UTC exported software used in Chinese copter

BRIDGEPORT, Conn. (AP/WTNH) — United Technologies Corp. and two subsidiaries have agreed to pay a $75 million fine for illegally exporting software to China that was used in the development of the country's first modern military attack helicopter.

Pratt & Whitney Canada Corporation, a subsidiary of Hartford-based United Technologies Corporation, pleaded guilty to violating the Arms Export Control Act and making false statements in connection with the company's illegal export of U.S. military software to China. Federal agents say the software helped China develop its first modern military attack helicopter, the Z-10.

"This prosecution is one of the largest resolutions of export violations with a major defense contractor in the justice department's history," said David Fein, U.S. Attorney for CT.

Federal agents say PWC illegally exported to China the software for the Z-10 engines without a U.S. export license, providing China with sensitive U.S. defense technology.

"We know that China was working for many many decades to build this attack helicopter because the civilian versions weren't suited for the attack purpose," said Assistant United States Attorney Stephen B. Reynolds. "They sought the assistance of western suppliers in order to make that happen, which became more difficult after embargos put in place after tiananmen square.

The software the companies provided allowed China to ultimately achieve its goal, he says.

"I think it's fair to say without this particular component it wouldn't have happened at all," said Reynolds.

Federal agents say the companies gave belated and false disclosures to the U.S. government.

"Although executives in all three companies had learned of the export violations by 2004 or early 2005 UTC, Hamilton and PWC failed to make a required disclosure to the U.S. government for several years," said Fein.