Technology Transfer

Boeing Co. said Thursday that it should be immune from any penalties or sanctions arising from allegations by the State Department that its El Segundo-based satellite unit illegally provided China with sensitive space technology in the mid-1990s. Boeing's statement came after the State Department last week ratcheted up pressure on the aerospace giant by issuing it a "charging letter."

Boeing Co. and Hughes Electronics Corp. agreed Wednesday to a $32-million settlement to resolve allegations that Boeing's El Segundo satellite unit illegally provided China with sensitive space technology in the mid-1990s. Hughes owned the satellite business at the time of the violations; Boeing owns the operation now. Ending a bitter and drawn-out dispute, Boeing and Hughes will pay the State Department $20 million in cash over seven years.

President Bush on Monday appealed to Russian President Vladimir Putin to investigate three Russian companies for allegedly providing illegal weaponry and technical military assistance to Iraq that U.S. officials said could seriously affect the war. The Bush administration said Putin pledged to look into the allegations, which include the sale of electronic jamming devices, antitank missiles and thousands of night-vision goggles to the Iraqi military.

Washington accused Pakistan's largest nuclear facility of sharing technological know-how to make weapons of mass destruction or missiles capable of delivering them, a U.S. Embassy spokeswoman said. Two-year sanctions placed on Khan Research Laboratories ban all U.S. sales and contracts. The spokeswoman did not name the other party involved, but a North Korean firm, Changg Wang Sinyong Corp., also was slapped with sanctions, apparently for its alleged role in missile transfers with Pakistan.

NASA's Jet Propulsion Laboratory will work with an engineering firm to commercialize cutting-edge technologies such as infrared imaging and ground-penetrating radar in the agency's latest attempt to give space technology down-to-earth value. Under the agreement announced Tuesday, JPL engineers will work with Jacobs Engineering Group Inc. to study technologies that may have applications for the company. No specific deals are mentioned.

The Justice Department told manufacturers Friday that they can share information on resolving year 2000 computer issues without running afoul of antitrust laws. The National Assn. of Manufacturers had sought approval of a plan to let its 14,000 member companies and their computer services suppliers exchange data on fixing the computer date problem. The Justice Department approved a similar plan for the financial services industry last month.

An IBM Corp. subsidiary agreed Friday to pay $8.5 million in federal fines for selling powerful computers ultimately destined for a Russian nuclear weapons laboratory. IBM East Europe/Asia Ltd., the Russian subsidiary of IBM, pleaded guilty in U.S. District Court in Washington to 17 criminal charges. Judge Norma Holloway Johnson imposed the maximum fine allowed under the law, which is designed to prevent the spread of nuclear weapon technology. Prosecutors said the IBM subsidiary sold $1.

Confronting his most formidable military critics, President Mohammad Khatami on Tuesday told Iran's Revolutionary Guards that Iranians should demonstrate greater tolerance for diverse political and social views at home and in relations with the outside world. His appeal came as President Clinton vetoed legislation imposing sanctions on countries or companies that provide Iran with technology that could be used to develop missiles. Congress is expected to easily override his veto.

A new prosecutor was named Friday to run the Justice Department's investigation into campaign fund-raising allegations, including whether political donations influenced President Clinton's decision to allow satellite technology exports to China. Atty. Gen. Janet Reno said a career federal prosecutor from New Hampshire, David Vicinanzo, would head the Justice Department's campaign financing task force, which is investigating Clinton fund-raising controversies.

Justice Department investigators are trying to determine who approved contacts between the CIA and Hughes Electronics officials after company leaders were tipped off that they would be called before a Senate committee looking into the firm's technology exports to China.