Last February, with Justice already scrutinizing those allegations, Loral sought and was granted permission by the White House to return to China for another commercial satellite launch. The Justice Department's campaign finance task force, which is investigating a variety of allegations connected to 1996 campaign contributions, met yesterday to review the Loral matter but reached no conclusion on how to proceed. However, officials involved in the discussions said it appeared increasingly likely they would soon begin a full-scale criminal investigation of the 1998 waiver. The Loral statement provided the company's first detailed account of the failed 1996 launch and its involvement in Chinese efforts to correct the missile malfunction. It noted that the owner of the satellite, Intelsat, the international communications consortium, had selected the Long March as its launch vehicle.
Numerous companies launch commercial satellites atop Chinese rockets to save time and money.
Staff reporter Helen Dewar contributed to this report.