VZCZCXYZ0021
RR RUEHWEB

DE RUEHC #6643 1231522
ZNR UUUUU ZZH
R 021516Z MAY 08
FM SECSTATE WASHDC
TO RUEHKO/AMEMBASSY TOKYO 0000
INFO RUEAIIA/CIA WASHINGTON DC 0000
RUCPDOC/USDOC WASHINGTON DC 0000
RUEKJCS/SECDEF WASHINGTON DC
RHMCSUU/FBI WASHINGTON DC 0000
RUEPINS/HQ BICE INTEL WASHINGTON DC

UNCLAS STATE 046643 
 
SIPDIS 
 
SIPDIS 
TOKYO FOR CHARLOTTE CROUCH 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC JA
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK 
ON APPLICATION 050099140 
 
REF: A. IIR 6 852 0244 08 
     ¶B. BLUE LANTERN GUIDEBOOK 2006 
 
¶1. This is an Action Request.  See paragraphs 2-4. 
 
¶2. The Department's Office of Defense Trade Controls 
Compliance (PM/DTCC) requests post's assistance in conducting 
a pre-license check on application 050099140 for the export 
of naval vessel parts to Japan.  Post is requested to 
complete this Blue Lantern check within 30 days.  Lack of 
response to a Blue Lantern check will affect pending and 
future applications involving parties to this license. 
 
¶3. Reason for request:  recent media reports about bribery 
and corruption scandals involving former Yamada company 
officials (see also ref a).  PM/DTCC would like to know if 
there have been any changes in Yamada's status as a defense 
contractor/supplier for the Japanese MOD.  PM/DTCC also would 
like reassurance that the company is a reliable recipient of 
United States Munitions List (USML) articles and technology. 
Post should make inquiries with appropriate officials to 
verify the bona fides of Yamada and its status as an official 
supplier of the Japanese MOD, and to confirm the legitimacy 
of the transaction proposed by application 050099140. The 
following questions are provided as suggested guidance: 
 
For the Japanese MOD: 
 
--Did you order from Yamada the exact type and quantity of 
items listed on this application? 
 
--What is Yamada's current status vis-a-vis the Japan MOD? 
Have recent media reports about Yamada's past activities had 
any impact on the company's current contracts or eligibility 
an official supplier/contractor for the Japan MOD? 
 
For Yamada: 
 
--Does the company have proper supporting documentation, 
including purchase orders from the Japan MOD, for this 
proposed transaction? 
 
--Have recent media reports about Yamada's past activities 
had any impact on the company's current contracts or 
eligibility an official supplier/contractor for the Japan MOD? 
 
--What actions, if any, is Yamada taking in response to the 
recent media reports? 
 
--Has Yamada discovered any indications that current or 
former company officials ordered the unauthorized re-transfer 
or misuse of United States Munitions List (UMSL) articles or 
technology imported from he United States? 
 
--Does the company understand the restrictions on USML items, 
especially the prohibition against unauthorized re-transfers 
and re-exports? 
 
¶4. Department requests that post conduct a site visit to the 
company in order to provide Department with an assessment of 
its business operations and on-site security.  If a site 
visit is not possible, please inform PM/DTCC case officer. 
Finally, post is asked to assess whether the company appears 
to be a reliable recipient of USML items.  End action. 
 
¶5. For background, the following details of the license in 
question are provided: 
 
DTC Case: 050099140 
 
QUANTITY/COMMODITY: 
 
3     Connector (Part number 508/4/28206/011) 
1     Connector (Part number 531/4/01061/003) 
1     Connector (Part number 531/4/01062/200) 
4     Sleeve (Part number 998/4/84984/105) 
18    Battery Lithium (Part number 535/4/00002/001) 
 
License Value: USD 1,035.00 
 
SELLER: 
 
Avex Aerospace Corporation 
361 Van Ness Way Suite 303 
Torrance, CA 90501 
Company contact:  Teresa Nakashima, tel. 310-803-8823 
 
FOREIGN CONSIGNEE: 
 
Yamada Corporation 
6-1, 1-Chome Roppongi 
Minato-ku, Tokyo 
Japan 
 
FOREIGN END-USER: 
 
The Ministry of Defense of Japan 
5-1, Ichigaya Honmura-cho 
Shinjuku-ku, Tokyo 162-8801 
Japan 
 
PURPOSE: 
 
Replacement parts for Nautis-M data system used on MSC (Mine 
Sweeper Coastal) Vessel owned and operated by the Ministry of 
Defense of Japan. 
 
¶6. Submitted in support of the license application were the 
following documents (PM/DTCC can fax documentation to post 
upon request): 
 
--Purchase order #58314/511P87950EKD from Yamada Corporation 
to Avex Aerospace Corp., signed by Osamu Okabe, Deputy 
Director, Defense & Aerosapce Components, dated 2/28/2008 
 
¶7. Please slug reply for PM/DTCC - BLUE LANTERN COORDINATOR 
and include the words "Blue Lantern" and the case number in 
the subject line.  POC is Judd Stitziel, PM/DTCC, Phone: 
202-663-3455; email: StitzielJD@state.gov; SIPRNET: 
StitzielJD@state.sgov.gov.  The Blue Lantern Guidebook (ref) 
is available as a PDF file in the Bunche Library's Electronic 
Library collection on the DOS Intranet: 
http://virtuallibrary.state.gov/ 
BlueLanternGuidebook2006%2520 final .pdf 
 
¶8. Department is grateful for post's assistance in this 
matter. 
RICE