U.S. Pursues Boeing, General Dynamics

The Pentagon said it would begin collecting $2.3 billion from General Dynamics Corp. and Boeing Co. for what the government considers debt owed on a canceled A-12 stealth aircraft project 11 years ago.

Instead of asking the firms to turn over the $2.3 billion, the Pentagon plans to get the money by withholding about $128 million a month for 18 months on other government contracts held by the firms.

General Dynamics said it intended to ask a federal judge to block the government from deducting the payments.

The A-12 was to be built for the Navy, but in 1991 then-Defense Secretary Dick Cheney canceled the project.