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Abstract

The 1988 revelation that a subsidiary of the Japanese electronics firm Toshiba had supplied sensitive military hardware to the Soviet Union posed a surprisingly complex diplomatic problem for the Reagan administration. Although it had long been concerned with clandestine "technology transfer" to the East bloc, the administration was also committed to free trade policies and favored liberalized trading arrangements with Japan. This case recounts the uncovering of the Toshiba scandal, in large part due to the efforts of the Central Intelligence Agency, and the subsequent diplomatic and political dilemma it posed for the Reagan administration, both in terms of its relations with Japan and Congress. This case covers some of the same material as Taking Toshiba Public (KSG858.0), but focuses less on intelligence matters and more on problems of diplomacy.

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Abstract

The 1988 revelation that a subsidiary of the Japanese electronics firm Toshiba had supplied sensitive military hardware to the Soviet Union posed a surprisingly complex diplomatic problem for the Reagan administration. Although it had long been concerned with clandestine "technology transfer" to the East bloc, the administration was also committed to free trade policies and favored liberalized trading arrangements with Japan. This case recounts the uncovering of the Toshiba scandal, in large part due to the efforts of the Central Intelligence Agency, and the subsequent diplomatic and political dilemma it posed for the Reagan administration, both in terms of its relations with Japan and Congress. This case covers some of the same material as Taking Toshiba Public (KSG858.0), but focuses less on intelligence matters and more on problems of diplomacy.

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