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Cablegate: Blue Lantern Reply On Application 050096455

VZCZCXYZ0017
PP RUEHWEB

DE RUEHLI #1073 1231603
ZNR UUUUU ZZH
P 021603Z MAY 08
FM AMEMBASSY LISBON
TO RUEHC/SECSTATE WASHDC PRIORITY 6795
INFO RUEAIIA/CIA WASHINGTON DC
RHMFIUU/FBI WASHINGTON DC
RUCPDOC/USDOC WASHDC
RUEKJCS/SECDEF WASHINGTON DC
RUEPINS/HQ BICE INTEL WASHINGTON DC

UNCLAS LISBON 001073

SIPDIS

SIPDIS

Department for PM/DTCC - BLUE LANTERN COORDINATOR


E.O. 12958: NA
TAGS: ETTC KOMC PO
SUBJECT: Blue Lantern Reply on Application 050096455

REF: State 34180

1. (U) Per reftel request, Emboff visited the Portuguese company
Aerohelice on April 28 for a pre-license check. Aerohelice is a
locally-owned business, founded in 1982, in Azedia, Portugal. The
company has 18 employees, most of whom are former employees of OGMA
(the partially state-owned aerospace depot). The company's business
is aircraft maintenance and its work load is approximately 80%
civilian and 20% military aviation.

2. (U) Aerohelice overhauls propellers, brakes, and wheels. The
company is also capable of non-destructive testing and surface
treatments. Total sales average approximately 1.3 million euros per
year, and its civilian customers include companies in other EU
countries as well as Morocco and Cape Verde. Aerohelice's only
military customer is the Portuguese Air Force, and its military work
includes propeller and wheel overhauls for P-3, C-130, C-212, and
Epsilon aircraft.

3. (U) Aerohelice has a busy, but modest, facility. On-site
security includes a set of heavy iron doors over the entrances and
an alarm system. Pedro Horta, Aerohelice's account manager,
reported that the company had not faced any security problems.
Horta proved to be quite familiar with re-export and retransfer
restrictions for U.S. munitions list articles. He noted that a good
deal of his work was with U.S.-origin material and was eager to show
his internet bookmarks to current trade control regulations on
PM/DTCC's webpage.

4. (U) Horta spoke in depth regarding the particulars of his
purchase order 118, the trigger of this Blue Lantern. He stated
that all requested parts were necessary to complete wheel overhauls
for Portuguese Air Force C-130s/P-3s. Numerous propellers and
wheels in mid-work were clearly labeled Portuguese Air Force. Horta
also provided several Air Force work requests. He stressed his
readiness to provide additional information required by the U.S.
government in the future.

5. (U) Based on the visit, it seems that Aerohelice ordered the
aircraft spare parts for the sole purpose of performing maintenance
on Portuguese Air Force aircraft, as stated on the license.

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