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


To: Sawtooth who wrote (3454)5/27/1998 7:44:00 PM
From: zebraspot  Read Replies (1) | Respond to of 10852
 
Investigators Seek Info On China-Born Former Loral Exec

Dow Jones Newswires -- May 27, 1998
WASHINGTON (AP)--Congressional investigators sought information Wednesday on a
Chinese-American emerging as a key figure in the alleged disclosure of missile technology to
China.

Rep. Gerald Solomon, R-N.Y., asked the Pentagon about security clearances held by Dr. Wah
Lim, a former executive for Loral Space & Communications Ltd. (LOR) who is now with
Hughes Electronics Corp. (GMH).

Lim, a missile guidance technology expert, headed a 1996 panel that examined what caused a
Chinese rocket explosion that destroyed a Loral commercial satellite shortly after liftoff.

Congressional investigators believe Lim may be able to provide information on what technology
may have been disclosed to China and who authorized the disclosure.

Loral said Lim's panel violated company policy in giving China a 200-page assessment of the
explosion's causes before notifying U.S. officials. The Pentagon later said the disclosure
harmed U.S. national security by including information on rocket guidance that might be
applicable to long-range nuclear missiles.

Lim did not immediately return calls placed through Hughes and his personal attorney.

The Justice Department is investigating whether Loral and Hughes, both of which were
represented on the review panel, violated U.S. export control laws by revealing sensitive
information on rockets.

When the accident occurred, Lim worked for Loral. He moved to Hughes later.

Solomon, a senior House Republican who chairs the Rules Committee, is exploring a report that
Lim was denied a high-level security clearance earlier in his career when he worked for
Northrop Grumman on the B-2 bomber program.

The denial was issued routinely under rules governing security clearance applicants with
relatives in foreign countries the United States considered a security risk, said a congressional
staffer familiar with Solomon's inquiry.

Born in China in 1945, Lim fled with his family in the late 1940s amid the communist
revolution. He was educated in Singapore and later the University of Minnesota. He is a U.S.
citizen.

A 22-item questionnaire that Solomon sent the Pentagon seeks detailed information on security
clearances Lim has received, or been denied, throughout his career. In particular, it asks
whether Lim received a waiver while at Loral that allowed him access to highly classified
material.

"Please furnish all forms that Dr. Lim signed that indicate his knowledge of correct security
procedures, records of security briefings he received, and termination documents in which he
acknowledges his role in protecting classified information," Solomon asked the Pentagon.

Loral, which Solomon had contacted about the information before going to the Pentagon,
confirmed to the lawmaker that Lim headed the review panel. However, it cited Defense
Department regulations in refusing to provide information about Lim's security clearances.

"Loral's position could be contested," Solomon wrote to Defense Secretary William Cohen.
However, he wrote, "Since this is an issue of national security, I do not wish to waste time
breaking down a Loral stone wall."

Pentagon spokesman Kenneth Bacon said the department "will respond to the congressman's
request as soon as possible."

A spokesman for Loral declined to comment Wednesday. Hughes said in a statement that Lim
has all the appropriate clearances and that they were issued by the U.S. government.

Loral and Hughes have denied any fault in releasing unauthorized information to China and have
disputed that any sensitive information was disclosed.

In a statement earlier this month, Loral said, "The matter became an issue because, contrary to
(Loral's) own internal policies, the (crash review) committee provided a report to the Chinese
before consulting with State Department export licensing authorities."



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