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Title:  "Japanese, US Firms Indicted in Aircraft Sales to Iran." A federal grand jury has indicted Japan Aviation Electronics, Aero Systems Incorporated and three subsidiaries for alleged sales of F-4 Phantom fighter jet components to Iran. (910904)

Author:  ODESSEY, BRUCE (USIA STAFF WRITER)
Date:  19910904

Text:
*ECO304

09/04/91 HJAPANESE, U.S. FIRMS INDICTED IN AIRCRAFT SALES TO IRAN SH(F-4 Phantom fighter parts allegedly diverted) (400) BYBy Bruce Odessey BIUSIA Staff Writer

TWashington -- A federal grand jury has indicted a Japanese manufacturer, a U.S. company and three subsidiaries of the U.S. company for alleged sales of F-4 Phantom fighter jet components to Iran.

Charged in the 22-count indictment September 4 were Japan Aviation Electronics (JAE), Aero Systems Incorporated of Florida and Aero Systems subsidiaries in Florida, Hong Kong and Singapore.

According to U.S. Attorney Jay Stephens, from 1984 through 1987 JAE and Aero Systems cooperated to sell Iran about 300 gyroscopes and accelerometers, navigational components valued at more than $7 million that are used to guide the F-4 and its Sidewinder missiles.

JAE is licensed by the U.S. State Department to manufacture the equipment, developed in the United States by Litton Systems of California, solely for Japanese military use.

The indictment also charges that JAE and Aero Systems illegally re-exported to Iran gyroscopes manufactured by Honeywell Incorporated of Minnesota.

At a press briefing after the grand jury action, Stephens said JAE allegedly sold the components at the request of Aero Systems subsidiaries to front companies representing the Iranian military in violation of the Arms Export Control Act and the International Traffic in Arms Regulations.

With these components, he said, Iran's air force could maintain perhaps 100 of the F-4s it bought from the United States before 1979.

Stephens said the investigation, begun in 1989, has had the full cooperation of the Japanese government, Litton and Honeywell. He said that he has heard no suggestion that U.S. or Japanese officials knew about the scheme and that he sees no connection between this case and the Iran-contra arms-for-hostages scandal during the Reagan administration.

Also indicted were JAE employees Hironobu Takahashi, Toshiyuki Murakoshi and Tsutomu Iida, all of whom are Japanese, and former Aero Systems officials Colin Devellerez and Wayne Waterson, who are Australians.

Stephens said his office seeks extradition of the three JAE employees from Japan and of Waterson from Australia. He said Devellerez is expected to surrender shortly in California.

If convicted of all the charges, JAE could be fined up to $22 million and Aero Systems and its subsidiaries up to $12 million. The five employees, if convicted, could be imprisoned.