Boeing Settles With State Dept. Over Aiding China

Washington, DC – The U.S. State Department has reached a $32 million settlement with St. Louis-based Boeing Satellite Systems.

The government had accused Boeing, as well as Hughes Electronics Corporation, of illegally helping China analyze why two of their rocket launches failed. Congressional investigations during the 1990s found China gained valuable missile information from those reviews. China, though, says it needed no help.

The companies said Hughes' space unit should have obtained a State Department license before disclosing to the Chinese any analysis relating to the launch systems.

Chicago-based Boeing acquired the space unit of Hughes, of El Segundo, California, in October 2000.