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September 12, 1989

COCOM OBJECTING TO TECHNOLOGY TRANSFER INVOLVED IN ALCATEL’S CONTRACT WITH SOVIET UNION

By CBR Staff Writer

Alcatel NV is complaining that it can’t sign its contract with the Soviet Union to supply 250,000 lines of System 12 digital telephone exchanges because CoCom in Paris is objecting to the technology transfer involved: the company says that it is continuing to negotiate the contract, which will involve building an assembly plant in Leningrad in the second phase and could be worth $1,000m over 10 years, in the hope that the curbs on the exports will soon be lifted.

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