Toshiba Machine falsely described the machinery as two-axis machine tools. MITI denies the charges. A network of seabed listening devices and ships around Greenland, Iceland and the United Kingdom follow Soviet submarines, but the milling machines have made the propellers thinner and quieter. No less than Prime Minister Nakasone and MITI minister Tamura have admitted that the sales of the milling machines by Toshiba Machinery were responsible for the lower propeller noise in Soviet submarines. In July 1987 Japanese Prime Minister Nakasone blasted Toshiba Machine for betraying Japan.
Illegal machines contain profits.
Indeed, he claimed that most of thee small companies serving Moscow business could not survive without forbidden sales. I do not have evidence, but having engaged in trade with the Soviet Union for many years. Assistant Secretary of Commerce Paul Freedenberg told Congress that the transaction was the most significant transfer of sensitive technology to the Soviets during the past decade with profound deleterious effects on the US strategic posture. The US Congress is studying legislation that would ban sales in the US of products of Toshiba Corporation and its affiliates. The House of Representatives voted to ban the sale of Toshiba products at US military stores.