E N F O R C E M E N T   AND   C O M P L I A N C E

Japan NPA Procurement Of VHF Radio Communications System Agreement



March 31, 1997

Mr. James Southwick

Deputy Assistant USTR

Office of the United States Trade Representative

Washington, DC 20506

Dear Mr . Southwick:

To follow-up on our recent discussions, I would like to inform you of the following.

As a result of a voluntary and internal study initiated last fall, the National Police Agency (NPA) officially canceled on March 25, 1997 the development program initiated in 1996 for the next generation VHF radio communications system. This is because NPA has determined that it is technically feasible to meet its objectives of ensuring the security of police communications while allowing broader participation of suppliers by adopting a new approach for the development of this system.

Under this new approach, NPA will conduct the procurement of this system in accordance with the WTO Agreement on Government Procurement and Measures on Japanese Public Sector Procurement of Telecommunications Products and Services ("Measures"), only with the exception of the encryption module procurement. NPA will, in seeking technical proposals from suppliers, utilize the procedures for "request for submission of materials" stipulated in the Measures, based not on the technical requirements used in the invitation for proposals issued in March of last year, but solely on new requirements to be formulated. The technical specifications to be used in the new approach will not provide an unfair competitive advantage to any of the six companies that participated in the canceled program referred to above.

I also wish to reiterate that, in accordance with the letters of November 1, 1994 exchanged between Ambassador Kuriyama and United States Trade Representative Kantor concerning government procurement in the telecommunications sector, the Government of Japan is always prepared to meet with the Government of the United States. Moreover, I am happy to inform you that Mr. Nishikawa, Director of the Info-Communications Planning Division of NPA, and I are ready to explain NPA's new approach to you in the second week of April in Washington, D.C.


Koji Tsuruoka

Director, Second North America Division

Ministry of Foreign Affairs

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