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Tracking Number:  220239

Title:  A major Japanese defense contractor, Japan Aviation Electronics Industry Ltd, convicted of illegally selling sensitive US military technology to Iran, has been fined and stripped of the use of US export licenses for up to three years. Economic Highlights. (920319)

Date:  19920319

Text:
ECONOMIC HIGHLIGHTS, THURSDAY, MARCH 19

(Japan) (280) U.S. PENALIZES JAPANESE FIRM FOR ILLEGAL SALES TO IRAN Washington -- A major Japanese defense contractor convicted of illegally selling sensitive U.S. military technology to Iran has been fined and stripped of the use of U.S. export licenses for up to three years.

The company, Japan Aviation Electronics Industry Ltd. (JAE), pleaded guilty March 11 in U.S. District Court in Washington to 10 separate violations of the Arms Export Control Act and the International Traffic in Arms Regulations.

The violations involved transfer during 1986 of sophisticated American F-4 Phantom fighter jet navigational components through Iranian diplomatic channels to Iran.

The company agreed to pay the maximum criminal fine of $10 million -- an amount that U.S. Attorney Jay Stephens described as the highest penalty ever invoked in a U.S. export violation case.

The stripping of U.S. export licenses, a separate action, was reported in the official Federal Register March 18, in an order issued by Ian Baird, director of the office of export licensing.

Baird said that, based on the conviction, he had "decided to deny JAE permission to apply for or use any export license, including any general license...for a period of three years from the date of its conviction, with portions of that denial period being suspended."

The penalty is to be suspended entirely with respect to transactions in which the end-user is the Japanese or U.S. government. It is to be suspended for all but 3-12 months for all other transactions, then waived if JAE commits no further violations and meets requirements imposed by the export office.

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File Identification:  03/19/92, EC-409; 03/19/92, EP-409; 03/19/92, NE-417; 03/20/92, AR-511
Product Name:  Wireless File
Product Code:  WF
Keywords:  JAPAN-US RELATIONS; DEFENSE INDUSTRY; JAPAN AVIATION ELECTRONICS INC; TECHNOLOGY DIVERSION; MILITARY TECHNOLOGY; IRAN/Defense & Military; ARMS TRANSFERS; EXPORT CONTROLS
Thematic Codes:  3TR
Target Areas:  EA; NE; AR
PDQ Text Link:  220239
USIA Notes:  *92031909.ECO ecohilites:Japan EXP CONTROL DANNHEISSER/te



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