrets or intellectual property were transferred to China.
Tapper's ABCNews.com matching article, “Hoosier Responsible? Clinton Decries China's Acquisition of Indiana Company -- Ignoring Her Husband's Role in the Sale,” provides a lot more information on the matter and Clinton's claims, plus video of Tapper's story as it aired.
Transcript of the story on the Wednesday, April 30 World News:
CHARLES GIBSON: And as Hillary Clinton cris-crosses Indiana, ahead of next Tuesday's primary, one economic story about lost jobs and foreign competition has become a staple of her campaign stops. But it turns out to be a story with some holes in it. Our senior political correspondent, Jake Tapper, has been looking at that story. Jake?
JAKE TAPPER: Good evening, Charlie. Well in Indiana, Senator Clinton decries how the company Magnequench moved from Indiana to China in 2003. Magnequench makes high-tech magnets with defense applications, including in smart bombs. And now, China has a monopoly on the technology. But there's one key part of the story Senator Clinton tends to leave out: Her husband's role.
This rusty, abandoned factory in the heart of Valparaiso, Indiana, housed magnet-maker Magnequench until it moved to China, costing more than 200 jobs. It's a story Senator Hillary Clinton tells a lot as she campaigns throughout the Hoosier state.
HILLARY CLINTON: A Chinese company bought Magnequench. And then they decided that they were going to move the whole company from Indiana to China.
TAPPER: Over and over again, Clinton blames President Bush for dropping the ball on a national security issue -- including in a new TV ad.
HILLARY CLINTON IN TV AD: George Bush could have stopped it. But he didn't.
TAPPER: What Clinton does not say is that her husband could have stopped it because the Chinese bought Magnequench in 1995 when he was President. And his administration approved the deal despite national security concerns, raised partly because the Chinese companies were run by sons in law of then Chinese leader Deng Xiaoping.
PROFESSOR VIRGINIA SHINGLETON, DEPARTMENT OF ECONOMICS, VALPARAISO UNIVERSITY: If we believe this was truly a national defense issue, the company should not have been allowed to be sold in 1995.
TAPPER: One of Senator Clinton's main arguments, the Chinese now know our secrets.
CLINTON: Not only did the jobs go to China, but so did the intellectual property and the technological know-how to make those magnets.
TAPPER: Former Magnequench Vice President Andrew Albers says that's false. By the 2003 move, he says, the Chinese already knew everything.
ANDREW ALBERS: There was nothing new that we were doing that the Chinese didn't already have and know about.
TAPPER: This month Clinton held an event in Valparaiso.
HILLARY CLINTON: We've got to elect a President next January who's going to remember Magnequench.
TAPPER: Clearly, some things about Magnequench Clinton has conveniently forgotten.
The Clinton campaign argues that the Chinese government promised in 1995 to keep jobs and technical production in the United States. But, Charlie, they only promised to do that until 2005. And at any rate, they broke that promise.
GIBSON: Our senior political correspondent, Jake Tapper, down in Washington, tonight.