The Nation - News from July 5, 1988

The FBI, as part of its probe of alleged Pentagon bribery and fraud in awarding military contracts, and the Securities and Exchange Commission are investigating the competition between two groups for a Navy blimp contract, the New York Times reported. In 1986, the Navy decided to develop a model blimp that could be used for radar surveillance, sparking competition between the Goodyear Aerospace Corp., a unit of the Goodyear Tire & Rubber Co., and a joint venture of the Westinghouse El1701016690British firm. The SEC is looking at whether information leaks from the Navy affected trading in Airship Industries stock, the paper reported. The $168.9-million airship prototype contract was awarded to Westinghouse-Airship in June, 1987.