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Cablegate: Results of Blue Lantern Level 3 Post Shipment

VZCZCXYZ0001
PP RUEHWEB

DE RUEHTV #2661/01 2470941
ZNR UUUUU ZZH
P 040941Z SEP 07
FM AMEMBASSY TEL AVIV
TO RUEHC/SECSTATE WASHDC PRIORITY 3098
INFO RUEHNE/AMEMBASSY NEW DELHI 0351
RUCPDOC/USDOC WASHDC
RUEKJCS/SECDEF WASHDC
RHMFIUU/HQ BICE INTEL WASHINGTON DC

UNCLAS TEL AVIV 002661

SIPDIS

SENSITIVE
SIPDIS

STATE FOR PM/DTCC (BLUE LANTERN COORDINATOR)
STATE FOR NEA/IPA (PECCIA)

E.O. 12958: N/A
TAGS: ETTC KOMC IN IS
SUBJECT: RESULTS OF BLUE LANTERN LEVEL 3 POST SHIPMENT
END-USE CHECK ON LICENSE 050008627

REF: A. STATE 98010
B. JOUBERT-LIN-KEAYS E-MAIL OF 8/30/07

1. (SBU) Acting on instructions in ref A, Embassy Tel Aviv
Blue Lantern Officer conducted a site visit to IAI Elta
Systems, Limited's office in Ashdod on August 6 to determine
the status of 20 cable assemblies delivered to Israel. Blue
Lantern Officer determined that IAI Elta Systems received the
20 cable assemblies, and that they are being used for the
purpose stated on the license. Specific details follow.

A. Blue Lantern Officer met with the following Elta Systems
employees:

-- Yacob Saraf, Deputy General Manager, Elta IMINT and Radar
Division

-- Orly Araza, Head of Security Department

-- Shlomo Meshulam, Deputy Security Director and Information
Security Manager

Colonel Kobi Fogelman from the Israeli MOD's Directorate for
Security (MALMAB/DSDE) was also on site and played a
significant role in organizing the site visit.

B. During the site visit, Blue Lantern Officer:

-- was shown a DSP-5 License dated June 30, 2006 and signed
by Timothy J. Ruthemeyer. The country of destination listed
on the document is India, and the Foreign End User listed is
the Indian Navy. The license value listed was USD 34,068.00.

-- was told that the 20 cable assemblies were received from
the U.S. in six different shipments. The cable assemblies
are being incorporated into Type EL/M-2032 Airborne Radar
Systems which constitute the fire control radar for the
Indian Navy's Sea Harrier. The cable assemblies work as
high-voltage connectors for tubes that provide power to the
radar system's transmitter.

-- was shown the original letter from the Indian Navy
concerning the four Type EL/M-2032 Airborne Radar Systems
(including four of the cable assemblies) that it had already
received. (NOTE: These have the Elta serial numbers IN104,
IN204, IN102 and IN201. END NOTE.)

-- was shown seventeen (17) of the cable assemblies in
various configurations. Of these, Blue Lantern Officer was
informed that three (3) were currently assigned to the
assembly line. Two (2) of the cable assemblies had already
been fitted into tubes (with Elta serial numbers IN205 and
IN206) and were ready for shipment. One of the assemblies
had been fitted into a replaceable part of the transmitter
(known as an SRU). Two (2) others remain at the first stage
of the assembly process.

-- was informed that four (4) of the assemblies had already
been delivered to the Indian Navy. One (1) was returned for
repairs, so Elta is now in possession of seventeen (17) of
the assemblies. (NOTE: The one assembly returned for
repairs was already fitted into a complete transmitter unit.
The Elta serial number on it is IN201. END NOTE.)

-- was shown the eight (8) remaining cable assemblies in
storage, with end-user stickers on them that indicated that
they are only to be used for the EL/M-2032 project. The
stickers noted that they are controlled items.

-- was told that two of the assemblies, and the repaired
assembly, would be sent to India in August. It would take
some time for the remaining assemblies to be fitted into
their final components and shipped to India. Blue Lantern
Officer was told that it takes six months to manufacture an
entire component.

2. (SBU) Blue Lantern Officer has sent by FAX to PM/DTCC (FAX
number 202-261-8198) ten pages of documentation, including a
copy of the DSP-5, a copy of the letter from the Indian Navy,
and a chart showing the disposition of the 20 cable
assemblies.

3. (SBU) Blue Lantern Officer received a general briefing on
Elta Systems, Ltd. The company is owned by Israel Aircraft
Industries (IAI). Its president is Mr. Nissim Hadas. Elta

Systems, Ltd. is comprised of several divisions, including
IMINT and Radar, SIGINT, Airborne Early Warning (AEW),
Technologies, and Integrated Micro-Systems. It is carrying
out several projects for the U.S. Air Force, and supplies
Northrup Grumman with antennas for the F-16 (as part of the
F-16I offset). It is also working with Lockheed Martin on a
marine patrol radar for the U.S. Coast Guard. There are
3,000 workers at Elta Systems, Ltd.'s complex in Ashdod.

********************************************* ********************
Visit Embassy Tel Aviv's Classified Website:
http://www.state.sgov.gov/p/nea/telaviv

You can also access this site through the State Department's
Classified SIPRNET website.
********************************************* ********************
JONES

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