Va. scientist admits violating arms act

NORFOLK, Va. - A Virginia scientist pleaded guilty yesterday to selling rocket technology to China and bribing Chinese officials to secure a lucrative contract for his high-tech company.

Quan-Sheng Shu, 68, pleaded guilty to two counts of violating the federal Arms Control Act and one count of bribery at a hearing in US District Court in Norfolk.

Shu, a naturalized US citizen born in Shanghai, is president of AMAC International Inc. of Newport News. Prosecutors said Shu, an expert in cryogenics, sold technology to China for the development of hydrogen-propelled rockets.

"This is not an espionage case. It doesn't involve treason. It doesn't involve national security," said Shu's attorney, James Broccoletti.

China is developing a space launch facility in the southern island province of Hainan that will house liquid-propelled launch vehicles designed to send space stations and satellites into orbit. The project is overseen by an arm of the People's Liberation Army.

The United States maintains an arms embargo on China. The State Department determined that Shu's attempts to sell information on liquid hydrogen tanks and cryogenics equipment for the fueling system of a foreign launch facility constituted an illegal transaction.

Prosecutors said Shu had directed employees to falsify information to circumvent US laws.

Shu also was charged with bribing Chinese officials to award a $4 million hydrogen liquefier contract to a French company acting as an AMAC intermediary.

Shu received more than $386,000 in commissions for securing the contract, authorities said. He already had agreed to forfeit that money.

Sentencing is scheduled for April 7. He will remain free on $100,000 bond.

ASSOCIATED PRESS