Bush's brother has US$400,000 contract with Chinese firm

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Last updated at: (Beijing Time) Friday, November 28, 2003

Bush's brother has US$400,000 contract with Chinese firm

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Neil Bush, a younger brother of US President George W. Bush, has a 400,000-dollar-a-year consulting contract with a Chinese computer chip manufacturing firm, The Los Angeles Times has reported on its web site.

Citing court documents filed in the course of Neil Bush's divorce proceedings in Houston, Texas, the newspaper said the president's brother had agreed to strategize with China's Grace Semiconductor Manufacturing Corp at the same time the Bush administration is trying to help US firms compete more effectively against the Chinese.

Grace Semiconductor, based in Shanghai, was founded in 2000 by Winston Wong, the son of Taiwanese business magnate Wang Yung-ching, the Times said. Wong co-signed the contract with Bush.

There is no indication that Neil Bush has done anything improper, according to the report.

However, the arrangement could attract attention during a presidential election cycle in which Chinese business practices have become a hot button issue, The Times said.

"There's certainly the appearance of influence being sought," the paper quotes Charles McMillion, a Washington business consultant who advised a congressional commission on US-China policy as saying. "If nothing else, it doesn't look good."

Bush's divorce from Sharon Bush was finalized in April.

According to the consulting contract, Neil Bush was to receive two million dollars worth of Grace Semiconductor preferred stock over five years, issued in annual increments of 400,000 dollars, the paper said.

In return, Bush agreed to "provide GSMC from time to time with business strategies and policies; latest information and trends of the related industry, and other expertized advices," the report quotes the contract as saying.

Bush signed the contract on August 15, 2002, according to The Times.

The report said it was not clear how much compensation Neil Bush had received so far.

The contract said he would receive the first 400,000-dollar allotment within one month of the company's 2002 board meeting, "provided you have duly furnished GSMC with the information and details required for the issuance or transfer of the share certificate," according to the paper.

The company has said its goal is to become a leading manufacturer of integrated circuits and other semiconductor products, according to the report.

It has invested 1.6 billion dollars to build two manufacturing plants in Shanghai. Production from the first plant began in September, The Times said.

President Bush has three brothers -- Jeb, the current governor of Florida, Neil and Marvin -- as well as one sister, Dorothy.

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