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Cablegate: Japan Blue Lantern Level 3: Pre-License Check On

VZCZCXYZ0002
PP RUEHWEB

DE RUEHKO #1624 1650918
ZNR UUUUU ZZH
P 130918Z JUN 08
FM AMEMBASSY TOKYO
TO SECSTATE WASHDC PRIORITY 5053

UNCLAS TOKYO 001624

SENSITIVE
SIPDIS

PM/DTCC - BLUE LANTERN COORDINATOR

E.O. 12958: N/A
TAGS: ETTC KOMC JA
SUBJECT: JAPAN BLUE LANTERN LEVEL 3: PRE-LICENSE CHECK ON
APPLICATION 050099140

REF: STATE 46643

SENSITIVE BUT UNCLASSIFIED. CONTAINS PROPRIETARY INFORMATION.

1. (SBU) This Blue Lantern involves a company which has
been suspended by the Ministry of Defense from bidding on
contracts due to over charging. The company is selling to
MOD via a third company which was not listed on the original
license.

2. (SBU) Yamada Corporation executives told EconOff during
a May 16 meeting that they have been indefinitely suspended
from bidding on contracts for the Ministry of Defense (MOD)
because they over charged a previous contract with MOD. On
May 22, MOD officials confirmed the Yamada Corporation
suspension and told EconOff that Yamada could be reinstated
at a future time if they refund the overcharge from the
previous contract.

3. (SBU) Yamada Corporation executives told EconOff that
they were not selling directly to MOD on this contract, but
were selling to NEC; NEC is selling the products to MOD,
Yamada executives said. As such, Yamada Corporation has no
contract with MOD, they explained.

4. (SBU) According to NEC Aerospace and Military Articles
Department of Planning Division Manager Takeshi Mori, the
company ordered an overhaul kit for the Nautis-M data system.
However, because of the suspension of the contract with
Yamada Corporation, the Japanese Maritime Self Defense Force
cancelled the order. Nevertheless, the contract with the
U.S. company was not cancelled. The batteries are still
listed on the transaction, although they are no longer need,
NEC officials explained. Ministry of Defense Equipment
Policy Division Deputy Director Shinji Sato told EconOff June
12 that NEC misrepresented this information. Sato said that
in fact, there never was a contract for the lithium
batteries. Subsequently, Post contacted NEC again and
executives there told us that actually a MSDF official told
them verbally the batteries would be needed.

5. (SBU) As NEC is not listed on the the original cable,
there is no contact information. To ensure accuracy in
contacts, the company Post contacted is located at 1-10
Nishhin-cho, Fuchu City, Tokyo Japan 183-8501 and the phone
number is 042-333-1072. The website is: http://www.nec.com

6. (SBU) On June 2, Equipment Policy Division Deputy
Director Sato confirmed that MOD had ordered all the items in
this order except the lithium batteries.

SCHIEFFER

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