a bizarre deal diverts vital tools to russians

by:kingtool aluminium machinery     2020-05-15
The following article is based on the report of david e.
The Sanger of, the Clyde in Haberman, of, the Steve in the Lodge ofSANGER.
On June 12, 1987, this was a digital version of an article in The Times Print File, before it began to be published online in 1996.
To keep these articles as they appear initially, the Times will not change, edit, or update them.
There are occasional copywriting errors or other problems during the digitization process.
Please send a report of such issues to archid_feedback @ nytimes. com.
In early 1983, a group of Japanese engineers from Toshiba machinery arrived in Leningrad, the center of Russian shipbuilding since Peter the Great, and then hurried through the back door of the heavily guarded Baltic shipyard.
There, they painstakingly assembled computers worth more than $17 million.
Controlled machine tool for manufacturing ship propeller.
In the next 18 months, engineers returned to the Soviet Union about six times.
Working with computer experts from a state
They own Norwegian companies-
Four magnificent machines have been adjusted, each with two layers of height and a half-weight pounds.
As part of the agreement, the Soviet Union even got
Annual service agreement.
For Japanese and Norwegian customs officials who allow the shipment of equipment, this is just another radical commercial transaction, and the export license is also in good order.
Instead, investigators in three countries have now concluded that this sale is one of the most shocking transfers of high-tech technology.
Ten years later, technology products entered the Soviet Union.
According to interviews in the US, Europe and Japan, detailed re-construction of sales shows how easy it is to collapse the export control system.
The interview shows that the relevant government relies heavily on the authenticity of the company, which is also under pressure to meet a major new customer, the Soviet Union.
In addition, it appears that government inspectors lack the technical complexity of challenging the company\'s claims about the ability to export equipment.
The device is on top of a list of technologies that Western allies and Japan ban exports to Soviet groups, and intelligence officials say the machines have made it easier for Soviet submarine fleets to escape detection.
The US Navy says it will spend $1 billion or more to eliminate losses.
The ad \"when you take everything away,\" says Stephen D \".
Bryen, director of the Department of Defense\'s Export Authority office, said, \"These people have caused terrible losses in order to make another sale.
\"Since the transfer, the political impact has been great.
S. anger over the incident caused serious friction between three close military allies.
The United States, Norway and Japan.
The Pentagon accused Japan of allowing the technology to escape and then held back for a year while presenting evidence of the transfer.
Americans are also not fully convinced of the results of the Norwegian survey, which concluded that Norwegian involvement was limited to the work of a defector employee.
Last month, two officials of Japanese companies and Kongsberg Vaapenfabrikk, a British employee of Norwegian companies, were arrested and more arrests are expected in Japan.
Meanwhile, the president of Toshiba and two other top officials have resigned.
Norwegian officials are concerned that they may lose an important contract with the US military, which they have removed part of Konsberg.
A complaint in Japan is that Norwegian TooLike, chief executive of Toshiba, Watari Sugiichiro, complained in an interview in New York this week that his company had been deniedMr.
Votali says big electronics companies with 50 companies.
Toshiba\'s 8% machine should not now face sanctions from congressional debate.
Ban shipments to the United States and loss of military contracts
Because of the behavior of subsidiaries.
\'I was also misled by Toshiba\'s machine,\' he said. Watari said.
Although many details about the transfer have emerged, there are still problems with the handling of the case.
First of all, although these huge machines are shipped directly to the Soviet Union, Western intelligence agencies seem to have missed key clues about what is going on.
Illegal exports to the Soviet Union or its allies are nothing new.
According to investigators, what makes this case so unusual is not only the size of the transaction, but also its business --as-usual quality.
There is no evidence that there will be a huge return, and there seems to be little effort to cover up the destination of the device by sending it through a third country.
In this case, even the motivation is unusual: the employees of Toshiba and Konsberg obviously just want to support the companies they are in a bad situation, rather than profit in person.
It is difficult to try to assess the actual damage to national security.
Reagan administration officials claim that this is almost irreparable, as producing quiet propellers with new machines makes up for the loss by developing advanced sensors than the US.
\"The terrible thing is not how good the Soviet Union is today, but how fast they are progressing,\" said Naval analyst and writer Norman Polmar . \".
\"Other experts counter that the Defense Department has exaggerated the losses, perhaps to support submarine development projects and anti-submarine warfare improvements in Congress.
They point out that the mere acquisition of these tools does not allow Russians to produce new propellers.
In order to fully develop the equipment, advanced computer design technology, extensive testing and strict quality control are required.
But no one has argued that this loss is a serious damage to Western security and is done very easily.
The following is a review of the transfer, in part based on information provided by investigators that cannot be independently verified.
In some cases, there are still differences between accounts provided by officials from different countries.
From the catalog, important technologies can be traced back to the end of 1979 or the beginning of 1980.
According to intelligence officials, this may be shortly after the Russians were warned by John. Walker Jr. (
He admitted in 1985 to passing naval secrets to Britain. G. B. )
The position of the Soviet submarine was overwhelmed by the noise of the propeller.
The Soviet foreign trade organization Tekmashimport contacted Japanese small trading company Wako Koeki, which has an office in Moscow.
Japanese police who rebuilt the deal say they believe there are at least three suspectsG. B.
Agency involved: Igor.
Osipov, former vice president of Tekmashimport; Anatoly P.
Closely connected industrial machinery export company Troitskiy-
Import and export companies and Ralph ·.
Sedov, vice president of external technology exchange.
According to investigators,
Osipov told Wako Koeki that he needs to import large CNC machine tools and precision instruments that can shorten the long process of manufacturing propellers by several months. Mr.
Sedov was clearly not directly involved in the negotiations, but a task in Tokyo in the 1960s gave him experience in dealing with Japan.
Within months of negotiations in Moscow, Wako Koeki came into contact with Toshiba\'s machines, and soon Toshiba\'s executive, Ryozo Hayashi, went to Moscow to negotiate the deal.
Toshiba machines are a strange choice in the eyes of many experts, as the company is generally not considered a major competitor in the machine tool market.
But Toshiba\'s catalog contains what the Russians want.
110 of the propeller milling machine, models from 4 million to $5 million.
Advertising this machine dwarfs its operators as the two giant arms rotate from the crossbar, carving and shaping the propeller with a diameter of more than 30 feet, far greater than what the current Soviet submarine might need
From the Soviet point of view, the main attraction of this machine is its nine independent and controllable shafts, which means that it can be twisted and turned in many positions that are critical to the manufacture of complex propellers.
According to the regulations adopted by Cocom, the coordination committee of Western allies and Japan has formulated export rules that do not export machine tools with more than three independent axes to the Soviet Union or its allies.
Packaging method AvoidedToshiba can provide the entire package that the Soviet Union wants
Machine tools plus computers and software that runs it.
But for reasons that still confuse investigators, Moscow insists that the \"brain\" computer controller that operates the machine comes from kongtrade Trade, the marketing arm of kongvavaapenfabrikk.
Soon the Russians negotiated with John Green, 49. year-
An old British national who has served as sales manager of consberg trading company. Mr.
Officials at consberg say Green is a \"capable and hardworking person\"
Since joining the company in the medium term, there has been no previous record of misconduct1970\'s.
Officials at the company said he did not have any real oversight due to the turmoil at the time.
Some American officials say they suspect
Green may be a Soviet agent who cannot be found to comment.
But Norwegian officials disagree.
\"His motivation is to sell for a desperate business,\" said Tore Johnsen, who is in charge of the Norwegian investigation . \".
\"We found no indication that he did not tell the truth about why he did what he did.
On April 24, 1981, the deal ended in Moscow with the signing of two contracts.
The first requirement to deliver four unspecified milling machines, as well as five years of service and spare parts, is between Tekmashimport and C.
Toshiba\'s standard export broker, Itoh & Company, one of Japan\'s largest trading companies. \'\'C.
An American investigator said that Itoh is dealing with daily matters that do not cause any warning, wako Koeki, who explained why extensive trading with Vietnam and other Communist countries, was paid for the viewfinder and fired.
\"This is the beginning of hidden efforts.
Officials from the parent company of Toshiba said the export manager of Toshiba machinery witnessed the contract.
The second contract was signed with Konsberg trading company at a price of just over $2 million, enough to pay NC-
2000 computer and service protocols for digital controllers, guidance systems.
With the signing, Toshiba and Konsberg have started a series of scams to obtain export licenses required for Japanese and Norwegian customs officers to obtain equipment.
In May 19, in Tokyo, Toshiba applied to the Ministry of International Trade and Industry for a machine shipment license called TDP 70/110.
The Japanese authorities have clearly ignored this detail, and it seems that the model has not been mentioned in Toshiba\'s sales manual for the past few years.
Toshiba says the tool is limited to two axes within the scope of Cocom rules.
Toshiba says a civil machine will be used for civilian purposes --
Improve power facilities in Leningrad.
Thirty export control inspectors from the Ministry of Trade Review 200,000 applications each year, but no one questioned the permit.
Clearly, the Customs did not notice that the machines shipped were different from the models listed on the export license.
A senior official from Japan\'s Ministry of Foreign Affairs recently explained that the Ministry of International Trade and Industry just believed that companies with long-term close ties with it were telling the truth.
\"This is the first case of a complete breakdown of trust relations between industry and government,\" the foreign ministry official said . \".
\"Here we have a case of a Japanese family --
Just like a relationship is abused.
\"A year later, Sir.
Green applied to the Norwegian Ministry of Trade for the export of the digital controller specifically manufactured by Konsberg for the Soviet Union
Group trade because it can only be used in two cases that are not too complicatedand three-
Shaft milling machine.
In fact, investigators say.
Green has reached an oral agreement with the Soviet Union.
Agreement not found in the written contract-
Shipping one can control 9-axis machine.
The difference between the two models lies in the micro-circuit;
No customs officer can tell the difference.
The Navy was looking for quieter advertising in the interview, and Toshiba insisted that few of the employees of Toshiba Machines knew the true power or use of the equipment shipped to the Soviet Union, officials of the parent company were completely unaware of the deal.
But US investigators say if Toshiba executives are in the dark, it is because they are shifting their sights.
By the end of 1982, when the first milling machine was shipped, almost everyone in Japan\'s shipbuilding and machine tool industry knew two things about the Soviet Navy: it was looking for Western equipment, it is rapidly making the submarine quieter.
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Japan has just recently been embarrassed by a major technology transfer.
Defense Minister Kaspar, April 1982.
The Japanese defense minister\'s spy satellite shot by the Soviet Minsk aircraft carrier is being repaired by 80,000-
Ton floating dry dock built on Shika Island-
Harima Heavy Industry. Mr.
Winberg asked his Japanese counterpart Ito Jiro to \"consider the meaning of this photo \".
He said Japan\'s attitude towards export rules completely disrespected Cocom\'s restrictions.
Bryen has been one of Japan\'s main critics of the role played in the machine tool incident.
\"In the dry dock case, the secretary made it clear that these things had to be stopped.
\"Japanese officials in the United States responded that their country strongly advocates export controls, but they insist that the United States often feels alarmist about the severity of high export controlsTechnology transfer.
At the time Toshiba reached an agreement, it was well known that the Soviet Union had begun a major move to catch up with the \"quiet\" technology of the United States, keeping any submarine fleet from the key to reconnaissance.
\"For a long time, the Soviet Union seems to not care at all about the noise from their submarine radiation,\" Ira Dyer said . \", An acoustic expert and professor of ocean engineering at MIT.
But in every generation of submarines in the Soviet Union
Especially the new Sierra and Akula classes.
The giant power plant that pushed the Soviet submarine to become quieter.
Therefore, it is not surprising that other evidence of Soviet engineers turning to the submarine\'s whereabouts: two unique sounds from the propeller.
When the blades stir the water, the first one is an empty eclipse, and the sound generated when the propeller blades move causes a change in pressure in the seawater.
These sounds are especially noticeable when the submarine moves quickly near the water surface.
Advertising the second unique sound consists of the blade tone, which is caused by the tail waves generated by the propeller passing through the accessories on the hull of the submarine (such as the command tower, stabilizer and rudder.
\"These look small, but they make a huge difference,\" Professor Dale said . \".
\"A watt of acoustic energy from the submarine propeller in the Strait of Gibraltar can be heard off the coast of Virginia.
\"The US Navy has spent tens of millions of dollars, mainly reducing the eclipse and blade width through highly confidential propeller designs.
Most of them have odd overlapping blades that turn into a rather complex shape.
Although the specific design is classified, many basic principles are included in the public literature.
For many years, the Navy has not had the opportunity to produce propellers with CNC machine tools at the Philadelphia Navy shipyard, eliminating many quality control problems.
It is these types of machines that Toshiba began shipping to Leningrad from December 1982.
By the summer of 1983, all the machines were in place, although there is now a dispute over their exact whereabouts.
S. intelligence officials insist the four men are at the Baltic shipyard on the edge of Finland\'s Gulf. (
The facility mainly produces surface ships, but the submarine was built at a nearby shipyard. )
Japanese and Norwegian officials say there are only two machines in Leningrad and they don\'t know where the other two are.
Some naval experts believe that Moscow sent them to the shipyard on the opposite coast, perhaps the sea cucumber vladi in the Sea of Japan.
In both cases, engineers who installed the equipment in Leningrad for several months said it was safe and tight during operation.
\"We have been observed by K \". G. B.
A few weeks ago, a Toshiba machine technician told police investigators in a report in Japanese media.
He recalled that they drove from the back door of the shipyard every day and then went straight back to a hotel in Leningrad.
\"We don\'t even have time to go sightseeing,\" he complained . \".
Toshiba\'s engineers are not alone.
In the fall of 1983 and the spring of 1984, two Konsberg employees also traveled four times from Norway to Leningrad, apparently to install control systems and software for Toshiba machinery.
In June 1984, the Norwegian company conducted its last visit to improve the software and reduce the time required to manufacture the propeller.
AD investigators did not agree whether senior officials at Konsberg knew or should have known about the deal.
Interviews were conducted with six employees of Konsberg, including the technicians who traveled to Moscow.
But last week, Norwegian police let the transfer statute of limitations expire without further charges.
The Norwegian comment is \"Green is the only one to complete the whole deal \".
Chief investigator for the case in Norway JohanssonAdded Jens C.
Width, senior vice president of marketing at Konsberg, said, \"This is very different from Toshiba\'s involvement, and Toshiba\'s top management knows what\'s going on.
\"U. S. officials noted that Konsberg was essentially managed by the Norwegian Defense Ministry, saying that the company\'s leadership did not know that it was incredible to ship any sensitive goods to the Soviet Union.
At Capitol Hill and the Pentagon, there are calls for more arrests and dismissal.
Norwegian officials responded that because of the company\'s poor financial situation, most of Konsberg\'s executives were fired last year.
\"It doesn\'t make sense to punish irresponsible people,\" said Arve Thorvik, economic adviser to the Norwegian embassy in Washington . \".
In Leningrad, while the spy was sleeping, although the real use of the grinding equipment was only a faint disguise, the equipment was shipped until last year, fake export licenses and multiple visits to Leningrad have apparently not been discovered by Western intelligence agencies.
Now investigators can\'t even agree on how the plan will eventually be discovered.
According to the Japanese, on December 1985, when Kazuo Kumagai, manager of the Moscow office of Wako Koeki trading company, told officials of Wako and Toshiba Machines, unless someone paid him to keep him silent, otherwise he will reveal the story of illegal exports.
When he had nowhere to go, he wrote a letter to Cocom in Paris to implement his threat.
The information was sent to the United States and eventually to Japan. At Toshiba, Mr.
Mr. Watari said Toshiba had never received any threats from him.
But he said he could not speak on behalf of the subsidiary Toshiba Machine.
Pentagon officials tell a very different story.
They said they knew there was no letter to Cocom;
Instead, a series of clues they would not describe led them to discover the deception and inform the Japanese.
\"More is to put together a Chinese problem . \"Bryen said.
Outside intelligence experts say the first clue could come from a naval listening station where operators detected a faint sound from a new Soviet propeller.
The Pentagon has not tried to eliminate the speculation.
Other experts believe that it is too early to install these propellers on the operating submarine.
In any case, the Japanese investigation made little progress in the 1986 incident.
An official from Japan\'s Ministry of Foreign Affairs explained that Toshiba\'s machine told the ministry that it only shipped two-axis machines.
\"We really can\'t believe a well-known company like Toshiba will do something like this,\" the official said . \".
Another Japanese official added that \"there is not much pressure on Americans \".
Bryen and Fred C.
Ikle, deputy defense minister in charge of the policy, traveled to Tokyo on last December to describe the deception in detail.
Japan asked for more documents until he
Mr. Winberg complained directly to the Japanese defense minister that a full investigation had begun.
The explanation provided by Toshiba\'s machine executives began to crash.
\"At first, the Toshiba Machine thought it was two machines.
An axis machine that cannot be converted into something more complex.
But \"Later they said it was possible\" to convert the machine into Nine axes, Watari said.
Earlier last month, shortly after Japanese Prime Minister yasuiro Nakasone was told of the incident, Japanese police raided the Toshiba Machine\'s office and took it away.
On May 15, Iimura Kazuo, president of Toshiba, resigned.
Watari said he asked.
After a few days of interrogation
Another executive at Hayashi and Toshiba was arrested.
Six more are expected to be arrested.
Last Friday, there were two more Machine executives from Toshiba.
In 1982, the head of overseas business, konhong Songqi, and Gao Luo yada, head of machine tool divison at that time --also resigned.
At the same time, Japan has imposed relatively severe sanctions.
Toshiba was ordered to suspend all exports to 14 Communist countries for one year.
The company said last week it expects a loss of $100 million this fiscal year. C.
Trading company Itoh has been banned from exporting machine tools to Communist countries for three months.
\"Apart from letting Toshiba go bankrupt, I think this is the toughest sanctions we can take,\" said a Foreign Ministry official . \".
In the United States, the parent company Toshiba is trying to stop the growing movement of Congress to ban imports of its products for a year or more.
At the same time, the Pentagon has postponed contracts with Toshiba and Konsberg, including a $100 million order that Toshiba seeks to provide portable computers to the Air Force.
Pentagon officials say neither company should expect to sign a contract until they are responsible for the loss.
\"This time,\" declared an investigator at the Pentagon, \"we will hang these people in public.
The trajectory of the propeller 1.
In early 1980, Soviet officials contacted the Moscow office of a small Japanese trading company to look for automatic propeller manufacturing equipment.
Soon, executives at Toshiba MachinesItoh & Co.
State of Norway
With arms manufacturers, he went to the Soviet Union in April 24, 1981 and signed a contract.
Although the order did not specify the model number, the four large milling machines exported to the Soviet group were illegal. 2.
In Tokyo and Oslo, company officials filed an application for an export license with a false model and claimed that the export of Japanese machines and Norwegian computers was legal.
No one questioned these claims.
Toshiba began shipping on December 1981.
At least two go directly to the Baltic Shipyard in Leningrad.
Ship software in Fort 1982-
There was no restriction at the time --
Go straight to Leningrad
It sends the \"digital controller\" of the milling machine to Toshiba in Japan, perhaps to hide their final destination. 3.
Toshiba Machines and Konsberg technicians traveled back and forth from Japan and Norway to Leningrad about six times to install the equipment, and the last trip was to upgrade the software in June 1984.
On December 1985, according to Japan, a disgruntled Japanese employee wrote to the Western ally managing export controls and the Japanese organization Cocom, revealing the true nature of the shipment.
The data were rejected in Japan.
At the insistence of the United States, it will take more than a year for the full investigation to begin, and the United States says it has discovered the plan.
A version of the article appeared on page A00001, the national edition, in June 12, 1987, with the title: a strange deal transferred important tools to Russians.
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