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Cablegate: Blue Lantern Level 3: Pre-License End-Use Check Completed

VZCZCXRO3925
PP RUEHAG RUEHDF RUEHLZ
DE RUEHFT #1218 0721508
ZNR UUUUU ZZH
P 131508Z MAR 07
FM AMCONSUL FRANKFURT
TO RUEHC/SECSTATE WASHDC PRIORITY 0273
INFO RUCNFRG/FRG COLLECTIVE PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RHMFISS/FBI WASHINGTON DC PRIORITY

UNCLAS FRANKFURT 001218

SIPDIS

DEPARTMENT FOR PM/DTCC - BLUE LANTERN COORDINATOR

SENSITIVE

SIPDIS

E.O. 12958: N/A
TAGS: KOMC ETTC GM
SUBJECT: Blue Lantern Level 3: Pre-License End-Use Check Completed
for application 050025683

Ref: State 015759

Sensitive but unclassified. Please protect accordingly.

1. (SBU) On March 8, ConGen Frankfurt Pol-Econ officer and Pol-Econ
specialist visited MSI Aircraft Maintenance Services International
GmbH, located in Ruesselsheim (near Frankfurt) to conduct a Blue
Lantern pre-license end-use check on application 050025683 (export
of EC-135 helicopter spare parts to Germany). Consulate
representatives met with MSI owner/Managing Director Marga Blivier
and toured the facility including storage and processing areas.

2. (SBU) Marga Blivier (a former employee of Honeywell Grimes)
purchased German distributor MSI in 1991. MSI distributes aircraft
parts (mostly lighting) and services some engines; in addition, it
will soon open an Airbus service station in Dubai. Blivier
explained its role in the transaction as follows: as former
distributor for Honeywell Grimes, MSI has done business with the
German police since 2000; although Honeywell now sells parts
directly from the U.S., German police continue to use MSI as an
intermediary to simplify processing. About 30 percent of MSI's
business is domestic (German police are its only government
customers, with no military business); non-German customers account
for the bulk of its business. MSI is expanding into airliner
service in Dubai (and Germany), and is currently awaiting FAA
approval as a certified repair station. The Dubai office was
created in response to an Airbus initiative to have A-380 repair
capacity in close proximity to carrier Emirates (a large A-380
customer).

3. (SBU) The components in question are for the maintenance of the
EC135 Helicopter; according to the purchase order (which we saw),
they are light bulbs and casings. NOTE: the application appears to
combine two different orders: one for the Bavarian police and one
for the German Border Police (Bundesgrenzschutz/ Bundespolizei),
Mrs. Blivier provided the telephone numbers of both contact persons.
END NOTE.

4. (SBU) MSI appears to be aware of export control restrictions and
appears to maintain secure facilities and extensive records. We
requested and received documents relating to the orders in question;
those documents are stored for ten years. The facility itself
appeared secure and orderly, with an alarm system and controlled
entry. Access to the compound is restricted; parts are locked.
Blivier affirmed that the company follows technology controls and is
aware of U.S. export control law; it certified the end users for
this order as it does for other transactions with controlled items.

5. (SBU) ConGen Munich rep spoke via telephone to the Bavarian
police helicopter squadron (Mr. Peter Hauschild) and to the Federal
Border police (Mr. Reinhard Schmidt), both of whom confirmed placing
recent orders with MSI. Both confirmed they have done business with
MSI for years and say they urgently need the spare parts under
consideration in this order.

6. (U) This message was coordinated with Embassy Berlin and ConGen
Munich.

POWELL

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