RESPONSE TO BLUE LANTERN POST-SHIPMENT END-USE

UNCLAS TOKYO 000329 SENSITIVE SIPDIS PM/DTTC - BLUE LANTERN COORDINATOR E.O. 12958: N/A TAGS: ETTC KOMC JA SUBJECT: RESPONSE TO BLUE LANTERN POST-SHIPMENT END-USE CHECK ON LICENSE 050120650 REF: 08 STATE 134873 ¶1. (SBU) Econoff conducted a site visit of Laser Measurement Corporation (ref) February 3 and met with Managing Director Hiroo Sugihara at the firm's premises in Suginami Ward, Tokyo. Sugihara displayed the Grey Field Polariscope and the supporting documentation for the transaction identified in reftel. He confirmed he will use the equipment for sales demonstrations to customers who may purchase such devices to detect defects in glass. Potential customers include Asahi Glass Co., Japan's auto manufacturers, and academic research centers. ¶2. (SBU) Sugihara stated he founded Laser Measurement Corporation in August 1997 as a distributor of optical measuring devices. In addition to Sugihara, the firm's other principals are Mineyuki Hayakawa (Director, holds 10% of the firm's shares),Yuusuke Fujii (Director),and Kinichi Fujii (Auditor). Sugihara said the firm posts $1.5 million in annual sales and has a four person staff: Sugihara, an engineer, a bookkeeper and a secretary. The company sells devices manufactured by Stress Photonics and Correlated Solutions of the U.S. and the Canadian firm FISO Technologies. Sugihara said the firm has imported conventional polariscopes in the past, but this transaction is the first involving infrared components. ¶3. (SBU) Sugihara stated he understands the restrictions on unauthorized re-transfers and re-exports of USML items and will maintain positive control of the infrared components at all times. The company's equipment is stored on premises. The office is located on the ground floor of a typical Tokyo apartment building. Econoff observed a deadbolt on the primary entrance, but Sugihara said the company does not have an alarm system. Sugihara has not been a target of theft. Following the meeting, emboff sent Sugihara additional reference materials on export regulations governing sensitive items. ¶4. (U) Embassy Tokyo POC for Blue Lantern requests is Ed Luchessi, Economic Officer, LuchessiEP@state.gov ZUMWALT