The Making of a Suspect: The Case of Wen Ho Lee

February 4, 2001

By MATTHEW PURDY

The crime sounded alarming: China had stolen the design of America's
most advanced nuclear weapon. The suspect seemed suspicious enough:
Wen Ho Lee, a Taiwanese-born scientist at Los Alamos nuclear
laboratory, had a history of contact with Chinese scientists and a
record of deceiving the authorities on security matters. 

 After a meandering five-year investigation, Dr. Lee was
incarcerated and interrogated, shackled and polygraphed, and all
but threatened with execution by a federal agent for not admitting
spying. But prosecutors were never able to connect him to
espionage. They discovered that he had downloaded a mountain of
classified weapons information, but he was freed last September
after pleading guilty to one felony count of mishandling secrets.
Ultimately, the case of Wen Ho Lee was a spy story in which the
most tantalizing mystery was whether the central character ever was
a spy. 

 In the aftermath, the government was roundly criticized for its
handling of the case; so was the press, especially The New York
Times. In an effort to untangle this convoluted episode, The Times
undertook an extensive re-examination of the case, interviewing
participants and examining scientific and government documents,
many containing secrets never before disclosed.

 This review showed how, in constructing a narrative to fit their
unnerving suspicions, investigators took fragmentary, often
ambiguous evidence about Dr. Lee's behavior and Chinese atomic
espionage and wove it into a grander case that eventually collapsed
of its own light weight.

 Before the criminal investigation began, weapons experts consulted
by the government concluded that stolen American secrets had helped
China improve its nuclear weapons, according to inside accounts of
the experts' meetings. They also said the Chinese wanted to
replicate key elements of America's most sophisticated warhead, the
W-88, and had obtained some secrets about it. However, most of the
experts agreed that those secrets were rudimentary, and that there
was no evidence China had built anything like the W-88. 

 But in the echo chamber of Washington, that measured scientific
finding was distorted and amplified as it bounced from intelligence
analysts to criminal investigators to elected officials, most of
them ill equipped to deal with the atomic complexities at the heart
of the matter. Eventually, the notion that the Chinese had swiped
the W-88 design became the accepted wisdom. 

 Investigators made Dr. Lee their prime suspect in the W-88 case
even though they had no evidence he had leaked weapons secrets.
Unanswered questions about his contacts with foreign scientists had
made him suspect, but as it searched for a spy, the Federal Bureau
of Investigation ignored the urging of a senior agent on the case
to look beyond Dr. Lee. As a result, it failed to examine hundreds,
if not thousands, of people outside Los Alamos who had access to
the stolen information about the W-88. 

 When the government's case fizzled, Wen Ho Lee went from public
enemy No. 1 to public victim No. 1. But the new label seemed no
more appropriate than the first. Off and on for two decades, Dr.
Lee's behavior was curious, if not criminal. 

 He had a knack for wandering into circumstances that aroused
suspicion. In 1982, he had a walk-on role in a major espionage
investigation, when he inexplicably offered to help the suspect,
whom he apparently did not even know. In 1994, Dr. Lee surprised
laboratory officials when he appeared uninvited at a Los Alamos
briefing for visiting Chinese scientists and warmly greeted China's
leading bomb designer. 

 As the investigation unfolded, Dr. Lee, 61, began revealing
details of his contacts with Chinese scientists, including one
encounter he had improperly hidden from laboratory officials. Dr.
Lee, it turned out, had met the bomb designer in a Beijing hotel
room years before. 

 Eventually, Dr. Lee fit perfectly into agents' portrait of a
scientist being recruited as a spy by China. 

 The government's pursuit was as erratic as its quarry. The
investigation was so low-key at times that Dr. Lee was allowed to
travel overseas unmonitored at least twice. But after the download
was discovered, the government imprisoned him for nine months by
arguing that his freedom could threaten the global nuclear balance.
Prosecutors charged him with crimes that carry potential life
sentences, even though they had only circumstantial evidence to
support the charges. 

 The case, like so much in the world of espionage, was a haze of
ambiguity, in which everything from intelligence data to Dr. Lee's
activities was subject to interpretation. Often what mattered was
who the interpreters were, and what perspective they brought. 

 The case was first framed by Notra Trulock III, a Soviet analyst
during the cold war who had become director of intelligence at the
Energy Department, which maintains the nation's nuclear arsenal and
runs its weapons laboratories. His influence was magnified because
much of the government infrastructure that provided nuclear
intelligence at the height of the arms race had fallen into
disrepair. 

 As the case passed to the F.B.I., it acquired a classic cold war
plot: spy for competing superpower steals blueprints for America's
premier bomb. But this was a different, more complex story. 

 The other country was not Russia but China. And while Washington
and Beijing had hardly become allies, their nuclear scientists were
meeting regularly and sharing research. That gave China the
opportunity to spy the way experts say it prefers to, mining
nuggets from countless foreigners bearing secret knowledge rather
than relying on a few master spies.

 The case of Wen Ho Lee was propelled by the divisive politics of
Clinton-era Washington. It languished for several years, only to be
revived in 1998 by a confluence of forces — a White House under
siege of impeachment, festering accusations of Chinese money
funneled to Democratic campaigns and a House panel that saw the
W-88 case as only the newest evidence of China's voracious appetite
for American technology secrets. 

 The spying charges gained wide public attention on March 6, 1999,
after The Times reported that China possessed "nuclear secrets
stolen from an American government laboratory," and that American
experts believed Beijing had tested a weapon "configured remarkably
like the W-88." Descriptions of the espionage escalated rapidly.
Two months later, the chairman of the House panel, Christopher Cox,
Republican of California, wrote publicly that the Chinese had a
"knockoff version of the world's most sophisticated nuclear
design." 

 Today, the crime, whatever its extent, remains unsolved, the spy,
or spies, unidentified. In its long pursuit of Wen Ho Lee, the
government was driven by fear that he had given up the nation's
deepest atomic secrets. The one secret he most certainly never gave
up was himself.

STARTING OUT
Wen Ho Lee arrived at Los Alamos in 1978 and joined the bomb-design
unit two years later. It was a time of growing scientific
cooperation between China and the United States. 

 In a tale laced with cross-cultural subtleties, the arcana of
atomic science and the feints of the intelligence world, the most
indecipherable character is the man at the center.

 In part, Wen Ho Lee is an immigrant striver, one of 10 children of
poor, uneducated farmers whose roots traced to Fujian province in
China, across the strait from Taiwan.

 Dr. Lee's childhood was an adventure of swimming and fishing and
catching monkeys for pets in bamboo forests. But it was also hard,
according to relatives and information Dr. Lee provided through his
lawyers. (Dr. Lee declined several requests for interviews.) While
Dr. Lee was in high school, his mother committed suicide after
years of declining health; his father died after a stroke a few
years later.

 The Lees lived through the Japanese colonization of Taiwan and the
martial law of the Nationalists, who detained intellectuals
suspected of subversive activity. Lee Tse-ling, Dr. Lee's nephew
and a doctor in Taiwan, said the lesson the family took from these
experiences was, "Don't get involved in politics." 

 Mathematics was Wen Ho Lee's ticket out. He studied mechanical
engineering at Cheng Kung University and then came to the United
States in 1964, earning a doctorate in mechanical engineering from
Texas A & M in 1970. His English was heavily accented, but he
embraced things American, from Aggie football to his blue Mustang.
In 1974, he became a United States citizen. 

 Dr. Lee, his wife and two children got to Los Alamos, N.M., in
1978, and two years later he joined X Division, the bomb-design
unit. As a specialist in hydrodynamics, he wrote computer codes
that model the fluidlike movement of explosions. The codes help
scientists design bombs and simulate weapons tests. 

 Los Alamos is typically suburban, with sizable homes, good
schools, low crime. But it is also a place apart, a spectacular
mountaintop village anointed as science headquarters of the
Manhattan Project in the 1940's. Streets named Trinity Drive and
Bikini Road commemorate bomb tests, and a gift shop sells $13.50
pewter key chains of Fat Man and Little Boy, the bombs dropped on
Japan.

 In those early days, Dr. Lee stood out. The local Chinese
community was so tiny "everybody knew everybody," recalled Cecilia
Chang, a friend who became a vocal supporter of Dr. Lee. The Lees'
house in White Rock, just outside Los Alamos, was an ethnic oasis
where Dr. Lee offered Chinese meals made from homegrown vegetables
and fish he caught.

 When Dr. Lee arrived, the laboratory was assuming an important
role in the changing relationship between the United States and
China. Exchanges between the two countries' nuclear scientists had
begun soon after President Jimmy Carter officially recognized China
in 1978. They were extraordinary at first, given the secrecy
shrouding America's weapons laboratories. But eventually, with the
Reagan administration eager to isolate the Soviet Union, hundreds
of scientists traveled between the United States and China, and the
cooperation expanded to the development of torpedoes, artillery
shells and jet fighters. 

 The exchanges were spying opportunities as well. 

 "In 1979, we
knew virtually nothing" about China's nuclear program, said George
A. Keyworth II, who was Ronald Reagan's science adviser. "By 1981,
we knew a large fraction of the strategic intelligence, the big
questions."

 China was spying, too. Shortly after the exchanges started, the
F.B.I. began an espionage investigation code-named Tiger Trap,
which focused on a Taiwanese-American nuclear scientist at the
government's Lawrence Livermore laboratory in California. Agents
were wiretapping the scientist's phone, and on Dec. 3, 1982, the
tap picked up Wen Ho Lee offering to help find out who had
"squealed on" him.

 Dr. Lee's first encounter with investigators set a pattern for the
future. When confronted, he said he had not known the scientist and
had not tried to contact him; he confessed only when presented with
evidence of his call, according to government records and
Congressional testimony. Then he told investigators that he thought
the suspect was in trouble for passing unclassified information.
Dr. Lee said he was concerned because he himself had been giving
Taiwanese officials unclassified documents that American officials
say dealt with nuclear-reactor safety.

 According to a secret F.B.I. report recently obtained by The
Times, Dr. Lee told agents that he had not informed American
government officials, "even though the documents he passed
specifically stated they were not for foreign dissemination." 

 The report continued, "Wen Ho Lee stated that his motive for
sending the publications was brought on out of a desire to help in
scientific exchange." Dr. Lee also said "he helps other scientists
routinely and had no desire to receive any monetary or other type
of reward from Taiwan."

 Dr. Lee's call could be viewed as a simple overture to a fellow
immigrant scientist in trouble. It could also be seen through the
eyes of a seasoned spy catcher. "This says this guy wants to be a
player," said Paul D. Moore, then the F.B.I.'s chief analyst for
Chinese counterintelligence. 

 But Dr. Lee passed a polygraph test on whether he had divulged
classified data and cooperated with F.B.I. agents trying to get
incriminating information on the Tiger Trap suspect. The incident
was apparently never reported to the Energy Department, and the
F.B.I. closed its investigation of Dr. Lee in 1984. 

 Had the department known, "it would have been enough to remove his
security clearance," an agency official said. "The lights should
have gone off with somebody."

MAKING FRIENDS
Dr. Lee traveled to Beijing twice in the 1980's. What worried his
bosses was what he did not tell them when he got home. 

 Throughout his career at Los Alamos, Dr. Lee traveled widely,
attending scientific meetings and giving papers in places like
Venice and Budapest, Britain and Hawaii. In March of 1985, he and
other government scientists attended a conference in Hilton Head,
S.C. Two scientists from China were also there. 

 "They sat in the back wearing their Mao jackets and stuck out like
a sore thumb," said Robert A. Clark, a scientist who attended the
conference. "Wen Ho chatted with them quite a bit." The scientists
suggested that Dr. Lee and Dr. Clark attend a conference in Beijing
the next year, and, with approval from Los Alamos, they went with
their wives.

 Dr. Clark, a defender of Dr. Lee, said it was clear in Beijing
that his colleague had befriended some Chinese scientists. 

 "It's obvious they would chat him up with the idea that maybe one
day they would get information from him," he said. "You might say
he was friendlier than he should have been with these guys." But if
it looked suspicious, he said, it was only because of fears of
China. 

 Dr. Lee's wife, Sylvia, a secretary and data-entry clerk at Los
Alamos, was making friends, too. She had become an unofficial
hostess for visiting Chinese. Correspondence obtained by The Times
shows that she served as both tour guide and research contact. 

 "I am very sorry to hear that Wen Ho is ill and hope he will get
better soon," a Chinese scientist wrote her in a telex about a
coming trip with a colleague. "Both Chen and I will be very happy
if we can learn something in computational hydrodynamics and get
some papers."

 Mrs. Lee also gave the F.B.I. and C.I.A. information about
scientists she met. She had repeated contacts with the F.B.I. in
the mid-1980's, government officials and others knowledgeable about
the case said. In about a dozen instances, they said, a C.I.A.
agent was present and paid for the hotel room where the meetings
took place.

 In 1988, the Lees attended another conference in Beijing. In
post-trip debriefings, American scientists often reported being
approached by Chinese scientists seeking classified information,
but Dr. Lee reported nothing of the sort. That worried Robert
Vrooman, then the chief of counterintelligence at Los Alamos.

 Mr. Vrooman says he considered Dr. Lee naïve, not nefarious. Even
so, in 1990, he urged laboratory officials to deny Dr. Lee's
request to visit China again. Officials decided to end Mrs. Lee's
role as a hostess at about the same time. 

 "I have been concerned for some time that Dr. Lee did not
understand the ruthlessness of intelligence agencies in trying to
collect information being vital to national survival," Mr. Vrooman
said last year in court documents.

BLAST IN THE DESERT
At first, the Chinese bomb test didn't alarm American officials.
But how did Dr. Lee know the designer of China's new bomb? 

 On Sept. 25, 1992, a nuclear blast shook China's western desert
near the Silk Road once traveled by Marco Polo.

 From spies and electronic surveillance, American intelligence
officials determined that the test was a breakthrough in China's
long quest to match American technology for smaller, more
sophisticated hydrogen bombs.

 China had entered the nuclear arena after other big powers and
feared its large, stationary missiles were becoming vulnerable to
disarming first strikes. Smaller bombs that fit on trucks and
submarines would be easier to hide, have greater range and aid
China's transformation from a regional to a global nuclear power.

 Miniaturization was difficult science, involving complicated
physics, computer work and machining. Older bombs use a ball of
atomic fuel surrounded by a cumbersome array of conventional
explosives that compress the fuel until it reaches critical mass.
The secret to the smaller American design was an oval-shaped mass
of atomic fuel detonated by just two charges — one at each end of
the oval. That step helped cut the width of bomb casings from feet
to mere inches.

 Shrinking weapons by using "two-point" detonation became China's
holy grail. The first American nuclear scientists who went to China
in the late 1970's were peppered with questions about
miniaturization. When the Tiger Trap suspect was stopped at an
airport en route to China in 1981, officials said, he was carrying
detailed answers to five weapons questions, including one about
two-point detonation. Though officials believed that secrets leaked
in the Tiger Trap case, they felt the evidence was too weak to
bring criminal charges. The suspect maintained his innocence; he
now refuses to discuss the case.

 The 1992 test was a leap forward, but it did not initially alarm
American nuclear intelligence experts, since countries like Russia
and Britain had mastered two-point technology years before.
Besides, the diplomatic wind was blowing in a different direction. 

 With the cold war over, the United States and other countries
were trying to defuse the arms race with global cooperation. As a
sign of the new openness, the Energy Department began declassifying
millions of ideas and documents about nuclear arms, and even
encouraged weapons scientists to share unclassified computer codes
with their foreign counterparts.

 Washington began working with Moscow to secure its plutonium
stockpiles. And Beijing agreed to a partnership on arms control and
methods of verifying a test-ban treaty — an agreement destined to
bring the two nations' nuclear scientists even closer together. 

 On Feb. 23, 1994, Los Alamos was host to the highest-level group
of Chinese weapons officials ever to visit the United States.
Leading the delegation was Hu Side (pronounced se-DUH), the new
head of the Chinese Academy of Engineering Physics, the nation's
bombmakers. American intelligence officials had learned that he was
the designer of China's two-point bomb. 

 One person not on the guest list was Wen Ho Lee. "We had very
tight controls on access," a laboratory official said. "The door
was closed. The session was not advertised." But that afternoon,
Dr. Lee appeared at a briefing and was warmly greeted by Dr. Hu. 

 "There is a lot of bowing and exchanging cards," another official
recalled. He was startled that a midlevel hydrodynamics expert at
Los Alamos knew China's top nuclear scientist. And Wen Ho Lee was
not simply relatively obscure; just months before, he had learned
he might be laid off because of budget cuts.

 Then a translator told the official that Dr. Hu was thanking Dr.
Lee in Mandarin. "They're thanking him because the computer
software and calculations on hydrodynamics that he provided them
have helped China a great deal," the translator said.

 Laboratory officials informed the F.B.I., which had suspicions of
Dr. Lee from Tiger Trap and opened an investigation. Officials did
not know what to think. Dr. Lee had never reported meeting Dr. Hu
in China. If the two had an improper relationship, why expose it at
Los Alamos? 

A GREAT LEAP FORWARD
China's new bomb, one expert said, was 'like they were driving a
Model T' and ‘suddenly had a Corvette.' Was it espionage? 

 Tension between security officers and scientists who see their
work as apolitical and dependent on open discourse has existed at
Los Alamos since the laboratory's founder, J. Robert Oppenheimer,
clashed with Leslie Groves, the Manhattan Project's top military
man, who so mistrusted the scientists that he wanted them to enlist
and wear uniforms. 

 Little surprise, then, that scientific diplomacy was not
universally applauded. As the Energy Department's new intelligence
director, Notra Trulock, saw it, scientists might "think they're
too smart to be bamboozled by some foreign intelligence officer."
Periodic leaks and other security breaches, he believed, indicated
otherwise. 

 Mr. Trulock entered the fray not as an expert on China or spy
hunting or even bomb building. He had a political science degree
from Indiana University and in the Army during the cold war had
monitored Warsaw Pact radio transmissions on the German-Czech
border. Later, he led a Los Alamos research project on the dangers
of post-Communist Russia losing control of its nuclear weapons, a
study that won two government awards. 

 In his new job in Washington, Mr. Trulock said, he figured
warnings about Russia would go unheeded given President Bill
Clinton's policy of engaging the former enemy. But the risks posed
by China might be heard. "We focused on China because we could," he
said recently. 

 Siegfried S. Hecker, the director of Los Alamos from 1986 to 1997,
said that, in several discussions, Mr. Trulock had implied that Los
Alamos "was infiltrated by Chinese agents." Once, Dr. Hecker added,
Mr. Trulock told him that "just the fact that there are five
Chinese restaurants here meant that the Chinese government had an
interest." Mr. Trulock denies that remark. 

 Mr. Trulock's focus on China began when Robert M. Henson, a Los
Alamos scientist and intelligence analyst, went to him in early
1995 and said his analysis showed that the Chinese had so
dramatically shrunk their weapons that they had to have used stolen
American secrets. "It's like they were driving a Model T and went
around the corner and suddenly had a Corvette," Dr. Henson said.

 Now Mr. Trulock turned to John L. Richter, a legendary bomb
designer whose specialty was the main bomb component the Chinese
had improved — the atomic trigger for a hydrogen bomb, known as a
primary. Dr. Richter said the sketchy evidence suggested that China
might have significant information about the primary of the W-88. 

 Dr. Richter, who had overseen the design team for the W-88, calls
it "a darling." The W-88 warhead is 30 times more powerful than the
bomb that leveled Hiroshima, but the compact design of its primary
allows for unusual accuracy. Beginning in 1990, hundreds were
affixed to Trident missiles and deployed on submarines.

 The question was how much the Chinese had reduced the size of
their bomb primaries. Making a smaller weapon was a natural
evolution for China, but making one as small and sophisticated as
the W-88, and doing so quickly, was a monumental leap of physics
and engineering that presumably would have required knowing
American bomb secrets. After all, it had taken the United States
three decades to go from its first miniaturized hydrogen bomb — a
warhead with a primary casing about 20 inches across — to the W-88,
with its 9-inch casing. 

 Mr. Trulock sensed espionage. He likened China's 1992 test to the
first clue in other great spy cases, like the unexplained deaths of
Russians working for the United States in the Aldrich Ames affair.
"In this case," he said, "you had something go boom in the desert."

'THOUSAND-PIECE PUZZLE'
Officials knew the Chinese had stolen some
secrets about the W-88. But how much did they know, and what had
they done with it? 

 To probe deeper, Mr. Trulock assembled nearly 20 weapons and
intelligence experts who met in the summer of 1995 in a spy-proof
room at Energy Department headquarters in Washington, sifting
through intercepted signals, purloined Chinese documents, accounts
of spies.

 But determining the physical size of China's test bombs was nearly
impossible. "You get three pieces of a thousand-piece puzzle and
try to figure out what it is," one participant said. "People read
in their own prejudices."

 The pieces they had were hardly clear, intelligence officials
said. A spy's vague report spoke of Chinese interest in a primary
whose outer casing was the size of a soccer ball — about nine
inches, the width of the W-88 casing. And a Chinese scientist
visiting Los Alamos had recently bragged about the size of China's
new bombs by holding his hands close together. 

 Still, while there was no question China had built smaller bombs
with two-point detonation, most of the experts agreed there was no
proof the Chinese had figured out anything about the W-88.

 Then, in midsummer, the experts got from the C.I.A. a
seven-year-old Chinese document showing that Beijing knew
distinctive characteristics of the W-88, including almost the
precise width of the primary casing. In spy-speak, it was a
"walk-in document" because someone had offered it out of the blue.

 The document, which compared China's weapons with those of various
countries, was far from a blueprint for the W-88. It contained
secret but rudimentary information of value mainly in making
missiles that carry bombs. To Dr. Richter, the walk-in confirmed
that China knew "the periphery" of the W-88, but not its design.
"If you get a map of New York, is that New York?" he said. "No,
it's an image."

 Michael G. Henderson, a bomb designer who headed the panel of
experts, said, "We all agreed there had been some hanky-panky."

 But in wrestling with the implications of the espionage, the
experts clashed, with their debate breaking into three positions. 

 The most benign was that China had effectively made all its
advances on its own, even if it had done some spying.

 The second, that China had benefited from a slow drip of secrets
about two-point detonation, was supported by reports of many
scientists asked to give up secrets while visiting China, by the
files of Tiger Trap and by the walk-in document itself.

 The last view was that a cold-war-style superspy had betrayed much
more in a single delivery of bomb blueprints than the slow drip
ever could. Dr. Henson, who had first sounded alarms about Chinese
spying to Mr. Trulock, was virtually alone in arguing angrily that
the magnitude of China's advancement implied the existence of a
major spy. One participant recalled him "literally cursing,
swearing at us," and added, "His face was red."

 Having reached an impasse near the end of the summer, the group
stopped its formal meetings. Months later, the few remaining
experts agreed on a compromise that was spelled out in secret
briefing documents, which were recently described by participants
and federal officials. 

 On the one hand, they said, Tiger Trap had likely given the
Chinese the two-point concept, and over all, espionage had "been of
material assistance" to Beijing's nuclear advances. Further, they
believed that China had plans to try to build a "W-88-like aspheric
primary." 

 Even so, the experts said they had no way of knowing how small
China's bombs had actually gotten and saw no evidence that Beijing
had copied America's premier weapon.

 Mr. Trulock remembers it differently. The panel, he said,
generally agreed that the 1992 test involved something akin to the
W-88 primary. "Words like ‘resembled' and ‘similar to,' were words
that were used," he said. He accused the scientists of rewriting
history to play down their role in the Lee ordeal.

 Dr. Henderson, the panel's chairman, said Mr. Trulock took his own
view "and ran with it." He added: "I'm sure he believes in the
veracity of what he had. But, unfortunately, that doesn't mean it's
true."

SEARCHING FOR SUSPECTS
Though the exact crime was unclear, an espionage investigation
settled on Los Alamos, the birthplace of the W-88. Soon, the focus
narrowed to Wen Ho Lee. 

 If Notra Trulock ran with it, he hardly ran alone. He informed his
bosses at the Energy Department. Alarmed, they asked the C.I.A. for
its assessment. Initially skeptical, the C.I.A. reviewed the
evidence and agreed that espionage had probably aided China. The
Energy Department gave Mr. Trulock a green light to expand his
inquiry and to brief top officials, from the White House, in April
1996, to the Strategic Command in Omaha. 

 Mr. Trulock called the investigation Kindred Spirit, and from the
start, it reflected his belief that the Chinese had come close to
replicating the W-88, and that one spy might have given them the
blueprints. 

 In his briefings, he was typically careful not to overstate how
much was known about Chinese spying. But he also took the stance of
a military analyst in stating the worst-case scenario, people who
heard his briefings said. Sometimes, he included images of China's
newest missile and the W-88, implying that was where China was
headed.

 "We thought it best to focus on the W-88 because it was the newest
system in our inventory and it was the system within the ‘walk-in
document' for which the most detailed information was provided,"
Mr. Trulock wrote in an unpublished article. And he said he feared
that the secrets in the walk-in document might represent just a
sampling of what the Chinese had stolen about the W-88. 

 The idea of a theft, without the scientists' caveats, was
alarming. "I said, ‘Holy cow, this is the last thing we need,' "
said Daniel J. Bruno, Mr. Trulock's chief investigator on the case.
"It's a very serious thing that affects your children, our
children, our grandchildren."

 In searching for suspects, Energy Department investigators, aided
by an F.B.I. agent experienced in Chinese espionage, looked at
other weapons laboratories but concentrated on Los Alamos, where
the W-88 had been developed. 

 Since the laboratory had no records showing all contacts between
American and Chinese scientists, the investigators gleaned a list
of 70 potential suspects from records of laboratory employees who
had traveled to China in the mid-1980's, before the walk-in
document was written. The Energy Department's final report shows
that more than a third were on the list for travel that had nothing
to do with the scientific work of the laboratory: "chaperone with
Santa Fe High School band's trip to Beijing," "personal vacation
cruise to Whangpo." 

 Investigators also looked at people who had access to W-88
information or had security problems. The list was narrowed to a
dozen suspects, half with Chinese surnames. Wen Ho Lee and Sylvia
Lee were on top. The Lees had visited China twice. Dr. Lee, whose
access to weapons secrets was listed as "moderate," had worked on
the W-88 computer code. His appearance in Tiger Trap remained
suspicious. And investigators found Mrs. Lee suspect because
laboratory supervisors said she had been so eager to play host to
Chinese visitors that it conflicted with her job. (The
investigators were never told that Mrs. Lee had also been a source
for the F.B.I. and the C.I.A.) 

 "Quite frankly, Wen Ho Lee being a suspect at that point is only
natural, since at that time they had been looking at him for 13
years," said Dr. Hecker, then the Los Alamos director. "They would
have been derelict not to look at him."

 But it may also have been derelict to look only at Dr. Lee,
especially since the most concrete evidence of spying was the
walk-in document, and its secrets had been distributed to hundreds,
if not thousands, of people at military installations and missile
contractors. 

 It is true that Energy Department investigators were legally
prohibited from looking for suspects outside their agency. But Mr.
Trulock and Mr. Bruno said they told F.B.I. officials that the leak
might have come from the other sources. In addition, T. Van Majors,
the F.B.I. agent assisting the Energy Department, wrote a
memorandum warning against focusing just on Dr. Lee, a law
enforcement official said. However, the memorandum was not
reflected in the Energy Department's report on the case, and in the
subsequent F.B.I. investigation.

 "This guy stands out higher than the rest, based on circumstantial
issues," Mr. Bruno said. 

 Defenders of Dr. Lee have said that investigators focused solely
on him because of ethnic profiling, a charge government officials
deny. Still, ethnicity did play some role in their thinking. Mr.
Moore, the F.B.I.'s former China espionage analyst, said that while
the Chinese routinely seek information from visiting scientists of
all nationalities, they concentrate on ethnic Chinese, including
Taiwanese, by appealing to a "perceived obligation to help China."

 When Mr. Trulock's office issued its secret report, it said Dr.
Lee "appears to have the opportunity, means and motivation" to
compromise the W-88. A secret Justice Department review of the
case, completed last year, called Mr. Trulock's report "a virtual
indictment" of Dr. Lee, a law enforcement official said. 

 The crime, though, was unclear. The report's damage assessment,
never before disclosed, contained a hodgepodge of formulations,
from the tentative (the W-88 "may have been compromised") to the
certain (the Chinese had "almost a total duplicate of the W-88
warhead"). 

AN ERRATIC PURSUIT
 The F.B.I.'s investigation of Dr. Lee started and stalled as it
passed from agent to agent and was overshadowed by higher-profile
cases. 

 Two days after receiving the Energy Department's report in late
May of 1996, and still three years before the case became public,
the F.B.I. opened an investigation of Wen Ho Lee. The old inquiry,
begun after Dr. Lee's encounter with Dr. Hu, was folded in. 

 Usually, the F.B.I. looks askance at the investigative work of
other agencies. But in this case, F.B.I. officials neither
interviewed the panel of weapons experts nor searched beyond the
Energy Department for suspects. They accepted the Energy
Department's finding as confirming their own suspicions about Dr.
Lee and shipped it out to the field.

 The case fell to David Lieberman, a veteran agent who worked Los
Alamos counterintelligence cases part time from an F.B.I. satellite
office in Santa Fe. The Lee investigation was added to his lineup
of drug cases, bank robberies and crimes on nearby Indian
reservations.

 Promised help never came. Headquarters sent two agents to assist,
but Albuquerque F.B.I. officials assigned them to general crime
cases, law enforcement officials said. "It's not the way to handle
anything that's a big investigation," a former official involved in
the case said. "You don't send it out to the backwater of America
and assign it to someone part time."

 Neil J. Gallagher, head of the F.B.I.'s national security
division, acknowledged that more resources should have been devoted
to the case. But he said the investigation was hamstrung because it
involved espionage suspected to have occurred a decade earlier.

 There were more current national security cases at the time,
including the Oklahoma City bombing and the Unabomber. Besides,
Chinese espionage had always been a stepchild to Eastern Bloc
cases, and in the aftermath of the cold war, F.B.I. resources had
shifted to things like terrorism and urban drug gangs.

 Still, as the case passed from one agent to another, the F.B.I.
seemed to miss one opportunity after another.

 For years, F.B.I. agents did not search Dr. Lee's computer because
they believed they lacked legal authority. They never looked far
enough to find a waiver Dr. Lee had signed in April 1995 stating,
"Activities on these systems are monitored and recorded and subject
to audit." Agents never used standard investigative tools, like
trash searches and stakeouts. F.B.I. officials said it was
difficult to operate surreptitiously in the closed society of Los
Alamos. But a veteran F.B.I. espionage investigator said agents
have worked in more challenging circumstances. "We've run cases
inside C.I.A. headquarters," he said.

 In 1997, a new agent on the case requested a permit to eavesdrop
electronically on the Lees. A secret F.B.I. report prepared to
support that application flatly stated that China "seemed to have
had a copy of the design" of the W-88.

 Allan Kornblum, a Justice Department lawyer who reviewed the
permit application, later told a Senate committee, "I was also
shocked by the facts, the idea that this guy is making official
trips to the P.R.C. to meet with his counterparts in nuclear
weapons design." 

 Still, weaknesses in the Lee case were obvious. Agents had not
examined any other suspects on the Energy Department's list. They
had not sufficiently demonstrated a link between Dr. Lee and the
compromised W-88 information, Mr. Kornblum said. Intriguing
elements of the case were old. In short, "we had little to show
that they were presently engaged in clandestine intelligence
activities," he said, according to a report by Senator Arlen
Specter, Republican of Pennsylvania.

 Justice Department officials declined to act on the F.B.I.'s
application. That rejection stalled the investigation again. Mr.
Kornblum said he told agents in August 1997 how to "flesh out"
their application, but they did not respond for nearly 18 months.
F.B.I. supervisors in Washington sent Albuquerque a list of 15
investigative tasks, but only 2 were done, a Senate investigation
later determined.

 With the investigation flagging, the F.B.I. director, Louis J.
Freeh, told Energy Department officials that concerns about
exposing the investigation were no longer a reason to keep Dr. Lee
in his job. 

 But the laboratory's top officials were never told. According to
internal Energy Department correspondence, Mr. Vrooman, the Los
Alamos security chief, decided after consulting with a local F.B.I.
agent that it would be better for the investigation if Dr. Lee
remained in the laboratory's inner sanctum, X Division.

IN THE ECHO CHAMBER
In Washington, anger at the Clinton
administration and concern over China brought the W-88 case to a
boil. 

 In Washington, Notra Trulock was pressing his case. By his own
estimation, he gave his standard briefing about China, the W-88 and
leaks at the national laboratories 60 times from 1995 to 1998.

 He was relentless. Unable to get an appointment with a new top
official at the Energy Department, Mr. Trulock recalled, he
lingered outside her office until he could slip in and hit her with
his pitch. Mr. Moore, the former F.B.I. analyst, said Mr. Trulock
had figured out that to get heard in Washington: "He had to hype
it. He wanted people to get interested in the problem."

 Mr. Trulock denies any exaggeration. In fact, there was new
evidence to support his anxiety about Chinese espionage. A
September 1997 Congressional report found that foreign visitors
were streaming into government laboratories without background
checks. Los Alamos, for example, had 2,714 visitors in two years
from "sensitive" countries, but only 139 were checked. Also in
1997, a scientist named Peter Lee pleaded guilty to charges related
to passing American nuclear secrets to the Chinese. 

 Early the next year, President Clinton issued a directive to
improve security at the laboratories. But Mr. Trulock felt that
changes were coming too slowly, and that laboratory officials' view
of espionage was that "it couldn't happen here."

 If Mr. Trulock's warnings about lax security rang true for many
officials, his central point — the theft of the W-88 — met with
some skepticism.

 A 1997 report, prepared for the White House by the C.I.A., found
that while spying had aided China's "remarkable progress in
advanced nuclear weapons design," it had saved Beijing a mere two
years of development. The report went on to judge that China had no
W-88 duplicate.

 Some experts, hearing Mr. Trulock's classified briefing,
questioned whether China would even want to expend the vast
resources needed to produce the W-88. Richard L. Garwin, a top
federal science adviser, said he dismissed the notion as whimsical.
While the highly accurate W-88 was designed for a specific cold war
objective — knocking out missile silos — China's nuclear program
focuses on the ability to destroy cities.

 But suddenly, in 1998, Mr. Trulock found a larger and more
receptive audience.

 With impeachment as a backdrop, allegations that the Clinton
administration was allowing China easy access to American secrets
collided with charges that China's military had funneled money into
Democratic coffers. The New York Times reported that the daughter
of a senior Chinese military officer was giving money to Democrats
while also working to acquire sensitive American technology.

 Republicans, opening a new front against a beleaguered president,
created a House select committee, headed by Representative Cox, to
investigate whether the government was compromising technology
secrets by letting American companies work too closely with China's
rocket industry. With its deadline approaching, the committee
stumbled on the W-88 case.

 Mr. Trulock became a star witness, and committee members were
riveted by his testimony. C.I.A. analysts who testified before the
committee agreed there was espionage, people who heard the secret
proceedings said, but were more equivocal about its value to China.


 As it was completing its work, the panel received a secret report
from the National Counterintelligence Center, a federal group that
seeks to outwit spies. In a brief reference, the report echoed Mr.
Trulock's view that China had stolen "the design information on a
current U.S. warhead," the W-88, but offered no evidence to back
that finding. 

 The Cox committee wrote its report in late 1998, but it was not
declassified and released until May 1999, after the case had broken
into public view. The unanimous report accused China of stealing
nuclear secrets — possibly even entire blueprints — for the
warheads of "every currently deployed" long-range American missile.
While acknowledging that "much is unknown" about the impact of the
thefts, it judged that future Chinese designs would "exploit
elements" of the W-88, and that the stolen secrets put China's
bomb-design information "on a par with our own." 

 But John M. Spratt Jr., a Democratic representative on the
committee, said the panel lacked the time and witnesses with
sufficient technical background to fully examine the issues. In
retrospect, he said, Mr. Trulock's testimony was more alarming than
warranted. 

 He pointed to a 1999 report by the nation's top intelligence
experts, done in response to the Cox panel, that concluded that
China's theft of American secrets had "probably accelerated" its
weapons development, though more "to inform their own program than
to replicate U.S. weapons design."

 The Chinese government issued its own response to the Cox
committee. Its report, "Facts Speak Louder Than Words and Lies Will
Collapse by Themselves," denied any espionage.

 And in a recent e-mail response to questions from The Times, Hu
Side, China's top bomb designer, said his nation's scientists "can
create every advanced technology and glory which they need by their
own efforts."

CLOSING IN
Bit by bit, new details of Dr. Lee's activities came tumbling
out.

 The Cox committee's deliberations built pressure within the
government to revive the languishing W-88 investigation.

 David V. Kitchen, who became head of the F.B.I.'s Albuquerque
office in August 1998, said he first learned details of the case
that October, when his assistant brought him the Energy
Department's 1996 administrative report. 

 "We couldn't understand how they came to the conclusion they came
to, specifically about how Lee was the main suspect," said Mr.
Kitchen, who is now retired from the F.B.I. 

 Mr. Kitchen wanted to close the investigation. "We worked the case
for quite a while, and what did we have to show for it?" he asked.
The answer was very little.

 But Edward J. Curran, an F.B.I. official working at the Energy
Department, had heard a secret Cox committee briefing and was
aghast at what he saw as a lack of rigor in the F.B.I.
investigation. 

 In August, the F.B.I. had run a sting operation, with an agent
posing as a Chinese intelligence officer trying to lure Dr. Lee to
a meeting. Even though Dr. Lee did not take the bait, Mr. Curran
was concerned that if Dr. Lee was a spy, that call could have
alerted him that the authorities were onto him. In December,
investigators knew Dr. Lee was going to Taiwan for three weeks, but
did not monitor him. Laboratory officials had not even informed the
F.B.I. when Dr. Lee went to Taiwan for six weeks earlier that year
to consult at a military institute.

 The new energy secretary, Bill Richardson, said he decided that
leaving Dr. Lee in X Division "was an unacceptable risk." On Dec.
23, after Dr. Lee returned from Taiwan, the department gave him a
lie detector test. Dr. Lee was initially found to have passed the
test, which included questions about divulging secrets. But he made
one startling revelation.

 One night during his 1988 trip to Beijing, a Chinese scientist he
knew had called his hotel room and asked to meet alone. Dr. Lee
agreed, and the scientist, an official in China's nuclear program,
showed up with Hu Side. Dr. Hu, law enforcement officials said,
asked Dr. Lee questions about how to make smaller hydrogen bombs
using oval-shaped fuel. 

 China's top bomb designer, then, was pressuring Dr. Lee for
information about two-point detonation four years before China
achieved that goal. Perhaps that explained why Dr. Hu greeted Dr.
Lee so warmly during the briefing at Los Alamos in 1994. 

 Dr. Lee told investigators that he had not answered Dr. Hu, since
the information was secret, but he had never before reported the
meeting to security officers, as required. It was precisely the
kind of approach Mr. Vrooman, the laboratory security official, was
surprised Dr. Lee had not reported in the 1980's.

 That day, Los Alamos officials suspended Dr. Lee's access to X
Division. F.B.I. agents had heard Dr. Lee's admission about Dr. Hu,
but they did not interview him for three weeks, and even then did
not grill him about it, a laboratory official who was present said.
"They didn't press him to go into details," he said. "It will
bother me for years."

 Believing that Dr. Lee had passed the polygraph test, Mr. Kitchen
asked an agent on the case to write a memorandum proposing ending
the investigation, which he forwarded to Washington. But on Feb. 2,
the case turned again, this time on the analysis of a polygraph
test. F.B.I. analysts reviewed tapes of the December test and
decided that Dr. Lee's answers were inconclusive, after all.

 Polygraph tests record factors like pulse rate and sweat gland
activity to determine if a subject is being truthful. Although
results are not admissible in court, law enforcement agencies,
particularly the F.B.I., place great stock in their investigative
value.

 On Feb. 10, bureau officials administered their own test in a
hotel room in Los Alamos. Dr. Lee was wired to a machine, and for
the first time since he was singled out in 1996, was asked, "Have
you ever provided W-88 information to any unauthorized person?" 

 "No," he answered.

 He also said he had never given
nuclear-weapons codes to an unauthorized person.

 The polygraph examiner determined that Dr. Lee was deceptive, a
Congressional report said. 

 He also told the examiner that he had helped a Chinese scientist
with a mathematical problem that "could easily be used in
developing nuclear weapons," Mr. Freeh later told Congress.

 That evening, Dr. Lee told one of his bosses, Richard A. Krajcik,
that he had failed the test, and acknowledged that "he may have
accidentally passed" secrets to a foreign country, Dr. Krajcik
testified in court. Dr. Lee's lawyers say he never made such a
statement. 

 The investigation that was nearly closed weeks before was reaching
a boil. After having gone on in secret for years, it was also
leaking. 

 Back in January, The Wall Street Journal had run a news article
under the headline "China Got Secret Data on U.S. Warhead — Chief
Suspect Is a Scientist at Weapons Laboratory of Energy Department."
The article said the Chinese had obtained information on the W-88
from Los Alamos, but investigators said they had no sign the
article had alerted Dr. Lee.

 Two months later, when the authorities were informed that The New
York Times was preparing a major article on the W-88 case, they
realized time was running out to get a confession from Dr. Lee.

 Federal officials asked The Times to delay publication for several
weeks, saying they were preparing to confront their suspect.
Although The Times did not know the identity of the chief suspect,
F.B.I. officials said they feared he would recognize himself from
details in the article. The Times withheld publication for one day
and said it would consider a further delay if asked personally by
Mr. Freeh, the F.B.I. director. He never called. 

 The F.B.I. interviewed Dr. Lee on March 5, and he consented to a
search of his office. The next day, a Saturday, The Times published
its article, "China Stole Nuclear Secrets for Bombs, U.S. Aides
Say." The article said American officials believed "Beijing was
testing a smaller and more lethal nuclear device configured
remarkably like the W-88." And it reflected criticism of the White
House and the F.B.I. for not dealing swiftly with the Los Alamos
case. It included Paul Redmond, the C.I.A.'s former chief spy
hunter, saying that "this is going to be just as bad as the
Rosenbergs."

 The Times article prompted a flood of press attention and upended
the F.B.I.'s strategy, forcing agents to rush into a confrontation
interview with Dr. Lee before they were ready, Mr. Freeh told
Congress.

 The F.B.I lured Dr. Lee to Santa Fe that Sunday and subjected him
to a harsh interrogation. An F.B.I. agent thrust a copy of The
Times at him. "Basically that is indicating that there is a person
at the laboratory that's committed espionage, and that points to
you," she said, according to a transcript.

 "But do they have any proof, evidence?" Dr. Lee asked.

 The
F.B.I. had only suspicion, and the agent, who has been identified
by several government officials and in court testimony as Carol
Covert, laid it out in the interrogation. The Lees went to China in
1986 and "they were good to you," she said. "They took care of your
family. They took you to the Great Wall. They had dinners for you.
Everything. And then in 1988 you go back and they do the same thing
and, you know, you feel some sort of obligation to people to, to
talk to them and answer their questions."

 She focused on Dr. Lee's 1988 hotel room encounter with Dr. Hu.
"Something had to have happened when they came to your room," Ms.
Covert said. "We know how the Chinese operate."

 Dr. Lee said he had "a rule in my mind" about what was secret and
what he could reveal. "You may think," he told the agents, "when
people, when the Chinese people do me a favor, and I will end up
with tell them some secret, but that's not the case, O.K.?"

 They threatened him with losing his job, with being handcuffed,
with being thrown in jail. In preparing for the interview, Mr.
Kitchen said he had suggested to Ms. Covert that she bring up the
Rosenbergs because of the reference in the Times article.

 "Do you know who the Rosenbergs are?" Ms. Covert asked.

 "I heard
them, yeah, I heard them mention," Dr. Lee said.

 "The Rosenbergs are the only people that never cooperated with the
federal government in an espionage case," she said. "You know what
happened to them? They electrocuted them, Wen Ho."

 When the transcript was made public, F.B.I. officials denounced
the Rosenberg reference. "She carried that a bit further than we
expected her to," Mr. Kitchen said.

 But Dr. Lee did not crack. Always polite, he thanked the F.B.I.
agents as he left. "I hope you have good health," he said. He
added: "If they want to put me in jail, whatever. I will, I will
take it."

 Driving up the mountain to Los Alamos from Santa Fe that afternoon
with his friend Bob Clark, Dr. Lee was distraught. "They kept
saying I had to say that I did this thing I didn't do," Dr. Clark
recalls him saying.

 Mr. Richardson announced Dr. Lee's dismissal the next day, based
on a failure to report contacts with people from a "sensitive
country" and mishandled classified documents found on Dr. Lee's
desk.

 But the F.B.I. was no closer to knowing if Dr. Lee was the
suspected W-88 thief. They just had a more detailed, if more
frustrating, picture of him. 

 "It seemed like the more times you hit him upside the head, the
more truth comes out," Mr. Kitchen said. "It's like a little kid." 

Copyright 2001 The New York Times Company