Reports that the Chinese were working on the ex-Russian aircraft carrier Varyag elicited some interest in the Pentagon. The people responsible for keeping an eye on such things, ONI (Office of Naval Intelligence) reacted with a big yawn. ONI is not terribly concerned with the Varyag, and believe that recent photos show nothing going on. ONI also likes to point out that Varyag is tied up at a disused container loading pier at Dalian, which ONI does not consider a naval base. Going back to our Chinese sources, we were informed that the Varyag is under military guard at that pier, and that the guards will only say the ship "is under conversion for a military purpose." Its not known if ONI sent anyone to have a chat with the guards. Those observers also noted that the pier Varyag was tied up at did not contain any heavy construction equipment (cranes). But there was activity on the Varyag itself, which even ONI noted. Trucks were taking stuff in, and out. Much of the ship shows signs of deterioration, but other parts have a fresh coat of paint. And people have seen electronic gear being taken aboard. Somethings going on with the Varyag. Maybe theres using it to make a movie? Or doing mockups of new layouts for Chinese carrier designs? The Chinese may simply be carefully examining how the Varyag was put together. The Russians put a lot of time and effort into the design of that class of ships, wisdom the Chinese could use in building their own carrier. Or maybe the ship is being fitted out as some kind of troop/equipment transport. Whatever is going on, its not being scrapped.