U.S. Indicts McDonnell Douglas & Chinese State Co. on Export Control Charges

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Wednesday, December 1, 1999
Bruce Zagaris
On October 19, 1999, the U.S. Government indicted the McDonnell Douglas Corporation and the China National Aero-Technology Import and Export Corporation (CATIC) and its affiliate (CATIC/Supply), Chinese state companies, on 16 counts over the sale of machine tools capable of producing military aircraft. Prosecutors accused McDonnell Douglas, which is now part of Boeing, of trying to elevate its own profits above national security by allegedly misleading officials to obtain export licenses for 13 sophisticated machine tools. Boeing Corp., which acquired McDonnell Douglas after the occurrences of the alleged activity, issued a press release, strongly defending its subsidiary and stating it “did not commit any criminal violations in regard to the sale of machine tools,” and will defend itself against the charges... [more]