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Cablegate: Blue Lantern: Check On Elsan Defense And

This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS ANKARA 005202

SIPDIS

PLS PASS TO PM/DTCC -- BLUE LANTERN COORDINATOR.

E.O. 12958: N/A
TAGS: KOMC ETTC TU
SUBJECT: BLUE LANTERN: CHECK ON ELSAN DEFENSE AND
COMMUNICATIONS INC

REF: STATE 181000

1. ON SEPTEMBER 10, 2004, EMBASSY BLUE LANTERN OFFICER MET
WITH THE PRESIDENT AND SENIOR VICE PRESIDENT OF ELSAN
CORPORATION AT ITS OFFICE LOCATED AT THE ADDRESS GIVEN IN
REFTEL. DURING THE MEETING PRESIDENT ONUR GOKCE AND VP KEMAL
CELIK OUTLINED THE STRUCTURE, ORGANIZATION AND OPERATIONS OF
ELSAN CORPORATION, AND PROVIDED WRITTEN DETAILS OF THEIR
CONTRACTS AND BUSINESS LICENSES WITH US COMPANIES.

2. THE ELSAN OFFICERS REPORTED HAVING CONTRACTUAL
RELATIONSHIPS WITH TEN US COMPANIES INCLUDING SMITH AND
WESSON, BOEING, AND HUGHES NETWORK SYSTEMS. THEY HAVE BEEN IN
BUSINESS SINCE 1983 AND REPRESENT US COMPANIES IN TURKEY WHO
SEEK TO SELL PRODUCTS. ACCORDING TO THE REPRESENTATIVES WE
SPOKE WITH, ELSAN ITSELF SELLS NO PRODUCTS. ITS PARTICULAR
SPECIALTY IS BROKERING SALES BETWEEN US COMPANIES AND THE
TURKISH MILITARY AND CIVILIAN GOVERNMENT. THEY CHARACTERIZED
THEIR BUSINESS SECTOR AS "MARKET MAKING", WHEREBY THEY ARE
RETAINED BY FOREIGN COMPANIES TO IDENTIFY TURKISH CUSTOMERS.
THEY RECEIVE A FEE BASED ON A CONTRACT OR COMMISSION FOR THE
BROKERING OF DEALS BETWEEN THE TWO COMPANIES. ELSAN ALSO
REPRESENTS ISRAELI DEFENSE COMPANIES IN TURKEY -- AZIMUTH
TECHNOLOGIES BEING THEIR PRIMARY ISRAELI PARTNER. ELSAN
STRESSED THAT THEY ARE NOT END-USERS OF ANY PRODUCT OR
SERVICE, BUT RATHER INTERMEDIARIES TO THE END USER.

3. ADDITIONALLY, ELSAN CFO NESRIN FIRTINA REVIEWED WITH BLUE
LANTERN OFFICER THE LICENSES AND REGISTRATION PAPERS REQUIRED
BY TURKISH REGULATORY AUTHORITIES, PARTICULARLY IN
TRANSACTIONS RELATED TO ARMAMENTS. THE COMPANY EMPLOYS CIRCA
30 PEOPLE, AND MAINTAINS AN OFFICE IN VIENNA, VIRGINIA.

4. BASED ON THE INFORMATION OBTAINED DURING THE MEETING,
EMBASSY BELIEVES ELSAN TO BE A LEGITIMATE REGISTERED BROKER
IN TURKEY.
EDELMAN

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