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