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

VZCZCXYZ0000
RR RUEHWEB

DE RUEHC #8223 0571825
ZNR UUUUU ZZH
R 261821Z FEB 10
FM SECSTATE WASHDC
TO RUEHKO/AMEMBASSY TOKYO 0000
INFO RUEAIIA/CIA WASHINGTON DC
RUETIAA/DIRNSA FT GEORGE G MEADE MD
RHMCSUU/FBI WASHINGTON DC 0000
RUCPDOC/USDOC WASHINGTON DC 0000
RUEKJCS/SECDEF WASHINGTON DC

UNCLAS STATE 018223

SIPDIS
TOKYO FOR JASON N. LAWRENCE

E.O. 12958: N/A
TAGS: ETTC KOMC JP
SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK
ON LICENSES 05994677 AND 050092421

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-shipment check on licenses 05994677 and 050092421 for
the export of International Traffic in Arms (ITAR)-controlled
UH-1 and AH-1S helicopter parts and components to Japan.
Post is requested to complete this Blue Lantern inquiry
within 45 days. Lack of response to a Blue Lantern inquiry
will affect pending and future licenses involving parties to
this license.

3. Reason for request: Atypically few foreign consignees
listed on a license for Japan, suspicion that additional
unlisted entities may be involved in this transaction;
stockpiling concerns (licenses total $25 million).

4. ACTION: The Department requests that Post make inquiries
into the supply chain relationship between the foreign
consignee, Mitsui Bussan Aerospace Co. Ltd. (MBAC) and the
JMOD. Given the high dollar value, Post is also requested to
verify whether MBAC is engaged in stockpiling.

The following points are included for guidance:

--Can MBAC provide documentation that verifies the end-use of
the helicopter components, such as a contract or purchase
order?

--Does MBAC supply the licensed items exclusively and
directly to the JMOD? Are any other companies involved in
the procurement process? If so, please provide a list of
companies that have received parts under licenses 05994677
and 050092421.

--Does MBAC have a secure facility to store USML items? Does
it have a organized system for the proper handling and
tracking of USML items?

--Who are MBAC's typical customers? Are any located outside
of Japan?

--Does MBAC understand the restrictions on USML items,
especially the prohibition against unauthorized re-transfer
and re-export?

END ACTION.

5. Details of license application:

******************
DTC CASE: 05994677
******************

QUANTITY/COMMODITY:

1 Lot - Spare parts and components for Bell Model UH-1 and
AH-1S helicopters.

LICENSE VALUE: 20,000,000 USD

(COMMENT: According to US Customs data, 17.8 million USD in
parts were exported between June 2006 and April 2008. END
COMMENT)

SELLER:

Mitsui Bussan Aerospace Corporation
600 E. Las Colinas Blvd. Suite 1230
Irving, TX 95037
Tel: 972-869-7500

FOREIGN CONSIGNEE:

Mitsui Bussan Aerospace Co. Ltd.
Shuwa-Shiba Park, Bldg A-12F
4-1 Shiba-Koen 2-Chome
Minato-Ku, Tokyo 105-0011
Japan
POC: Nobuo Yoneyama, Director & General Manager, Defense
Systems Business Unit
Website: http://aerospace.mitsui.co.jp

FOREIGN END-USER:

Japan Defense Agency
5-1 Honmura-Cho, Ichigaya, Shinjuku-ku
Tokyo 162-8802
Japan

FOREIGN INTERMEDIATE CONSIGNEES (Freight Forwarders):

MOL Logistics Co. Ltd.
12-5, Uchikanda 2-Chome Chiyoda-Ku
Tokyo 101-8527
Japan

Mitsui O.S.K. Lines Ltd.
2-1, Toranomon 2-Chome, Minato-Ku
Tokyo
Japan

PURPOSE:

Spare parts for Bell Models UH-1, and AH-1S helicopters.

********************
DTC CASE: 050092421
********************

QUANTITY/COMMODITY:

1 Lot - Spare parts and components for Bell Model UH-1 and
AH-1S helicopters.

LICENSE VALUE: 5,000,000 USD

(COMMENT: According to US Customs data, 9 shipments totaling
5,109,117 USD have been exported under this license (109,117
USD over the licensed value). END COMMENT)

SELLER:

Mitsui Bussan Aerospace Corporation
600 E. Las Colinas Blvd. Suite 1230
Irving, TX 75039
Tel: 972-869-7500
POC: Steve D. White, SVP/Export Control Manager

FOREIGN CONSIGNEE:

Mitsui Bussan Aerospace Co. Ltd.
4-1, Shiba-koen, 2-chome, Minato-ku
Tokyo
Japan
POC: Nobuo Yoneyama, Director & General Manager, Defense
Systems Business Unit
Website: http://aerospace.mitsui.co.jp

FOREIGN INTERMEDIATE CONSIGNEES (Freight Forwarder /
Logistics):

MOL Logistics Co. Ltd.
12-5, Uchikanda 2-Chome Chiyoda-Ku
Tokyo 101-8527
Japan

Mitsui Bussan Aerospace Co. Ltd.
Da Vinci Shiba Park A-12F, Shiba-Koen
2-Chome, Minato-Ku
Tokyo 105-0011
Japan

FOREIGN END-USER:

Japan Ministry of Defense
5-1 Honmura-Cho, Ichigaya Shinjuku-ku
Tokyo 162-8802
Japan

PURPOSE:

Spare parts for Bell Model 204B(UH-1H), 205B(UH-1J), and
AH-1S helicopters.

6. Submitted in support of license application 05994677 were
the following documents (PM/DTCC will email documentation to
Post upon request):

--Sample List of Spare Parts

--List of Parties Involved in Transaction

--Department of State License for Permanent Export of
Unclassified Defense Articles and Related Unclassified
Technical Data, signed approved 11 May 2006.

Submitted in support of license application 050092421 were
the following documents (PM/DTCC will email documentation to
Post upon request):

--Letter of Intent submitted by MBAC, dated 5 February 2008,
signed by Nobuo Yoneyama, Director & General Manager.

--Sample Purchase Order/Parts List

--Department of State License for Permanent Export of
Unclassified Defense Articles and Related Unclassified
Technical Data, signed 5 March 2008, approved 17 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 Meredith Sundlof. Phone:
202-663-3455; Email: SundlofME@state.gov; SIPRNET:
SundlofME@state.sgov.gov. The Blue Lantern Guidebook (ref)
is available as a PDF file at
http://www.intelink.sgov.gov/wiki/Blue Lantern End-Use
Monitoring Program.

8. Department is grateful for Post's assistance in this
matter.
CLINTON

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