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...high-tech firms packed together in 250-sq.-mi. Silicon Valley. William H. Bell, a convicted spy who sold military secrets to a Polish agent, described the approach to a congressional committee in May. Said he: "Within the avionics industry, it is a common practice for all companies to obtain secrets of their competitors by the same techniques that the agent used with me. Considerable benefits are dangled in front of the engineer in terms of increased earnings and a better position. He is asked to produce samples of his work, without regard to its security classification. Sometimes...
...financial rewards of espionage have created some strange and frightening partners. Among those attracted to high-technology centers have been professional criminals who resort to blackmail, bribery and the use of sex to obtain equipment and proprietary information...
...Japanese deny such charges, arguing that their prices are low because of efficient, highly automated production lines. The Japanese obtain higher yields than most U.S. companies. This means that a smaller number of Japanese chips have to be discarded because of defects. Many U.S. semiconductor customers admit that price is not the only reason they buy Japanese. Says an executive of a major computer company: "When it comes to memory-chip quality, the Japanese have no serious competition...
...about the degree of Soviet involvement in Iran. Soviet Expert Helmut Sonnenfeldt, a senior fellow at the Brookings Institution, believes the Soviets cooled on Saddam because he wanted unconditional support from Moscow for whatever he proposed to do against Israel or Iran, and was angry when he failed to obtain it. Moreover, Sonnenfeldt says, the Soviets were tilting increasingly toward Iran after the fall of the Shah, because they regarded Iran as a greater strategic prize. William Quandt, a former National Security Council official now at Brookings, doubts that the Soviets played a significant role in Iran's decision...
According to most experts, the Soviets turned to the West largely to obtain cut-rate financing-in other words, a subsidy at the expense of Western European taxpayers-not because they needed foreign know-how. The Soviets already produce sophisticated aircraft turbines, which require expertise in high-temperature technology, aerodynamics and stress analysis. Says Victor de Biasi, editor of Connecticut-based Gas Turbine World magazine: "Anybody who can produce aircraft turbines of as high a caliber as the Soviets do can darn well produce turbines for use on earth." Indeed, French and West German companies last week were discussing...