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Cablegate: Response to Blue Lantern Level 3 License 05-050050727

VZCZCXYZ0008
RR RUEHWEB

DE RUEHUL #0341 0520236
ZNR UUUUU ZZH
R 210236Z FEB 08
FM AMEMBASSY SEOUL
TO RUEHC/SECSTATE WASHDC 8586
INFO RUCPDOC/USDOC WASHDC 6383
RUEKJCS/SECDEF WASHINGTON DC
RUEPINS/HQ BICE INTEL WASHINGTON DC

UNCLAS SEOUL 000341

SIPDIS

SIPDIS

STATE FOR PM/DTCC-BLUE LANTERN COORDINATOR

E.O. 12958: N/A
TAGS: AU ETTC KOMC KS
SUBJECT: RESPONSE TO BLUE LANTERN LEVEL 3 LICENSE 05-050050727

REF: A) STATE 00005069

1. Per reftel, Econoff and staff from the Joint U.S. Military
Affairs Group (JUSMAG) contacted the Defense Acquisition Program
Administration (DAPA), the Republic of Korea's Air Force (ROKAF),
Cosco Technology and Bluenier (formally Hass International) by phone
and fax. Due to resource constraints, a site visit was not
conducted.

2. Cosco, which is based in Seoul, is not listed with DAPA or the
ROKAF as an official supplier, according to our contacts at DAPA and
Cosco Technology. On January 22, 2008 and February 4, 2008 Cosco
Sales Manager Kim (Ryan) Joon-ho confirmed (1) Bluenier as its main
client and (2) its subcontract from Bluenier to supply specific
parts. Kim noted he fully understands U.S. restrictions under the
USML articles on the re-transfer and re-export of these products.

3. Post was informed that on September 20, 2007 Hass International
was renamed Bluenier due to a change in the head of the company.
Mr. Jin Won Gyoon, in International Contracts Department at DAPA,
confirmed that Bluenier is an officially registered "Procurement
Company" not an "Offshore Procurement Company." This means that
Bluenier sources its spare parts from different countries around the
world. Bluenier maintains its own production facility in Seoul that
provides parts and maintenance services to ROKAF, and to a lesser
degree the ROK Navy and Army. The majority of Blueneir's business
is conducted with these particular clients.

4. In addition, Cosco's Mr. Kim confirmed that on February 5, 2008
his company received the shipment referred to in PO # CP
020070529-1. This shipment had been delayed. Mr. Kim also reported
that due to the Lunar New Year holidays in Seoul (February 6-8), the
shipment was held at Cosco's secure warehouse until after the
holidays. Cosco delivered the shipment to Bluenier on February 11,
2008. In 2-3 weeks Post will contact ROKAF to confirm its receipt
of the parts and any maintenance work done by Blueneir.

5. Requested documentation to follow by email to PM/DTCC - Tim
Watkins

Vershbow

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