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Loral denies allegations
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May 20, 1998: 8:43 p.m. ET
Schwartz tells 'Moneyline' donations weren't made to influence policy
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NEW YORK (CNNfn) - Bernard Schwartz, chairman and chief executive officer of Loral Space & Communications Ltd., Wednesday denied making campaign donations to Democrats in exchange for preferential treatment in its dealings with China.
The denial comes the same day Justice Department attorneys began an inquiry into what role, if any, campaign contributions played in the White House's decision allowing Schwartz's company to sell missile technology to China over the objection of the Pentagon.
Appearing Wednesday on "Moneyline With Lou Dobbs," Schwartz categorically denied Loral exported technology the Asian nation planned to use in its missile program.
"I can say categorically that Loral didn't violate export control rules. We've been in the space business for over 25 years. We know the rules and follow them," he said.
Schwartz's comments came after the House voted overwhelmingly to limit future technology transfers with China. House leaders said the Clinton administration's decision to allow U.S. firms to export satellites to China was "not in the national interest."
In 1989, the United States imposed sanctions requiring a presidential waiver for satellite launchings with China.
Clinton in February gave Loral approval to send a satellite into space aboard a Chinese rocket. Administration officials say that decision had nothing to do with the fact that Schwartz contributed more than $600,000 to Democrats during the 1996 elections, making him the largest single donor.
Schwartz said the House's decision to limit trade with China would not have a big impact on Loral's business.
"It wouldn't impact our business plan to a great degree. I think that would be a very serious step and I don't anticipate it happening," he said.
He said it will be business as usual at Loral despite the inquiry.
"Most people know I focus on the company. I don't think we will get involved to any great degree, but we will cooperate with the government.
"I don't think there's anything here for me to be concerned about," Schwartz said.
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