The subcommittee has scheduled hearings on Lockheed's overseas payments for Sept. 8, but has not yet decided what witnesses it will hear.

According to the narrative account that Lockheed has given the S.E.C., the company withdrew $426,000 from two of its foreign subsidiaries in two transactions in 1972 or 1973. The money was converted, the account continues, into beare?? checks—that is, checks payable to the person presenting them to the bank.

Of the total, $370,000 was then brought back to the United States through a Lockheed employe; the other $56,000 was held overseas in a bank account.

Of the $370,000 brought to this country, $300,000 was put down over a one‐year period in four separate bearer checks as partial payment for a boat. The narrative does not describe the boat; neither does it give the total sale price for the vessel. It also does not say why a boat was used as what it called “the means of the sales concession.”

What was apparently involved was this:

Lockheed wanted to sell its airplanes to a domestic customer. (The narrative describes the customer only as a “corporate entity.”) It did not, however, want to reduce the sales price of the airplane or airplanes involved.

One possible reason for this may be an unwillingness to make a publicly reported sale of the aircraft at less than the established price. Such a sale might lead other customers to ask for similarly reduced prices.

In any case, the other 570,000 that had been brought to this country was taken back overseas, converted from bearer notes to cash and put into A safe deposit box.