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Cablegate: Mod Suspends Trading Companies

VZCZCXYZ0005
PP RUEHWEB

DE RUEHKO #1594 1630740
ZNR UUUUU ZZH
P 110740Z JUN 08
FM AMEMBASSY TOKYO
TO SECSTATE WASHDC PRIORITY 4954

UNCLAS TOKYO 001594

SENSITIVE
SIPDIS

DEPARTMENT FOR PM/DTC AND EAP/J

E.O. 12958: N/A
TAGS: ETTC KOMC JA
SUBJECT: MOD SUSPENDS TRADING COMPANIES

SENSITIVE BUT UNCLASSIFIED. CONTAINS PROPRIETARY INFORMATION.

1. (SBU) On May 16, Ministry of Defense (MOD) officials
informed EconOff they have determined four Japanese trading
companies are ineligible to sell to MOD because of their
excessive pricing of previous defense articles. Ministry of
Defense Equipment Policy Division Deputy Director Shinji Sato
told EconOff these companies may have the opportunity to be
reinstated as eligible to sell to MOD once they refund the
amounts they overcharged the MOD for defense products.

The companies are:
Yamada Corporation
Izumi Garden Tower, 6-1, 1-chome, Roppongi, Minato-ku, Tokyo,
Japan

Kyokuto Boeki Kaisha, Ltd.
2-1, 2-chome, Ote-machi, Chiyoda-ku, Tokyo
http://www.kbk.co.jp/english/default.html

Fuji Industries Co., Ltd. (not Fuji HEAVY Industries)
Meikai Bldg. 32 Akashi-machi, Chuo-ku, Kobe City, Japan
http://www.ficjp.com/top e.html

Science Technology Ltd.
1-44 Nagasaka, Tsuzuki-ku, Yokohama City, Kanagawa
Prefecture, Japan


2. (SBU) Sato told EconOff that contracts with the companies
which pre-date the excessive pricing will still be honored.
These include contracts with Fuji Industries from prior to
November 24, 2006; Science Technology from prior to November
15, 2007; with Yamada Corporation from prior to November 22,
2007 and Kyokuto Boeki Kaisha from prior to January 7, 2008.

3. (SBU) Post will keep Defense Trade Controls informed of
any future changes in eligibility for Japanese trading
companies as changes occur.

SCHIEFFER

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