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Cablegate: Results of Blue Lantern Level 3 Post-Shipment

VZCZCXYZ0000
PP RUEHWEB

DE RUEHTV #0870 0801006
ZNR UUUUU ZZH
P 211006Z MAR 07
FM AMEMBASSY TEL AVIV
TO RUEHC/SECSTATE WASHDC PRIORITY 0121
INFO RUEHBM/AMEMBASSY BUCHAREST 1583
RUEHFR/AMEMBASSY PARIS 9966
RUEHJM/AMCONSUL JERUSALEM 6308
RUCPDOC/USDOC WASHDC
RUEKJCS/SECDEF WASHDC
RUCNFB/FBI WASHDC
RUEPINS/HQ BICE INTEL WASHINGTON DC

UNCLAS TEL AVIV 000870

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: KOMC ETTC RO FR IS
SUBJECT: RESULTS OF BLUE LANTERN LEVEL 3 POST-SHIPMENT
END-USE CHECK ON LICENSE 05-050010197

REF: A. 05 STATE 176592

B. BUCHAREST 163

1. (SBU) On March 18, Israeli Ministry of Defense Blue
Lantern Inquiry Point of Contact, Rami Yungman, sent by FAX
to Blue Lantern Officer the following information concerning
license 05-050010197. The answers correspond to questions
put forward by Blue Lantern Officer to David Block Temin, the
Corporate Vice President and General Counsel for Elbit
Systems, Ltd., located in Haifa. Block Temin sent the
answers via the Israeli MOD, where officials of the MOD's
Security Division, MALMAB/DSDE, reviewed them before
approving their release to Blue Lantern Officer.

2. (SBU) Begin questions and answers:

Q. Can you confirm the delivery of the helicopter parts under
license 05-050010197?

A. We (Elbit Systems, Ltd., or ESL) can confirm the delivery
of helicopter parts under DSP-5 license no. 05-050010197 (the
License) for the SHREIK Program.

Q. What was the specific role of Elbit in this transaction?

A. The SHREIK Program relates to the upgrade of three naval
helicopters (Puma 330) for the Romanian Ministry of Defense
(RMOD) for end use by the Romanian Armed Forces. ESL is the
avionics subcontractor for the program to IAR S.A. Brasov of
Romania, which is the prime contractor to the RMOD. Rockwell
Collins is a subcontractor to ESL for the supply of the items
described in the License. The parts shipped by Rockwell
Collins under the License were ordered under ESL P/O No.
DMF825350 (the Purchase Order, or P/O) for the purpose
described above. The quantities are two shipsets for each
helicopter, plus one spare shipset, totaling seven shipsets.

Q. Did Elbit ever take possession of the shipment before its
delivery to Romania?

A. ESL did not take possession of the shipments. Rather, the
items were delivered as "drop shipments" directly to the
foreign consignee, IAR S.A. Brasov, in accordance with the
P/O's shipping instructions.

Q. If so, can Elbit confirm that all the provisos attached to
the license were fulfilled? More specifically, can Elbit
confirm that U.S.-origin ECCM/frequency hopping algorithms
were not released to a third party?

A. ESL believes that all the provisos attached to the License
were fulfilled. Specifically, upon becoming aware of the
License's provisos, the P/O was revised to eliminate the IIQ
and the SATURN (corresponding to the Have Quick IIA and
secured radio). Moreover, the P/O does not call for release
of U.S. origin ECCM/frequency hopping algorithms.

Q. Additionally, please confirm that none of the following
was released to a third-party entity: (a) USG datalink
message standards/formats; (b) Have Quick IIA; and (c) the
USG version of the SINCGARS.

A. We can confirm that the above items were not included in
the P/O's scope and were not released.

3. (SBU) Elbit Systems, Ltd. confirmed in writing that the
items detailed in the License and the above question were
delivered in the form of shipsets containing each of the
above items, as follows: (a) 1st through 4th shipset --
fully delivered; (b) 5th through 7th shipset -- delivery
scheduled as per the P/O for November 2007.

4. (SBU) Ilan Mazushan of MALMAB/DSDE and Ofer Meishar of
Elbit Systems, Ltd. were copied on the written response sent
through Rami Yungman at the MOD.

********************************************* ********************
Visit Embassy Tel Aviv's Classified Website:
http://www.state.sgov.gov/p/nea/telaviv

You can also access this site through the State Department's
Classified SIPRNET website.
********************************************* ********************
JONES

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