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

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TO RUEHKO/AMEMBASSY TOKYO 0000
INFO RHMCSUU/FBI WASHINGTON DC 0000
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UNCLAS STATE 083174

SIPDIS
TOKYO FOR CHARLIE CROUCH

E.O. 12958: N/A
TAGS: ETTC KOMC JA
SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK
ON LICENSE 050050345

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 Embassy's assistance in
conducting a post-shipment check on license 050050345 for the
export of night vision devices (NVDs) to Japan. Embassy is
requested to complete this Blue Lantern check within 45 days.
Lack of response to a Blue Lantern check will affect pending
and future licenses involving parties to this license.

3. Reason for request: Science Technology Trading (STT);
foreign consignee with questionable understanding and
willingness to abide by ITAR obligations

4. ACTION: Embassy is requested to make inquiries with
appropriate Japan MOD (JMOD) officials to determine if the
JMOD received the 126 NVDs from STT and that the articles are
being used for the purpose stated on the license. Department
also requests that Embassy conduct a site visit to STT to
visually confirm that no NVDs remain with STT and to review
pertinent documentation to ensure NVDs were not retransferred
to another 3rd party. POC for STT is T. Hisanaga, TEL:
045-945-2781, reference Purchase Order # 0612282EF dated
December 20, 2006.

Moreover, please obtain assurances from the JMOD and STT that
it is abiding by the following licensing provisos:

- Only M963-A Night Vision Goggles and accessories are
approved under this license.

- The Japanese Ministry of Defense MUST maintain positive
control and security of hardware at all times.

- When not in use, end-user MUST secure NVDs in a
controlled-access protection facility.

- When in use, individuals issued NVDs MUST secure the
devices and be responsible for maintaining control of the
devices at all times.

- The JMOD agrees to perform a daily visual inventory of any
NVDs issued for use.

- All parties to this license, in particular the foreign end
user, are responsible for securing the night vision equipment
against loss, theft, or unauthorized access, which is
considered a violation of the Arms Export Control Act (AECA)
and the International Traffic in Arms Regulations (ITAR).

- The end-user agrees to conduct monthly 100% physical count
inventories and quarterly 100% inventories by serial number.
These records MUST BE kept for at least one year and made
available to the USG upon specific request.

- In the case of loss, theft, or unauthorized access of any
NVD equipment listed in this license, the end-user agrees to
report the incident in writing to the applicant, State/DDTC,
and DOD/DTSA, no later than five days after incident.

END ACTION.

5. Details of license application:

DTC Case: 050050345

QUANTITY/COMMODITY:

126 Night Vision Goggle Equipment including accessories
part number: M-963-A

License Value: USD 342,617

SELLER:

Fresco International Corp.
570 Taxter Road, 5th Floor
Elmsford, NY 10523

FOREIGN CONSIGNEE:

Science Technology Trading Corp.
1-2-11 Ebisu Minami, Four Seasons Bldg. 8F
Shibuya-ku, Tokyo, Japan

FOREIGN END-USER:

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

PURPOSE:

Image intensification and other night sighting equipment for
MOD Japan (Self Defense Air Force, Personal Equipment)

6. Please slug reply for PM/DTCC - BLUE LANTERN COORDINATOR
and include the words "Blue Lantern" and the case number in
the subject line. PM/DTCC can fax documentation to post upon
request. POC is Tim Watkins, Phone: 202-663-2814; Email:
WatkinsTR@state.gov; SIPRNET: WatkinsTR@state.sgov.gov. The
Blue Lantern Guidebook (ref) is available as a PDF file in
the Bunche Library's E-Book Collection on the DOS Intranet:
http://buncheelectroniclibrary.state.gov/eboo ks/
BlueLanternGuidebook2006%20 final .pdf

7. Department is grateful for post's assistance in this
matter.
RICE

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