LORAL ASKS BROWN TO OVERRULE STATE, DOD AND COMMERCE



LORAL


Defense Systems-Arizona
P.O. Box 85 Jerald A. Lindfelt
Litchfield Park, AZ 85340-0085 President
(602) 925-6380


March 15, 1996

Ron Brown, Secretary of Commerce
United States Department of Commerce
14th Street & Constitution Avenue, NW
Washington, DC 20230

Dear Secretary Brown:

Your recent keynote speech at the Arizona Association of Industries' luncheon in Phoenix was interesting and informative. I was particularly pleased with your offer to have the Commerce Department assist us with work issues in foreign countries. We have a problem in our Division regarding dealings with the Peoples Republic of China and I would appreciate your assistance in resolving these complex issues.

Several years ago our division sold two radar systems to the Peoples Republic of China for use in geological surveys. Since that time the U.S. trade relations with the Peoples Republic of China have been such that we have not been allowed to pursue additional business in that country. The systems we sold them are in need of an upgrade. Since we are not eligible to perform the work, a foreign company simply modifies our equipment. This results not only in lost follow-on business, but also the loss of numerous new opportunities emerging in China that we would like to pursue.

Attached is a copy of a letter from the National Remote Sensing Center in Beijing that outlines a few of the problems we have encountered. We've worked hard trying to resolve these problems with the Department of State, the Department of Commerce and the Defense Technology Security Administration (DTSA), but someone in these organizations always manage to block our participation.

The Synthetic Aperture Radar System is dated technology and can be offered to China by a number of countries. It seems foolish to allow other countries to market their similar products while our efforts are blocked. Over the years we have found that this type of obstacle often comes from lower levels of management rather than by people willing to look at the bigger picture. Could you help us by identifying someone in the Commerce Department high enough in the organization to help us resolve these issues and open this marketplace to our participation.

We have representatives scheduled to travel to Beijing in April and it would be very helpful if we had a contact identified who could assist us in making this visit a success.

Respectfully yours,

J.A. Lindfelt,
President

Attachment
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NATIONAL REMOTE SENSING CENTER
STATE SCIENCE AND TECHNOLOGY COMMISSION OF CHINA
15B, Fuxing Road, Beijing 100862, China

TELEX: 22349 SSTCC CN TELEPHONE: (+86-10) 8512081
FAX: (+86-10) 8512081

To:
Mr. Frank K. Kelly
Loral Defense Systems-Arizona
P.O.Box 85
Lichfield Park, AZ 85340-0085

Fm:
Mrs. Zheng Lizhong
Deputy Director,
National Remote Sensing Center,
State Sciences & Technology Commission of China

Date: Nov. 29, 1995

Dear Sir:

It is with great pleasure for me to write the letter to you. Please find a brief introduction of National Remote Sensing Center herewith. If it is possible, would you please to assist us in resolving some issues on the Equipment's of First Department of Aerial Remote Sensing of NRSC, which were imported from your country.

In 1982 the US Government approved the sale of Learjet aircraft to China which are now based at Nanyuan Airport near Beijing. These aircraft were highly modified in that they were fitted with the best available equipment for flood relief missions. For example the aircraft had installed Synthetic Aperture Radar (SAR) made by your manufacturer.

The SAR systems allowed us to monitor the floods that happened in various regions of China every year. The SAR system can take mapping images through dust, cloud and heavy precipitation making it the perfect medium to give our officials up to date news of the floods, thereby alloying many life saving activities to be carried out. The pre-warning given to us by the airborne equipment enables us to build levy banks, evacuate town and villages and close flood gates thus saving many lives during the flood season.

This year again the loss of human life during the typhoons and floods caused great suffering and many deaths in China and had moved me to contact you asking for your help. Since 1989 the US Government has with held any support for the equipment installed in our aircraft. These include the return of our own spare parts now in the USA for repair, the selling of new spare parts, the updating and overhaul of the equipment, and support of the manufacturer's technical staff to assist in problem solving.

Your company has been very helpful in trying to solve the problems and release the equipment from the embargo but so far have been unable to achieve a result.

According to your manufacturers because the function of the equipment can be classed as military and civilian the US State Department continues to block any moves to put the products in the control of the Commerce Department. There are many uses for this type of equipment all over the world in non-military areas that help people in need. Most of countries in the developed world are using the same technology for mineral exploration, countering illegal immigration, drug interdiction, monitoring of natural disasters, monitoring of ice flow movement and illegal deforestation. All these uses are non-military and vital important to the countries concerned.

In summary, Mr. Kelly, I implore you on behalf of NRSC, State Science and Technology Commission and all the individuals who will be affected by future natural disasters in this country to assist us in obtaining your government support to release from embargo the vital airborne equipment needed so importantly for our work in saving lives.

If you have any suggestions, don't hesitate to contact us directly.

With Best Regards,

Sincerely Yours,

Zheng Lizhong



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