-Caveat Lector-

PERLE INVOLVED IN CLINTON SCANDAL

STEPHEN LABATON, NY TIMES -
http://www.nytimes.com/2003/03/29/business/29PERL.html

While he led an influential Pentagon advisory board, Richard N. Perle
advised a major American satellite maker, Loral Space and Communications,
as it faced government accusations that it improperly transferred rocket
technology to China, administration officials said today. Officials at the
State Department said that the senior official considering how to resolve
the rocket matter, Assistant Secretary Lincoln P.Bloomfield Jr., was
contacted by Mr. Perle once or twice in the second half
of 2001 on behalf of the company. . .

The case against Loral, which originated in 1997 with a Pentagon finding
that Loral and Hughes Electronics had improperly turned over technical
information to the Chinese, was settled in January 2002. Loral, without
admitting or denying that it had violated the law, agreed to pay a $20
million penalty, the largest settlement of a technology transfer case at
the time.

The government accused Loral of providing Chinese officials with
confidential materials from an American panel that investigated the
February 1996 crash of a Loral satellite, which was built for Intelsat, the
international consortium, and was launched by a Chinese Long March rocket.

The inquiry into Loral and other companies resulted in restrictions that
have prevented the industry from seeking new business with China.

The Loral matter is the second instance in which Mr. Perle was doing
business on behalf of an American company encountering government
difficulties over ties to China. Mr. Perle had been retained by Global
Crossing, the communications giant, to overcome Defense Department
opposition to its proposal to be sold to a venture led by Hutchison
Whampoa, the conglomerate controlled by the Hong Kong billionaire Li
Ka-shing. . .

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