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Cablegate: Blue Lantern Level 3: Pre-License End-Use Check

VZCZCXYZ0000
RR RUEHWEB

DE RUEHC #6226 3051343
ZNR UUUUU ZZH
R 311334Z OCT 08
FM SECSTATE WASHDC
TO RUEHGP/AMEMBASSY SINGAPORE 0000
INFO RUEAIIA/CIA WASHINGTON DC 0000
RHMCSUU/FBI WASHINGTON DC 0000
RUCPDOC/USDOC WASHINGTON DC 0000
RUEKJCS/SECDEF WASHINGTON DC
RUEPINS/HQ BICE INTEL WASHINGTON DC

UNCLAS STATE 116226

SIPDIS
SINGAPORE FOR MATT EASTER

E.O. 12958: N/A
TAGS: ETTC KOMC SN
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK
ON APPLICATION 050128223

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 pre-license check on application 050128223 for the export
of aircraft spare parts to Singapore. Post is requested to
complete this Blue Lantern check within 30 days. Lack of
response to a Blue Lantern check will affect pending and
future licenses involving parties to this license.

3. Reason for request: K.U.T. Diesels, unfamiliar foreign
consignee.

4. ACTION: Embassy is requested to make inquiries with
appropriate Singapore Air Force (SAF) officials to verify its
order for parts listed in paragraph 4 below and confirm its
relationship with KUT. Department also requests that Embassy
conduct a site visit to KUT in order to assess its business
operations, on-site security, and general reliability as a
recipient of United States Munitions List (USML) items. POC
at KUT is Michael Koh, Managing Director, TEL: 65-625-83622,
Reference # 7API001W dated October 3, 2008. The following
questions are offered as suggested guidance with KUT:

- Can KUT provide documentation from the Singapore Air Force
(e.g. purchase order, letter of intent, contract, etc.)
establishing it as the end user for the aircraft spare parts?

- Does the company have an established, legitimate customer
base to which it plans to sell these commodities?

- Who are KUT's main clients?

- Does the company understand the restrictions on USML
articles, particularly regarding re-export and retransfer?

If a site visit is not possible, please inform PM/DTCC case
officer. END ACTION.


5. Details of license application:

DTC Case: 050128223

QUANTITY/COMMODITY:

Lots Spare, minor parts and components in support of A4, F5,
F16, C130, AH-64D, CH-47, F50 aircraft

License Value: USD 1,200,000

SELLER:

Aero Precision Industries
30 Lindbergh Ave
Livermore, CA 94551

FOREIGN CONSIGNEE:

K.U.T. Diesels Pte Ltd
#04-03/04 Pemimpin Industrial Building
No. 63 Jalan Pemimpin
Singapore 577219

FOREIGN END-USER:

Republic of Singapore Air Force
5 Depot Road #19-07
Singapore 109681 Singapore


PURPOSE:

Spare, minor parts and components in support of A4, F5, F16,
C130, AH-64D, CH-47, F50 aircraft


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 Mazzarelli, Phone: 202-663-3867; Email:
MazzarelliTP@state.gov; SIPRNET: MazzarelliTP@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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