The Central Military Commission is set to name a little-known officer to be head of the PLA's intelligence operations. Diplomatic sources in Beijing said barring last-minute changes, Major-General Luo Yudong would be formally appointed Director of the Second Department of the General Staff Department. The Second Department is in charge of sensitive security matters, including intelligence gathering and counter-espionage. A former commandant of the Nanjing-based International Relations Academy, General Luo is a respected professional. He is believed to have satisfied the military commission about his high ideological standards and his loyalty to the party. General Luo would replace Major-General Ji Shengde, who had occupied the top intelligence post since 1992. Military analysts had attributed General Ji's departure to his alleged involvement in financial contributions during the American presidential election campaign of 1996. Other reports said General Ji, son of former foreign minister Ji Pengfei, might also have been linked to 'speculative business activities'. President Jiang Zemin has tried to distance the PLA from its commercial activities. Analysts said General Luo was elevated because of his grasp of global military affairs, seen as essential to the mainland's ability to beat back the challenge of the expanded military operations of the US and Nato. However, the Vice-Chief of Staff and leading expert on US affairs, Lieutenant-General Xiong Guangkai, was expected to continue to play a pivotal role in intelligence operations. A Beijing source said Mr Jiang, also head of the Central Military Commission, had speeded up personnel changes to promote rejuvenation and strengthen loyalty to the top party leadership. The source said the President was expected to appoint up to eight senior officers as full generals late this year. 'The bulk of the PLA's full generals have either retired or have passed the retirement age of 65,' the source said. More heads of key departments, such as the navy, were expected to be made full generals. The source added the promotions would also enable Mr Jiang to consolidate his grip over the PLA by rewarding loyalists.