Hoosier Responsible?

As she campaigns throughout Indiana, Sen. Hillary Clinton has been talking quite a bit about Magnequench, a Valparaiso, Ind., factory that moved to China.

"We've got to elect a president next January who's going to remember Magnequench," Clinton told voters in Valparaiso on April 12.

It seems, however, that when it comes to Magnequench there's quite a bit that Clinton has conveniently forgotten.

Watch "World News with Charles Gibson" TONIGHT at 6:30 p.m. ET for the full report.

"We went to Valparaiso," Clinton told voters in Princeton, Ind., last night, "where there used to be a plant called Magnequench that made the magnets that helped to guide the precision-guided missiles, the so-called smart bombs. You've seen those — they take off, they go down the chimney, they were incredibly sophisticated and these magnets, you know — not the kind you put on the refrigerator, like we all do — but these really sophisticated magnets were instrumental making that happen."

Clinton continued, saying, "Well, a Chinese company bought Magnequench and then they decided that they were going to move the whole company from Indiana to China. Now the president of the United States has the authority to veto that kind of a move, but Senator [Evan] Bayh begged the Bush administration not to export it — it was going to lose jobs but it was also going to lose the know-how, the technical sophistication that created those magnets. President Bush and his administration wouldn't, basically wouldn't even give Evan Bayh the time of day. Those jobs left, and along with them went the savvy to make the magnets."

What Clinton doesn't tell voters is that Magnequench was originally sold to Chinese interests during her husband's administration, which okayed the move despite concerns about national security and eventual job loss. Experts say the Chinese acquired the "technical sophistication" that created the magnets long before George W. Bush took office.

Sen. Evan Bayh, D-Ind,, Clinton's top surrogate in the state, often joins her on the stump in bashing the president for allowing Magnequench to move abroad. What Bayh doesn't tell voters these days is that he has blamed the company's moving on a 1995 decision made by Clinton's husband's administration.

Andy Albers, a former vice president of Magnequench, said he received a phone call from Clinton's campaign to go over key details of Clinton's Valparaiso event before it happened on April 12.

"I told them all the truth, but it didn't go anywhere," Albers told ABC News. "Evan Bayh and Hillary Clinton are living in some false reality here, making all these false accusations."

In Piittsburgh on April 14, Clinton told voters that "not only did the jobs go to China, but so did the intellectual property and the technological know-how to make those magnets."

Albers says no secrets or intellectual property transferred to China when Magnequench moved in 2003, despite the claims of these politicians.

"Right here, over 200 Hoosiers built parts that guided our military's smart bombs to their targets….George Bush could have stopped it, but he didn't," Clinton says in a TV ad airing in Indiana, presumably referring to the president's ability to use the Committee on Foreign Investment in the United States (CFIUS), an interagency board chaired by the Secretary of the Treasury responsible for analyzing national security implications when foreign entities take over domestic companies.

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