Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Loral Space & Communications -- Ignore unavailable to you. Want to Upgrade?

To: Yikes! who wrote (2588)	4/13/1998 7:05:00 AM
From: Geoff	Read Replies (1) \| Respond to of 10852

More on the China situation... ======= Subject: Pentagon Date: Mon, Apr 13, 1998 04:12 EDT From: KWilson194 Message-id: <1998041308125101.EAA22237@ladder03.news.aol.com> Monday April 13, 2:57 am Eastern Time Hughes, Loral named in Pentagon report-NYT NEW YORK, April 13 (Reuters) - A highly classified Pentagon report has concluded that scientists from Hughes Electronics Corp. (GMH - news) and Loral Space & Communications Ltd. (LOR - news) allegedly turned over expertise to China that significantly improved the reliability of China's nuclear missiles, the New York Times reported Monday. The scientists from the two companies turned over the information as part of their investigation of a Feb. 16, 1996, crash of a Chinese rocket that Loral had contracted for the launch of a $200 million satellite, the Times said, citing unnamed officials. In addition to identifying the cause of the crash - said to be an electrical flaw in the electronic flight-control system - the 200-page accident assessment also discussed other sensitive aspects of the rocket's guidance and control systems, an area of weakness in China's missile programs, the Times said. The May 1997 report concluded that ''United States national security has been harmed.'' The report, whose existence has been secret, prompted a criminal investigation of the companies, the Times said, citing unnamed officials. The companies told the Times their employees acted properly but they declined to discuss the matter. Criminal charges are unlikely to be brought, however, largely because the investigation was undermined this year when President Clinton approved Loral's export to China of the same information about guidance systems, the Times said. Clinton acted despite strong opposition from the Justice Department, which argued that approval would undercut any criminal case, the Times said. Loral chairman Bernard Schwartz was the largest personal donor to the Democratic Party last year, the Times said. The White House denied any political interference in the issue, the Times said. -kw