Judicial Watch criticized $14 million settlement by Loral and U.S...

Judicial Watch criticized $14 million settlement by Loral and U.S. State Dept. Wed. over company’s involvement in providing secret missile technology to China after failed rocket launch in 1996. Justice Dept. also ended its separate investigation of Hughes Electronics for its alleged involvement in helping China improve its nuclear capabilities, and settlement is expected, company said. Judicial Watch in Nov. 1998 filed shareholder lawsuit in U.S. Dist. Court, D.C., against Loral Chmn. Bernard Schwartz, ex- President Bill Clinton and ex-Vice President Al Gore, charging payment to Clinton Administration to provide export licenses, access to Commerce Dept.-sponsored trade missions and to “look the other way” as Loral improperly aided China’s nuclear program. Loral agreed to pay $14 million to State Dept. with no interest over 7-year period. As part of agreement, Justice Dept. terminated its investigation of company. Loral will spend additional $6 million to strengthen its export compliance program. Schwartz said company had “excellent security record” and had “instituted an extensive new training program, significantly expanded staff and greatly improved oversight in the area of export control.” Investigation began when Loral employee sent copy of Independent Review Committee report on failed launch to Chinese govt.