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Cablegate: Response for Blue Lantern Level 3: Pre-License End-Use

VZCZCXYZ0003
RR RUEHWEB

DE RUEHKO #2223 2660537
ZNR UUUUU ZZH
R 230537Z SEP 09
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC 6368
INFO RUEAIIA/CIA WASHINGTON DC
RHMFIUU/FBI WASHINGTON DC
RUCPDOC/USDOC WASHINGTON DC
RUEKJCS/SECDEF WASHINGTON DC
RHMFIUU/HQ BICE INTEL WASHINGTON DC

UNCLAS TOKYO 002223

SENSITIVE
SIPDIS

PM/DTCC - BLUE LANTERN COORDINATOR

E.O. 12958: N/A
TAGS: ETTC KOMC JA
SUBJECT: RESPONSE FOR BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE
CHECK ON APPLICATION 050187092

REF: STATE 091981

1. (SBU) Post submits the following information in response to
reftel inquiry. Post officers are unable to conduct a site visit,
as the foreign consignee, Unitech Corporation, is located in
Nagasaki Prefecture, approximately 600 miles from Tokyo.
Alternatively, emboff spoke with Unitech Corporation's president,
Yuji Morishita, by telephone and corroborated information on the
transaction with officials from Mitsubishi Heavy Industries (MHI)
and the Japanese Ministry of Defense.

2. (SBU) Morishita said Unitech Corporation, which has only four
employees and was founded on January 18, 1995, acts as a consignee
for MHI, which procures parts for ship repairs on a contract with
the Japanese Maritime Self Defense Force (MSDF). According to
Morishita, Unitech Corporation does not store the imported items but
rather checks them upon receipt against the shipping invoice and
immediately delivers them to MHI.

3. (SBU) Morishita provided several copies of purchase orders from
MHI and corresponding purchase orders between Unitech Corporation
and the U.S. seller in reftel, Windward International. He said
Unitech Corporation recently started conducting business with
Windward International and intends to order $50,000 worth of items
this month and $600,000 over the next year. Future orders will
include MK46 torpedo parts, antisubmarine system parts and other
items. Morishita stated in writing he is well aware of U.S.
restrictions on U.S. Munitions List items.

4. (SBU) Separately, Sadatoshi Maitani, an official in MHI's Machine
and Material Department in Nagasaki, confirmed MHI has an existing
business relationship with Unitec Corporation. Maitani said MHI
procures items from the U.S. via Unitec Corporation for repairs of
systems on naval vessels on a service contract with the MSDF.

5. (SBU) Kenichiro Teramoto, an official in the Ministry of Defense
(MOD), Equipment Policy Division, Bureau of Finance and Equipment,
confirmed Unitech Corporation is currently registered as a qualified
vendor for the MSDF, valid from October 15, 2008 through March 31,
2010. Teramoto said Unitech Corporation typically imports
military-related items for MHI, and added Unitech has a past direct
contract with the MSDF in 2007.


6. (SBU) Post has e-mailed the following information received from
Morishita to PM/DTCC:
--Purchase orders for ASTM B152 TYPE ETP 1/2H (quantity: 1);
--Purchase order from Mitsubishi Heavy Industry dated 9/4/09(value:
81,000 yen or 880 U.S. dollars),
--Purchase order from Unitec Corporation to Windward International
dated 9/7/09 (value: 479.64 U.S. dollars)
--Another copy of purchase order for 10NBC1620YZP (bearings,
quantity: 16)
--Purchase order from MHI dated 7/14/09 noting the order was sent on
July 11 to Windward International (value: 224,000 yen or 2434 U.S.
dollars)
--Purchase order from Unitec to Windward dated 9/11/09 (value:
1,300.00 U.S. dollars)
ROOS

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