Free Republic
Browse · Search
Topics · Post Article

Skip to comments.

US firm United Tech pleads guilty to helping China build attack helicopter
The Indian Express ^ | Friday, June 29, 2012, 09:20 hrs | Agencies

Posted on 06/29/2012 12:18:38 AM PDT by Jyotishi

A US-based company and its Canadian subsidiary today pleaded guilty to the charges of helping China develop a new attack helicopter and agreed to pay a penalty of USD 75 million as part of the settlement.

At a federal court hearing in Bridgeport, Conn., United Technologies and its two subsidiaries, Pratt & Whitney Canada and Hamilton Sundstrand Corp, pleaded guilty to violating Arms Export Control Act and making false statements in connection with its export to China of US-origin military software used in China's first modern military attack helicopter the Z-10.

In addition, they all agreed to pay more than USD 75 million as part of a global settlement with the Justice Department and State Department.

Dating back to the 1980s, China sought to develop a military attack helicopter.

Beginning in the 1990s, after Congress had imposed the prohibition on exports to China, China sought to develop its attack helicopter under the guise of a civilian medium helicopter program in order to secure Western assistance, said the US Immigration and Customs Enforcement's (ICE).

During the development phases of China's Z-10 program, each Z-10 helicopter was powered by engines supplied by PWC. PWC delivered 10 of these development engines to China in 2001 and 2002.

Despite the military nature of the Z-10 helicopter, PWC determined on its own that these development engines for the Z-10 did not constitute "defense articles," requiring a US export license, because they were identical to those engines PWC was already supplying China for a commercial helicopter.

ICE said today, 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 primary mission of the Z-10 is anti-armor and battlefield interdiction. Weapons of the Z-10 have included 30 mm cannons, anti-tank guided missiles, air-to-air missiles and unguided rockets.

"PWC exported controlled US technology to China, knowing it would be used in the development of a military attack helicopter in violation of the US arms embargo with China," said US Attorney David Fein.

"PWC took what it described internally as a 'calculated risk,' because it wanted to become the exclusive supplier for a civil helicopter market in China with projected revenues of up to two billion dollars. Several years after the violations were known, UTC, HSC and PWC disclosed the violations to the government and made false statements in doing so," he said.

"Due in part to the efforts of these companies, China was able to develop its first modern military attack helicopter with restricted US defense technology," said Assistant Attorney General Lisa Monaco.

According to ICE, because the electronic engine control software, made by HSC in the United States to test and operate the PWC engines, was modified for a military helicopter application, it was a defense article and required a US export license.

Still, PWC knowingly and willfully caused this software to be exported to China for the Z-10 without any US export license.

In 2002 and 2003, PWC caused six versions of the military software to be illegally exported from HSC in the United States to PWC in Canada, and then to China, where it was used in the PWC engines for the Z-10, it said.

According to court documents, PWC knew from the start of the Z-10 project in 2000 that the Chinese were developing an attack helicopter and that supplying it with US-origin components would be illegal.

When the Chinese claimed that a civil version of the helicopter would be developed in parallel, PWC marketing personnel expressed skepticism internally about the "sudden appearance" of the civil program, the timing of which they questioned as "real or imagined."

In a statement Assistant Secretary Shapiro, of the State Department's Bureau of Political-Military Affairs, said: "Today's USD 75 million settlement with United Technologies Corporation sends a clear message: willful violators of US arms export control regulations will be pursued and punished. The successful resolution of this case is the byproduct of the tireless work of our compliance officers and highlights the relentless commitment of the State Department to protect sensitive American technologies from being illegally transferred."

Tags: United Technologies, Pratt & Whitney, helping China, attack helicopter, world news

TOPICS: News/Current Events
KEYWORDS: aerospace; china; military; profitsbeforecountry; usa; weapons
Navigation: use the links below to view more comments.
first 1-2021-28 next last

1 posted on 06/29/2012 12:18:55 AM PDT by Jyotishi
[ Post Reply | Private Reply | View Replies]

To: Jyotishi

If we ever have a hot war with China these a$$holes should be strapped to the bombs we drop.

2 posted on 06/29/2012 12:45:07 AM PDT by WMarshal (Bitter Clinger)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Jyotishi

Is this the company we want to build the engines for the next generation of strike aircraft?

3 posted on 06/29/2012 1:12:11 AM PDT by wizwor
[ Post Reply | Private Reply | To 1 | View Replies]

To: Jyotishi
The successful resolution of this case.....

Two BILLION profit....75 million dollar jail... how many Senators and Congresscritters had stock in PWC?... ...AND WE were worried about the technology being captured and transferred to China when the aircraft went down in Binny's compound?

4 posted on 06/29/2012 1:43:41 AM PDT by Doogle (((USAF.68-73..8th TFW Ubon Thailand..never store a threat you should have eliminated)))
[ Post Reply | Private Reply | To 1 | View Replies]

To: wizwor

Not to worry anyone....but this upcoming massive budget cut that the Pentagon will be forced into on 1 January...just might invite dozens of Chinese and Russian companies to set up shop in America and hire the laid-off US military contractor folks. It wouldn’t take an idiot to figure out how to maximize on this situation and gain years of experience from the unemployed American contractors.

5 posted on 06/29/2012 2:24:49 AM PDT by pepsionice
[ Post Reply | Private Reply | To 3 | View Replies]

To: pepsionice

I think we should look at what is fiscally sustainable in the long-term. In FY 2013 the federal government will collect $2.9 Trillion in revenue and spend $3.8 Trillion, resulting in a deficit of $900 Billion. I think balancing the federal budget should be our #1 national security priority.

6 posted on 06/29/2012 2:44:03 AM PDT by moonshot925
[ Post Reply | Private Reply | To 5 | View Replies]

To: Jyotishi
As someone who has experienced the heavy-handedness of both PWC and Hamilton-Sundstran 1st hand, I will only say that the fines should have been 10 times that which was levied.
As far as UTC goes, that is such a heavily convoluted set-up that it would take decades to sort-out which now subsidiary company of UTC did the deed, it would just serve better to just put all of the board of directors in a Federal "pound them in the a**" prison for 3-5.
The American public truly has no idea the extent of infiltration that has been actualized by the PRC/PLA into the US defense technology environment.
Saddest of all, I really don't think John Q gives a damn.
7 posted on 06/29/2012 3:02:19 AM PDT by Tainan (Cogito, ergo conservatus sum)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Jyotishi
Ah, can anyone say "Scooter Libby?

SOMEONE's name has to have been affixed to the document(s) so why is this/these individual(s) NOT being "Criminally" prosecuted???

Something stinks here to high heaven!!!

8 posted on 06/29/2012 3:06:32 AM PDT by Conservative Vermont Vet
[ Post Reply | Private Reply | To 1 | View Replies]

To: Jyotishi

Every company that has Red Chinese slaves working for them, as well as the politicians that won’t impose a Cuban-style embargo on the masters of those slaves, are building Red China’s military.

9 posted on 06/29/2012 3:17:09 AM PDT by kearnyirish2
[ Post Reply | Private Reply | To 1 | View Replies]

To: moonshot925

Which doesn’t necessarily equate to cutting our military in half when the current one is over extended in a dangerous world.

Here’s an idea, make cuts the civilian agencies that have exploded in growth over the last few years. Or the entitlement programs. Or the money we’re giving countries like Pakistan.

10 posted on 06/29/2012 3:30:00 AM PDT by driftdiver (I could eat it raw, but why do that when I have a fire.)
[ Post Reply | Private Reply | To 6 | View Replies]

To: Jyotishi

Sounds like more government interference with private enterprise.

11 posted on 06/29/2012 3:32:03 AM PDT by juno67
[ Post Reply | Private Reply | To 1 | View Replies]

To: Jyotishi

I just would like to thank United Technologies for helping the ChiComs build their attack helicopter.Just imagine our troops may one day just be the targets of one of your creations.

Imagine that.They paid a fine.Was there any jail time for company executives?

Even with this inciden UTC will still be allowed to get U.S. government contracts.Are we stupid or what?

I would not be reccomending anyone becoming a member of the Armed services today.This government and it’s corporations are to damn corrupt to want my children placed in that kind of danger.

12 posted on 06/29/2012 3:35:24 AM PDT by puppypusher (The World is going to the dogs.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: WMarshal

Hey they fined them. Isn’t that enough?

What did you expect? That they arrest the company officers that made this decision and charge them with treason?

Nah: The Government got money, That;s all that counts.

does this need a sarcasm tag?

13 posted on 06/29/2012 3:50:31 AM PDT by Venturer
[ Post Reply | Private Reply | To 2 | View Replies]

To: Jyotishi

14 posted on 06/29/2012 4:15:53 AM PDT by hattend (Firearms and ammunition...the only growing industries under the Obama regime.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: hattend

Hey nice. UT helped China build an Apache.

15 posted on 06/29/2012 6:47:46 AM PDT by headstamp 2 (Liberalism: Carrying adolescent values and behavior into adult life.)
[ Post Reply | Private Reply | To 14 | View Replies]

To: ETL; moonshot925; Jeff Head
Maybe you should also develop a data-set for China. It is easily the greatest external threat to the US, and yet most people don't even put it in their radar (or give excuses about how we still have 'time' when it comes to them). When the truth is that from a military and economic angle there is really no other country coming up as quickly. No nation is progressively amassing as much geopolitical influence as China is (eg in Latin America and Africa). And no nation has said that it's military program is directly anti-US AND pours as much money into it's development as China is.

The US spent decades in a Cold War against the Soviet Union, which had the weapons but lacked the economy to sustain itself. The Free World faces off against Islamic Terrorism, which would like to hit us hard but lacks the weapons and the money to do more than concerted acts of terror at the most. Yet here is a nation state that is claiming huge swathes of Asia as it's property (see the South China Sea as well as the allegedly 'renegade province' of Taiwan), has an economy that is stronger than anything the Soviets could ever have fantasises about (and that the US directly supports via trade), and is building weapons per their 'Assassin's Mace' stratagem that are directly aimed at countering the US. At first is was simply via asymmetric warfare, but now they have moved into conventional weapons (FReeper JeffHead has a nice website where he has tracked the frenetic growth of the Chinese naval capability).

Yet ...crickets from both Democrats and Republicans.

If the Russians had commenced on a re-arming program that was HALF what the Chinese are doing there would have been a huge hue and cry. However apart from some people like JeffHead and Cringing NN (can't recall his full name otherwise I would have linked him here) no one pays much notice.

I think the book and subsequent movie 'The Manchurian Candidate' got it waaaaay wrong! It was not the head of the country that was replaced, but rather the citizenry. Every day Americans continue supporting the growth of the GREATEST EXTERNAL EXISTENTIAL THREAT to ever face the US since the British during the war for independence, and they don't even see the danger. Again, imagine if every day billions were flowing from Americans to Iran or Russia, and that money is being used to build Iranian and Russian weapons specifically targeted against the US? Would never happen.

Maybe a data file for China may be as useful as the one you have for Russia and Venezuela.

16 posted on 06/30/2012 8:29:59 AM PDT by spetznaz (Nuclear-tipped Ballistic Missiles: The Ultimate Phallic Symbol)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Jyotishi

Let’s see, a 75 million dollar fine against a projected 3 billion dollars worth of procut.

A very samll operating cost that would not hardly show as a round off error on the bottom line.

They should have fined them 1 billion dollars if they wanted to “send a strong message.”

These people are callously and traitorously dealing with our enemies and in any confrontation with the PRC, what they have doen is straight forward...killed American service personnel.

17 posted on 06/30/2012 9:01:45 AM PDT by Jeff Head (Freedom is not free, never has been, never will be (
[ Post Reply | Private Reply | To 1 | View Replies]

To: spetznaz
Maybe you should also develop a data-set for China. It is easily the greatest external threat to the US, and yet most people don't even put it in their radar

I've been posting warnings about China for the longest. I'm about the only one who's noted the fact that they've conducted multiple joint war games with the Russians. Also that they and the Russians have made several 'pacts' calling for a 'new international order' and stronger than ever cooperation with each other. Russia, China, Chavez, Iran, others, are in this 'new world order' scheme together. They are all to become stronger while we (the US) become significantly weaker. "Comrade", "Open Mike", "Fundamental Transformation", "Change", "Forward" Obama is fully on board with this anti-American, pro-Russia NWO. You somehow must have missed these posts. I only posted them about 100 times this year alone. :)

18 posted on 07/01/2012 7:11:19 AM PDT by ETL (ALL (most?) of the Obama-commie connections at my FR Home page:
[ Post Reply | Private Reply | To 16 | View Replies]

To: spetznaz
From the campaign trail, February 2008...

Obama Pledges Cuts in Missile Defense, Space, and Nuclear Weapons Programs

February 29, 2008 :: News

A video has surfaced of Presidential candidate Senator Barack Obama talking on his plans for strategic issues such as nuclear weapons and missile defense.

The full text from the video, as released, reads as follows:

Thanks so much for the Caucus4Priorities, for the great work you've been doing. As president, I will end misguided defense policies and stand with Caucus4Priorities in fighting special interests in Washington.

First, I'll stop spending $9 billion a month in Iraq. I'm the only major candidate who opposed this war from the beginning. And as president I will end it.[not win it -etl]

Second, I will cut tens of billions of dollars in wasteful spending.

I will cut investments in unproven missile defense systems.

I will not weaponize space.

I will slow our development of future combat systems.

And I will institute an independent "Defense Priorities Board" to ensure that the Quadrennial Defense Review is not used to justify unnecessary spending.

Third, I will set a goal of a world without nuclear weapons. To seek that goal, I will not develop new nuclear weapons; I will seek a global ban on the production of fissile material; and I will negotiate with Russia to take our ICBMs off hair-trigger alert [they are NOT on "hair-trigger alert" now -etl], and to achieve deep cuts in our nuclear arsenals.

You know where I stand. I've fought for open, ethical and accountable government my entire public life. I don't switch positions or make promises that can't be kept. I don't posture on defense policy and I don't take money from federal lobbyists for powerful defense contractors. As president, my sole priority for defense spending will be protecting the American people. Thanks so much.

Article: Obama Pledges Cuts in Missile Defense, Space, and Nuclear Weapons Programs:

" is a project of The Claremont Institute devoted to understanding and promoting the requirements for the strategic defense of the United States."

"I will not weaponize space"

"I will cut investments in unproven missile defense systems"


2008 Pentagon Report (March 2008):
China's Growing Military Space Power

By Leonard David
Special Correspondent,
March 6, 2008

GOLDEN, Colorado — A just-released Pentagon report spotlights a growing U.S. military concern that China is developing a multi- dimensional program to limit or prevent the use of space-based assets by its potential adversaries during times of crisis or conflict.

Furthermore, last year's successful test by China of a direct-ascent, anti-satellite (ASAT) weapon to destroy its own defunct weather satellite, the report adds, underscores that country's expansion from the land, air, and sea dimensions of the traditional battlefield into the space and cyber-space domains.

Although China's commercial space program has utility for non- military research, that capability demonstrates space launch and control know-how that have direct military application. Even the Chang'e 1 — the Chinese lunar probe now circling the Moon — is flagged in the report as showcasing China's ability "to conduct complicated space maneuvers — a capability which has broad implications for military counterspace operations."

To read the entire publication [29.67MB/pdf], see U.S. Dept of Defense:

From the Sino-Russian Joint Statement of April 23, 1997:
"The two sides [China and Russia] shall, in the spirit of partnership, strive to promote the multipolarization of the world and the establishment of a new international order."

"Joint war games are a logical outcome of the Sino-Russian Friendship and Cooperation Treaty signed in 2001, and reflect the shared worldview and growing economic ties between the two Eastern Hemisphere giants."

Obama: "We Welcome China's Rise"
CBS News ^ | January 19, 2011 | Stephanie Condon

19 posted on 07/01/2012 7:13:12 AM PDT by ETL (ALL (most?) of the Obama-commie connections at my FR Home page:
[ Post Reply | Private Reply | To 16 | View Replies]

To: spetznaz
The Putin-ChiCom-Chavez-Iran-North Korea-Obama "New World Order"

We are creating a new world, a balanced world. A new world order, a multipolar world,” Chavez told reporters during a visit to Communist China, one of many. His “new world order” includes [RUSSIA], China, Iran,... and a significantly weakened United States, he explained.

Resurgent Communism in Latin America
by Alex Newman, March 16, 2010:

From the Russian News and Information Agency:
July 27, 2006
"'I am determined to expand relations with Russia,' Chavez, known as an outspoken critic of what he calls the United States' unilateralism, told the Russian leader, adding that his determination stemmed from their shared vision of the global order.":

From the Sino-Russian Joint Statement of April 23, 1997:
"The two sides [China and Russia] shall, in the spirit of partnership, strive to promote the multipolarization of the world and the establishment of a new international order."

"Joint war games are a logical outcome of the Sino-Russian Friendship and Cooperation Treaty signed in 2001, and reflect the shared worldview and growing economic ties between the two Eastern Hemisphere giants.",2933,170287,00.html

Russia's Medvedev hails "comrade" Obama

Associated Foreign Press (AFP) ^ | April 2, 2009 | Anna Smolchenko

"Russia's Dmitry Medvedev hailed Barack Obama as "my new comrade" Thursday after their first face-to-face talks"

April 1, 2009:
"Obama, Medvedev pledge new era of relations":

Image and video hosting by TinyPic

President Obama and Venezuela dictator Hugo
Chavez at the 2009 Summit of the Americas in Trinidad.
Note the "soul bro" handshake. (my caption)

Obama, Chavez shake hands at Americas Summit:

From CBS-News, July 29, 2006:

Chavez Vows To 'Stand By Iran'
After Oil Talks In Tehran, Venezuelan Leader Called 'Brother' By Ahmedinejad


"Chavez pledged that his country would 'stay by Iran at any time and under any condition,' state television reported. Ahmadinejad said he saw in Chavez a kindred spirit." "'We do not have any limitation in cooperation,' Ahmadinejad was quoted as saying. 'Iran and Venezuela are next to each other and supporters of each other. Chavez is a source of a progressive and revolutionary current in South America and his stance in restricting imperialism is tangible.'":


Image and video hosting by TinyPic

The two sides [Democratic People's Republic of Korea and Russia] agreed to "promote and enhance friendly relations" in line with the joint declaration of July 19, 2000 and the Russia-DPRK friendship and good neighborly cooperation treaty of February 9, 2000.

Putin and Kim agreed during their talks to promote a Russian- DPRK political dialogue on the Korean issue and international affairs, and discussed many topical international problems, deputy head of the Russian presidential administration Sergei Prikhodko told reporters following the talks.

The two leaders spoke for an independent and peaceful solution to the issue of reunification of the Korean Peninsula, and against "any outside obstacles to this process" as "unacceptable."

20 posted on 07/01/2012 7:14:06 AM PDT by ETL (ALL (most?) of the Obama-commie connections at my FR Home page:
[ Post Reply | Private Reply | To 16 | View Replies]

Navigation: use the links below to view more comments.
first 1-2021-28 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794 is powered by software copyright 2000-2008 John Robinson