UTC helped build China’s first military attack copter

http://online.wsj.com/article/SB10001424052702303649504577494783727664496.html

When two United Technologies Corp. UTX +0.95% engineers first laid eyes on the Chinese helicopter their company was helping outfit, they were shocked by what they saw.

“Where are the other ten seats?” one asked the Chinese official in charge of the program, according to U.S. law enforcement authorities who interviewed the engineers. Instead of a helicopter for ferrying around groups of civilians, the engineers saw a two-seater in military configuration equipped with Pratt & Whitney engines and mock weapons. The Chinese official just laughed, according to the Justice Department.

What the engineers didn’t know, and what the Justice Department has spent the past six years investigating, was that Pratt & Whitney Canada had agreed to help China build its first military attack helicopter as the price for the chance to win millions of dollars in civilian business.

On Thursday, the UTC unit pleaded guilty to illegally supplying China with military technology and agreed to pay more than $75 million in penalties, in a major violation of U.S. arms control laws.

The attack helicopter was powered by Pratt & Whitney engines, the same engines used on a civilian version. But the company admitted it had outfitted them with engine-control software modified for military use.

The conglomerate also admitted making false statements about the sale of software that aided the development of the attack helicopter and not making timely disclosures of the violations, which happened from 2002 to 2003.

“Due in part to the efforts of these companies, China was able to develop its first modern military attack helicopter with restricted U.S. defense technology,” Assistant Attorney General Lisa Monaco said in a statement. The Z-10 helicopter is in production, and initial batches were delivered to the People’s Liberation Army of China in 2009 and 2010, the Justice Department said.

“Export controls are an integral part of safeguarding U.S. national security and foreign policy interests,” United Technologies Chief Executive Louis Chenevert said in a statement. “We accept responsibility for these past violations and we deeply regret they occurred.”

The U.S. imposed a prohibition on export of all defense material to China, including helicopters, in the wake of the 1989 Tiananmen Square crackdown. Despite the ban, Chinese authorities wanted to develop a military attack helicopter with assistance from Western suppliers, and that’s where Pratt Canada got involved, according to the Justice Department.

Lured by the promise of being the exclusive engine supplier to China’s civilian helicopter program with the potential to generate $2 billion in sales and service, executives at Pratt Canada dodged concerns that the sale of the engine software violated U.S. export laws.

Pratt initially thought it wouldn’t need an export license from Canada, but was informed by the government that it would.

When Pratt Canada told the Chinese about the potential difficulty with exporting the technology for military use, the Chinese came up with a briefing paper about a civilian helicopter program that was running in parallel with the military one, the Justice Department said.

At that time, Pratt executives said by putting forward the civilian program whether “real or imagined” created an opening for Pratt to get exclusive access, according to an email excerpted in the company’s deferred prosecution agreement.

Soon afterward, Canada issued a permit for Pratt to export engines for the program.

In an email that the Justice Department said was sent on Sept. 12, 2001, Pratt Canada’s export manager cautioned that the company had to be careful that the helicopter program with China not be presented as military.

“We need to be very careful with the Z10C program,” the email said, according to the deferred prosecution agreement. “If the first flight will be with a gun ship then we could have problems with the US government.”

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thanks to Reinhardt for the link..

dirty laundry that came out the same day at the obamacare decision..this is how they hide treason..great catch R~..the way the game is played..

401

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~ by seeker401 on July 6, 2012.

2 Responses to “UTC helped build China’s first military attack copter”

  1. [...] UTC helped build China’s first military attack copter (seeker401.wordpress.com) [...]

  2. [...] UTC helped build China’s first military attack copter (seeker401.wordpress.com) [...]

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