Yahoo's Callahan Apologizes Over Omissions to Congress About China

"Months after I testified before two House subcommittees on Yahoo's approach to business in China," reads a statement released this morning by Yahoo Senior Vice President and General Counsel Michael Callahan, "I realized Yahoo had additional information about a 2004 order issued by the Chinese government seeking information about a Yahoo China user."

That user was Shi Tao, a Chinese journalist about whom his government sought private information from Yahoo, his Internet service provider. The Chinese government used that information as evidence against Tao, eventually sentencing him to 10 years' imprisonment for divulging state secrets.

Callahan appeared before an Asian business subcommittee of the House Foreign Affairs Committee in February 2006, where he testified he and Yahoo had no knowledge of any communication between Chinese officials and Yahoo China representatives. But evidence of such communication was publicly posted by the Dui Hua Foundation in October 2006.

It was immediately afterward, Yahoo spokesperson Tracy Schmaler told BetaNews this morning, that Callahan first learned such communication did exist. Specifically, she said, he learned that communications had been covered by the State Secrets Provision of the Chinese government, which had prevented him and other executives from access to those communications previously.

It was the Dui Hua foundation which first brought those hidden communications to light, Schmaler said, to the surprise of both Callahan and Rep. Tom Lantos (D - Calif.) who sat on the subcommittee and who now leads the Foreign Affairs Committee. UPDATE: Callahan learned of those communications at roughly the same time, Schmaler told us. But Callahan then neglected to return to the Committee with his revelation, Schmaler added, and it is for that omission that he is officially apologizing.

"I neglected to directly alert the committee of this new information, and that oversight led to a misunderstanding that I deeply regret and have apologized to the committee for creating," Callahan's statement continued.

But contrary to reports in the Wall Street Journal and Reuters this morning, Callahan is not saying he made misleading statements. In fact, Yahoo continues to stand behind his 2006 testimony before Congress as truthful and accurate to the best of his knowledge at that time. Yahoo's Schmaler told BetaNews that her statement to us last October 17 remains accurate. She asserted to us that no false information was presented to Congress in February 2006, and that the only omissions Callahan made regarded information about which he had not yet been made aware himself.

Here is an excerpt of Callahan's testimony before Congress that month:

"I, along with other Yahoo officials, have consulted with Committee staff several times about this misunderstanding and they agreed my 2006 testimony was truthful," Callahan continued, in the complete text of his apology released this morning to BetaNews. "As demonstrated by Yahoo's public and private communications about the new information once it was known, it was never my intention to cause confusion or keep this new information from Congress."

The extent of the information that Callahan says he later discovered may be revealed next Tuesday, when he and Yahoo CEO Jerry Yang are scheduled to appear before the House Foreign Affairs Committee - the parent of the subcommittee where Callahan originally appeared. "I have met with several members of the Committee to explain this issue and look forward to clearing up this confusion with the full Committee at the hearing," his statement continued.