Weapons of Mass Destruction (WMD)

DATE=4/21/98
TYPE=CORRESPONDENT REPORT
NUMBER=2-229983
TITLE=CHINA / LORAL (L-ONLY)
BYLINE=STEPHANIE HO
DATELINE=BEIJING
CONTENT=
VOICED AT:  
INTRO:  THE HEAD OF LORAL SPACE -- ONE OF THE COMPANIES NAMED IN 
A PENTAGON REPORT AS HAVING INAPPROPRIATELY PROVIDED MISSILE 
TECHNOLOGY TO CHINA -- DENIES THE COMPANY HAS DONE ANYTHING 
IMPROPER.  VOA'S STEPHANIE HO REPORTS FROM BEIJING, THE CHIEF 
EXECUTIVE OFFICER MADE HIS COMMENTS TODAY (TUESDAY) AT A NEWS 
CONFERENCE TO ANNOUNCE A NEW PARTNERSHIP WITH CHINA TELECOM.
TEXT:  EARLIER THIS MONTH, THE "NEW YORK TIMES" NEWSPAPER 
REPORTED THE U-S DEFENSE DEPARTMENT FOUND THAT TWO U-S COMPANIES,
LORAL SPACE AND HUGHES ELECTRONICS, HAD PROVIDED INAPPROPRIATE 
INFORMATION TO CHINA.
AT A NEWS CONFERENCE TUESDAY, THE CHAIRMAN OF LORAL SPACE, 
BERNARD SCHWARTZ, SAYS -- CONTRARY TO THE PENTAGON REPORT -- HIS 
COMPANY HAS DONE NOTHING WRONG.
         // SCHWARTZ ACT //
  I'M NOT AWARE OF ANY ALLEGATIONS.  I THINK THERE WAS AN INQUIRY
ON THE PART OF THE GOVERNMENT AS TO WHAT HAPPENED AFTER THE 
INCIDENT HERE IN 1996.  IT IS APPROPRIATE FOR THE GOVERNMENT TO 
MAKE THAT INQUIRY AND OF COURSE WE'RE COOPERATING WITH THAT 
FULLY.  THERE HAVE BEEN NO ALLEGATIONS OR NO TARGETING OF LORAL 
FOR ITS ACTIVITY.  I THINK WE'VE DONE OUR OWN INTERNAL 
INVESTIGATION AND I'M SATISFIED THAT OUR PEOPLE HAVE ACTED WELL, 
(WITH) GOOD BEHAVIOR AND IN COMPLIANCE. 
           // END ACT //
IN FEBRUARY, 1996, A CHINESE LONG MARCH ROCKET CRASHED -- 
CARRYING A 200-MILLION DOLLAR LORAL SATELLITE.  THE NEW YORK 
TIMES QUOTES THE PENTAGON REPORT AS SAYING LORAL SPACE 
COMPROMISED U-S NATIONAL SECURITY BY DISCUSSING SENSITIVE ASPECTS
OF THE ROCKET'S GUIDANCE AND CONTROL SYSTEM IN THEIR REPORT TO 
THE CHINESE FOLLOWING THE FAILED LAUNCH.
          /// REST OPT ///
PUTTING THE CONTROVERSY ASIDE, THE LORAL CHAIRMAN ANNOUNCED A NEW
PARTNERSHIP BETWEEN GLOBALSTAR -- A TELECOMMUNICATIONS COMPANY 
THAT IS LED BY LORAL SPACE -- AND CHINA TELECOM.
MR. SCHWARTZ SAYS CHINA TELECOM HAS AGREED TO INVEST 
37-AND-A-HALF MILLION DOLLARS IN GLOBALSTAR -- WHICH WOULD GIVE 
IT A ONE-POINT-SIX PERCENT EQUITY STAKE IN THE COMPANY.
THE GLOBALSTAR SYSTEM WILL BE MADE UP OF 48 SATELLITES AND A 
GLOBAL NETWORK OF GROUND STATIONS THAT WILL ALLOW SUBSCRIBERS TO 
MAKE OR RECEIVE CALLS FROM HAND-HELD TERMINALS.
         // SCHWARTZ ACT // 
 WE WOULD EXPECT OUR SERVICE WILL BEGIN IN 1999, AND BY THE YEAR 
2002, WE EXPECT TO HAVE 200-THOUSAND SUBSCRIBERS IN CHINA. 
         // END ACT //
THE MORE THAN TWO-AND-ONE-HALF BILLION DOLLAR GLOBALSTAR 
PARTNERSHIP BRINGS TOGETHER TELECOMMUNICATIONS SERVICE PROVIDERS 
AND EQUIPMENT MANUFACTURERS FROM AROUND THE WORLD.  ITS FIRST 
FOUR SATELLITES WERE LAUNCHED IN FEBRUARY.  THE COMPANY PLANS TO 
LAUNCH THE OTHER 44 SATELLITES BY THE END OF THIS YEAR.  (SIGNED)
NEB/HO/GC/FC
21-Apr-98 6:23 AM EDT (1023 UTC)
NNNN
Source: Voice of America
.