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Cablegate: Follow Up: Blue Lantern Level Post-License

VZCZCXYZ0014
PP RUEHWEB

DE RUEHC #9630 2992118
ZNR UUUUU ZZH
P 262102Z OCT 07
FM SECSTATE WASHDC
TO AMEMBASSY PRETORIA PRIORITY 5495

UNCLAS STATE 149630

SIPDIS

SIPDIS
PRETORIA FOR BAIMBA YILLA
POL/ECON
PRETORIA FOR RAYMOND L. BROWN
POL

E.O. 12958: N/A
TAGS: ETTC KOMC SF
SUBJECT: FOLLOW UP: BLUE LANTERN LEVEL POST-LICENSE
END-USE CHECK ON LICENSE 05-1003562

REF: A. STATE 118130
B. PRETORIA 3604
C. STITZIEL-YILLA-MARBURG EMAILS OF 16-24 OCTOBER
2007

1. This is an Action Request. See paragraphs 4-5.

2. The Department's Office of Defense Trade Controls
Compliance (PM/DTCC) thanks post for its initial response
(Ref B) to our Blue Lantern request concerning license
05-1003562 (Ref A).

3. However, post's findings did not enable PM/DTCC to close
the case. PM/DTCC and desk have made several attempts to
follow up with post (Ref C) but have not received any
response.

4. Ref B reported that foreign intermediate consignee
Connector & Wire Services (CWS) returned and canceled all
consignments exported under license 05-1003562. As explained
in Ref C, it appears that CWS may have confused two separate
orders/licenses, 05-1003562 and 05-1005743. The following
details the history of these two licenses:

--License 05-1003562: 30 units of M28840/502WA were exported
to CWS in August 2006. 25 units of M28840/11AB1P1 were
exported to CWS in September 2006 and then an additional five
(5) units were exported to CWS in October 2006. According to
the U.S. exporter (Joslyn Sunbank Co LLC), none of these
units were ever returned.

--License 05-1005743: 55 units of M28840/11AB1P1 were
authorized for export to South Africa but were never shipped
because CWS canceled the order, according to Joslyn Sunbank.
70 units of M28840/502WA were shipped in October 2006 but
were to returned to Joslyn Sunbank in November 2006.

5. Thus, it is understandable that CWS might be under the
impression that it returned all connectors of both types to
Joslyn Sunbank in November 2006. However, according to the
U.S. exporter, CWS never returned and should still have all
60 connectors exported under license 05-1003562.

6. Department requests that post re-contact CWS in order to
obtain the information necessary to close this Blue Lantern
check. Post should ask CWS to recheck its records in an
attempt to resolve the discrepancies between its initial
response as reported in Ref B and the records obtained from
Joslyn Sunbank. If CWS admits that it in fact did not return
the connectors exported under license 05-1003562, post should
make appropriate inquiries to determine the current
disposition and use of the items, as outlined in PM/DTCC's
original Blue Lantern request cable (Ref A).

7. Failure to close this Blue Lantern check will affect
pending and future licenses involving parties to this license.

8. 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.
RICE

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