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Cablegate: Response to Blue Lantern Level 3 License 05-0055232

VZCZCXYZ0009
RR RUEHWEB

DE RUEHUL #0342 0520237
ZNR UUUUU ZZH
R 210237Z FEB 08
FM AMEMBASSY SEOUL
TO RUEHC/SECSTATE WASHDC 8587
INFO RUCPDOC/USDOC WASHDC 6384
RUEKJCS/SECDEF WASHINGTON DC
RUEPINS/HQ BICE INTEL WASHINGTON DC

UNCLAS SEOUL 000342

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 05-0055232

REF: A) STATE 00007844

1. Per reftel, post contacted the Defense Acquisition Program
Administration (DAPA) by phone and fax.

2. On January 30, 2008, Major Kim Jung Min, responsible for Basic
Ordering Agreements on the DAPA Contracts Team, and Mr. Son Young
Baek, President of First Trading (an agent of the AVL International
in Korea), informed post that both their organizations understood
that the U.S. seller is AVL International not Merex. Based on the
information collected, Post believes (but was unable to confirm)
that Merex is the manufacturer of the licensed goods. Moreover,
DAPA and First Trading indicated they believe AVL and Merex are the
same company.

3. Based on the information collected by post, the transaction chain
for the parties involved is as follows:

Merex Inc (U.S. manufacturer) -> AVL International (U.S. seller) ->
First Trading in Korea (Sales agent for AVL International in Korea,
intermediary for these transactions) -> DAPA (Foreign Consignee) ->
ROKAF (End-user)

4. Finally, DAPA reported that it has not yet received the ordered
spare parts for the ROKAF's Lynx helicopters due to a delay by AVL
International's supplier. A letter sent to DAPA from AVL
International states that the delay is due to "a previously-placed
government order" that its supplier must fill before DAPA's order.
The shipment is now scheduled to arrive in Korea on April 17, 2008.


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

VERSHBOW

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