China: June 18, 2000


The US State Department has fined Lockheed Martin $8 million for giving China secret information on US satellite technology, and has ordered it to spend another $5 million improving its own security. The company accepted the fines to avoid a long legal battle, but did not admit guilt under the settlement. Lockheed had been asked by Asiasat, a company owned by the Chinese government, to provide assistance in solving problems with satellite rocket motors used to position them in orbit. The company prepared a 50-page report for the Chinese, but the Pentagon ordered 45 pages removed after a security review. The company then provided the Chinese with ten copies of the complete unedited report.--Stephen V Cole


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