METI HALTS JAPANESE FIRM'S SHIPMENT OF SERVO-MOTORS

S E C R E T TOKYO 001950 SIPDIS ISN/MTR - JOHN PAUL HERRMANN, EAP/J E.O. 12958: DECL: 08/21/2019 TAGS: PARM MTCRE ETTC PARM PREL MNUC KSCA JA IR SUBJECT: METI HALTS JAPANESE FIRM'S SHIPMENT OF SERVO-MOTORS REF: A. STATE 52206 ¶B. TOKYO 1033 ¶C. STATE 44624 ¶D. ROME 472 ¶E. STATE 34798 ¶F. TOKYO 800 ¶G. STATE 32269 ¶H. STATE 6399 ¶I. 08 STATE 109147 ¶J. 08 TOKYO 2554 ¶K. 08 STATE 97993 ¶L. 07 STATE 113257 ¶M. 07 TOKYO 3805 ¶N. 07 TOKYO 4687 Classified By: A/EMIN BILL DUFF FOR REASONS 1.4 (B),(D) ¶1. (S) Ministry of Economy, Trade, and Industry (METI), Office of International Affairs for Security Export Control Director Masaaki Takabatake and METI Deputy Director, Security Export Control Policy Division Hiroaki Machii, gave emboffs the following lightly-edited, English-language document August 21. The document bears the GOJ classification "CONFIDENTIAL". BEGIN TEXT: The U.S. and Japan have shared about information on Iranian procurement activities concerning Tonegawa Seiko's servo motors. METI heard from our customs on August 7 that Tonegawa Seiko was going to export 100 pieces of servo motors to the company named "Stilmeite", which is the very company that tried to import them last time (sic). METI told this company about the concern on August 12. According to Tonegawa-Seiko, they did not know until they were informed by METI that the importer is the same company as that of last time. Then, the company determined to stop exporting this day, so METI understands that those servo motors are not exported to any of the front companies. We continue to observe the transactions in connection with your information and provide instructions to Japanese companies concerned as necessary. END TEXT. ¶2. (S) Machii had no further information on the intended end-use of the shipment. He noted that METI only learned of the transaction when informed by customs officials, and confirmed, ordinarily, such a transaction would require an export license. ¶3. (S) COMMENT: According to open-source research, Stilmeite is the name of a Dubai-based firm claiming to specialize in custom-build electronic, wireless communication, and robotic devices. Post has informed METI of several suspect transactions of servo-motors involving Tonegawa-Seiko in the past (reftels) but has no specific record of prior transactions involving Stilmeite. ROOS