Congress\'s anger at the illegal sale of high-priced goods
Submarine propeller technology
So far, milling equipment for the Soviet Navy has been aimed at Toshiba, Japan\'s largest machinery manufacturer.
But right now, Congress is taking action to blame two other Japanese colleagues.
Cabal: major trading companies
Itoh and smaller imports-
Export Company, Wako Koeki.
As we reported, a secret report from the CIA warned on 1984 that if there was a problem with the deal, Japanese manufacturers traditionally used trading companies as a shield against the decline. Toshiba, C.
Both Itoh and Wako Koeki are known as participants in the Japan Ministry of International Trade and Industry (MITI) scandal.
But so far Toshiba has taken the brunt of the penalties.
The two executives have not only resigned, criminal proceedings may follow.
MITI banned Toshiba from selling anything to the Soviet Union.
Group customers for one year.
Congress is considering banning the sale of Toshiba products in all parts of the United States. S.
Military base and two.
S. annual embargo on Toshiba products. Meanwhile, C.
Itoh was slapped down by a slap on the wrist: a three-
Export of machine tools to Soviet groups is prohibited every month.
Wako Koeki got a simple \"warning\" from MITI \".
How involved are the two trading companies?
Our reporter, Gary Crawford, reviewed the schedule of the Department of Defense and showed how important they were playing from the beginning.
The chronology was prepared by Steve Brien, a top expert in technology transfer at the Pentagon.
According to the document, illegal transactions began in 1980: \"Tekmashimport, the Soviet foreign trade organization, contacted Japanese trading company Wako Koeki.
Tekmashimport wants to buy Western automatic propeller-
Make equipment for one of its customers.
The chronology continues to write: \"wako Koeki\" investigated Japanese machine tool manufacturers to determine which manufacturers produced this special equipment and will supply it to the Soviet Union. \".
The items the Soviets wanted were high.
Technical milling machine
, computer control, for handling complex cutting heads used to manufacture submarine propellers.
They have nine separate cutting axes that allow the cutting head to be cut on different planes.
The desired machine is much more complex than any machine in the Soviet Union, and will make their submarine propellers so quiet that it is difficult to detect.
In fact, the international agency Export Control Coordination Committee, which manages Western trade with the Soviet bloc, banned the sale of machine tools with more than three axes.
Japan is a member of COCOM.
Nevertheless, Wako Koeki\'s quiet search team has offered a settlement to Toshiba over illegal transactions ---
According to the Pentagon chronology, Toshiba \"agreed to provide equipment and negotiations began \".
It is clear that Toshiba knows that it is on an illegal adventure.
As the report points out: \"Toshiba insists on its standard export broker C.
Itoh, used to avoid the suspicion of the licensing authorities in Japan.
\"Earlier news reports about the scandal said the Soviet Union insisted on involving a Norwegian company.
The Pentagon\'s chronology put this on the Japanese and said: \"In order to further cover up the true nature of sales, Japanese companies recruited (state-owned)
Fort conburg, Norway trade firm, division of labor Vaapenfabrikk Fort conburg.
Five contracts were signed in 1981.
The first two were signed in Moscow on April 24.
The first contract was Tekmashimport and C. Itoh.
As an agent for Toshiba, the trading company agreed to illegally sell four states-of-the-art MBP-110 propeller-
Milling machine. \'\'MBP-
The 110 is capable of precisely milling propellers with a diameter of up to 11 m and is a COCOM-
The Pentagon report says goods are restricted.
The second contract signed in Moscow that day was a similar agreement between Tekmashimport and Kongsberg, in which Norwegian companies promised to provide the computer brain running the propeller
The authorized officer of MITI produced a certificate falsely describing the precision milling machine as a very inferior machine.
It also mistakenly identified the destination as a civilian factory in Leningrad.
Of course, these four machines and their computer software are actually propellers from the Soviet Navy --
Production facilities in Leningrad.
These machines were delivered and installed in 1983 and 1984.
According to the Pentagon chronology, \"These companies have served and updated machines and software as early as June 1984 . \".
It noted that the United States was not aware of illegal transactions until 1986.
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