ATTEMPTS BY NORTH KOREA'S KOMID TO EVADE JAPANESE

S E C R E T STATE 099612 E.O. 12958: DECL: 09/17/2033 TAGS: MTCRE PARM PREL MNUC ETTC KSCA JA BM SUBJECT: ATTEMPTS BY NORTH KOREA'S KOMID TO EVADE JAPANESE EXPORT CONTROLS (S) Classified By: ISN/MTR DIRECTOR PAM DURHAM, REASON: 1.4 (C). ¶1. (U) This is an action request. Embassy Tokyo, please see paragraph 3. ¶2. (S) Background/Objectives: The U.S. has information that in July 2008, North Korean's primary weapons trading firm, Korea Mining Development Corporation (KOMID),was working with the Chinese company New East International Trading Ltd. to procure three Japanese-origin cylindrical grinding machines on behalf of an end-user in Burma. KOMID and New East International Trading were coordinating this transaction through the Japanese company Toko Trading Co., Ltd. Although these cylindrical grinding machines are not controlled, our information indicates that KOMID and New East International Trading created false end-use statements for Toko Trading to submit to Japanese export control authorities in order to facilitate the transfer of this equipment to Burma. We want to alert Japanese authorities to this information to support their export control efforts and help prevent unauthorized transfers of Japanese-origin technology. ¶3. (S) Action Request: Request Embassy Tokyo approach appropriate host government officials to deliver talking points/non-paper in paragraph 4 below and report response. Talking points also may be provided as a non-paper. ¶4. (S) Begin talking points/non-paper: (SECRET REL JAPAN) -- In the spirit of our close cooperation on nonproliferation issues, we would like to alert you to an apparent effort by North Korea to evade your export controls. -- The U.S. has information that in July 2008, North Korean's primary weapons trading firm, Korea Mining Development Corporation (KOMID),was working with the Chinese company New East International Trading Ltd. to procure three Japanese-origin cylindrical grinding machines. -- KOMID and New East International Trading were purchasing this equipment on behalf of an end-user in Burma and coordinating this transaction through the Japanese company Toko Trading Co., Ltd. -- Although these cylindrical grinding machines are not controlled, we understand that KOMID and New East International Trading submitted false end-use statements to Toko Trading indicating that these machines would be used by the Directorate of Myanmar Industrial Planning to produce spare parts for automobiles. The identity of the actual end-user for these machines in Burma is not known. -- These false export documents were to be submitted by Toko Trading to your export control authorities to facilitate the transfer of this equipment to Burma. -- Toko Trading is located at the following address: 11F, 7-7-23, Nishi-Shinjuku, Shinjuku-ku, Tokyo, Japan 160-0023. -- We are providing you this information to support your export control efforts and hope it is useful in thwarting efforts by entities such as KOMID and New East International Trading to evade your export regulations. -- We look forward to continued cooperation with your government on nonproliferation and export control matters and would appreciate hearing the results of any actions you take in response to this information. End talking points/non-paper ¶5. (U) (U) Washington POC is ISN/MTR James Mayes (Phone: 202-647-3185). Please slug any reporting on this issue for ISN/MTR and EAP/J. ¶6. (U) A word version of this document will be posted at www.state.sgov.gov/demarche. RICE NNNN End Cable Text