U.S. State Department Accuses Firms of Violations

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Last updated at: (Beijing Time) Thursday, January 02, 2003

U.S. State Department Accuses Firms of Violations

Two leading aerospace companies have been accused by U.S. State Department of illegally providing satellite and rocket technology to China that could be used for intercontinental missiles.

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Two leading aerospace companies have been accused by U.S. State Department of illegally providing satellite and rocket technology to China that could be used for intercontinental missiles.

The department accused Hughes Electronics Corp. and Boeing Satellite Systems of illegally giving technical data to China following failed Chinese launches of rockets carrying American satellites in 1995 and 1996. Boeing acquired Hughes' space unit in 2000.

In a letter dated Dec. 26, the State Department said the companies committed 123 violations of the Arms Control Export Act and the International Traffic in Arms Regulations.

If the violations are upheld through the department's administrative appeals procedures, the companies could face restrictions on selling technologies overseas. They also could face fines of $500,000 per charge, though it is not clear if each violation would constitute a separate violation.

A Hughes spokesman, Richard Dore, said the company did nothing wrong.

Boeing spokesman Walt Rice said the company needs to review the State Department's accusations before commenting.

Source: Agencies

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