TOSHIBA HOPES EXPORTS TO U.S. NOT HURT
A senior Toshiba Corp <TSBA.T> executive
said he hoped the alleged illegal export of high technology
equipment to the Soviet Union by a Toshiba subsidiary would not
hurt the parent company's exports to the U.S.
    Toshiba's 50-pct subsidiary <Toshiba Machine Co Ltd> "is a
completely independent company with independent management,"
Toshiba Corp senior vice-president Osamu Iemura told a press
conference.
    "We want to have that fact understood overseas," he said.
    Iemura said he had no information to suggest the U.S.
Defence Department had broken off talks with Toshiba on the
possible procurement of lap top computers because of the
illegal exports by Toshiba Machine.
    Kyodo News Agency, quoting the weekly magazine U.S. News
and World Report, said on Saturday the U.S. Air Force had
decided to cancel an agreement to buy 100 mln dlrs worth of
computers because of Toshiba Machine's illegal exports.
    "We have no contract. The U.S. Defence Department has been
negotiating for procurement with several companies including
Toshiba," Iemura said.
    Last week, police said they had arrested two Toshiba
Machine employees on suspicion of illegally exporting high
technology equipment to the Soviet Union.
    The Japanese government has already banned further
shipments of goods to Communist states by Toshiba Machine for
one year and by its export agency C. Itoh and Co Ltd <CITT.T>
for three months.
 REUTER
