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Cablegate: Japan Response to Blue Lantern Level 3:

VZCZCXYZ0005
PP RUEHWEB

DE RUEHKO #2012 2040540
ZNR UUUUU ZZH
P 220540Z JUL 08
FM AMEMBASSY TOKYO
TO SECSTATE WASHDC PRIORITY 5979

UNCLAS TOKYO 002012

SENSITIVE
SIPDIS

PM/DTCC BLUE LANTERN COORDINATOR

E.O. 12958: N/A
TAGS: ETTC KOMC JA
SUBJECT: JAPAN RESPONSE TO BLUE LANTERN LEVEL 3:
POST-SHIPMENT END-USE CHECK LIC 050071677

REF: STATE 58723

1. (SBU) Per request contained in ref, post contacted
Mitsubishi Cable Industries Sales Manager Yataka Suganuma on
June 17. Suganuma told econoff Osaum Murata, the POC listed
in ref, had been transferred as of April 1 and no longer
handles this case. Suganuma explained Mitsubishi's role in
the transaction is to use the semi-finished "ingot" bushings
made of Vespel to machine parts which are then used in engine
assembly/repair by Ishikawajima Jet Service.

2. (SBU) Suganuma replied his company has been in business
for 100 years and selling this particular part since 1985.
Copies of sales contracts from 1995 and 1996 to verify this
were sent to PM/DTCC via email. Suganuma did not know about
the U.S. Munitions List or Blue Lantern program, but said he
understood that any ITAR-controlled item could not be re-sold
or transferred to parties other than the legitimate end user.

3. (SBU) On July 17, Ministry of Defense Equipment Policy
Deputy Director Shinji Sato verified a contract between the
Air Self-Defense Forces 1st Depot and IHI Corporation for
seven core engine modules, which he said require 126 bushings
per engine for a total of 882 bushings.

4. (SBU) According to Shinichi Nakagawa of DuPont Japan
(address: Sanno Park Tower, 11-1, Nagata-cho, 2-chome,
Chiyoda-ku, Tokyo 100-611 Japan), license 050071677 is
intended to cover four years' worth of parts for engine
repair and that the parts would be ordered "as needed." He
understands license 050071677 is a "blanket" license.

5. (SBU) Nakagawa noted what he believes to be clerical
mistakes in the part number listed in ref. Nagakawa said
Customer Part No HZF90100001 4340 should be FINE1
47E475M3068. Nakagawa verified a total of 10,400 bushings
received to date.

6. (SBU) On July 10, IHI Sales Department Manager Atsushi
Hashimoto said the 50,000 bushings include stock to be
maintained by Ishikawajima Jet Service as well as Japan Air
Self-Defense Forces. Hashimoto said they have received a
total of 18,000 of the original 50,000 for which the license
was authorized to export. He said when the stock becomes
low, the U.S. company will apply for another license.

7. (SBU) Post has noted the discrepancy between the total
number of bushings reported by various interlocutors as
received in Japan. Post will continue to seek reconciliation
on this case.
ZUMWALT

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