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July 8, 1987


By CBR Staff Writer

Only a year ago, Japanese companies were being pressed by both the US and their own governments to import much more electronic equipment and parts from the US – and Toshiba was one of the most responsive in heeding the call, inter alia signing to buy some $20m of Sun Microsystems workstations. But in the wake of the Toshiba Machine scandal over illegal exports to the Soviet Union the US is not quite so sure that it wants Toshiba’s business after all. It has temporarily suspended the company’s blanket authority to import goods from the US, and each instance of possibly sensitive kit will be approved on a case-by-case basis, involving delays and an enormous increase in paperwork. The new rule, which also applies to Kongsberg Vaapenfabrikk of Norway, will remain in force until the US is satisfied that the companies have instituted adequate internal controls to prevent sensitive material reaching the Eastern Bloc.

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