SCANDALS: Rules for Lockheed

A large number of big U.S. companies have now admitted making payoffs to foreign officials and political organizations to help win overseas sales. So far, however, none has so stoutly rationalized the practice as the Lockheed Aircraft Corp. Last month the nation's No. 2 defense contractor publicly conceded that it has made at least $22 million in such payments. Last week, in testimony before the Senate Banking Committee, Lockheed Chairman Daniel Haughton adamantly refused to name the recipients of the company's largesse, saying that disclosure would jeopardize present and future foreign-sales prospects. Was under-the-table cash really necessary? Snapped Haughton:...

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