JAPAN RESPONSE TO BLUE LANTERN LEVEL 3:

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