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Navy / Gen. Dynamics Contract #294407

CBS Evening News for Monday, Nov 19, 1984
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(Studio) Report introduced
REPORTER: Dan Rather

(Washington) House subcommittee chairperson Representative John Dingell's call for Navy's cancellation of nuclear submarine contracts with General Dynamics due to company's gifts of jewelry to Admiral Hyman Rickover (ret.) in 1970s, as reported by "Washington Post", examined; Rickover's role in development of nuclear submarine program recalled. [Feb. 1983, RICKOVER - claims he's always fought to save taxpayer money.] [DINGELL - notes gifts to Navy personnel voids the contract.] [October, Navy Secretary John LEHMAN - notes possibility of barring indivs. and companies from further government contracts.] General Dynamics' response to allegations outlined; jewelry gifts to Rickover, information on which said provided by Takis Veliotis, noted prompting investigation of General Dynamics' other government contracts. Veliotis' 1978 memo to company board chairperson David Lewis remembered alerting company to situation; Veliotis mentioned currently under indictment in kickback scheme. Gifts to Rickover reported approved by General Dynamics financial ofr. Gorden MacDonald; company's means of disguising payment illustrated. [DINGELL - notes matter should have been reported to SEC.] Rickover's rationalization of gifts mentioned; investigators reported claiming evidence indicating large-scale gift operation. [Courtesy Rickover-supplied tape, RICKOVER - denies gifts given him by contractors ever made any difference.] No. government investigations faced by General Dynamics and probability of it receive further Trident contracts, since it's the only company making such submarines, noted.
REPORTER: Rita Braver

Reporter(s):
Braver, Rita;
Rather, Dan
Duration:
00:03:40

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