US Co's pay millions for Improving Chinese Rockets

[Timber Loftis]

TL's obligatory OpEd:
Tagging off of some Tailgunner Joe McCarthy comments on the West/Left Wing thread, I note that today, unlike the 1940s, most military technology "transfers" occur in a much less sinister fashion, because our privately-held weapon-making companies also have other customers. Here's a "fine" example.

Today's NY Times:
http://www.nytimes.com/2003/03/06/in...ia/06SPAC.html

Companies Pay Penalties for Improving China Rockets
By JEFF GERTH

ASHINGTON March 5 — Two leading American aerospace companies have agreed to pay a record $32 million in penalties to settle civil charges that they unlawfully transferred rocket and satellite data to China in the 1990's.

The agreement, which was completed on Tuesday and released today, comes two months after the State Department accused the companies, Hughes Electronics Corporation, a unit of General Motors, and Boeing Satellite Systems of 123 violations of export laws in connection with the Chinese data transfers. In a joint statement the companies said they "express regret for not having obtained licenses that should have been obtained" in the 1990's by a Hughes unit, the Hughes Space and Communications Company, which was acquired in 2000 by Boeing.

The companies also said they "acknowledge the nature and seriousness of the offenses charged by the Department of State, including the harm such offenses could cause to the security and foreign policy interests of the United States."

Under the agreement the companies will pay $20 million to the federal government over the next seven years, invest another $8 million to increase their export compliance programs and receive a $4 million credit for past export enhancement programs. Officials said the $32 million civil penalty is the largest in an arms export case.

The technology used to launch civilian rockets and satellites is similar to that used to launch missiles so there are tight curbs — mostly administered by the State Department — on the export of satellites, aerospace equipment and related defense services.

The Chinese have always insisted that their rocket and missile programs did not need help from American companies. But a string of Chinese rocket failures in the 1990's ended only after American companies transferred data on guidance systems, telemetry, aerodynamics, and rocket failures.

In 1998 a Congressional panel criticized satellite manufacturers for sometimes subordinating national security to the financial considerations and concluded that their "illegally transmitted" information had improved the reliability of China's civilian and military rockets.

The next year the United States stopped permitting the launch of American satellites on Chinese rockets as concerns rose about Chinese aid to missile programs in North Korea and Pakistan.

China agreed in November 2000 not to assist other countries in developing ballistic missiles that could deliver nuclear weapons. But the Central Intelligence Agency told Congress earlier this year that Chinese companies have continued to provide "missile-related items, raw materials and/or assistance" to North Korea and several other "countries of proliferation concern."

The settlement ends a five-year federal investigation into how American satellite and aerospace companies aided China as they competed to have their satellites launched aboard Chinese rockets. The assistance went to Chinese individuals as well as Chinese-related companies and organizations, some private and some governmental.

Previously the Lockheed Martin Corporation and Loral Space and Communications Corporation agreed to pay fines — $13 million and $20 million respectively — to settle similar cases. The Justice Department terminated its criminal investigation of Hughes and Loral last year without taking any action.

The settlement announced today also calls for the companies to appoint a separate third party to monitor the agreement as well as future exports to countries such as China.

The latest agreement seems to disavow previous denials of wrongdoing by Hughes because it states that its "regret for not having obtained licenses that should have been obtained" was "notwithstanding Hughes' prior public comments to the contrary."

The heads of the 1998 Congressional committee that investigated the data transfers to China, Representative Christopher Cox, a California Republican, and Representative Norm Dicks, a Democrat from Washington, issued a statement today praising the penalty as well as the corporate pledges of remedial action.

"This steep fine and sobering result is another reminder that effectively preventing weapons proliferation requires vigilant enforcement of export controls on military technology," the statement said.

The government's negotiations with Boeing and Hughes stalled, leading the State Department to file the civil equivalent of an indictment last December spelling out the 123 charges.

The charges included three separate cases in which officials from the former Hughes unit helped Chinese-related entities determine what went wrong on failed satellite launchings.

Yep I remember those issues from the 1990's. The problem is, the defense contractors were acting under pressure from the administration....you know...the one that gave North Korea the ability to make nuclear weapons? How some of those people get away without criminal prosecution I don't know.

[Timber Loftis]

Originally posted by MagiK: Yep I remember those issues from the 1990's. The problem is, the defense contractors were acting under pressure from the administration....you know...the one that gave North Korea the ability to make nuclear weapons? How some of those people get away without criminal prosecution I don't know.

Ugh... MagiK. There are two statements made herein that need some factual support.
1. The administration gave nuclear weapon technology to NK.
2. The administration ordered/directed companies to make or give weapon technology to NK.

Unsupported, these are not grenades, per se, but certainly show off your "say whatever unsupported crap makes a good soundbyte vs. liberals" Rush Limbaugh side.

Originally posted by Timber Loftis: [Unsupported, these are not grenades, per se, but certainly show off your "say whatever unsupported crap makes a good soundbyte vs. liberals" Rush Limbaugh side.

Umm TL, this is not unsupported crap.

1. It is a matter of record that the administration reveresed 9 previous administrations in giving light water reactors to North Korea, this allowed them with a few modifications to produce weapons grade materials.

2. I happened to be defense contractor during that period and I can personaly verify that the Administration (IE. elected official and not a Uniformed officer) did in fact pressure and over the objections of many force certain actions to be taken. I personally filled out several complaint forms when directed to turn things over to uncleared personnel, I also made sure to document each instance and filed them with my superiors.

My statements stand.

Edit: My complaint forms had nothing to do with CHina per se. This was a different issue...but it does illustrate that the "administration" did involve itself with overriding established law and or regulation.

[ 03-06-2003, 11:30 AM: Message edited by: MagiK ]

[Timber Loftis]

Sorry, but I think light water nuclear reactors and nuclear weapons technology are a far cry apart. Having one component does not mean a whole lot when so much more is needed to actually make a nuke, but I get what you were saying.

Well when all you are missing is the weapons grade material, and some one comes along and gives you the one thing you didn't have to make that meterial........err uhhh yeah you did say you saw my point [img]smile.gif[/img]

I have also been thinking about those days working for SAIC. Got me to wondering, the people I was around most were appointees mostly but I will always remember sitting at lunch with Marine Corps Officers, Company execs and "suits" from the government. I was really shocked at the lack of concern for security....it really shook me up.

[Kakero]

China also got military technological thingie from Russia, and yet Russia doesn't make a fuss of it. I think.