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Technology Stocks : Loral Space & Communications

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To: stantheman who wrote (2968)5/17/1998 12:55:00 AM
From: Diogeron  Read Replies (1) of 10852
 
This may really get ugly, especially with the players involved. I'm watching Bob Barr, Congressman from GA, on Geraldo. He just claimed that India's nuclear tests are because of the sat technology that American companies, "especially Loral," was allowed to give to China in return for campaign contributions (from the Chinese) to Clinton.

While I'm no Clinton cheerleader, I'm from Indiana and know first hand the outright hatred (I use that word advisedly) that the Burton-Barr-Bauer-Robertson wing of the party has for Clinton. While I assume they will be reigned in by the moderates and more reasonable conservatives in the party in the long run before they damage Loral (and IRIDF?), I'm none too sanguine about their sense of fair play in the near term when they think there are political points to be scored, especially if some of the arguments about illegal campaign contributions may be, as they appear on the surface, legit. Of course, since "Watermelon Dan" is so nakedly partisan and out of control, I'd be amazed if anything of substance happens one way or the other. Look for this to get nastier as we approach November.

Finally, Barr claims that the exact same sat technology Loral has given to the Chinese for commercial sats is the same for military sats, hence India's need to flex it's nationalistic love muscle by some underground nuke tests. Essentially, Barr et al are accusing Bernie and Clinton of serious criminal activity at best, or possibly treason. And, especially since Burton allegedly tried to strongarm some contributions from the Pakis, I'd be surprised if we don't see something on tomorrow's Sunday morning talking heads shows on this.

While I'm a novice at sats, I've trained corporate spokespersons, including CEOs, for some twenty years. I'd be amazed if LORAL doesn't have to respond to these allegations, despite their probable reluctance to do so. If we get silence or an "aggressive non-response," my guess is it's because the Legal Department has an increasing say in corporate communications policy. And that, at least in the short run, is not a good sign for Loral's PR on this issue.

Just my two cents, FWIW.
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