U.S. DECLINES COMMENT ON SCHLUMBERGER<SLB> MOVE
A U.S. Commerce Department spokesman
said the agency would have no comment on Schlumberger Ltd's
announcement that it had terminated an agreement in principle
to sell its Fairchild Semiconductor Corp unit to Fujitsu Ltd.
    Sclumberger had said that controversy surrounding the
venture made it unlikely the sale could be completed any time
soon. The sale was opposed by Commerce and the U.S. Defense
Department, in part on national security grounds.
    Commerce chief spokesman B.J. Cooper said the department
had had no contact with Schlumberger about the deal.
    A Defense Department spokesman said the agency was unaware
of Schlumberger's announcement and would have no immediate
reaction.
    Officials last week told Reuters that Commerce Secretary
Malcolm Baldrige and Defense Secretary Caspar Weinberger had
joined forces to fight the planned sale because it could have
left the U.S. military overly dependent on foreign sources for
vital equipment used in high-technology weapons.
    Administration opposition to the deal also stemmed from
ongoing trade tensions between the United States and Japan,
officials said.
 Reuter
