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US targets Boeing over China technology
(Agencies)
Updated: 2005-07-07 07:02

Boeing eventually acknowledged to the State Department it had exported 96 aircraft and 27 spare gyrochip-equipped flight boxes without export licenses, according to the report.

The QRS-11 chip, made by a unit of BEI Technologies in Concord, California, was described as being just over 1-1/2 inches (3.8 centimeters) in diameter and sells for between 1,000 and 2,000 dollars. The chip reportedly works in tandem with one made by the French firm Thales.

The newspaper reported that the State Department's charging letter contends that Thales told Boeing in 2000 that an export license was needed for the gyroscope system.

The US Air Force in March lifted a ban on business with three Boeing units, clearing the way for them to compete for satellite launches worth billions of dollars.

The ban was slapped on the Boeing units in July 2003 after they were discovered with proprietary information belonging to Lockheed Martin that helped them win a 1998 rocket contract.

The suspension came just two weeks after Boeing's chief financial officer, Michael Sears, was sentenced to four months in prison for his role in hiring a top Air Force procurement official who had favored Boeing in contract negotiations.

The official, Darleen Druyun, is serving a nine-month prison term.


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