Senator Seeks Probe of Defense Contractor

A senator has asked the Justice Department to investigate whether McDonnell Douglas Corp. violated a law banning payoffs that help foreign competitors unfairly compete with American companies. Sen. Russell Feingold (D-Wis.) wrote to Atty. Gen. Janet Reno seeking the investigation under a law he wrote. A Justice Department duty officer who did not give his name said he could not confirm that Feingold’s letter had arrived or that a probe had begun. Feingold’s complaint involves so-called offset agreements. In these transactions, a U.S. company making a sale to another country might agree to steer another U.S. business to make purchases from companies in the foreign country--often in an amount equivalent to the amount of the original sale. Larry McCracken, a spokesman for St. Louis-based McDonnell Douglas, said the firm had not seen the letter and was unable to comment.