DATE=6/14/2000
TYPE=CORRESPONDENT REPORT
TITLE=CHINA SATELLITE FINE (S & L)
NUMBER=2-263481
BYLINE=PAULA WOLFSON
DATELINE=WASHINGTON
CONTENT=
VOICED AT: 


INTRO:  The Lockheed Martin Corporation -- the world's 
largest defense equipment contractor -- has agreed to 
pay a 13-million-dollar fine to the U-S government.  
The fine settles a case involving the sale of 
satellite technology to China.   V-O-A's Paula Wolfson 
has details.


TEXT:  The State Department says Lockheed Martin 
illegally helped China acquire technology with 
military applications.

The corporation is not admitting guilt.  But in a 
written statement, a Lockheed Martin spokesman 
stressed his company recognizes the need to protect 
national security through strict regulatory controls.

The case dates back to 1994, when Lockheed Martin 
agreed to help fix problems with a Chinese rocket used 
to launch commercial satellites.  Lockheed Martin 
later sent a report on its findings to a Hong-Kong 
based satellite company with ties to the Chinese 
government.

Most of the report was never cleared with the 
Pentagon, as required by law.  While Lockheed Martin 
said it did nothing wrong, U-S government officials 
stressed any assistance to China's space launch 
program could be applied to missile development.

            /// REST OPT FOR LONG ///

The financial settlement came close to the maximum 
penalty of 15-million dollars.  Under terms of the 
agreement, Lockheed Martin will be allowed to use five 
million to install a computer monitoring system at its 
plants that would give the U-S government access to 
information on all its foreign space and missile 
contracts.

The agreement follows tough criticism from the 
Republican-led Congress of the Clinton 
administration's policy on technology deals with 
China.  The fine against Lockheed Martin is believed 
to be the largest civil penalty ever imposed under the 
Arms Export Control Act, which regulates sales of 
technology abroad.  (signed)

NEB/PW/JP




14-Jun-2000 13:05 PM EDT (14-Jun-2000 1705 UTC)
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Source: Voice of America
.