Citing security, U.S. spurns China on satellite deal; reversal by White House; project, though commercial, may help to aim missiles, State and Defense fear

Article Abstract:

The Department of Defense and the State Department have refused authorization of the sale of a communications satellite by Hughes Space and Communications to Asia-Pacific Mobile Telecommunications, a Singapore based telecommunications company with links to China. The satellite would have been used for a mobile phone system serving Southeast Asia and China. The reason for the refusal was to prevent transfer to China of critical technologies that could help the Chinese military improve the accuracy of their ballistic missiles. China has already benefited technologically from the relationship between the two companies whose contract was originally approved by the Clinton administration 2 years ago. Changes in the satellite required resubmission of the contract to the government. The decision highlights embarrassment suffered by the Clinton administration based on the military value of earlier technology transfers, the discovery of connections between the Chinese military and Asia-Pacific Mobile Telecommunications, and the chilling of relations between the U.S. and China.

China, Guided missiles and space vehicles, Communications Satellites, Guided Missile and Space Vehicle Manufacturing, International politics, International aspects, Contracts, Satellite communications, Chinese foreign relations, Military aspects, Military policy, United States foreign relations, Satellite industry, United States. Department of State, United States. Department of Defense, Technology transfer, Boeing Satellite Systems Inc., Asia Pacific Mobile Telecommunications

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I.B.M. guilty of illegal sales to Russian lab; unit strikes plea deal for computer exports

Article Abstract:

IBM East Europe/Asia, a Moscow-based IBM subsidiary, pleaded guilty to the illegal export of 17 advanced computers to a Russian nuclear weapons plant in late 1996 and early 1997. The unit also agreed to pay the maximum $8.5 million fine for 17 felony violations of the Sep 1996 US-Russian complete ban on nuclear tests. The plea in Federal District Court in the District of Columbia represents the first criminal conviction against IBM, Federal investigators believed. Russia, which can strengthen its nuclear weapons testing through the use of the computers, miscalculated that the US would approve the deal after the export control laws. Neither Russia nor IBM received the necessary Federal permission. An 18-month Government investigation revealed that IBM's US executives were unaware of numerous Russian middlemen and complex European shipping arrangements. The probe followed Jan 1997 comments to reporters by the Russian Minister of Atomic Energy.

Electronic computers, Electronic Computer Manufacturing, Military & Space Computer Sys, Computer industry, Company legal issue, Cases, IBM, International trade, IBM East Europe/Asia Ltd.

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IBM guilty of illegal sales to Russian lab

Article Abstract:

The Russian subsidiary of IBM pleaded guilty in Federal District Court in the District of Columbia to 17 felony violations connected with the illegal export of 17 advanced computers to a Russian nuclear weapons laboratory and will pay an $8.5 million fine. The subsidiary, IBM East Europe/Asia Ltd., had never received expected government approval for the computers' sale. It was the first criminal conviction for IBM, which had reorganized the staff of its Russian subsidiary in the wake of the investigation.

Comment:

IBM's Russian subsidiary pleads guilty to 17 felony counts for illegal export of 17 computers and will pay $8.5 mil fine

Legal issues & crime, Office & Computing Machines, Company Planning/Goals, Office equipment, Article

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