Posted on 01/11/2002 2:08:31 PM PST by expose
Loral fined $14m over China missiles claim
By Edward Alden and Peter Spiegel in Washington
Loral, the US satellite company, said it would pay $14m to the US State Department to settle a claim that it improperly gave technical information to China that may have aided that country's nuclear missile programme.
Loral also said the Justice Department had ended its investigation of the company and would not pursue any criminal charges.
The fine marks the last chapter in a bitter political battle in Washington in which Republicans alleged that during the Clinton administration the US had turned a blind eye to actions by Loral and other satellite makers that may have threatened national security.
Loral agreed to the fine, which will be spread out over seven years, without admitting or denying the government's charges.
The investigation arose out of the 1996 explosion of a Chinese rocket carrying one of Loral's Intelsat satellites. Loral subsequently took part in a technical investigation of the launch failure, which it inadvertently shared with the Chinese. The US Defence Department found that the technical data given to China may have helped the Chinese improve the accuracy of their military rockets and missiles, which use similar technology. Experts have since questioned whether anything of military value was given to China.
Bernard Schwartz, Loral chief executive, said on Wednesday the data were mistakenly sent to China by a Loral employee without approval by the US government, and expressed regret. He said the company had since greatly improved its oversight.
The Loral incident led to a detailed congressional investigation, which concluded China had been stealing an array of US military secrets. It resulted in severe restrictions on US satellite exports imposed in 1999.
The Justice Department had also been investigating a separate incident involving Hughes Electronics, another US satellite maker. Richard Dore, a Hughes spokesman, said on Wednesday the company had also been informed by Justice that no criminal charges would be filed.
But Hughes lawyers will meet State Department officials this month to discuss their own settlement of the matter and whether a fine will be necessary. "We've contended all along that we followed the government guidelines," said Mr Dore.
Hughes was accused of helping improve Chinese rocket and missile technology while investigating launch failures. The satellite-building unit of Hughes, Hughes Space and Communications, was sold to Boeing in 2000, but Hughes retained liability for the technology transfer investigation.
Lockheed Martin also agreed to pay $13m in 2000 after a company it acquired was accused of helping a Hong Kong company with ties to Beijing. <P.
RJC: This is worse than nothing. This fine is paid by the company, which means the stockholders. Meanwhile, the CEO and the criminals associated with this pay nothing.
$14 m. over 7 years is most definitely diddly squat. It makes me wonder if this is one of those companies that get large gov. grants and huge defense contracts. I would imagine so. What does anyone want to bet that they will have an increase approved that far exceeds $14 million?
From JudicialWatch today:
| Jan 14, 2002 | Contact: Press Office 202-646-5172 |
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COMMERCE WHISTLEBLOWER EXPOSED MASSIVE ILLEGALITIES AND CHINAGATE COVER-UP AT CLINTON COMMERCE DEPARTMENT (Washington, DC) Judicial Watch, the public interest law firm that investigates and prosecutes government corruption, today announced another victory in court. The U.S. Court of Appeals for the D.C. Circuit ruled this past Friday that a key portion of a civil rights lawsuit brought by Commerce official Sonya Stewart may proceed. Ms. Stewart, whose lawsuit is being pursued by Judicial Watch, claims that private papers concerning a Commerce Department scandal were illegally searched by Commerce lawyers while she was in the hospital. Ms. Stewart is suing Commerce Associate General Counsel Barbara Fredericks and Kathleen Taylor, another Commerce lawyer, over the illegal search. Ms. Stewart made headlines when she testified in Judicial Watch's Chinagate case against the Commerce Department that the Clinton White House and Commerce Department officials conspired to withhold improperly documents concerning the sale of the trade mission seats in exchange for campaign contributions. It was this Freedom of Information Act (FOIA) case which led to the uncovering of accused Chinese spy John Huang. Because of Ms. Stewart's testimony, Clinton White House officials Bruce Lindsey and Cheryl Mills will be deposed in the ongoing lawsuit. Top Commerce lawyers such as Ms. Fredericks were also implicated in the cover-up and have already been roundly criticized by the judge handling the case, The Honorable Royce C. Lamberth. "We are pleased that Ms. Stewart will get her day in court. She has suffered much over the years for resisting corruption at the highest levels of the Clinton Commerce Department. This court ruling is vindication and shows that the court process can sometimes work for whistleblowers," stated Judicial Watch Chairman and General Counsel Larry Klayman. A copy of the court decision is available on the Judicial Watch Internet site at www.judicialwatch.org, or by clicking here. |
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It is hard to let the worst treason in the U.S. go totally unaccounted for.
NOW let us see what the Liberals have cooked-up for Dubya's non-role in the Enron debacle, eh? ;^)
...man; have we hitched our wagons to some dumb MFers on the Right, or what.
Clinton, who transferred technology export control from State to Commerce, and Ron Brown, to expedite the transfer of missle technology that State had already refused to allow China ascess to, got away with it. Perhaps State decided that Americans are not grown up enough to deal with treason at the highest levels of govt. Or maybe everyone is just in the classic CYA mode.
sheesh !!!!!!
So now in America we not only have an open door to terrorists, but we do not punish those that committ treason in high places or big businesses.
That vast differences of __________ have become a THIN RED LINE !!!!!!
GRrrrrrrrrrrrrrrrrrrrrrrrrrrrrr!!!!!!!!!
Weird thing is I do not blame the RED Chinese, they are commies and doing what comes naturally, to be evil. I blame our Americans that let this happen and that committed the acts of Treason.The commies "IN COUNTRY" !!!!!!
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