Business: Against a Lockheed Precedent

Deputy Defense Secretary David Packard went before the Senate Banking Committee last week to testify in favor of the Nixon Administration plan for the Government to guarantee $250 million in loans for Lockheed Aircraft Corp., a sum that would allow Lockheed to complete development of the huge L-1011 TriStar commercial jet and, indeed, could save the whole company. Though Packard dutifully endorsed the idea, his testimony badly damaged its chances in Congress. Fully mindful that other money-losing defense contractors might seek similar Government aid, he warned the Senate Banking Committee against setting the "precedent" of helping "any company that gets into...

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