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Technology Stocks : IRID - Iridium World Communications IPO Announced! -- Ignore unavailable to you. Want to Upgrade?

To: flickerful who wrote (1000)	8/13/1998 2:32:00 PM
From: Jeff Vayda	Respond to of 2693

All: 8/13/1998 Article:112407 Rohrabacher says Motorola helped China gain MIRV technology House Space subcommittee chairman Dana Rohrabacher (R-Calif.) has charged that Motorola, through its Iridium satellite program, doubled the capacity of Chinese rockets to carry payloads and gave China technology such as exploding bolts which facilitate separation of stages and multiple warheads on ICBMs. Motorola spokesman Robert Edwards denied the charges. He said Motorola did not increase the capacity of the Chinese rockets and that all information was cleared by U.S. government agencies prior to transfer and that a Defense Dept. representative was present at technical discussions with the Chinese. He said that exports of separation hardware were approved under a separate license and and that was approved by DOD as a condition of the export license. Rohrabacher further charged, in a House speech delivered last Friday shortly before the House adjourned until Sept. 9, that Motorola was first turned down when it wanted to sell these technologies to the Chinese, but with the help of the Clinton Administration reworked the license application from the rocket category, which he said was illegal for export to the Chinese, to the satellite list. "...It was moved to the satellite list simply by reworking the paperwork," he said in the speech. Edwards denied that Motorola reworked the export license application to facilitate approval. Rohrabacher said Motorola indicated that it wanted to provide him with information "that would convince me that they were not guilty of betraying the security of our country." Then, he added, Motorola changed its mind and said it would only talk to the special House Committee investigating the national security implications of Chinese rockets launching U.S.-built satellites. The committee, chaired by Rep. Christopher Cox (R-Calif.), is in the early stages of its investigation, which was sparked by concerns that Loral and Hughes gave away sensitive information. The two companies have denied any wrongdoing. Rohrabacher said he "gave Motorola every opportunity to correct what they said was a false impression on my part." He added, "They decided not to provide me with information, knowing that I would be speaking to the House of Representatives as well as to the American people on this issue." Four Iridium launches Motorola thus appeared to be on the verge of becoming the third satellite manufacturer being investigated because of charges of questionable activities in connection with Chinese launches of American satellites. Iridium satellites from Motorola were launched by China in December 1997, and in March, May and July of this year. Rohrabacher told the House that China did not have MIRVing capability before the Iridium contract was signed but on September 1, 1997, the official Communist Chinese news agency reported: "A Chinese Long March rocket carrier containing two simulations of Iridium satellites owned by the American electronics giant Motorola was successfully launched." Rohrabacher stressed that the rocket carried two payloads instead of one. The Non-Proliferation Policy Education Center in Washington, D.C., said the Chinese learned from the Iridium launches that they could dispense multiple satellites precisely with a kick motor and new satellite dispenser of Chinese design. The military benefit, the Center said, was that it helped China master the technology needed to develop its own multiple independently targetable reentry vehicles. It noted that China's new solid rocket intercontinental ballistic missiles (DF-31 and DF-41) are expected to employ such systems. Rohrabacher said Motorola officials "have confirmed to me" that they have provided the Chinese with technology such as exploding bolts. Rohrabacher, a former member of the Reagan White House and no friend of the current Administration, said Motorola was at first turned down for an export license, but with the help of the "Clinton Administration sleight of hand," the paperwork was readjusted. "Now, it is permissible for them to give this technology, before it was illegal," he said. "The end result: Communist Chinese, who are infamous copy cats,...ended up with 40 of these incredibly precise and sophisticated pieces of aerospace engineering." Copyright 1998 The McGraw-Hill Companies, Inc.