American investigators believe at least 400 Soviet agents are actively involved in stealing secrets from the highly developed U.S. technology industry.
GV Silicon Valley plant
SV INTERIOR technicians working on assembly line ( 5 shots)
CU INTERIOR Federal Prosecutor Theadore Lu seated with reporter ( 2 shots)
CU Lu speaking in English
GV Monte Carlo harbour with boats and people walking along front (3 shots)
SV Werner Buchhausen seated in case (filmed with special camera) starts speaking at 47 ft)
GV Soviet ship in harbour (filmed with special camera) (2 shots)
SV containers on dockside with customs officials examining creates ZOOM INTO USSR markings on case ( 5 shots )
GV INTERIOR Commerce Department official Hutchnick speaking to reporter ( 3 shots)
AV Pentagon & CU Pentagon document ( 2 shots)
TRANSCRIPTS: LU: "They are obtaining commodities, technologies and goods from the United States; California to be more specific.
REPORTER: "With the help of American businessmen?
REPORTER: "That is illegal isn't it?
BUCHHAUSEN: "Ah...I guess so."
HUTCHNICK: "Are we doing enough so that they don't get something? I wouldn't say that, because I know of no law, and you don't know of one that hasn't been violated including 6 of the 10 commandments. But we're doing a good job in a difficult situation. I will attest."
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Background: American investigators believe at least 400 Soviet agents are actively involved in stealing secrets from the highly developed U.S. technology industry. The Federal Bureau of Investigation (F.B.I.) had confirmed it is conducting inquiries into the activities of several American companies and individuals suspected of dealing with Russian agents. Millions of dollars are reported to have changed hands in a racket involving equipment which could be used to update the Soviet Union's military hardware.
SYNOPSIS: F.B.I. investigators are basing their inquiries in a California industrial area known as Silicon Valley. It's the source of much of America's micro-electronics components Apart from supplying parts for items such as video games and computers, Silicon Valley is also major supplier of technology for the U.S. arms industry. And this is where the F.B.I believes Soviet agents have been most active and that is why authorities are clamping down. The man in charge of the Grand Jury investigation of the case is Theodore Lu.
He claims some Californian companies have earned a fortune by selling information and components to the Russians.
American investigators believe the espionage chain has an important link in Monte Carlo on the French Riviera, where equipment is collected and reconsigned to Moscow.
They suspect a West German businessman, Werner Buchhausen, of controlling an international racket in american components for rockets and missiles.
Until recently customs officials in Los Angeles harbour have done little to check the contents of Soviet shipments. But in the past few months, spot inspections of containers have uncovered millions of dollars worth of sensitive electronics components, all illegal exports. To stop the contraband trade, the U.S. Commerce Department has assigned only a dozen inspectors to cover every airport and harbour in the United States.
Despite the shortage of staff, the Secretary of Commerce Phillip Hutchnick insists that his department is doing its best to contain the electronics back market.
Not everyone agrees with Mr. Hutchnick's optimism. This Pentagon document disclosed plans for a major consignment of sensitive equipment but nothing was done until a Presidential order was issued to stop the shipment.