Ministry didn't know of Rakon claims

The Ministry of Foreign Affairs and Trade was not aware of claims that Auckland-based technology company Rakon was developing "radiation hardened" crystal oscillators, says Trade Minister Phil Goff.

In response to a parliamentary question, he said ministry officials were discussing with Rakon how export controls applied to its products. Rakon's radiation-hardened or nuclear-hardened products were also used in satellite communications and the aerospace industry, Mr Goff said. He refused to say whether Rakon had declared to the ministry the military-related functions of its exports, saying exporters were entitled to confidentiality.

That contrasts with an answer from Prime Minister Helen Clark, who said two weeks ago she was not aware of Rakon having received clearance.

Mr Goff was responding to written questions from Green MP Keith Locke.

The questions came after the Weekend Herald published documents showing Rakon played a crucial role in developing crystal oscillators for United States military smart bombs.

Products designed specifically for use in military equipment require clearance from the Government. Components destined for nuclear, chemical and biological weapons would almost certainly be turned down. Rakon said it had developed products for "high-shock" applications but none of its products was specific to the munitions industry. It said it was not privy to its customers' end-use systems, equipment or applications.

Internal company documents leaked to the Herald show Rakon received funding from Rockwell Collins, a major supplier to the US military, for a nuclear-resistant oscillator.

Mr Goff rejected a suggestion by Mr Locke that a firm exporting nuclear-hardened and radiation-hardened componentry undermined New Zealand's anti-nuclear credentials.

"Radiation hardened-products ... are used in a wide range of applications, including satellite communications and the aerospace industry."

Mr Goff was asked whether New Zealand Trade and Enterprise knew about Rakon's military componentry before awarding it $59,412 in 2004 and awarding the company Supreme Exporter of the Year in 2005. He said the funding - which was not actually drawn upon - had been to help Rakon with market research for its flexible GPS Radio Module (GRM) and that Trade and Enterprise had been aware of multiple uses for Rakon's products, which included cellular telephones, navigation units and military uses.

Mr Locke said New Zealand had to be careful not to help with technology designed to be used in a nuclear exchange "be it on nuclear-armed missiles, on other missiles (including anti-missile missiles) adapted to perform in the environment of a radiation-emitting nuclear war".

He believed the US was bound to use its top-of-the-line oscillators in its nuclear arsenal "and it seems that Rakon is up there in terms of military standards".