BUSINESS OF BUYING FRIENDS (FROM CRIME AT THE TOP DEVIANCE IN BUSINESS AND THE PROFESSIONS, 1978 BY JOHN M JOHNSON AND JACK D DOUGLAS - SEE NCJ-47130)

• NCJ Number: 47135
• Author(s): J HOUGAN
• Date Published: 1978
• Length: 31 pages
• Corporate Author: J B Lippincott
• Publication Format: Document
• Language: English
• Country: United States of America

Annotation

THE INVESTIGATION OF THE SENATE SUBCOMMITTEE ON MULTINATIONAL CORPORATIONS OF THE SCANDAL INVOLVING LOCKHEED CORPORATION'S PRACTICE OF BRIBING KEY PERSONS IN FOREIGN COUNTRIES IS DESCRIBED.

Abstract

EXECUTIVES OF THE FIRM AND OTHER WITNESSES WERE SUBPOENAED, BUT MANY WERE UNABLE TO TESTIFY FOR REASONS THAT ARE CONSIDERED WORTHY OF SUSPICION. IN EUROPE AND IN JAPAN, PERSONS CONNECTED WITH THE SCANDAL DISAPPEARED. AFTER MONTHS OF EFFORT, THE SUBCOMMITTEE HAD ACCUMULATED TESTIMONY FROM OVER 100 WITNESSES AND THE RESULTS OF INVESTIGATIVE WORK BY TEAMS OF LAWYERS, AUDITORS, ACCOUNTANTS, AND THE COOPERATION OF THE WORLD PRESS. MANY DOCUMENTS WERE RECOVERED INTACT, AND A FEW ARE HIGHLIGNTED HERE. THE INVESTIGATION WAS NEVER RESOLVED. LOCKHEED OFFICIALS POINTED OUT THAT THEIR COURSE OF ACTION WAS NOT ILLEGAL IN THE UNITED STATES SINCE IT WAS NOT ACTUALLY DONE WITHIN THE JURISDICTION OF THIS COUNTRY. GOVERNMENTS IN OTHER NATIONS WERE SHAKEN BY THE SCANDAL, EVEN THOUGH LOCKHEED MAINTAINED THAT IT WAS MERELY PURSUING A COURSE OF ACTION SIMILAR TO THAT OF OTHER FIRMS WHICH SOUGHT TO DO BUSINESS IN THOSE NATIONS. THE PRINCIPAL CONTROVERSY REVOLVED AROUND ALLEGED EFFORTS IN TOKYO AND THE NETHERLANDS TO SECURE CONTRACTS FOR THE PURCHASE OF WARPLANES THROUGH BRIBES MADE TO HIGH-RANKING PERSONS IN THE RESPECTIVE GOVERNMENTS. SUCH EFFORTS HAVE BEEN TRACED BACK TO BEFORE 1961 WITH REGARD TO THE PURCHASE OF FIGHTER AIRCRAFT BY THE NORTH ATLANTIC TREATY ORGANIZATION. THE ACTUAL PROGRESSION OF EVENTS WAS NEVER RESOLVED, BUT A TENTATIVE RECONSTRUCTION IS OFFERED. PERSONS IMPLICATED INCLUDED RECHARD NIXON, PRINCE BERNHARD OF THE NETHERLANDS, AND THE REVEREND SUN MYUNG MOON. THE SUBCOMMITTEE HAS ALSO INVESTIGATED ALLEGED BRIBERY BY SOME 200 OTHER AMERICAN CORPORATIONS INCLUDING EXXON AND NORTHROP AIRCRAFT. IT IS STATED THAT LOCKHEED NOT ONLY ENGAGED IN UNETHICAL ACTIVITY ABROAD, BUT ALSO COMPETED UNFAIRLY WITH HONEST FIRMS FROM THE U.S. CONTINUED INVESTIGATION OF THE SUBVERSIVE INFLUENCE OF MULTINATIONAL CORPORATIONS IS URGED. NOTES ARE PROVIDED. (KBL)