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

VZCZCXYZ0023
RR RUEHWEB

DE RUEHC #0984 2101505
ZNR UUUUU ZZH
R 281459Z JUL 08
FM SECSTATE WASHDC
TO RUEHGP/AMEMBASSY SINGAPORE 0000
RUEHIN/AIT TAIPEI 0000
INFO RUEHKO/AMEMBASSY TOKYO 0000
RUEAIIA/CIA WASHINGTON DC 0000
RUCPDOC/USDOC WASHINGTON DC 0000
RUEKJCS/SECDEF WASHINGTON DC
RHMCSUU/FBI WASHINGTON DC 0000
RUEPINS/HQ BICE INTEL WASHINGTON DC

UNCLAS STATE 080984

SENSITIVE
SIPDIS
AIT TAIPEI FOR MATTHEW O'CONNOR
ECON
AIT TAIPEI FOR MI-YONG KIM
AIT TAIPEI FOR REBECCA HESTER
SINGAPORE FOR ELIZABETH CROSSON
ECON

E.O. 12958: N/A
TAGS: ETTC KOMC SN TW
SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK
ON LICENSES 050068901, 050071121, 050081551, AND 050082501

REF: A. SINGAPORE 427
B. BLUE LANTERN GUIDEBOOK 2006

1. (U) This is an Action Request. See paragraphs 2-5.

2. (U) The Department's Office of Defense Trade Controls
Compliance (PM/DTCC) requests post's assistance in conducting
a post-shipment check on licenses 050068901, 050071121,
050081551, and 050082501 for the export of zinc selenide to
Taiwan. AIT Taipei and Embassy Singapore 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 this license.

3. (SBU) Reason for request: follow-on check due to previous
unfavorable Blue Lantern check on application 050093417,
which found that foreign consignee Wavelength Technology
Singapore Pte. Ltd. sends all raw materials it receives to
its facility in China for manufacturing (ref A). China is a
proscribed destination for United States Munitions List
(USML) commodities, such as the ones exported under subject
licenses, under Section 126.1 of the U.S. International
Traffic in Arms Regulations (ITAR). Wavelength is on
PM/DTCC's Watch List. AIT Taipei and Embassy Singapore
should make appropriate inquiries to determine if foreign
end-user Legend Laser in Taiwan has received the zinc
selenide listed on these licenses or if Legend Laser received
components manufactured using the zinc selenide. AIT Taipei
and Embassy Singapore should also determine if the zinc
selenide was re-exported to China for manufacturing, and if
so, what manufacturing processes were employed. Department
requests that AIT Taipei conduct a site visit to Legend Laser
in order to provide Department with an assessment of its
business operations and on-site security. If a site visit is
not possible, please inform PM/DTCC case officer. Since
Embassy Singapore has already conducted a site visit to
Wavelength Technology, Department defers to post's judgment
on the need or desirability of one in connection with this
check. The following questions are offered as guidance for
AIT Taipei and Embassy Singapore.

4. (U) Questions for AIT Taipei to ask Legend Laser:

--Did the company receive from Wavelength Technology all of
the zinc selenide listed on these four licenses? Or did the
firm instead receive from Wavelength Technology finished or
partially finished components that were manufactured using
the zinc selenide?

--Did the company receive the units of zinc selenide? Or did
the company receive components containing zinc selenide that
were manufactured by Wavelength Technology? If so, were the
components shipped to the company from Wavelength
Technology's facilities in Singapore or its facilities in
China?

--Did Legend Laser order from Wavelength Technology the exact
type and quantity of items listed on this application? Did
Legend Laser order anything else from Wavelength, either
currently or in the past?

--What did Legend Laser do with the materials or devices that
it received from Wavelength? If Legend Laser stored the
items listed on the application, does it have secure
facilities and proper accounting and security procedures for
handling these sensitive USML items?

--When was the company established and who are its principals?

--What is the nature of its business -- what types of items
does it handle, does it serve as a broker?

--What types of organizations are among its typical customers
and where are the customers located? Are any of its
customers located in China?

--Does the company understand the restrictions on United
States Munitions List (USML) items, especially the
prohibition against unauthorized re-transfers and re-exports?

5. (U) Questions for Embassy Singapore to ask Wavelength
Technology:

--Was the zinc selenide listed on these four licenses
re-exported to one or both of the company's facilities in
China for manufacturing?

--Who exactly in China manufactured or modified the
materials? (COMMENT: If possible, please obtain exact
contact information, including names, addresses, phone
numbers, fax numbers, and e-mail addresses. END COMMENT.)

--Are all materials that the company sends to China returned
to Wavelength's office in Singapore? Or are some sent
directly to other customers in China and other countries? If
so, what other countries and what other firms?

--What other customers in China does Wavelength Technology
have?

--Is Wavelength Technology involved in any joint business
partnerships or ventures with other businesses, especially in
China?

--What is the use for the zinc selenide (ZnSe) devices?
Light emitting diodes or diode lasers?

--During the manufacturing process, are the devices doped
with chromium (ZnSe:Cr) or tellurium (ZnSe:Te)?

--Does the company understand the restrictions on United
States Munitions List (USML) items, especially the
prohibition against unauthorized re-transfers and re-exports?
Does the company understand that China is a proscribed
destination for USML items under U.S. laws and regulations?

END ACTION.

6. (SBU) For background, the following details of the
application in question are provided:

A.

DDTC Case: 050068901

QUANTITY/COMMODITY:

15 Zinc Selenide (ZnSe) sufficient material to yield 179
mm diameter x 14 mm thick (lenses)

License Value: USD 78,105.00

(COMMENT: Ten of the 15 ZnSe units were exported to Singapore
on 11/30/2007. No further units have been exported. END
COMMENT.)

SELLER:

Rohm and Haas Company CVD Incorporated
dba Advanced Materials
185 New Boston Street
Woburn, MA 01801
Company contact: Jeff Hobart, tel. 781-933-9243

FOREIGN CONSIGNEE:

Wavelength Technology Singapore Pte Ltd
Blk 2 Bukit Batok St 24, #06-03
Skytech Bldg, 659480
Singapore
Tel: 65-6564 9624
Fax: 65-6564 3862
E-mail: info@wavelength-tech.com
Co. Business No. 200206988D

FOREIGN END-USER:

Legend Laser Inc.
8F-11, No. 3 Wucheng Rd. Shin-Chuang
Taipei Hsien 248
Taiwan

PURPOSE:

This ZnSe material will be used to construct scan lenses for
CO2 laser systems. This is a commercial (non-military)
application. The material is controlled due to its diameter
exceeding 5 inches per commodity jurisdiction DDTC case DJ
060-07.

B.

DDTC Case: 050071121

QUANTITY/COMMODITY:

6 Zinc Selenide (ZnSe) sufficient material to yield 124.5
mm diameter x 14.5 mm thick (lenses)

License Value: USD 16,620.00

(COMMENT: All six ZnSe units were exported to Singapore on
11/30/2007. END COMMENT.)

SELLER:

Rohm and Haas Company CVD Incorporated
dba Advanced Materials
185 New Boston Street
Woburn, MA 01801
Company contact: Jeff Hobart, tel. 781-933-9243

FOREIGN INTERMEDIATE CONSIGNEE:

Rohm and Haas EM, K.K.
Sanbancho UF Bldg Chiyodo-Ku, 6-3 Sanbancho
Tokyo 102-0075
Japan
Asia sales office of applicant

FOREIGN CONSIGNEE:

Wavelength Technology Singapore Pte Ltd
Blk 2 Bukit Batok St 24, #06-03
Skytech Bldg, 659480
Singapore
Tel: 65-6564 9624
Fax: 65-6564 3862
E-mail: info@wavelength-tech.com
Co. Business No. 200206988D

FOREIGN END-USER:

Legend Laser Inc.
8F-11, No. 3 Wucheng Rd. Shin-Chuang
Taipei Hsien 248
Taiwan

PURPOSE:

This ZnSe material will be used to construct scan lenses for
CO2 laser systems. This is a commercial (non-military)
application. The material is controlled due to its diameter
exceeding 5 inches per commodity jurisdiction DDTC case DJ
060-07.

C.

DDTC Case: 050081551

QUANTITY/COMMODITY:

30 Zinc Selenide (ZnSe) sufficient material to yield 179
mm diameter x 14 mm thick (lenses)
5 Zinc Selenide (ZnSe) sufficient material to yield 125.5
mm diameter x 14.5 mm thick (lenses)

License Value: USD 161,750.00

(COMMENT: A total of 32 ZnSe units were exported to Singapore
in three shipments on 1/17/2008, 1/24/2008, and 3/1/2008,
respectively. No further units have been exported. END
COMMENT.)

SELLER:

Rohm and Haas Company CVD Incorporated
dba Advanced Materials
185 New Boston Street
Woburn, MA 01801
Company contact: Jeff Hobart, tel. 781-933-9243

FOREIGN INTERMEDIATE CONSIGNEE:

Rohm and Haas EM, K.K.
Sanbancho UF Bldg Chiyodo-Ku, 6-3 Sanbancho
Tokyo 102-0075
Japan
Asia sales office of applicant

FOREIGN CONSIGNEE:

Wavelength Technology Singapore Pte Ltd
Blk 2 Bukit Batok St 24, #06-03
Skytech Bldg, 659480
Singapore
Tel: 65-6564 9624
Fax: 65-6564 3862
E-mail: info@wavelength-tech.com
Co. Business No. 200206988D

FOREIGN END-USER:

Legend Laser Inc.
8F-11, No. 3 Wucheng Rd. Shin-Chuang
Taipei Hsien 248
Taiwan

PURPOSE:

This ZnSe material will be used to construct scan lenses for
CO2 laser systems. This is a commercial (non-military)
application. The material is controlled due to its diameter
exceeding 5 inches per commodity jurisdiction DDTC case DJ
060-07.

D.

DDTC Case: 050082501

QUANTITY/COMMODITY:

3 Cleartran(TM) Zinc Sulfide (ZnS) sufficient material to
yield 212 mm diameter x 149 mm x 14 mm thick (lenses)

License Value: USD 13,080.00

(COMMENT: All three ZnSe units were exported to Singapore on
3/28/2008. END COMMENT.)

SELLER:

Rohm and Haas Company CVD Incorporated
dba Advanced Materials
185 New Boston Street
Woburn, MA 01801
Company contact: Jeff Hobart, tel. 781-933-9243

FOREIGN INTERMEDIATE CONSIGNEE:

Rohm and Haas EM, K.K.
Sanbancho UF Bldg Chiyodo-Ku, 6-3 Sanbancho
Tokyo 102-0075
Japan
Asia sales office of applicant

FOREIGN CONSIGNEE:

Wavelength Technology Singapore Pte Ltd
Blk 2 Bukit Batok St 24, #06-03
Skytech Bldg, 659480
Singapore
Tel: 65-6564 9624
Fax: 65-6564 3862
E-mail: info@wavelength-tech.com
Co. Business No. 200206988D

FOREIGN END-USER:

Legend Laser Inc.
8F-11, No. 3 Wucheng 1 Rd. Shin Chuang
Taipei Hsien 248
Taiwan

PURPOSE:

This Cleartran(TM) multi-spectral ZnS material will be used
to construct scan lenses for CO2 laser systems. This is a
commercial (non-military) application. The material is
controlled due to its diameter exceeding 5 inches per
commodity jurisdiction DDTC case CJ 060-07A.

7. (U) Submitted in support of the license application were
the following documents (PM/DTCC can fax documentation to
post upon request):

A.

--End-User/End-Use Statement from Wavelength Technology,
signed by Jenny Zhu, Director, dated 13/09/07

--Purchase order no. PO-1927 from Wavelength Technology to
Rohm and Haas, Advanced Materials, unsigned, dated 23/07/07

--Product brochure, including technical specifications

B.

--End-User/End-Use Statement from Wavelength Technology,
signed by Jenny Zhu, Director, dated 06/09/07

--Purchase order no. PO-2108 from Wavelength Technology to
Rohm and Haas, Advanced Materials, unsigned, 07/09/07

--Product brochure, including technical specifications

C.

--End-User/End-Use Statement from Wavelength Technology,
signed by Jenny Zhu, Director, dated 27/12/07

--Purchase order no. PO-2462 from Wavelength Technology to
Rohm and Haas, Advanced Materials, unsigned, 24/12/07

--Product brochure, including technical specifications

D.

--End-User/End-Use Statement from Wavelength Technology,
signed by Jenny Zhu, Director, dated 04/01/08

--Purchase order no. PO-2467 from Wavelength Technology to
Rohm and Haas, Advanced Materials, unsigned, 28/12/07

--Product brochure, including technical specifications

8. (U) 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 Judd Stitziel, PM/DTCC,
Phone: 202-663-3455; email: StitzielJD@state.gov; SIPRNET:
StitzielJD@state.sgov.gov. The Blue Lantern Guidebook (ref
B) is available as a PDF file in the Bunche Library's
Electronic Library collection on the DOS Intranet:
http://virtuallibrary.state.gov/
BlueLanternGuidebook2006%2520 final .pdf

9. (U) The Department appreciates post's assistance in this
matter.
RICE

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