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Cablegate: Response to Blue Lantern Level 3: Pre-Shipment End-Use

VZCZCXYZ0006
RR RUEHWEB

DE RUEHUL #1477 2070432
ZNR UUUUU ZZH
R 250432Z JUL 08
FM AMEMBASSY SEOUL
TO RUEHC/SECSTATE WASHDC 0966
INFO RUCPDOC/USDOC WASHDC 7274
RUEKJCS/SECDEF WASHINGTON DC
RUEPINS/HQ BICE INTEL WASHINGTON DC

UNCLAS SEOUL 001477

SIPDIS

STATE FOR PM/DTCC-BLUE LANTERN COORDINATOR

E.O. 12958: N/A
TAGS: AU ETTC KOMC KS
SUBJECT: RESPONSE TO BLUE LANTERN LEVEL 3: PRE-SHIPMENT END-USE
CHECK LICENSE 050081569

REF: A) STATE 061076; B) State 001056
1. Per reftel, post contacted the Defense Acquisition Program
Administration (DAPA) and Kyongju Aerospace Electrical Systems
(KAES - a DAPA-registered official supplier of defense items) by
e-mail and phone. (See reftel B for background information
regarding KAES.) Due to resource constraints, a site visit was
not conducted.

2. Both Ms. LEE, Yeom-kyong at DAPA and Mr. LEE Won-seok at KAES
confirmed to post that the licensed items were imported from the
United States by CBOL Corporation and delivered to the end-users
- ROK Army, Navy and Air Force. Ms. Lee also verified that KAES
is an official supplier of the parts listed in reftel A for the
following military branches:

- In June 2008, KAES delivered 40 main generators to the Korea
Aerospace Industries (KAI) to be installed in the T-50; in turn
KAI then delivered ten T-50 aircrafts to the ROK Air Force. The
purchase order signed between KAI and KAES indicates that the
delivery of the main generator parts will be completed by April
2011. Documentation also specified that KAES is a DAPA-
registered official supplier of main generators that will be
incorporated into the T-50 jet trainer that belongs to the ROK
Air Force. Supporting documentation will be sent separately by
email.

- Motors to LIG NEX 1 to be incorporated into VIPERs for delivery
to the ROK Army and the ROK Air Force;

- Motors and parts for the KT-1 jet trainer directly to the ROK
Air Force for their use; and

- Motors to Samsung Techwin to be incorporated into Ship-to-Ship
Missiles (BR60 and BR80) for delivery to the ROK Navy.

Please note that all of the above mentioned companies are DAPA-
registered official suppliers of defense articles.

3. As stated in reftel B, KAES is well aware of the USML
restrictions and appears to maintain its sales records carefully.
KAES? main clients are KAI, LIG Nex1, Samsung Techwin and the ROK
Air Force.

Vershbow

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