TOKYO: Japanese police raided the offices of Yamaha Motor Co. Monday following a criminal complaint by the government alleging that the company had sold helicopters to China illegally, some of which could be using for military purposes.
Japan is concerned about China's military ambitions and it has called on Beijing to be transparent in its dealings.
The Chinese ministry of economy, trade and industry said Yamaha Motor is being investigated on suspicion that it had exported its unmanned RMAX Type IIG helicopters, usually meant for spraying disinfectants in agricultural fields, without proper government permission.
A Yamaha Motor spokesperson confirmed that the police had searched its premises, including its head office in Iwata, and added a similar search was conducted at its headquarters in December. He confirmed that the company had carried out the proper procedures for exports and had not violated the law.
Another spokesperson said the company has exported nine RMAX helicopters to Chinese firm BVE but these helicopters cannot be modified for military use because their flying ranges are just 200 meters from the person controlling it from the ground and therefore cannot be used to carry weapons.
He said the Chinese firm is understood to be using these helicopters for shooting footage for commercials and television dramas.
The company said it will cooperate with the authorities in the probe.
A Japanese newspaper reported quoting a police officer involved in the case that the Chinese company to which the helicopters were exported is suspected of having links with the People's Liberation Army. If the charges are proven, the company can be fined as much as 80 million yen per helicopter and the executives responsible for the sale can be sentenced to jail terms.
The R-MAX, costing around $140,000, can be flown safely by even an untrained operator on the ground using a laptop. It is widely used in Japan for agricultural purposes.
Japanese cabinet secretary Shinzo Abe said the case is regrettable and hoped the investigation will reveal the full extent of the case.
The news sent the stock of Yamaha, the second largest maker of motorcycles, tumbling 185 yen or 6.36 per cent to end the morning session at 2,720 yen on the Tokyo Stock Exchange.
Posted
on : Tue, 24 Jan 2006 02:40 GMT | Business News
By : Anne Philips
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