JAPAN RESPONSE ON BLUE LANTERN LEVEL 3:

UNCLAS TOKYO 001996 SENSITIVE SIPDIS PM/DTCC BLUE LANTERN COORDINATOR E.O. 12958: N/A TAGS: ETTC KOMC JA SUBJECT: JAPAN RESPONSE ON BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK LIC 050071311 REF: STATE 58813 ¶1. (SBU) Per request contained in ref, econoff contacted Global Gate President, S. Fred Kawashima, June 19. Kawashima said he understands ITAR and USML restrictions regarding his business and showed econoff the contract with the Ministry of Defense (MOD) for the parts listed in ref. The contract stated a 2,562,000 yen ($25,600 at current exchange rate) cost to MOD while the the value of the parts given in the export license was $11,500. A copy of the contract has been provided to PM/DTCC via email. Kawashima said the parts should be delivered to MOD at the end of August/or early September. ¶2. (SBU) Kawashima told econoff equipment going to MOD's Air Self-Defense Forces (ASDF) 2nd Depot is normally shipped to APC, a company located just outside the fence of the 2nd Depot compound. At APC, the equipment is inspected, repacked, and then transferred to the ASDF. When econoff noted APC did not appear to be listed on the license, Kwashima replied it is unnecessary to list every company handling the licensed merchandise, such as freight forwarders and shippers. ¶3. (SBU) APC or Aero Speciality Inc. has a website: http://www.apc-aero.co.jp/page006.html Kawashima said his point of contact at this company is Mr. Tamura (no further information). The address of the company is Unuma Asahi-cho 2-5, Kagami-hara City, Gifu Prefecture. Kawashima also told econoff Kokusai Aeromarine Corp. (no further information) is the custom-house broker in this transaction. ¶4. (SBU) On July 16, Ministry of Defense Equipment Policy Deputy Director Shinji Sato confirmed ASDF 2nd Depot ordered all parts cited in ref. ZUMWALT