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Toshiba Official Says It Would Be Unfair To Penalize Toshiba Corp.

June 18, 1987

WASHINGTON (AP) _ A Toshiba official said Thursday that it would not be fair to penalize Toshiba Corp. of Japan for a subsidiary’s sale of equipment to the Soviets that can be used to make submarines quieter.

″There’s no doubt that if Toshiba Machine violated a cooperation agreement with the United States, their products should be banned,″ said Takao Hayashida, vice president of Toshiba America Inc. in New York. ″However, Toshiba Machine is just a subsidiary of Toshiba Corp. It is quite different from Toshiba Corp. It is quite independent.″

Hayashida said he was aware of talk on Capitol Hill of an attempt to ban imports of all Toshiba products to punish the company for selling sophisticated milling machinery for manufacturing quieter submarine propellers to the Soviets. The quieter submarines are harder to detect.

Hayashida said, though, that he could not say what Toshiba would do to fight the legislation.

On Wednesday, Sen. Jake Garn, R-Utah, proposed the ban on all Toshiba imports, saying Toshiba Machinery’s sale of the high-tech equipment caused ″significant damage to our security.″

Garn said he planned to offer his proposal as an amendment to the trade bill that could come up in the Senate as early as next week. He did not say how long the ban, if approved, would be in effect.

Hayashida said he could not estimate the value of Toshiba products that would be affected by such a ban.

Toshiba manufactures computers, electronics and other products.

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