95:
debts. In August 1975 the board investigated whether
Lockheed violated its obligations by failing to tell the board about foreign payments made to Lockheed. On October 14, 1977, Lockheed and its 24 lending banks entered into a credit agreement, providing for a $ 100 million revolving line of credit, to replace the government guarantee commitment; this was used to retire $ 60 million worth of Lockheed debt. The Emergency Loan Guarantee Board approved the new credit agreement on October 14, 1977 through a termination agreement that closed the Government Emergency Loan Guarantee Board after issuance of its final report on September 30, 1977. Fees paid by Lockheed and its banks to the Board for administering the program loan netted around $ 30 million, which was sent to the
232:
131:
22:
352:
421:$ 106 million in commissions. His commissions started at 2.5% + and eventually rose to as much as 15%. Khashoggi "became for all practical purposes a marketing arm of Lockheed. Adnan would provide not only an entrée but strategy, constant advice, and analysis," according to Max Helzel, then vice president of Lockheed's
164:
accepted an invitation by
Lockheed to visit their aircraft plants in the U.S. with the entire trip being paid by Lockheed. In the course of the investigations, it emerged that most of the documents related to the Starfighter purchase had been destroyed in 1962. The whereabouts of the documents were
316:
2.4 billion (equivalent to $ 55.5 million in 2023) to earn the contract from ANA. ¥500 million ($ 11.6 million in 2023) of the total was received by the Prime
Minister. ¥160 million ($ 3.7 million in 2023) was received by ANA officials. ¥1.7 billion ($ 39.3 million in 2023) was
94:
Through the
Emergency Loan Guarantee Act of 1971, the Emergency Loan Guarantee Board was created to manage federally guaranteed private loans up to $ 250 million to Lockheed Corporation. The guarantee program would have the U.S government assume the private debt of Lockheed if it defaulted on its
156:, the controversy was re-opened when questions were asked about the whereabouts of the "Lockheed documents" within the Federal Ministry of Defence. Anonymous sources also distributed several, possibly falsified, documents to the media. According to one of these documents, member of the German
460:
Lockheed executives admitted paying millions in bribes over more than a decade to the Dutch (Prince
Bernhard, husband of Queen Juliana, in particular), to key Japanese and West German politicians, to Italian officials and generals, and to other highly placed figures from Hong Kong to
325:, as the conduit to transfer money intended by Lockheed to bribe Japanese officials. It was disclosed that US$ 8.3 million ($ 60.5 million in 2023) was moved to Deak's offices in Hong Kong, where a Spanish-born priest representing Lockheed took the cash and carried it to Japan.
317:
received by Kodama. On
October 30, 1972, ANA announced its decision to purchase 21 Lockheed L-1011 Tristars, which cost approximately $ 5 million each, totaling $ 105 mi ($ 765 million in 2023), even though it had previously announced options to purchase the DC-10. The 1986 US
165:
again discussed in a committee of inquiry meeting of the
Bundestag between January 1978 and May 1979. An investigation of Lockheed documents by the U.S. revealed that Wörner's trip had been financed by the German Bundestag, and was related to a test flight with the
148:
and his party had received at least $ 10 million for the purchase of 900 F-104G Starfighters in 1961. The party and its leader denied the allegations, and
Strauss filed a slander suit against Hauser. As the allegations were not corroborated, the issue was dropped.
394:
Prince
Bernhard always denied the charges, but after his death on December 1, 2004, interviews were published showing that he admitted taking the money. He said: "I have accepted that the word Lockheed will be carved on my tombstone."
305:. On February 6, 1976, the vice-chairman of Lockheed told the Senate subcommittee that Lockheed had paid approximately $ 3 million (equivalent to $ 16.1 million in 2023) in bribes to the office of Japanese Prime Minister
173:
Wörner was accompanied by his secretary and a portion of her expenses were paid by
Lockheed. Further, Wörner "lost" his government paid ticket back to Germany and Lockheed "accommodated" him by giving him another
375:
for the purchase contract. He had served on more than 300 corporate boards or committees worldwide and had been praised in the Netherlands for his efforts to promote the economic well-being of the country.
465:, in order to get them to buy our airplanes. Kelly was so sickened by these revelations that he had almost quit, even though the top Lockheed management implicated in the scandal resigned in disgrace.
828:
We need to convert the yen amounts to dollars using the exchange rate in 1972, and then adjust them for inflation using the consumer price index (CPI) of the United States. According to the
391:
threatened to abdicate if Bernhard was prosecuted. Bernhard was spared, but had to step down from several public positions and was forbidden to wear his military uniforms again.
339:
Tanaka was arrested on July 27, 1976, and was released in August on a ¥200 million ($ 690,000) bond. He was found guilty by a Tokyo court on October 12, 1983, for violations of
1046:
383:
ordered an inquiry into the affair, while Prince Bernhard refused to answer reporters' questions, stating: "I am above such things". The results of the inquiry led to a
118:. In 1976, it was publicly revealed that Lockheed had paid $ 22 million in bribes to foreign officials in the process of negotiating the sale of aircraft, including the
971:
512:
733:
How Much Is That in Real Money? A Historical Price Index for Use as a Deflator of Money Values in the Economy of the United States: Addenda et Corrigenda
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returning from Italy because of developments in the Lockheed scandal. In the back seat Juliana with her dog Sara. The Netherlands, August 26, 1976.
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505:"Lockheed Agrees to Pay Record Fine : Aerospace: Calabasas firm pleads guilty in connection with bribing an Egyptian politician"
445:
signed into law on December 19, 1977, which made it illegal for American persons and entities to bribe foreign government officials.
336:
on Kodama's Tokyo home by crashing a light aircraft onto it. Maeno died and two servants were injured. Kodama himself was unharmed.
96:
1036:
753:
How Much Is That in Real Money? A Historical Price Index for Use as a Deflator of Money Values in the Economy of the United States
79:. In the U.S., the scandal nearly led to Lockheed's downfall, as it was already struggling due to the commercial failure of the
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169:. Only part of the travel costs of Wörner's secretary, and Wörner's flight back from the US to Germany was paid by Lockheed:
142:
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laws but not on bribery. He was sentenced to four years in prison, but remained free on appeal until his death in 1993.
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received a $ 1.1 million bribe in the early 1960s from Lockheed to ensure the Lockheed F-104 would win out over the
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283:
271:
114:
concluded that members of the Lockheed board had paid members of friendly governments to guarantee contracts for
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952:
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the CPI of the United States in 1972 was 41.8. The CPI of the United States in 2023 is projected to be 291.6.
829:
642:
438:
321:
revealed that from 1969 to 1975 Lockheed used Deak & Company, a large foreign exchange operator owned by
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resigned from their posts on February 13, 1976. The scandal also played a part in the formulation of the
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836:, the exchange rate of the yen to the dollar in 1972 was about ¥314.86 per US$ 1. According to
751:
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384:
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251:
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49:
1188:
Transnational Conduct of American Multinational Corporations: Questionable Payments Abroad
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Transnational Conduct of American Multinational Corporations: Questionable Payments Abroad
8:
1041:
449:
166:
145:
134:
994:"Kakuei Tanaka – a political biography of modern Japan: Chapter 4 The Lockheed Scandal"
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State Department cable shows exposure of Lockheed bribes threatened NATO's stability
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26:
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Prophets of War: Lockheed Martin and the Making of the Military-Industrial Complex
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Former Lockheed lobbyist Ernest Hauser told Senate investigators that West German
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Lockheed chairman of the board Daniel Haughton and vice chairman and president
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as a consultant in order to influence Japanese parastatal airlines, including
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from the late 1950s to the 1970s in the process of negotiating the sale of
1242:
997:
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107:
72:
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623:. September 20, 1976. Archived from the original on September 28, 2011
254:
and several high-ranking members of Japanese political, business, and
1384:
205:
157:
103:
45:
837:
21:
1406:
1243:
Kakuei Tanaka – a political biography of modern Japan: Introduction
1218:
The Grease Machine: The inside Story of Lockheed's Dollar Diplomacy
183:
The Italian branch of the Lockheed scandal involved the bribery of
83:
53:
38:
850:"University of Pittsburgh, International Business Ethics: Japan"
766:
351:
255:
239:
195:
transport planes. The allegations of bribery were supported by
545:
191:
politicians to favor the purchase by the Italian Air Force of
76:
68:
1433:
1208:
Lockheed's Foreign Policy: Who, in the End, Corrupted Whom?
401:
correspondences between U.S. Ambassador to the Netherlands
409:
showed that Kissinger was informed of the bribes in 1975.
417:
Between 1970 and 1975, Lockheed paid Saudi arms dealer
282:
then in service, but heavy lobbying by Lockheed of key
1160:
Skunk Works: A Personal Memoir of My Years at Lockheed
1312:
1232:
Kakuei Tanaka, A political biography of modern Japan
223:, forcing him to resign his post on June 15, 1978.
1210:New York Magazine, March 15, 1976, pp. 53–59
969:Japan's Watergate: Made in U.S.A November 21, 1976
790:
286:figures led to the adoption of the F-104 instead.
1571:
782:
328:In March 1976, in protest of the scandal, actor
822:
1128:"Cover Stories: Khashoggi's High-Flying Realm"
721:
719:
717:
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713:
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709:
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685:
152:In September 1976, in the final phase of the
1031:
1029:
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544:(in German). August 13, 2007. Archived from
936:
706:
1305:
1291:
1162:. New York: Little Brown & Co. p. 10.
1194:The Arms Bazaar: From Lebanon to Lockheed
1024:
319:President's Commission on Organized Crime
1258:. Honolulu: University of Hawaii Press.
1037:"HRH Prince Bernhard of the Netherlands"
746:
726:
567:"Lockheed's Defiance: A Right to Bribe?"
532:
530:
350:
289:Later, Lockheed hired underworld figure
230:
204:, and targeted former Cabinet ministers
129:
20:
1230:Hunziker, S. & Kamimura, I. (1996)
1125:
1119:
769:"Consumer Price Index (estimate) 1800–"
122:, the so-called "Deal of the Century".
41:and contributions made by officials of
1572:
1182:Solomon, L. & Linville, L. (1976)
1108:from the original on November 12, 2022
797:. Greenwood Publishing Group. p.
789:Gerber, Jurg; Jensen, Eric L. (2007).
667:from the original on February 27, 2012
1286:
1126:Stengel, Richard (January 19, 1987).
1049:from the original on November 8, 2008
918:from the original on January 21, 2021
767:Federal Reserve Bank of Minneapolis.
527:
481:Captain Lockheed and the Starfighters
1158:Rich, Ben R. and Janos, Leo (1994).
515:from the original on August 17, 2013
258:circles, including Finance Minister
686:Philip Willan (November 12, 2001).
367:In December 1975, it surfaced that
16:Mid-20th-century political scandals
13:
1176:
793:Encyclopedia of white-collar crime
346:
14:
1626:
1615:Royal scandals in the Netherlands
661:United States Department of State
621:United States Department of State
906:"COLLAPSE OF DEAK & COMPANY"
882:. August 9, 1976. Archived from
59:The scandal caused considerable
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1092:
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1061:
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986:
961:
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898:
876:"Time magazine, August 9, 1976"
868:
842:
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272:Japanese Air Self-Defense Force
125:
102:In late 1975 and early 1976, a
25:Lockheed F-104G Starfighter in
679:
649:
609:
597:
576:
497:
1:
1595:Japan–United States relations
688:"obituary, November 12, 2001"
491:
439:Foreign Corrupt Practices Act
89:
1220:, New York: Harper and Row.
996:. Rcrinc.com. Archived from
761:American Antiquarian Society
741:American Antiquarian Society
428:
212:, the former Prime Minister
154:West German federal election
7:
1234:, Singapore: Times Edition
1136:. p. 5. Archived from
486:Military-industrial complex
469:
276:Grumman F11F-1F Super Tiger
244:Osaka International Airport
10:
1631:
1605:Lockheed F-104 Starfighter
1256:Political Bribery in Japan
974:November 11, 2017, at the
1580:Lockheed bribery scandals
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1515:
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1479:
1453:
1431:
1404:
1382:
1373:
1323:
937:O'Neill, Richard (1981).
641:: CS1 maint: unfit URL (
582:Paul Emil Erdman (1982).
573:magazine, August 18, 1975
452:, director of Lockheed's
250:The scandal involved the
35:Lockheed bribery scandals
1317:F-104 Starfighter family
983:Retrieved April 11, 2017
584:The Last Days of America
341:foreign exchange control
284:Liberal Democratic Party
226:
178:
160:and its defense council
37:encompassed a series of
1610:Political controversies
1248:August 7, 2011, at the
657:"Arms Sales in Germany"
423:international marketing
309:for aid in the matter.
303:McDonnell Douglas DC-10
299:Lockheed L-1011 TriStar
1186:, 17 B.C.L. Rev. 303,
617:"Lockheed and the FRG"
467:
364:
247:
176:
138:
30:
1590:Corruption in Germany
1085:May 23, 2011, at the
1000:on September 27, 2011
943:. Lansdowne. p.
914:. December 10, 1984.
663:. November 13, 1975.
458:
385:constitutional crisis
354:
234:
171:
133:
61:political controversy
24:
1600:Lockheed Corporation
1487:North American Eagle
1254:Mitchell, R. (1996)
1045:. December 4, 2004.
511:. January 28, 1995.
476:Al-Yamamah arms deal
252:Marubeni Corporation
1268:Hartung, W. (2010)
1216:Boulton, D. (1978)
1206:Sampson, A. (1976)
1192:Sampson, A. (1977)
1042:The Daily Telegraph
967:Cohen, Jerome Alan
167:Lockheed S-3 Viking
146:Franz Josef Strauss
143:Minister of Defence
135:Franz Josef Strauss
1585:Corporate scandals
1104:, Muckrock, 2018,
1021:September 13, 1976
911:The New York Times
886:on August 23, 2007
606:September 13, 1976
548:on August 13, 2007
542:Franz Josef Strauß
365:
297:(ANA), to buy the
295:All Nippon Airways
274:wished to buy the
248:
237:All Nippon Airways
197:political magazine
185:Christian Democrat
139:
31:
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1475:
1474:
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1438:
1411:
1389:
1278:978-1-56858-420-1
1264:978-0-8248-1819-7
1240:978-981-204-689-5
1226:978-0-06-010431-3
1212:New York Magazine
1202:978-0-670-13263-8
1140:on April 30, 2007
856:on March 26, 2008
834:inflationtool.com
808:978-0-313-33524-2
509:Los Angeles Times
403:Kingdon Gould Jr.
373:Dassault Mirage 5
120:F-104 Starfighter
116:military aircraft
1622:
1559:Starfighters Inc
1523:Bribery scandals
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852:. Archived from
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270:. In 1957, the
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407:Henry Kissinger
379:Prime Minister
369:Prince Bernhard
357:Prince Bernhard
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347:The Netherlands
330:Mitsuyasu Maeno
301:instead of the
278:to replace the
266:Chief of Staff
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110:led by Senator
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334:suicide attack
312:Lockheed paid
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193:C-130 Hercules
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162:Manfred Wörner
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1574:Categories
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1376:production
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492:References
355:The Dutch
280:F-86 Sabre
256:underworld
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1496:Notable
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1133:Time
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