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China denies US satellite technology allegations

BEIJING: China Great wall Industry Corp denied on Monday US government allegations it had probably obtained sensitive satellite-related technology from aerospace giant Lockheed Martin Corp.

"The US (State) Department stated that China has probably acquired technical assistance from Lockheed Martin in 1994 in the development of the EPKM. This is groundless," Great Wall said in a statement.

The EPKM, a satellite perigee solid kick motor, fires after launch to send a satellite into its final orbit.

"China has developed the entirely relying on its own efforts. We have never acquired from Lockheed Martin or other party any technical assistance in this regard," the statement said.

The US State Department said last week it had charged Lockheed Martin Corp with 30 violations of arms export regulations, some of which could help China improve its rockets.

Lockheed has disputed the charges, saying its 1994 actions at issue were reasonable and consistent with its Department of Commerce licence.

The allegations were similar to those lodged in 1998 against two other US satellite makers, Hughes Electronics Corp. and Loral Space & Communications, which have been under criminal investigation for possibly passing sensitive data to China.

US CONSERVATIVES JUMP ON ALLEGATIONS

US conservatives hostile to the Chinese government have cited the allegations as evidence that technical cooperation with China is a danger to US national security.

In a letter addressed to Lockheed, the State Department alleged that after Great Wall's self-made kick motors failed many times in tests in 1994, Lockheed offered to help evaluate them.

It alleged Lockheed sent Asia Satellite Telecommunications Co Ltd (Asiasat), a Hong Kong-based satellite firm majority-owned by the state-owned China International Trust and Investment Corp, a thorough report on the kick motor, including recommendations for improving it.

The report identified flaws in Chinese testing methods, made recommendations to improve procedures and standards, and identified weaknesses in test instrumentation, it said.

Lockheed says Asiasat was not a Chinese state company at the time of the alleged violations and it had a strict confidentiality agreement with Asiasat that prohibited dissemination to firms or government entities in China.

Great Wall said in the statement it signed a contract with Asiasat in 1993 to use the Long March-2E rocket to launch the Lockheed Martin built AsiaSat-2 satellite.

The deal was "based on the fact that the China space industry has had 40 years experience in successfully developing multiple versions of launch vehicles and has mastered mature technology on both liquid and solid motors and manufactured a variety of solid motors of similar specifications", Great Wall said.

"The EPKM used in the AsiaSat-2 launch has been independently developed by China. There has been no technical assistance from any foreign countries," the statement said.

Lockheed sent US specialists to visit Great Wall's rocket motor factory in the Chinese town of Hohhot in August 1994 for a test firing and discussions with the rocket company.

The State Department letter said it violated its licence by failing to give the US government 30 days advance notice of the visit and by failing to ensure a Pentagon monitor was present.

Great Wall said the visit was "monitored by US government officials" and "no suggestions, nor documents were provided to the Chinese side".

Lockheed has 30 days to respond formally to the US State Department charges, which could lead to a fine of $15 million and restrictions on arms export licences for three years. -Reuters