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Cablegate: Blue Lantern Level 3: Post-Shipment End-Use Check

VZCZCXYZ0017
RR RUEHWEB

DE RUEHC #6746 1991254
ZNR UUUUU ZZH
R 171250Z JUL 08
FM SECSTATE WASHDC
TO RUEHWL/AMEMBASSY WELLINGTON 0000
RUEHIN/AIT TAIPEI 0000
INFO RHMCSUU/FBI WASHINGTON DC 0000
RUEAIIA/CIA WASHINGTON DC 0000
RUCPDOC/USDOC WASHINGTON DC 0000
RUEKJCS/SECDEF WASHINGTON DC
RUEPINS/HQ BICE INTEL WASHINGTON DC

UNCLAS STATE 076746

SIPDIS
WELLINGTON FOR THOMAS WALSH
ECON
AIT TAIPEI FOR O'CONNOR MATTHEW ECON

E.O. 12958: N/A
TAGS: ETTC KOMC NZ TW
SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK
ON LICENSE 05-050095335 AND 05-050097129

REF: 2006 BLUE LANTERN GUIDEBOOK

1. This is an Action Request. See paragraphs 2-4.

2. The Department's Office of Defense Trade Controls
Compliance (PM/DTCC) requests Embassy Wellington and AIT
Taipei's assistance in conducting a post-shipment check on
license 05-050095335 for the export of 16L401-21; SHIM to
Taiwan and on license 05-050097129 for the export of spare
parts for multiple aircraft platforms to Taiwan. Embassy
Wellington and AIT Taipei are requested to complete this Blue
Lantern check within 45 days. Lack of response to a Blue
Lantern check will affect pending and future licenses
involving parties to these licenses.

3. Reason for request: Questionable routing to Taiwan via
New Zealand and unfamiliar foreign intermediate consignee,
Custom Aeronautical Solutions (CAS).

4. ACTION AIT Taipei: Department requests that AIT contact
the Taiwan MOD and verify its order for the items listed on
both license applications and provide information of its
relationship with the New Zealand company CAS.

END ACTION AIT Taipei.

ACTION Wellington: Department requests that Embassy conduct a
site visit to Custom Aeronautical Solutions (POC: Emma Niu,
Sales Manager, Tel #: 64 3 355 2223, Email:
emma@customaero.co.nz) in order to assess its business
operations, on-site security, and general reliability as a
recipient of United States Munitions List (USML) items. The
following questions are offered as suggested guidance with
CAS:

- Can the company provide documentation from the Taiwan Air
Force, the Taiwan Naval Logistics Command, and the Taiwan
Army Logistics Command (e.g. purchase order, contract, or
letter of intent) establishing them as the final end users of
these items?

- What is the company's exact role in these transactions?

- Who are the company's main clients?

- Does the company keep proper, detailed records of its sales
and customers?

- Does the company understand the restrictions on United
States Munitions List (USML) articles, particularly regarding
re-export and retransfer?

If a site visit is not possible, please inform PM/DTCC case
officer. End Action Wellington.

5. Details of license applications:

A. DTC Case: 05-050095335

QUANTITY/COMMODITY:

13 16L401-21; SHIM

License Value: USD $234.00

SELLER:

MAC Aerospace Corporation
14558 Lee Road
Chantilly, VA 20151
703-885-8096

FOREIGN CONSIGNEE:

Custom Aerospace Corporation
46 Maunsell Street
Woolston, Christchurch
NZ

FOREIGN END-USER:

Taiwan Air Force
NO.55, SEC.3, Ten-Ai Roadda-An District
Taipei City 106
TW

PURPOSE:

Minor part and component to be used on the Indigenous Defense
Fighter (IDF) aircraft operated by the Taiwan Air Force.

B. DTC Case: 05-050097129

QUANTITY/COMMODITY:

1 SPARE PARTS FOR AT-3 AIRCRAFT, T-34 AIRCRAFT, S-70C
AIRCRAFT, F-CK1 (IDF) AIRCRAFT, F-5 AIRCRAFT, F-16 AIRCRAFT,
E-2T AIRCRAFT, B-1900 AIRCRAFT, C-130 HERCULES, FOKKER-50,
UH-1H, OH-58D, AH-1W, CH-47, S-2T, AND 500 MD

License Value: USD $ 4,000,000.00

SELLER:

S.O.I. Aviation
23965 Ventura Blvd.
Calabasas, CA 91302
818-591-3166 ext. 218

FOREIGN CONSIGNEE:

AIDC/Aerospace Industrial Development Corporation/Ministry of
Economic Affairs
111-17 Lane 68 Fu-Hsing N. Road
Taichung 407
TW

FOREIGN INTERMEDIATE CONSIGNEE:

Custom Aeronautical Solutions
46/3 Maunsell Street Woolston 8014
Christchurch
NZ

FOREIGN END-USER:

Taiwan Naval Logistics Command
20 Je-So Road Tsoying
Kaohsuing
TW

Taiwan Air Force
NO 55 Sec 3, Ren-Ai Road Da-An District
Taipei City
TW

Army Logistics Command
100 Section San-Lin Chung Cheng Road Lung-Tan Village
Taotyan
TW

PURPOSE:

Spare parts for the repair and maintenance of AT-3, T-34,
S-70C, F-CK1 (IDF), F-5, F-16, E-2T, B-1900, C-130,
FOKKER-50, UH-1H, OH-58D, AH-1W, CH-47, S-2T, 500MD aircraft
and helicopters including ground support equipment.

6. Submitted in support of the license application
05-050095335 was the following document (PM/DTCC will fax
documentation upon request):

-- Purchase Order prepared by Custom Aeronautical Solutions
No: 00005241, dated 18 March 2008
-- End User Statement prepared by Custom Aeronautical
Solutions, dated 22 March 2008

7. Please slug reply for PM/DTCC - BLUE LANTERN COORDINATOR
and include the words "Blue Lantern" and the case number in
the subject line. POC is Tim Watkins, Phone: 202-663-2814;
Email: WatkinsTR@state.gov; SIPRNET:
WatkinsTR@state.sgov.gov. The Blue Lantern Guidebook (ref)
is available as a PDF file in the Bunche Library's E-Book
Collection on the DOS Intranet:
http://buncheelectroniclibrary.state.gov/eboo ks/
BlueLanternGuidebook2006%20 final .pdf

8. Department is grateful for Embassy Wellington and AIT
Taipei's assistance in this matter.
RICE

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