The "Toshiba-Kongsberg Scandal": A Timely Warning About Unpredictable Friends and Allies

(To Vasco Monteforte)
12/03/25

In the 80s, at the height of the Cold War, an industrial and political scandal of international proportions shook relations between the Western bloc and the Soviet Union: the so-called "Toshiba-Kongsberg Scandal".

The affair revealed how advanced technologies, subject to strict export controls, had illegally ended up in the hands of the USSR, improving the technological capabilities of its submarine fleet. The case had far-reaching repercussions both for the companies involved and for diplomatic relations between Japan, the United States, and the Soviet Union.

During the Cold War, the United States and its Western allies sought to limit the USSR's access to sensitive technologies through Coordinating Committee for Multilateral Export Controls (CoCom), an international body that imposed severe restrictions on the export of goods dual use, that is, potentially usable also for military purposes. Among these technologies were advanced computer numerical control (CNC) machine tools, essential for the production of high-precision components, including submarine propellers.

The Soviet Union, aware of its technological shortcomings compared to the United States, engaged in industrial espionage and illegal acquisition of Western technologies to narrow the gap.

Between 1982 and 1984, the division Toshiba Machine, a subsidiary of the Japanese giant Toshiba, sold the Soviet Union eight advanced machine tools equipped with multi-axis numerical control. The supply was made through the Wako Trading, a Japanese front company, in collaboration with the Norwegian Kongsberg Steam Factory, a company specializing in numerical control technologies.

These machines allowed the Soviets to produce submarine propellers with a level of precision never achieved before, significantly reducing the noise emitted by the boats.

The silence of a submarine is a critical factor in submarine warfare.: less noise means less detectability by acoustic surveillance systems.

The export of such machinery was a clear violation of the CoCom restrictions, since such devices were classified as sensitive technology and prohibited for trade with the USSR.

In late 1986, the U.S. government became aware of the illegal sale thanks to an internal tip from an employee of the Wako Trading.

The investigations revealed that The Soviets had gained a significant strategic advantage in submarine design thanks to these technologies.

The news exploded in March 1987, when the U.S. government informed Japanese authorities, requesting an immediate investigation. On April 30 of the same year, Japanese police raided the offices of the Toshiba Machine, leading to the arrest of two executives on charges of violating export control laws.

The scandal had devastating consequences for the companies involved. Toshiba Machine was fined 2 million yen, while the arrested executives were sentenced to prison terms (later suspended). The shock wave was such that the president of the Toshiba, Shoichi Sawa, and the president of the Toshiba Machine, Ichiro Watarisugi, were forced to resign due to the damage to the company's image.

In the United States, the political and public reaction was fierce. Some members of Congress staged dramatic protests, even smashing Toshiba products with hammers in front of the White House. In addition, severe economic sanctions were proposed, including a temporary ban on the import of products Toshiba In the USA.

The Norwegian Kongsberg Steam Factory, for its part, suffered heavy repercussions: the Norwegian government, the company's main shareholder, intervened directly in the case, and the group was forced to reorganize its operations to ensure compliance with international regulations.

Lo Toshiba-Kongsberg scandal exposed serious flaws in export control systems, leading to increased security measures in Western countries. The United States and CoCom members tightened regulations to prevent critical technologies from falling into the wrong hands. The incident also strengthened cooperation among allied countries in the fight against illicit technology transfer. The case also had industrial repercussions: Japanese and Norwegian companies increased internal controls to prevent similar incidents from happening again.

The scandal represents an emblematic case of the dynamics of the Cold War and remains a warning on the challenges of technological security in preventing the proliferation of advanced military technologies in hostile hands. A very timely issue in an era of precarious alliances and friendships more dangerous than declared enemies.

Photo: web / US Navy