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

VZCZCXYZ0000
RR RUEHWEB

DE RUEHC #1695 1851459
ZNR UUUUU ZZH
R 031503Z JUL 08
FM SECSTATE WASHDC
TO RUEHRL/AMEMBASSY BERLIN 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 071695

SIPDIS
BERLIN FOR SHANE PETERSEN

E.O. 12958: N/A
TAGS: ETTC KOMC GM
SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK
ON DISTRIBUTION AGREEMENT (DA) 2592-05

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 post's assistance in conducting
a post-license check on distribution agreement (DA) 2592-05
for the export of defense services and technical data related
to Application Specific Integrated Circuits (ASICs) to
multiple foreign end users via Litef GmbH in Germany. Post
is 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 this license.

3. Reason for request: Concern that Litef GmbH, foreign
signatory located in Germany, may be exceeding the scope of
an agreement with U.S. applicant NXP Semiconductors USA,
Inc., by selling ASICs to unauthorized end users.

4. ACTION: Embassy is requested to make inquiries with
appropriate Litef officials to determine if the company is
following the terms of the agreement authorizing the sale and
distribution of Application Specific Integrated Circuits
(ASICs) to approved end users. Department requests that
Embassy contact Litef in order to assess its compliance with
the terms of the agreement and obtain answers to the
following questions:

- Can Litef provide an annual sales report (with a list of
all end users) covering each year since the DA was approved
in 2005?

- Are sales limited to the governments of the countries in
the distribution territory? Approved end users include only
the Ministries of Defense of the following countries:
Australia, Bahrain, Belgium, Brazil, Brunei, Canada, Chile,
Columbia, Denmark, Ecuador, Finland, France, Germany, Greece,
Israel, Italy, Kuwait, Malaysia, Mexico, Netherlands, New
Zealand, Norway, Oman, Peru, Philippines, Poland, Qatar,
Saudi Arabia, Singapore, South Korea, Spain, Switzerland,
Thailand, Turkey, UAE, and the United Kingdom.

- Can Litef verify that no items have been exported to
Russia, Venezuela, or Indonesia?

- Is Litef performing any repair work for the end users?

- Are the ASICs or other United States Munitions List (USML)
items stored in a dedicated portion of the warehouse (and
kept separate from non-USML items)?

END ACTION.


5. Details of license application:

DTC Case: DA 2592-05

COMMODITY:

Technical data and hardware in support of Application
Specific Integrated Circuits (ASICs)


SELLER:

NXP Semiconductors USA, Inc
1109 McKay Drive
San Jose, CA 95131

FOREIGN PURCHASER:

Litef GmbH
Lorracher Str. 18
79115 Freiburg
Germany


6. Please slug reply for PM/DTCC - BLUE LANTERN COORDINATOR
and include the words "Blue Lantern" and the case number in
the subject line. PM/DTCC can fax documentation to post upon
request. 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

7. Department is grateful for post's assistance in this
matter.
RICE

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