Boeing Exports Scrutinized
Boeing Co., the world’s second-biggest commercial-jet maker, is in talks with the State Department over possible violations of arms-export rules related to jetliners containing a part that could have military uses.
The negotiations center on whether Boeing’s export of planes with an electronic gyroscope went against the Arms Export Control Act and the International Traffic in Arms Regulations, State Department spokesman Jay Greer said Wednesday.
The equipment, which also can be used to guide missiles, was contained in 96 planes sold to China and other countries from 2000 to 2003, the Seattle Times reported earlier Wednesday. The talks come as new Chief Executive James McNerney tries to restore relations with the military over ethical lapses, including a procurement scandal that cost Boeing the exclusive right to a $23-billion contract for Air Force refueling tankers.
“If and when the negotiations result in a settlement, documents relating to the charges, including the terms of that settlement, will be made public,” Greer said.
Boeing, the second-largest U.S. defense contractor after Lockheed Martin Corp., could face civil penalties of as much as $47 million, the Seattle Times said, citing a State Department “draft charging letter” the newspaper obtained. That’s even as the federal government early last year approved exporting the technology as a civilian item, the paper reported.
Boeing disregarded the State Department’s authority by making false statements to avoid export restrictions, the Seattle Times said, citing the letter. The restrictions control so-called dual-use technology.
The company has been in discussions with the State Department for months concerning past deliveries of aircraft and spare parts that use the QRS-11 directional sensor, Boeing spokesman Douglas Kennett said in an e-mailed statement.
“As we continue to work with the State Department towards possible resolution of this matter, it would not be appropriate for us to comment on any possible charges or response,” he said.
