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It is a sad day. United Technologies - 3 Divisions, no less - admitted to providing China information critical to U.S. Defense for a Chinese project to build a military helicopter.

As a shareholder, a UTX alumnus, and an American, I am disgusted, saddened and angry. During my tenure there, I was a cynic, even as I held positions of global responsibility. I created the "prime directive" which is "the prime directive of all employees is to maximize their boss' current year incentive compensation".

That said, I never felt that the leaders at the very top would ever tolerate the kind of events this news tells us about. George David and Bob Danielle were men of honor.

What happened? I am afraid that this is just a symptom of a more insidious cancer of culture. I even ignored a sign from the year before I left when a POTENTIAL safety issue arose and I called the president of my division after reporting through the safety officer and the head of the sub-division I reported to. Immediately I was transferred to a lawyer who told me that he would contact "president". After 2 hours, I called the president direct line and he almost fired me for making him aware of the issue. When leaders do not want to know the bad news, it shows that they value only themselves and their jobs over the safety of others - in other words they are small people, not unlike Al (crybaby) Dunlap, eh?

So, what does this mean for UTX?

First I immediately fired off an email to investor relations and demanded as a shareholder, full disclosure of the issue, and what steps were being taken to get to full root-cause and identify and deal with everyone involved.

As an investment, buying the stock should be put on hold. As an owner myself, I will consider how and when to sell, and in the meantime look at options to protect myself and take advantage of any volatility that occurs as a result of this ethical breach.

Power corrupts, absolute power corrupts absolutely and the smartest guys in the room generally think they a powerful, in their own little minds.

What they are is contemptible, greedy little people of no consequence in or to history.

Unfortunately, they have soiled the honor of many of us who are alumni of this once great company and the many people still there who are honorable and depend upon the corporation for their and their families' welfare and futures.

If and when the disclosure is made, I will report back to the foolish community and hope until then that my cynicism is wrong.
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