Caught in The Act

THOUGH IT HAS BEEN AGAINST THE LAW SINCE 1977 for American firms to cooperate with the Arab boycott of Israel, the Clinton Administration has sent U.S. companies a strong reminder by levying the first criminal penalty in such a case. Baxter International, the world's largest hospital supplier, pleaded guilty to violating provisions of the law that forbids U.S. companies to provide the Arab League with information about their dealings with Israel. The U.S. government, which began investigating the matter three years ago, fined Baxter $500,000 in the case. Baxter will pay an additional $5,959,000 to < settle separate civil proceedings. The company is also proscribed from doing business with Syria and Saudi Arabia for two years.