DATE=7/25/97 TYPE=CORRESPONDENT REPORT NUMBER=2-217649 TITLE=KOREA ESPIONAGE (L-ONLY) BYLINE=SHIN NA DATELINE=SEOUL CONTENT= VOICED AT: INTRO: A SOUTH KOREAN COURT HAS CONVICTED TWO AMERICANS AND TWO SOUTH KOREAN ARMS DEALERS FOR GATHERING CLASSIFIED INFORMATION ON SEOUL'S ARMS PROCUREMENT PROGRAM. SHIN NA REPORTS FROM SEOUL, THE CONVICTIONS COME JUST WEEKS AFTER A U-S COURT CONVICTED A KOREAN-AMERICAN FOR ESPIONAGE. TEXT: DONALD RATCLIFFE OF THE AMERICAN DEFENSE CONTRACTOR "LITTON GUIDANCE AND CONTROL SYSTEMS", WAS GIVEN A SUSPENDED TWO-YEAR PRISON TERM BY THE SEOUL DISTRICT COURT FOR OBTAINING CLASSIFIED MILITARY INFORMATION. A KOREAN-AMERICAN ARMS BROKER, JAMES KWAK, WAS GIVEN THREE YEARS IN PRISON FOR STEALING AND PASSING ON MILITARY SECRETS TO RATCLIFFE. THE TWO MEN ARE SAID TO BE FORMER BUSINESS PARTNERS. RATCLIFFE WAS DIRECTOR OF SALES FOR LITTON'S FAR EAST ASIAN REGION, BASED IN THAILAND, AND HE FREQUENTLY MET WITH LOCAL ARMS DEALERS DURING HIS TRIPS TO KOREA. HE WAS ARRESTED IN APRIL BY SOUTH KOREA'S INTELLIGENCE AGENCY FOR SECURING MILITARY SECRETS FROM ARMS BROKERS. THREE ARMS DEALERS, INCLUDING JAMES KWAK, WERE ARRESTED AT THE SAME TIME. // OPT // KWAK IS ALLEGED TO HAVE MET SEVERAL TIMES WITH INCUMBENT OR RETIRED AIR FORCE OFFICIALS TO DISCUSS GOVERNMENT PLANS FOR THE PURCHASE OF FOREIGN WEAPONS SYSTEMS. // END OPT // INVESTIGATORS SAY RATCLIFFE HAD BEEN SECURING INFORMATION ON SURVEILLANCE AIRCRAFT AND OTHER ARMS PROCUREMENT PROJECTS SINCE 1994. IT IS NOT CERTAIN YET WHETHER THE CLASSIFIED INFORMATION WAS PASSED ON TO THE U-S GOVERNMENT. FRIDAY'S CONVICTIONS COME TWO WEEKS AFTER A U-S COURT SENTENCED A FORMER KOREAN-AMERICAN NAVY ANALYST TO NINE YEARS IN PRISON. ROBERT KIM WAS CONVICTED OF PASSING CLASSIFIED U-S NAVY DOCUMENTS TO THE SOUTH KOREAN GOVERNMENT. (SIGNED) NEB/SN/MMK/RAE 25-Jul-97 7:07 AM EDT (1107 UTC) NNNN Source: Voice of America .