Attachment 2019_03_29_16_42_51.

2019_03_29_16_42_51.

OTHER submitted by Reply to Response to Unauthorized Filings

Reply to Response to Unauthorized Filings

2018-10-17

This document pretains to 325-NEW-20180614-00001 for New Application on a Permit to Foreign Broadcast filing.

IBFS_325NEW2018061400001_1641120

-r


                                                                                  Recejved0
                                                                                    ociy41
                                                                                 Bure4, I Offio.
                                     BEFORE THE
                          FEDERAL COMMUNICATIONS COMMISSION
                                 WASHINGTON, D.C 20554

     mit
     GLR Southern California. tiC              )
                                               ‘I
     Application for Transfer ofControl from   )      File No. 325-NEW-201 80614-00001
     GUt Services. Inc. to                     )
     H&H Group liSA. tiC                       )                               Accepted I Piteci
                                                                                   0CT172018
     For Delivery of Programming in            )                                  Olteflflasjy
     Mexican Station XEWW-AM.                  )
     Rosa3ia Baja California None. Mexico      )

     To: Secretary
     Ann.: Chief:, International Bureau


                      REPLY TO RESPONSE TO UNAUTHORiZED FILINGS



                                               CHINESE SOUND OF ORIENTAL AND
                                               WEST HERITAGE

                                               By its Attorneys,


                                               James L Winston
                                               RUBIN, WINSTON, DIERCKS, HARRIS
                                               & COOKE, LLP
                                               1201 Connecticut Avenue. N.W. Suite 200
                                               Washington. D.C. 20036




     October 17. 20)8




                                                                        Pa

     D. New Matters in the Suoemeni and Reply Provide CODICXL Greater
        Accuracy to Which H&H Has Responded and thus Arc Permitted      .22

V.   Conclusion                                                          .24


                                           SUMMARY

       CSO maintains that H&H is a front for Phoenix TV. which is a front for China which is

on a campaign to undermine U.S. national interests and interfere with U.S. elections by

broadcasting propaganda to Chinese Americans in Southern California. The grant of the Permit

application would enable the foregoing. The Permit application process traditionally involves

minor questions not invoking the national interests and threats to the electoral system, the latter

issues that the Administration advises are present with respect to China and for which multiple

agencies have responded by employing greater scrutin to financial and media transactions

involving China.

       H&N asserts that the Commission need not be concerned by a grant of the Permit,

because H&.[-l and Phoenix TV can be trusted to behave. H&H asserts: it provided all required

information on the form 308; there are no factors requiring denia] of the Permit; national

security risks are not present; neither it nor its programming partner, Phoenix TV, or any

individual involved, is a front for China; no propaganda will be broadcast; registration as foreign

agents is urn required; this is not a financial transaction requiring inter-agency review; the

Commission may not consider program content; any interference caused by XEWW-AM is

belated; and most of the arguments CSO advances to deny the Permit are belated.

        In reply, CSO maintains that the Permit application form 30$ provides that the data

requested on the ibm is not exhaustive; national security issues presented are part of the public

interest and must be considered; Phoenix TV controls staffm and programming. important

functions reflecting that H&FI has delegated defacto control to Phoenix TV; that inter-locked

staffing of H&H and Phoenix TV further indicates de facto control; both the programming

agreement providing compensation to H&H and Phoenix TV’s pavmem of programming



                                                  1


Droducion costs constirmes a CFIUS covered financiai transaction: judiciai preccdem

specificriflv authorizes denial of the Permit in lieu of content reguaiion: the Pemiir application

triggered the rieht to file a peti ion to deny as to the interference caused h XEWW-AM as no

hvc) Arizona AM co-channel stations: and Commission precedent allows the consideration of

non-soecifled   padmgs where necessary for a robust and accurate record.


                                BEFORE THE
                     FEDERAL COMMUNICATIONS COMMISSION
                            WASH[NGTO. D.C. 2(1554

Inre                                          )
                                              )
GLR Southern California. LLC                  )
                                              I
Application for Transfer of Control from      )       file No. 325-NEW-20180614-00001
GLR Services, Inc. to                         )
H&H Group USA. LLC
                                              )
                                              )
                                              )
For Delivery of?rorarnrniiw to                )
Mexican Station XEWW-AM.                      )
Rosarita, Baja California Norte, Mexico       )
To: Secretary
Attn.: Chief. International Bureau


                 REPLY TO RESPONSE TO UNAUTHORIZED FILINGS

       I.      Introduction

       Chinese Sound of Oriental and West Heritage (CSO”), licensee of KQEV-LP, Walnut,

California. by its attomcys. hereby files this reply (Reply to Response”) to the pleading styled

“Response to Unauthorized Pleadings” (Response”), filed on September 24. 2018. by GLR

Southern California LLC (GLR), and its parent company H&H Group USA LLC (hereinafter

collectively H&H).

       11.     Background

       In an Application flied on June 13, 2013. lI&H seeks approval under Section 325 of the

Communications Act. 47 U.S.C.        325, for a Permit to deliver, via internet protocol. Mandarin


  Pursuant tO Section 1 .3 of the Commission’s Rules. CSO requests leave to flie this Reply to
Response. As H&H provided substantia] new material in its Resoonse. CSO requests leave to
respond to that new material.


l2nguae   procrarnming from a studio in the Los Ante]es area to radio station XEWW-AM.

Rosariti Baja Califbmia None. Mexico. which sianal        can   be received in all of Southern

California and beyond.

     In its Petition to Deny. Fi]cd on August 8. 201 $ (“Petition”), and a Supplement to the

Petition to Den, filed on September 4, 2018 (“Supplement”) and a Reply to the Opposition to

the Petition to Deny (Rep]v”) filed on September 11. 20! 8. CSO demonstrated that the Peopl&s

Reoublic of China (‘TRC or China”) is conducting a multi-prong. broad             overseas campaign,




usins media organizations to undermine American national interests. including efforts to

interfere with American elections. in support of i position. CSO cited finngs and \varnings            of




and by multiple U.S. security and intelligence agencies, governmental monitoring agencies.

research institutions, media advocates and human rights representatives. Supplement at 2. 4. 5.

6.

     CSO also demonstrated via a sworn declaration of the former        senior rnanaer    and News

Director for Phoenix TV USA Ltd. (“Phoenix TV”) that Phoenix TV           is   a Cayrnan Islands-

chartered and 1-Ion Kona based-entity, subject to the soverciunty of the .PRC. and that t-1&H has

delegated near universal programming rights and financial sales management to Phoenix TV.

two of three factors thai the Commission has held constitute dc/ado control. in violation of the

Commission Rules. As to the third factor- financing CSO maintains that. as H&H has not
                                                      -




provided any documentation as to the source of Funding for the acquisition and        operations of



XEWW-ArvI. and given the deflicto control   of   the first two factors. the Commission is unable to

decide as to the third Factor: and thus. the Commission cannot conclude that aarant of the Permit

would serve the public interest.




                                                 7


        III.    H&H Response

        In response io the above. l-l&H    asserLs   that the Supplement and Reply are untimely and

beyond the aruments and factors detailed in the Petition: and. as such. they are unauthorized

and should not he considered. Response. at 4-6.

       On the merits of the CSO assertions. H&H’s general response is that CSC) advances self

serving, anti-competitive, unsupported allegations; and the got’emment and CSO are making

fear-mongeñng and racially-tinged assertions in their efforts to consider legitimate national

security interest findings. Response, at 2.

       More specifically. H&l-I has    four responses.    1-l&H says: a) it has demonstrated sufficient

evidence for a grant of the Permit and CSO has not demonstrated any grounds for denial of the

Permit: b) neither H&H nor GLR is or will he an agent for the PRC: c) the CSO interference

claims as to KCEE(AM). Tucson, Arizona, and the new proposed AM station at Flagstaff.

Arizona. are belated, and CSO lacks standing to complain: and d) the Supplement and Reply

oiler new information and are untimely. Response. 3. 7, 17.

     As detailed below. the H&H Response ignores the record in this proceeding, and is

assertions and arguments are evasive and disingenuous. Pivolaily, H&H ignores that the public

interest standard for accepting non-rule specified pleadings and the substantIve factors for

detailing the public interest arc broad and flexible, liberally permittina robust pleadings not

specifically authorized and considering and allowing the consideration of a variable, adjusting

and evolving   ac/hoc   public interest standard.




                                                      3


       IV.      Araument

             A. The Permit Application Requeci for Information Is Not Exhaustive and Nationcil
                Security factors Can Be Supplen7dnted

        1. The Permit Application form Provides Notice That Additional Data
           May Be Required

       H&H argues that it has submitted all the information requested on the Permit form 302

and that is enough for a grant of the Permit, as it is not required to submit anything more.

Restated, H&H submits that the Permit form data requests are exhaustive, and the Commission

may not ask for additional data. Response, at 3.

        H&H ignores its own citation of Section 325 of the Communications Act, which requires

that before the Commission may grant a Permit, the Commission must find a grant to be in the

public interest. Nothing in Permit form 308. or the Commission Rules, precludes the

Coftmission flom seeking additional data. Further and decisively, the Instructions to the Permit

Application specifically provide notice that the Commission may require additional information.

See Instructions for form 308, pars. 3-4, at p. 2. Indeed, absent additional data, the Commission

could (and should) designate the Permit application for an evidentiary bearing to secure

substantially greater information. See Instructions for Form 308, par. 3, at p. 2.

        2. Petitioner has detailed ovei-whelminQ evidence to sunport denial of the PermiL or
           alternatively, the need for ah evidentiary hearing

        H&H maintains that CSO has not provided any grounds to deny the Permit. Response, at

3. H&H further asserts that the national security interests demonstrated by CSO are insufficient

grounds andlor evidence to deny the Permit, given that such a standard would be new. Response,

at 3-4. Note 9. The reply is that H&H ignores that the traditional broad public intereststandard is

 not fixed, but dynamic and variable depending upon the industry, the time period and the specific




                                                   4


                a   -
                                           ..Ss   p           — —




:d:tzr :estn:e:. Ir a Z.em ‘ from C’::n’na Ton:           -   k it. it N “,:‘c   .
                                                                                     9n D

Ractçi’.c’. et 1.. 231t \VL   )3I5CwLL.   Marcr   r. 2(114. a: 2. iii: Cnairrnan o:ei
       Congress’ express statwor command is thot licensc transfers must sadsf the
        public interest. convenience, and necescity. a standard Lbat is always informed
       by regulatory standards. hut ihich necessarily in olvcs. as our licensing decisions
       hae long noted. the use of a casc-by-casC approach...Applicants and
       interested parties should not forget that our public intcrc.ct mandate cncompasscs
       giving careful attention to the economic effects of. and incentives created by, a
       proposed transaction taken as a whole and its consistenc) with the Commission’s
       policies under the Act, includ!ng our policies in favor of competition, diversity.
       and localism.

Tnt Chatn,an ‘wm on to say:

       [Wel reaffirm the iongresitond command that the legal standard for deciding the
       transfer of licenses under Sevtion 30 Ud) is the public interest convenience, and
       neccssitf and that of course. no single set of unvdtten. little understood
       fonnulations can replace the Commission’s responsibility to apply that standard
       with an understanding of the totality of the facts. That is no change of policy: it is
       the polk enacted by Congress and the statute that I have sworn to enforce....

       As such. H&H’s reliance on the proposition that national security interests may not be

used to require information beyond the Permit form or used to decide the merits of the H&l I

Permit application is misplaced.

       Additionally. H&H maintains that. as a national security standard is not applicable, there

is no basis to rescind the Special Temporary Authority (‘STA’) granted to H&H to commence

delivery of the Phoenix TV programming to XEWW-AM for rebroadcasting in Southern

California. Response. note 10. llowever. given the above, demonstrating that the application of

the national security standard applies, as previously demonstrated. the Commission should

rescind the 5Th.

        H&H maintains that CSO has not demonstrated any grounds to support a denial of the

 Permit Response. at 34. The argument is &singenuous and evaske. CSO has provided the

 wrntngs and findings of the National Security Agenc. the Office of the Na’iona Secunt

                                                    S


                                                                                              y end Review
                                   de Rcp               rcscntativc. the US.-Chinn Securit
Advisor. oflice of the Special Tra
                                                                                                            these
                          ers. Sup    plem   ent.  at  4-5 .   N&  H  would have the Commission ignore
Commission and oth
                                                                                                   n defense and
              e Com    mis   sion  can    not  Th  ey   rep resent vital factors as to the commo
findings. Th
                                              onally within the public inlercst
general welfare, matters constituti
                                                                                                        mittee of the
                    ally  , from   his    van tag  e  poi nt  as a Member of the Armed Forces Com
         Addition
                                                                                                    na will use
             tes  Sen  ate,  Sen  ato  r Ted    Cru   z has   cautioned the Commission that Chi
 United Sta
                                                                                                                to
                              ine  Am     eric an  inte  rest s mid  inf lue nce American elections. See Letter
 propaganda to underm
                                                                                                        ket entry on
                    Pai , date  d Sep    tem  ber   11,  201  8.  (As the letter does not show as a doc
  Chairman Ajit
                                                                                                  further support and
              iss ion ’s  web  site , it  is atta che  d  her  eto as an Exhibit) This provides
  the Comm
                                                                                                e the Commission
                                                       be considered here.) I&H would hav
  evidence that national security should
                                                                                                       Response. note
                    tio n,  sum  mar   ily   dis mi  ssi ng  the  Senator’s assertions as unfounded.
   ignore this cau

  24.
                                               Oo         vemmenfs core raison thetre
           3. National Security is the Federal
                                                                                                            es defies
                                             e the Comm            ission ignore national security issu
            The H&H position, seeking to hav
                                                                                             to provide for the
          and  history. A  cor e rea son  for the federal government’s existence is
   logic
                                                                                                              the
                           the  com  mo  n def ens  e?  the  latt er of which includes protection against
   general welfare and
                                                                                                   ltiple means by
                 of fore ign  gov ern men  ts mid   the ir manipulated entities. lucre are mu
    uggession
                                                                                                                of
                              ern me nt may   ens  ure  suc h  nati  ona l security, including the monitoring
    which the federal gov
                                                                                                         statutes set
                      ctic es of fore ign  enti ties to  ens ure   the lack of infiltration. One of the
    intelligence pra
                                                                                                  blished the
              im ple me nt pro tect ion is the  Nat  ional Security Act of 1947 vhich esta
     forth to
                                                                                                              have
                          Cou  ncil  mid  the Cen  tral  Int elli gence Agency, agencies which recently
     National Security




                                           Constitu        tion.
      2Afticle I, Section 8. United States
                                                               S


found thai the PRC is attempting to undermine American intcresls. including using media it

controls to interfere with American elections. Supplement. at 6—7.     0.

       In rVeit’ )n’k Times v. United Slates. 403 U.S. 7 3 (1 971 ). the Supreme Court held that

national security issues ai’e a basis for denial of’privilcges. even overriding First Amendment

concerns. and the test for such denials in print media3 is a grave and irreparable danger.”

However. in that case. the Govcrnment fai]cd to satisR’ the standard based on the record before

thc Court. Whilc the case is generally considered a victory for an expansive reading of the first

Amendment. its decision did not void the Espionage Act underlying the Government’s core need

for national security tools to protect against foreign entities, hi. at 73 0—740 (Justices While and

I3renan. concurring). As .such. the 1T&1-l assertion, implicit or otherwise, that national security

interests are “insufficient” to deny a Permit ignores history and precedent.

        4. ‘The Vice President Also Warns ‘That China Is lnterfcrinu in Upcoming Elections

        Il’the findings of those agencies and entities detailed above and in [he Supplement and

Reply were not compelling enotigh. just thirteen days ago, on October 4. 201 8, the Vice

President underscored and enhanced those fluicliiws. In “Remarks by Vice President Pence on the

Administration’s Policy Toward China” (“Remarks”) before [he I ludson institute, the Vice

President declared an inflection point’ in U.S.—China relations.” The Vice President, echoing oilier

government flndings. declared that Clii na abUses its economic clout; bullies American companies

into transferring to ii American technology: intimidates its neighbors: and persecutes religious

and spiritual believers in its own country. In stark language, made particularly relevant here. the




  Here, as broadcasting and not print media is involved, the standard is lower. A more complete
discussion is given below at sub-Section 5. a.
‘ The text of [he Remarks is available online at https:!/www.whitchouse.gov/tirielings—
statements!retnarks—vice—prcsidcnt—pence—adrnin istrations—policv—toward—china/

                                                   7


Vice President concludes that China is anenmting to interfere in the 201 8 mitherm election.

addins that China uses its influence and powers by       rewarding or coercing American

businesses, movies studios. universities, think tanks. scholars. and journalists    Poirnedlv. and

especially applicable as to the Permit. the Vice President detailed:

        Beijing is employing a whole—of-government approach, using political, economic,
        and military tools. as ‘ie1/ as propaganda, to advance its influence and benefit its
        interests in the United States.



        And China is also directly appealing to the American voters. Last week. the
        Chinese government paid to have a multipage supplement inserted into the Des
        1’Iomes Register the paper of record of the home state of our Ambassador to
                         —



        China, and a pivotal state in 201 $ and 2020. The supplement. designed to look   -




        like the news articles, cast our trade policies as reckless and hannfui to lowans.

        following the declared position of the Administration, on October 10. 2018. the Treasury

Department announced that it had expanded the review of foTc)gn investment in American

entities, particularly h China. The next da. the Energy Department announced heightened

controls on energy technology transfers to the PRC.7 And. as noted by l-l&H, pre’iotsl the

Justice Department announced it had ordered Xinhua News Agency         and COIN. the international

arm of state broadcaster CCIV to register as foreign agents. Response at 15, note 52i




 Remarks, sixth and fifty-fifth pai-agraphs. [Emphasis supplied.]
6
  See https:/ihometreasury.gov/systetm’files/206/fR-201 8-22182_i 786904.pdf
‘

 “DOE Announces Measures to Prevent China’s Illegal Diversion ofU.S. Civil Nuclear
‘Fechnologv for Military or Other Unauthorized Purposes.” at

civil-n uci ear-teehnoioc
  H&H attempts to distinguish itself from these two publications, maintaining that unlike
Phoenix TV. the PRC maintains de/?tre control over these entities. Response. at 13.l.. That
difference is not of decisional significance. as the PRC maintains prohIbited defeio contTol over
?hoenix T\’ as CSO has demonstrated.
                                                  8


                                                                            Reply, and as
       Given the evidence detailed in the Petition, the Supolemerit and the
                                                                            evidence exists of
enhanced by the rernarhs of the Vice President. CSO submits that sufficient
                                                                             to influence Chinese
national security implications. particularly as to efforts to use propaganda
                                                                              ter that the
I-\mericans in Southern California during the upeornina elections and thereaf
                                                                    atively. CSO submits that
Commission may deny the Permit as not in the public interesi. Altern
                                                                                         ing an
sufficient evidence exists that material and substantial questions of fact exist lustify
                                                                                 would be in
evidentiar hearing before the Commission can conclude that a grant of the Permit

the public interest.

            B. H&H is a front Jr Phoenix TV which is Contra fled by the PRC and the
                                                                                      Sovereign
               Commission Sho1tld Not Tncct Phoenix TI” to Deli: the Dictates of its
                                                                      Phoen ix TV    nor the
               nor Ti-us! M&R (o Defi the Economic Compensation of
               Aggression of the PRC
                                                                                TV is
        CSO has demonstrated in its Petition. Supplement and Reply that Phoenix
                                                                            llinu shareho]der
controlled by the PRC. CSO has demonstrated also that Vivian Huo the contro
                                                                    the minimalist right to
of H&H has delegated all programming decisions to Phoenix T\’, save
                                                                          plished.9 CSO
preempt programs. but without detailing how such preemption will be accom

 further has demonstrated how Phoenix TV comrols the hiring ofjoum
                                                                   alisis and sales financial

                                                                   Supplemental
 management at XEWW-AM ow’i’ed by H&f-l. Supplement. at Exhibit I.
                                                                        factors constitute de
 Declaration of XiaoweL par. 3. The Commission has concluded that these
                                                                               That makes
 /,cto control. Supplement. at 10. citing Aspen FM Inc.. 6 FCC Rcd 1602 (1991)
                                                                         L’ TV it has failed
 H&H a front for Phoenix TV. While H&I-I denies being controlled by Phoen
                                                                               l.
 to address the factors that the Commission has held constitute de/iwto contro
                                                                       Phoenix T\’
     I. Economic Incentives of Comnensation and Profits Propel H&H and
        Compliance with the Directives of the PRC



   Supplement, at 11-14.
                                                    9


          H&H aSserts thai    fl   will   nOt   to be a front for the PRC Response, at 74. H&H ienores
                                                                                illion
how the world and economics works. As H&H acknowledacs. Phoenix TV is a multi-m

dollar global    empire.   broadcasting multiple channels on mu]tiple contincrns. Based in I-long

Koiw. it is sublect to aovernancc by its sovereign. the PRC.

          H&H would have the Commission believe that Phoenix TV. the cmlv entity in China that

has the privilege of being a privately owned media company              grossing   hundreds of millions oi

dollars   —   an absolute monopoly with sole access to the Chinese population, would risk the
                                          -




wrath of the PRC. which could. if ii chose. close Phoenix TV and thereby destroy
                                                                                 the influence

and affluence provided. H&H also would have the Commission believe that H&H would defy

and risk the wrath of Phoenix TV which provides H&H with compensation for the tight
                                                                                                     to


                                                                                      the
program XEWW-AM.)1 The 1-l&1-l argument is not credible. It defies logic Importantly,

argument asks the Coirimission to ignore the findings and warnings of the National Security
                                                                                            ent
Advisor, the Central Intelligence Agency, the Special Trade Representative, the Vice Presid

 and other government agencies. The Commission should not be so misled.

     2. The PRC Previously Has Embedded PRC Agents into Phoenix TV to Undcimine
        American Interests

           In 2007. Tai Wang Mak, then Director of Broadcasting and Engineering for Phoenix TV

 and his brother. Chi Mak. an engineer at Power Paragon, a defense contractor, were both
                                                                                            for
 sentenced respectively to ten and twenty-thur years for conspiracy to commit espionage and




 ‘
   See SupplemenL at 12; Response. Exhibit C. Memo of Counsel. second and third pages.
                                                                                 -
 Financial data available online at huJ/ir.i fengcem/phoenix.zhunl?c=24279c&piroi
 fimdlocom
   See Response, Exhibit C. second page.
                                                             10


sovine to transfer American naval secrets to the PRC. The charues also inaluded action as

unregistered agents of a foreign govemmer]L The both had been “sleeper spies for the PRC for

decades.’3 This reflects that Phoenix TV has been     —   and can he   —   used by the PRC to advance the

aggression of the PRC.’4

     3. Jackie Panu Is a Principal of Phoenix TV and H&I-1. Paid or Unpaid

        In its Supplement, at 10. 14. and Exhibit 4, CSO documented how H&H employs Jackie

Pang as an on-air journalist by providing a sworn declaration together with a photograph of

Jackie Pang delivering on-air information. In its Response. l-l&H asserts that the CSO position is

a demonstrably false claim” and that Phoenix IV does not employ Jackie Pang or ex-Phoetrix

TV on-air hosts. But H&H does not provide an sttpporting documentation to support its

position. H&H concedes that the “...Commission ma of course take action against an

application based on legitimate and substantial issues of national security. but Petitioners

allegations of improper influence--which tack detail and are unfbunded--do not provide any such

basis here.” Response. at 7. That response is inconsistent with the Declaration of Chmig Pong

provided by CSO     —   and the issue is critical in showing cle /icio control. Given the factual




12
  See. Chi Mak, Tai Wang Mak, U.S. District Court, Central District of California, Case No.
CR-00293-CJC. March 26. 2008: and April 21. 2008. Tai Wang Mak. U.S. District Court Central
District of California.
See also, “How the F.B.I. Cracked a Chinese Spy Ring,” The New Yorkcr. May 12 2014.
Available out me at https:/fwww.newyorker.com/news!news-deskthow-the-f-b-i-c.rackcd-a
chinese-spy-ring
‘
‘ CSO hastens to add. and emphatically so. that it is not suggesting that either of the individual
principals of H&H. or any other individual involved in the Permit application proceeding. are
conducting espionage. The point is that Phoenix TV previously has been used as a front for the
PRC.
‘ CSO Reply, Exhibit 1.

                                                    ii


                                                                                                  io
dispute, a material and substantial question of fact requirina an evidentiary hearing is required

resolve whether Jackie Pana is an aaent of the PRC.
                                                                                               ate
        H&H maintains that its controlling piincipal is an American citizen pursuing a legitim
                                                                                      not
business opportunity, not a front for Phoenix TV or the PRC. Response, at 8. CSO does
                                                                                        ss
contest that Vivian Huo is an American citizen or that the venture involved is a busine
                                                                                        its
opportunity. CSO maintains that Phoenix TV is de facto controlled b the PRC. which uses
                                                                                            lly,
influence to undermine American interests, including the broadcasting of propagand& Critica
                                                                                      Its
H&H does not contest specifically that Phoenix TV exercises defacto control over H&N.

response is only that its shareholders have deli-ire control. That is classic evasion.

         H&H ridicules CSO’s demonstrated evidence oî de facto control of l-{&H by Phoenix

TV and the PRC’s control of Phoenix TV as no more than that Phoenix TV is listed on the Hong
                                                                                       China.
Kong Stock Exchange. has a global presence, and is headed by one of the richest men in

 Response, at 8. H&H evades the point. Matters as to the entity’s breath and the wealth of the
                                                                                         ge
 CEO are contextuaL reflecting economic incentives. Listing on the Hong Kong stock exchan

 reflects sovereignty of the PRC and the need for oversight by the Committee on foreign

 Investment in the United States (“CfIUS”) and the need for registration as a foreIgn media agent,

 as was RT, previously known as Russia Today.

         H&H attempts to minimize the compelling significance of the contents of the Chung
                                                                                             ix
 Pong Declaration, which demonstrates that the PRC exercises journalistic control over Phoen

 TV. by dismissing PRC directives to terminate Phoenix TV statfthat resist or defy PRC
                                                                                          at
 directives. H&H characterizes those directives as “a single Incident” Response, Note 3 1, 9.

 There are two responses. first, one incident of firing a journalist for failure to manipulate news,
                                                                                                one
 is one too many. as that one incident reflects a willingness to fire more journalists and that


                                                    12


incident becomes a strong deterrent to others who might have considered not complying with

instructions to produce future misinformation and propaganda. The clohal reaction b’

journalists, political leaders and governments to the recent disappearance and possible death of

lVas/7iI?gton Post Iourna]ist Jamal Khashoggi, who likely defied directives to manipulate his

stories to satisfy government interests, illustrates the magnitude and significance of a single

incident.’6 CSO submits that the iis only one incident”’ defense of H&H reflects a willinaness

by H&H to accept manipulative misinformation so long as sonic unspecified number of

incidents remain eontainah]e

          Second, the use o[ad hoc guidelines for reporting favorably on the PRC and unfavorably

(or not at all) on specified news events is not isolated. The propaganda guidelines applied

universally to the entire Phocnix TV stafE That only one employee defied the PRC directives

demonstrates the force of the ?RC chilling effect on the other journalists.

          further. l-l&N represents that Phoenix TV does not broadcast propaganda as there are no

complaints from its viewers or listeners. Response, at ll-]2. The absence of complaints, ifso, is

likely attributable to the faët that the PRC punishes and suppresses dissent among its own people

and overseas ethnic Chinese. the latter of whom may have friends, family and businesses in

China.’




‘  Saudis arc Said to have Lain in Wait lbr Jamal Khashoagi.” Washing/on Post, October 9,
201 8. at https:/Jwww.washingionpost.com/worldJsaudis—]ay—in-wait-for—j amal—k hashoggi-and—
lefi-turkey-quickly-sources-say/20 I 8/1 0/09/0c283e2e-cbc5-l I e$-adOa
0e0 I cfoa3ccl storv.html ?utm ternw.h124593 3 c3 dd
‘
    in order to avoid additional pleadings and responses. C$O will file, only if requested h the
Commission, declarations under oath from multiple persons who reside in Los Angeles County
stating that each of them listened to Phoenix U AM 690 (Phoenix TV) and found the programs to
                                                                                          4di, th
contain propaganda. The specific programs were oroadcasi. as Johows: on October       ,


gth
      I 0th and 11 The exact times oldie latter procrarns were not recorded on paper, but the
                 .




individual made and can provide audio recordings of the programs.
                                                  ‘3


        l-i&.H additionally provides the añdavi. of that the Assistant CEO declaring that

Phoenix TV has never authorized Jackie Pane to work For H&H. Response. at 11. That is not

credible. and it is evasive. Pivotallv. C5O submits that whether as an employee, or advisor, or

volunteer. Jackie Pang is an on-camera journalist for Phoenix T\’, as demonstrated in the

Supplemental Declaration of Xiaowei Xia. together with the attached photograph reflccting her

on air appearance) Under the circumstances, the Commission cannot grant the Permit whhout

resolving whether Phoenix TV exercises control over H&H. Given all the foregoing, the

Commission cannot rely simply on trust.

    4. Phoenix TV Shareholders 1-tave Direct and SubstantIal TIes to the PRC

        H&H parenthetically notes that two Phoenix TV shareholders owning a combined

percentage ownership of 28% in Phoenix TV         ‘.   -   are linked Indirectly” to the Chinese

Government through owiership”’ Response, Exhibit C. H&ll is hiding something. Twenty—eight

percent of a large public company traditionally is a vet substantial amount and in some

instances allows for actual control. Yet. there is no detailing of what “indirect]” means, or the

class of shares   —   whether common or preferred, or whether there is capacity of those

shareholders to impact control of the entity. l-I&H declares that. because of the listing rules of the

Hong Kong Stock Exchange, Phoenix TV is not capable of being unduly influenced by any

possible linkage to the Chinese Government or the Chinese Communist Party. Response. Note

26, at 8 first. that mere stock exchange rules could l)re’et1t Chinese Government influence,
        .




seems highly unlikely. The power that the Chinese Government influences over media has been

well documented in greril detail in the CSO’s previous pleadings. Second. C5O notes that de




‘   See. Supplement. Exhibit 4.
                                                           ‘4


fnre shaichalders of Phoenix TV previousi have attempted to purchase KDAYtAM). Redondo

Beach to gain access to the Southern California markeL hut failed. Supplement. at 1 5.

        Third. the Commission recognizes that a de/ure legal structure does not preclude de Joeta

control. Application of Tribune Media COmpany and Sinclair Brt)adc’asting Co.. Hearing

Designation Order. DA 18-1 00, MB Docket 17-] 79. released July 10, 2018, par. 29. The idea

that 2$% ownership lacks any type of influence defies the rationale and conclusions underlying

the Commission’s requirement that am’ party holding 1 0% interest or more. or that has an

indirect capacity to exert control. he identified. 47 C.P.R.   §   1.2112(a) (Rand (7). Indeed, the

entire construct and dichotomy of dc/nrc and de facto control is predicated on the

acknowledgement that acwal control may not be reflected in named shareholders. hi.

    5. The Conmtissjonis Consideration of Content in a Section 325(c) Proceeding is
       Constitutionally Permitted and Expressly Judicially Authorized

          a. H&H does not have the absolute right to deliver offensive programming via
             American telecommunications infrastructure to XEWW-AM in Mexico

       H&14 maintains that the under the First Amendment. the Commission does            not   consider

programming content in considering a Permit application. Response. at 12, note 40. H&H

overstates applicable precedent.

       In New York Times, .vupra. the Supreme Court extended broad protection irom prior

restraints upon publication by newspapers of national security secrets. However, the Court left in

place the pennissihilin’ of prior restraint, despite the First Amendment, where the government

could demonstrate an “immediate and grave danger”’ to national security h fbreign actors.

However. New York Tfn?es applies to print news publications only. A lesser standard applies to

government licensed broadcast stations. Red Lion Rroadca.cting Co. v. fC’C. 395 U. S. 367

(1969): FCC v. Foci/lea foundailon. 438 U. S. 726 (1978). Here. a broadcasting permit is at



                                                  15


issue and CSO is not seeking a prior restraint.   As the Court    of Appeals has specifically held   as   to

Secoon 32(c) pemut applicanons. tre Commission           mcui   consider thai the programmzng tc

ofl72sive and. if so, the Commission is not obligated to expand the audience for the offensive

programming   and may deny the Permit application. See, Supplement, at 20-22.

          b. A full Schedu]e of Programs Does Not Defeat the Capacity to Broadcast
             Propaganda

       H&H claims it has a full schedule of mosth’ music programs for broadcasting from a

varien’ ofqualitv sources and there is no room left for propaganda.19 Response. at 12. The

implication is that propaganda originates and accompanies only political commentary or

discussion programming. The argument is disingenuous. Moreover, H&.H intends political

commentary and discussion programs. Response, at 12-13. Thus, H&H could broadcast such

propaganda. further, CSO submits that the choice olnationalistic music with or without lyrics

can be propaganda. CSO cited Black’s Law Didionarv for the legal definition of propaganda.

which supports the assertion that music can he propaganda. Supplement, at 12-13. That

definition does not exclude music.

       H&H also asserts that because it will not broadcast programs from the China mainland.

there will not be propaganda. Response, at 9. That is a    non-sequitur,   as the geographic

origination is not part of the definition of propaganda. H&H also maintains that the PRC’s

directives not to broadcast live the events of the fifth anniversary olihe restoration of Hong

Kong to the PRC occurred in the PRC only. As Phoenix TV has global distribution. CSO submits




  That Phoenix TV also broadcast quality programrnina does nol defeat its broadcasting of
propaganda prorammina. as quality programming ma weT] be the factor that induces viewers
and listeners to digest propaganda.
                                                    16


that the directive mtn have been deiivered in China. hut the suppression of the news event was

giohal

         Next. 1-1&H suueesLs that the i3!ack ‘s Law Dictionary is not authoritative and irrelevant.

Response. at 12. \Vhile the dictionary is not   a pi-iniarv   source for legal authority. it is a .cecondaiy

source: and. Black s Law Dictionary is the most widely used such source for legal concepts not

defined in prirnan’ sources. NotaNv. the Supreme Court routinely relies upon dictionaries,

including Black r Law Dictionary, in its opinions. See, e.g.. Bullock           BankC’hanpaign, A A..

569 U.S. 26?. 268 (2013): SiaJ7fird ljnR’crxiiy    t   Rocie Molecular Sluten?.c. inc.. 563 U.S. 776.

786-8? (2011).

   6. H&I-I on Behalf of Phoenix TV and the ?RC Are Attempting to Influence Public Opinion
      And Thuslv Are Forcien Agents and•the Phoenix TV investment in H&H Is a CfIUS
      Covered Transact ion

         CSO has shown that Phoenix TV is an agent for China, just as RT is an agent for Russia.

H&H counters that. because it is   “..   freely expressing [or broadcasting] one’s own views, ]-I&H

is not required to register pursuant to the Foreign Agents Registration Act.” Response. at 13.

However, the views broadcast by XEWW-AM are those oF Phoenix TV. which programs the

station. and Phoenix TV is controlled by the PRC. as demonstrated in the Petition, the

Supplement (including the Chung Pong Declaration) and the Reply.

         Further. CSO demonstrated in the Supplement. at 17, that the Department of Justice

required T&R Production LLC to register as a foreign agent of Russia. because that entity was an

American-based sttidio production company, which delivers programming via American

telecommunications infrastructure from studios in New York and Washington to Russia for

retransmission and broadcasting back into the U.S. by RT. In that case. the federal government

concluded that these prograrnmin. production and delivery functions. as detailed by the



                                                    17


government security agencies and others. were intended to undermine American interests and

influence American elections for the benefit of the Russian Government. These are the same

functions and oblecth’es as those beIng performed by H&H and Phoenix TV in the U.S. and

XEWW-AM in Mexico. Yet. H&l-I does not even address these factors. That avoidance is a clear

indication that H&H knows that it cannot escape the same conclusion       —   it must register.

          H&H suggests that the relevant CFIU$ provisions are not yet effective, suggesting that

the Commission may not consider those provisions.20 However, seven days ago, the Treasury

Department, as Chair of CfIUS issued urgent and compel]ing” temporary regulations to

implement provisions of fIRRMA amending certain CPfUS regulatIons, which became effective

on October 11. 2018. and detailed as a Pilot Program additional CFIUS regulation changes,

which will become effective on November 10. 2018. mooting the 1-l&I-1 argument.2’ With

respect to the Pilot Program, the Treasury Department stated:

          This interim rule sets forth the scope of, and procedures for, a pilot program of the
          Committee on foreign Investment in the United States (CfIUS. or the
          Committee) under section 721 of the Defense Production Act of 1950. as
          amended by the foreign Investment Risk Review Modernization Act of 2018
          (F IRRMA). Pursuant to section 1727(c) of fIRRMA, this pilot program
          implements the authorities provided in two sCctions of f.IRRMA that did not take
          effect upon the statute’s enactment. First, the pilot program expands the scope of
          transactions subject to review by CFIUS to include certain investments involving
          foreign persons and critical technologies. Second. the pilot program makes
          effective FIRRIvIA’s mandatory declarations provision for all transactions that fall
          within the specific scope of the pilot prograrn.




20
     Response. at   1 7.

2
  The Press Release announcing the new                  https://home.treasurv.gov!newsYpress
                                             regulations is at

releases/sm506. The regulations. 31 CPR Part 801. are available online at
httsJfhome.treasury.gov/svstem!files!206/fR-201 8-22182_i 786904.pdf.
— Id.
                                                    18


        The Pilot Pmnram regulations cover H&H as a U.S. business that produces, designs.

rests. manufactures. fabricates, or develops a critical iechnologv that is utilized in connection

with the U.S. business’s activity in specified industries, including radio and television

broadcastinu. See Section 801.213 (incorporating Annex A. listing Radio and Television and

Wireless Communications). 31 Cf R     §   801.213.

       The Pilot Program also covers H&H as an investment company. Section 801.207

provides:

       The term pilot program covered investment means an investment, direct or
       indirect. by a foreign person in an unaffihiated pi]ol program U.S. business that
       could not result in control by a foreign person of a pilot program U.S. business
       and that affords the foreign person: (c) Any involvcmenL other than through
       voting of shares. in substantive decision-making of the pilot program U.S.
       business regarding the use. development, acquisition, or release of critical
       technology.23

       The definitions and functions described in the Pilot Program are clearly applicable to

      and Phoenix TV. As I-l&1-1 describes itself as an investment company arranging for

financial investments in U.S. businesses by mainland and 1-long Kong-based Chinese, and as

PhoenIx TV as a foreign entity has made a direct investment in H&1-l and has indirect dcfacto

control of H&l-I and as the PRC has indirect control oiPhoenix TV, N&H is within the ambit of

the Pilot Program regulations. Under the regulations. H&H is required to file requisite

declarations with CFIUS by November 10. 2018. See Section 801.401(c)(1).24 Ahsentproofof

such a filing, the Commission should dismiss the Permit application.




  31 CFR    §   $01 .207.
  31 CFR    §   801.4OitcPl).
                                                     19


    7. The Proaram Atrecmeni and Required Investment by Phoenix TV for the Production
       ofProaramrnine in California for Transmission to Mexico and Retransmission via
       Broadcastine is a CFIUS Covered Transaction

        R&H maintains that the economic investment that Phoenix TV, is making to produce

programming in California is not an investment by a lbreign entity into the U.S. and, therefore

does not require authorization 1w CFIUS. Response. I 6-1 7. Because Phoenix TV is a Cayrnan

Islands chartered-Hong Kong-based entity, and its investment is into a U.S. entity. H&H.

controlled by U.S. citizens. the H&H argument is devoid of meriL

        H&H next argues that, even lilt is required to seek a review from CFJU$, the

Commission ‘ivpicailv does not coordinate with CfIUS on transaction reviews and need not vait

[to grant a Permit] even if CFIUS is undertaking a review.       Response, at 16. [Emphasis

supplied.]

        The expression “tvpicallv’ used by H&H is insixuctive. CSO submits that this is not the

“typical” situation where the transaction may involve an electronic product from China or even

create an antitrust monopolistic entity that could negatively impact consumer prices. This

transaction creates grave and irreparable risks of distorting the U.S. electoral process in all of

Southern California this year and in future elections. The H&l-l argument also ignores the reality

that U.S-PRC relationships have reached an     inflection pcnnt. as   detailed by the government

agencies and the Vice President. The core point of these recent warnings is that “typical” no

longer applies. Coordinated governmental close review is now needed to protect the public

interest.

        further, CFIUS reviews covered transactions.” which are defined as ‘any transaction by

or wtn any roreign person that coula result   in   control of any p3lot program U.S. business by a



                                                    20


fereico person The Cmnmission has concluded that for purposes of the Communications Aci..

such control may be de /ure or U facto. Aspen HvLsupra. Other CFIUS regulations defoe

foreiun persolF as “any entity over whicn control is exercised or exercisable by a foreign

national, foreign governmenL or foreign entity.”26 And CfIUS regulations define a “foreign

entity” as any entity organized under the laws oVa foreign state if either its principal place of

business is outside the United States or its equity securities are primarily traded on one or more

foreign exchanges.”2’ both factors which are presented with Phoenix TV. Under the       program


aareemenl with H&H. Phoenix TV has the authority to determine and direct the important           core


fimction of hiring programming and sales financial management, subject only to cid hoc

preemptions. Pursuant to the express terms of the CfIUS enabling Act and CPIUS regulations.

the H&H-Phoenix TV Program Agreement is a covered transaction.

           C CS() Located Within the XEJfll’—AM Coverage Area fficc Sta1?dil?g to Object to
             Am al?dAlI Parts oftiw Permit .4pplicatmn inclzeding Ob/ecrionabte Inierference

       f-1&H maintains that CSO lacks st.andina to object to the interference caused by XEWW

AM to KCEE (AM), Tucson. Arizona. and the new AM facility on frequency 690 at Flagstaffi

Arizona. Response, at ] 7-18. 1-l&H fails to support its assertions with citations to any authorities.

CSO demonstrated in its Petition to Deny that it will he in direct competition with XEWW—AM

and will suffer economic injury if the Application is granted. and that is enough to demonstrate

standing.28 Raving demonstrated standing CSO is not limited in the issues it may      i-aise   with

respect to the App]ication.




2531 CFRS80].2l0.
2
   31 CFR § 800.2 16(b)
2731 CFR § 800212(a).
28
   Petition at 1. citing Eniercom License. LLC, 31 fCC Red 12196. 12205 (2016).
                                                  21


         Even if C$O lacked standing i.o raise the imerference issues. the Commission has long

held that informal objections can he filed h any person as to any application. See 47 C.F.R.

73.3587 and that a Petition to Deny flied by an entity without standing will be treated as an

informal objecUon.—’ Further. I i&H cites no authority for its proposition that objections based on

interference are belated. To the contrary, the filing of the instant Permit application triggered the

right to complain prior to a grant as to any portion of the Permit application. See 47 CLR.

1 .939. As such. the interference complaints are timely.

            D. 7vei’ Mailers in the Supplemel2r and Rep13’ Provide Context. Greater .4ccuracv if)
               1J’7iich H&I-J Has Responded and thus Are Permitted

         l-{&N complains that CSO in its Supplement and Reply filed after the filing of the

Petition raised new matters and these matters should not he considered by the Commission.

Response, at4 -6. In support thereof, H&H cites Sections 1.41-1 .5130 of the Commission’s

Rules.

         Section 1.45 of the Rules lists a Petition. Opposition and Reply which are expressly

permitted pleadings. CSO submits that the listing is permissive, but not exhaustive. Additional

pleadings may be filed if they are accompanied by a request for leave to file. h2 reApplication of

Discussion Jtadio. Inc.. 19 FCC Rcd 7433 (2004). Therein, the Commission noted that

Numerous improperly titled and unauthorized pleadings have been submitted...”. it!., par. 5.

Even though no separate petitions for leave to file the unauthorized pleadtngs were made. the

Commission considered at! the filed pleading. including a Supplement to a prior flung, and




   Eatcream License, LLC’ Apphea!ioi?s for Renewal of LICCJ?.c’e for Slot/on KDNDi’EA-J). 31 FCC
Rcd 12196 atpar. 23 (2015).
30
   \Vhi]e Section 1.45 of the Commission’s Rules is relevant the citation to the remaining
sections is puzzlina. as they lack relevance, as they concern infonnal requests for actions;
complaint applications; slays: separats requests pleadings: text size; and number of copies.
                                                  22


tuerearter treated the unauthorized pleadings as constructive permitted pleadinas. [Emphasis

addedj Id. at par. 6.

        As to the Supplement, unlike the fact situation detailed above. concomitant[y with its

filing, CSO requested leave for its filing. Supplement. at 1, note 1. CSO notes that despite all its

protests, l-l&l-1 does not allege, let alone demonstrate, how it may have been prejudiced by the

extra pleadings. As to the Reply. it is an expressly permitted filing under Section 1 .45. H&H

objects that it contains new matters beyond those detailed in the H&H opposition and should not

he considered by the Commission. These new matters of which H&H complains include the

Declaration of Chung Pong, the former Phoenix TV news executive, which demonstrates that the

PRC exercises control over Phoenix TV. Response, at 6. This is clearly a decisionally significant

addition to the record and should be considered by the Comdiission whenever submitted.

further. all of the other matters H&1-I designates as new and unacceptable (other than XEWW

AM interference to the Arizona stations are in fact not new matters but are clarifications and

enhancements of the matters detailed in the Petition   —   none are outside the ambit of the Petition.

        In any event, he Commission has employed a balancing olcompeting regulatory

objectives of a robust and accurate record and compliance with procedural rules. The

Conimission uses its discretion to accept and consider new matters raised in a rep]y pleading. In

the Television Wisconsin case the Commission concluded:

       The licensee found that the reply contained new mailer which was not previously
       raised in either 3TMs petition or its own opposition. On January 27, 1971. WISC
       therefore moved to strike the new mailer contained in the reply. or. in the
       alternative, to consider the stations simultaneously filed response to that new
       matter. Upon review of BTM’s reply p]eading, we find that it does contain new
       allegations, not responsive to matters raised by the licensee in its opposition.
       While we recognize our obligation ‘to be informed as accurale]y as possible by
       reliable facts relating to the issues. The Citizens Committee i FCC.. 436 F.2d
       263 (1970). we also recogiize the prohibition of our rules (4? C.f.R. 1.45(h))
       limiting reply pleadings io  ‘.   matters raised in the opposition: As we have
                                         .   .




                                                  23


         staied in the past, we do not condone the use of any pleading for other than the
         designated purpose nor the submission of pleadings not contemplated by our rules
         (Scnps-Hm4’ard Bracidcasling Co., 26 FCC 2d $24 (1 970)). The sLrict
         application of this rule is justified particularly, as here, where the petitioner has
         supplied no reason for its delay in raising these new matters. However, since lU)
         additional delay wilt he caZLVed by our ClCCCJ)taflce of the fiitl reply, ai?c1 ii? View Qf
         the Jic that the licensee ha.c rc.spomtedto the new matters, we believe the public
         interest will best be served by a consideration of the new matters raised in WFM’s
         Reply and WJSCs response thereto. Accordingly, we will deny Television
         Wisconsin. Inc.’s motion to strike and accept iLs response to BTM’s reply
         pleading.” [Emphasis supplied.j

         Applying that precedent here. CSO submits that the new matters raised in the Reply

not add any additional dela’ to the processing of the Permit application: and the new matter

provides the Commission with a fii]I. robust and a more accurate record for consideration.

Further given that a) national security issues are presented. b) [he new matter provides context

for the matters detailed in the Petition. c) the new matter corroborates core assertions with

specificity, and U) the new matters are of substantial importance. reflecting core public interest

considerations. the Commission should consider the new matter. Pivotally. H&l-l has already

responded in detail to all the matleis raised. As such, CSO urges the Commission to consider afl

the fi]ed pleadings.

         V.      Conclusion

         The United States has made a dramatic shift in it relations with China. jettisoning

decades of policies with a more cautious approach which responds to Chinas aggression in

undermining national security. including efforts to influence American elections. l-l&H

acknowledges these efforts and it ackiowlcUgcs that the Permit application can he denied based

upon findings arising out of these considerations. Phoenix TV with direct control from China.

and wishing to expand its television empire into radio broadcasting, has tried to buy its way into



‘   Jo Re Application of TelevLvion Wiscon.cin Inc.. 58 FCC’ 2d 1232. par. 3 (1975)
                                                     24


Southern California radio hroadcastins with the aborted purchase of KDAY(AM). Nov. it is

Irving again with H&H and XEWW-AM. albeit vith indirect control from China. CSO has

demonstrated a history of embedded aaents for the PRC and a demonstrated history of

nianipulatmu the broadcast of news with selective news reporting by Phoenix TV. which is

indirectly controlled by China. Given all this the Commission should error on the side of

protecting the national interest and deny the application: or. alternatively designate ii for a

heating to address the material and significant questions presented.

                                               ResDectfully submitted.

                                               CHINESE SOUND Of ORIENTAL AND
                                               WEST HERITAGE

                                                  —itr Attorneys,


                                              ,Aajes L. Winston
                                            /‘,J’UBIN. WINSTON. D1ERCKS, HARRIS
                                           ‘    & COOKE. LLP
                                                1201 Connecticut Avenue. N.W. Suite 200
                                                Washin2ton. D.C. 20036
                                                (202) 861-0870
                                                 wi tistonrwd bc .com



October 1 7. 201 8




                                                   25


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The ior;orabie ..\jh Pai
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:d.>r1i C: nimtm canons (cunmission
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iZiear (‘bain:tai Pai.

it has eone to am aneittim that the F—Jerai Corn! L:ni:ation Cc;n;aissior: is currcntiv rcvkn1r2
anar3r!:c1:ton File Strtnar; 325—Ni;Vt—()!             ——-ütJ;    t’jLi\ eLi .;t:::c•  0.
 it crvrne I                USA   id_c  :::t :c  wV    DSiCIc:r  r;rc,fsfn..
                                                                           ._              7
recuests LI T;C17t11 for to deliver rrcit&ra:ns to htien broadcast sotions      rt.rsuant to 47 LSL
325e). .&poroving:he noolicatior, vtouid permit H&H (irOu USA Lii’ to ns NEWW to
                     —n        ‘vi p— (                        ‘o..ss                      \T
              a                                          _t                b        “i                                                           —




tncluciitg i11L1SC. en:erLai;isnent. xveather report heal .A traflic ref-on and iiaiaf (‘ltinae
COfll!flUflW. fle\\S.


He Commission has prev1ousjv exni: hied that Section 325j c ts “?nte):Oeu nrtntarR to :lJurcNs
tnt problems: ohiectiomiHe proerammi :tC and har; I imerfere;ee H 1 reii swthns
coneernee mat anorovine this anpitetitloit ;souid ein;e the zihiNn ol’ the Chinese Communist
Parw ((‘PC ito broadens: obiecticmahle pobtical nra acanda jail; America am! t:- ifltCr!CCC in
do:nesne American r.oi:tics. i rcspectluhv :eojlesi that the Con;mis:icr oem the I I&i Groan’s
pentnna anpiteation.


lit     iDjtuLtJJSt_C%             n         he...                  ‘tC      LIt    -_Ci;t,        L               z..       1
“Apphcam. .wiN he I CiO onTzed 1w H&H Group USA l.io?. a \cv. York limited liability
                 .




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iunher    re’ien


1\ceurdtne U’ as eurnonre website.  “1 i&F I Capital usisis P P.C :u:np:mies with inding strategic
investors from around the    oh& and mvori:[si with Chinese companies interested in buying U.S.
       on      tcC’r...Ll sir          S           ft      ctm___ ‘ s f4_,’         o
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on the website as ‘‘nutne orzw;j:ne   who   i ascencucied   ir—oentL  rcseoreh anJ ona  sic o
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owned ejiterprises. union                    other topics.’’

 !&i I tat ‘S coroonite wehsjte also .tates Ihat Ms. i mu macni haii a aecade us the \e
v n._sm cc’ cr       n           a           n L       s__    4            U           ICt. I
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prcran:ine c a:ent  —    10 Durbin  st.. lrwindac.        Cisa         inc otv ted h Phoetix
Satellite TV USA. Accordinu to the I! a.ching;o;i Erce BeuLvn. the I i&11 Coup recently
hired .lacki Paag who has been a hoenix television renorwr for decades. According tft the
itm;dt Times “a recruidnia adve;lisemcnt placed 1w Phoenix TV CS. branch on \VeChat. the
nopular social media platform, seeks prtigram ctucers.        anrs. hts[s. and ad sales
manacers for AM 690. Phoenix C       Radio.’”

Phoenix Satellite 1±VISiOfl CS is a subsiliarv of Beiiina Phoenix TV. based in Honu Kona. The
People’s ReouHic of China (PRCI exerts control over Chinese atedia artd the control axends to
Phoenix: in 20Ci) tesilmOO\ to the L.S .hc onomic and Security Review Commission on China.
Anne b     c-Bradt. a Global ilou at the Wilson Center.        “Phoenix is nominally privately
owned: however its current main investor is the Stae—redaoernnse China Mobile.” In
for examle. Phoenix broadcast the forced confessions of ftve Hone Lone booksellers lOT
violarmna PRC censorship law.

CC? state-run (‘bina Radio loteniatianal (CR1) pfts:uem Wane Genunian has described China’s
U’c 0 ioal teda i t 1”r’e     couut cs       o’o’  -    a oa tO     o s.e V a—at ‘l as —ec
the need for China to taruet forcian media to “comoete to ‘ead international nubile opiniorf ar1d
“sat the acenda” on the global statc. As nar: of the “borrowed hoc:” strategy CR1 has previously
partnered with foreitm radio stations such as Turkish FVi staricin Ytn Radvc which was uti!hed
to present the CC? narrative in the afteni1ath of the 2003 Crün:ji riots. Accordinu to Wane.
positive feedback front Turkish ilsieners demonstrated the benefits of “etiective b:ernation&
hroadcastina taracted a: a soecific grouo.

‘Ihe Chinese Communist ?ari’ is neine an information warfare cantoaien to undermine
American democracy. The decision before the Commission risks allowing the CPC to broadcast
eovcrnment-appraved propacanda into Southern California. one of the most densely nopulated
regions in America of Mandarin speakers. to boost that warfare campaign. The Commission
should reject the ap,licrttinn. ulven the unresolved and undisclosed details surrounding the
application.

SyneereN




Ted Cruz
tnited States senator


cc: GLR Southern Call ibrnia LLC
H&H Grout) i.SA i.LC
Chinesc Sound of Oriemai and West I (enlace


                             CERTIFICATE OF SERVICE


        I, Sheree Kellogg, do hereby certify that I sent via U.S. mail (except where
indicated), on this 17th day of October, 2018, copies of the foregoing REPLY TO
RESPONSE TO UNAUTHORIZED FILiNGS to the following:

David Oxenford
Wilkinson, Barker, Knauer, LLP
1800 M Street, NW
Suite $OON
Washington, DC 20036

Reid Avett
Duane Morris, LLP
505 9th Street, NW, Suite 1000
Washington, DC 20004-2 166

Paige K. Fronbarger
Wilkinson, Barker, Knauer, LLP
1800 M Street, NW, Suite 800N
Washington, DC 20036

Brandon Moss*
International Bureau
Federal Communications Commission
     l2 Street, SW
Washington, DC 20554
Brandon.Mossfcc.gov

Janice Shields*
International Bureau
Federal Communications Commission
     12 Street, SW
Washington, DC 20554
Janice.Shieldsfcc.gov



*sent via email only



                                                         Sheree Ke11ogg”



Document Created: 2019-04-29 01:21:48
Document Modified: 2019-04-29 01:21:48

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