The President of the Lockheed Aircraft Corporation, A.C. Kotchian, has admitted that his corporation paid?
SV INTERIOR OF Committee room PAN FROM Members of Senate Subcommittee TO President of Lockheed, A.C. Kotchian
CU Member of the sub-committee, Senator Church speaking
SOF IN: "In September ... PAN TO Kotchian answering Senator
SOF OUT: ... they have."
SENATOR: "In September, Mr. Rowden testified that Lockheed always got a quid pro quo when it gave a payment to a government official. What did it get for the million dollars .. our records seem to indicate it was a million point two, but I won't quibble over a point."
KOTCHIAN: "Well it may have been Senator, but the figure I read .. in my mind .."
SENATOR: "That's alright. A million is, I think enough for us to deal with. What was the quid pro quo? Why was this high government official in the Netherlands given this million dollars by Lockheed?"
KOTCHIAN: "To the best of my information it was a .. from a general goodwill and helpfulness on various programmes and the going on in that area."
SENATOR: "The general goodwill and helpfulness having to do with buying Lockheed aircraft. Isn't that the case?"
SENATOR: "And did the Dutch government buy Lockheed aircraft?"
KOTCHIAN: "An .. they have."
MR. KOTCHIAN BEING QUESTIONED BY THE COMMITTEE.
Initials CL/0204 CL/0215
This film is serviced with a sound extract form the hearing. A transcript of this follows overleaf.
Script is copyright Reuters Limited. All rights reserved
Background: The President of the Lockheed Aircraft Corporation, A.C. Kotchian, has admitted that his corporation paid out huge sums of money to foreign government officials to provide "goodwill and helpfulness" towards Lockheed.
The admission came while Mr. Kotchian was undergoing intensive questioning in Washington by members of the Senate Sub-committee on Multinational Corporations.
Mr. Kotchian said that Lockheed had paid more than one million dollars (500,000 pounds sterling) to a high official in the Dutch government. He told the Committee that the money was paid on a "quid pro quo" basis. He said the government official was expected to provide general goodwill and helpfulness towards Lockheed in its dealings with the Dutch government.
When asked whether such "goodwill and helpfulness" was to do with the Government of the Netherlands buying Lockheed aircraft, Mr. Kotchian replied, "yes".
He also revealed that the Lockheed Corporation had bribed government officials in Japan and Italy for similar services.
The Corporation President said more than two million dollars (about 1.2 million pounds) had been paid to Japanese government officials to smooth the way for huge aircraft sales contracts in that country.
None of the officials or officers involved in the bribery allegations was named. The hearing continues.
SYNOPSIS: The President of the multi-national Lockheed Aircraft Corporation, A. C. Kotchian, has admitted that his company paid millions of dollars to bribe foreign government officials. Appearing before a Senate Sub-committee on Multinational Corporations in Washington, Mr. Kotchian said Lockheed had bribed government officials in the Netherlands, Italy and Japan. There were also allegations that officials in turkey and Sweden had been bribed by the company.
Mr. Kotchian was appearing before the Sub-committee under subpoena. He had earlier refused to testify to the sub-committee voluntarily.