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Cablegate: Extrancheck: Post Shipment Verification: Advanced Material

VZCZCXYZ0001
RR RUEHWEB

DE RUEHHK #0823 1270211
ZNR UUUUU ZZH
R 060211Z MAY 08
FM AMCONSUL HONG KONG
TO RUCPDOC/USDOC WASHDC
INFO RUEHC/SECSTATE WASHDC 4801
RHMFIUU/HQ BICE WASHINGTON DC
RUEHGP/AMEMBASSY SINGAPORE 3845

UNCLAS HONG KONG 000823

USDOC FOR 532/OEA/MNICKSON-DORSEY/GCARDAK
USDOC FOR 3132 FOR FCS/OIO REGIONAL DIRECTOR WILLIAM ZARIT
BICE FOR OFFICE OF STRATEGIC INVESTIGATIONS
SINGAPORE FOR FCS

SIPDIS

E.O. 12958: N/A
TAGS: BMGT BEXP ETRD ETTC HK
SUBJECT: EXTRANCHECK: POST SHIPMENT VERIFICATION: ADVANCED MATERIAL
ENGINEERING
REF: A) USDOC 01386 B) D380636

1.Unauthorized disclosure of the information provided below is
prohibited by Section 12C of the Export Administration Act.

2. As per reftel A request and at the direction of the Office of
Enforcement Analysis (OEA) of the USDOC Bureau of Industry and
Security (BIS), Regional Export Control Officer Philip Ankel (ECO)
conducted a post shipment-verification (PSV) at Advanced Material
Engineering, 601 Rifle Range Road, Singapore (AME). The items in
question are 30 detonators exported on or about December 11, 2007
and valued at USD 2,148. The items are classified under Export
Control Classification Number (ECCN) 3A232 and are controlled for
nuclear nonproliferation (NP) reasons. The exporter was RISI of
Tracy California.

3. According to the Singapore companies registry, AME has been in
existence since 1994. Its paid-up share capital is the Singapore
equivalent of USD 27 million. The following Singapore nationals are
listed as directors: Low, Yee Kah, Jway, Ching Hua, Fong, Saik Hay,
Wu, Tzu Chien, Gan, Boon Jin, Kwok, Wai Onn, Sew, Chee Jhuen and
Tay, Kian Seng. Singapore Technologies Kinetics Ltd. is listed as
the sole shareholder.

4. According to its website, Singapore Technologies Engineering
Ltd. (ST Engineering) is the parent company of Singapore
Technologies Kinetics (ST Kinetics) which is the parent company of
AME. ST Engineering group has over 100 subsidiaries and associated
companies in 20 countries including the United States, Europe,
China, Singapore and Australia. ST Kinetics is the land systems and
specialty vehicles arm of ST Engineering. It is one of Asia's
leading defense and specialty vehicles companies with sales of over
USD 600 million in 2006. AME designs and manufactures conventional
and smart munitions, advanced protective materials as well as guided
system components. More information is available at www.stengg.com.


5. On April 21, 2008, the ECO, accompanied by a representative of
Singapore Customs visited the company and met with Mr. Goh, Beng
Kwang, Senior Manager. Mr. Goh is responsible for export control
compliance at AME. He confirmed that the information on the
company's web site was correct.

6. As to the particular item in question, Mr. Goh accompanied the
ECO to inspect the items. ECO notes that entry into the entire AME
complex is very highly controlled. He further noted that the items
were kept under lock and key in a bunker. ECO reviewed the
application documentation for the shipment confirming receipt of the
detonators. ECO also inspected the box containing the detonators
that remained under its original seal. According to Mr. Goh, the
items are used to test metal bonding techniques. Use of
conventional detonators has not provided the necessary precision
and, as a result, very high precision detonators were procured.

7. At the time visited, AME appeared to be a suitable recipient of
the commodities shipped since AME cooperated with the PSV, provided
ECO with access to the items and operates a line of business
consistent with the their use. Also, AME was well aware of U.S.
export licensing rules and indicated its intent to comply with those
rules.

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