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Iran may be linked to illegal arms sales: Japan

TOKYO: The Iranian government is believed to be linked to a case of illegal arms exports from Japan, a police source said on Wednesday.

The source said evidence had been found that the Iranian embassy in Tokyo had made an advance payment of 6.1 million yen ($56,210) in 1994 to a Japanese firm accused of illegally exporting parts for anti-tank rocket launchers to Iran.

Two executives of the company, Sun Beam KK, a small Tokyo-based trading house which went bankrupt two years ago, were arrested last month for violating the Foreign Exchange and Foreign Trade Control Law.

Sun Beam is believed to have received orders for sighting devices used in rocket launchers from the state-run Iran Electrics Industries (IEI) from 1994 to 1995.

A spokesman at the Iranian embassy denied any involvement by the embassy in trade and commercial activities, adding that the incident was "old news".

Police officials also said they had put Masoud Momtahan, 38, an Iranian businessman, on a nationwide wanted list and were seeking to have him on the international wanted list in connection with the case. Momatahan is a former employee of IEI.

The foreign exchange and foreign trade law forbids arms-related exports to countries believed to support terrorists, those which are involved in international conflicts, or those under U.N. arms embargoes, police said.

It is the first case of illegal exports by a Japanese firm of military parts to Iran since 1991 when Japan Aviation Electronics Industry Ltd was found to have exported missile parts, the police said.-Reuters