An award-winning New Zealand company that supplies the United States military and aerospace industries says it does not know whether its products are used in weapons.

Rakon manufactures quartz crystals and oscillators used in products such as cellphones and navigation systems. The company has received Government grants of more than $500,000 in recent years.

Rakon marketing director Darren Robinson said on Tuesday that the company's technology went into "smart bombs and missiles" used by the US military.

Green MP Keith Locke said this should warrant the Government, which is opposed to the US invasion of Iraq, "taking another look" at any funding given to Rakon.

But in a statement released yesterday, Rakon managing director Brent Robinson said the company was not privy to the "end-use systems, equipment or applications used by its customers".

"Rakon has not developed any technology specifically for the US military. No technology has been specifically developed by Rakon for use in smart bombs or missiles," he said.

Asked if Rakon technology could be used to guide smart bombs or missiles, sales manager Justin Maloney said: "We don't know for certain one way or the other".
Brent Robinson said no Government grant money had been used to develop products supplied to military or aerospace customers. These customers accounted for about 1 per cent of Rakon's output, he said.

The family-run company last year earned more than $70 million in revenue and was winner of this year's New Zealand Trade and Enterprise export awards.

The Ministry of Foreign Affairs and Trade keeps a list of "strategic goods" that require a permit to be exported from New Zealand. Quartz crystals and oscillators manufactured by Rakon are not on the list.

Economic Development Minister Jim Anderton said he was satisfied that through the strategic goods list the Government controlled the export of goods that could be used for military purposes.

"However, we cannot regulate the end use of every item that leaves New Zealand's shores. It must be remembered that the vast bulk - 90 to 99 per cent - of Rakon's products are used for peaceful purposes," Mr Anderton said.

Mr Locke wanted a "tightening" of procedures for any exports leaving New Zealand that could be used for military purposes.

Global Peace and Justice Auckland spokesman John Minto said his group was opposed to any New Zealand company providing materials "that can be used as part of the arms race".