Cablegate: Blue Lantern Level 3: Pre-License End-Use Check

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DE RUEHC #1981 2461730
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P R 031712Z SEP 09
FM SECSTATE WASHDC
TO RUEHKO/AMEMBASSY TOKYO PRIORITY 0000
INFO RUEAIIA/CIA WASHINGTON DC
RHMCSUU/FBI WASHINGTON DC 0000
RUCPDOC/USDOC WASHINGTON DC 0000
RUEKJCS/SECDEF WASHINGTON DC
RUEPINS/HQ BICE INTEL WASHINGTON DC

UNCLAS STATE 091981

SIPDIS
TOKYO FOR EDWARD P. LUCHESSI

E.O. 12958: N/A
TAGS: ETTC KOMC JA
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK
ON APPLICATION 050187092

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 post's assistance in conducting
a pre-license check on application 050187092 for the export
of naval vessel component parts to Japan. Post is requested
to complete this Blue Lantern check within 30 days. Lack of
response to a Blue Lantern check will affect pending and
future licenses involving parties to this license.

3. Reason for request: Lack of documentation from the Japan
Ministry of Defense (JMOD) and unfamiliar foreign consignee
Unitech Corporation. The company has not appeared on any
previous license applications, nor have its bona fides been
verified by a Blue Lantern check.

4. ACTION: Department requests that Embassy make appropriate
inquiries with host government officials to verify the bona
fides of unfamiliar foreign consignee, Unitech Corporation
and to confirm the legitimacy of this proposed transaction.
PM/DTCC also requests that post conducts a site visit to the
company in order to provide Department with an assessment of
its business operations and on-site security. Finally, post
is asked to assess whether the company appears to be a
reliable recipient of United States Munitions List (USML)
items. If a site visit is not possible, please inform the
PM/DTCC officer.

The following questions are provided as suggested guidance:

--Does the company have an existing contract with the JMOD
for this proposed transaction?

--Does the company have secure facilities and proper
accounting and security procedures for handling sensitive
USML items?

--What is the exact end-use for this USML item? Will Unitech
Corporation retain positive control over the naval vessel
component parts at all times?

--When was the company established and who are its
principals?

--What is the nature of its business -- what type of items
does it handle, does it serve as a broker?

--What type of organizations are among its typical customers
and where are the customers located?

--Does the company understand the restrictions on USML items,
especially the prohibition against unauthorized re-transfers
and re-exports?

--Does the company understand the restrictions on the
unauthorized stockpiling of USML items?

END ACTION

5. Details of license application:

DTC Case: 050187092

QUANTITY/COMMODITY:

1 Parts and accessories for various vessels

License Value: USD 3,000,000.00

SELLER:

Windward International, LLC
2459 Torrance Blvd. #1
Torrance, CA 90501
POC is Ken Hoshina, Tel. 310-869-3259

FOREIGN CONSIGNEE:

Unitech Corporation
815-28 Sankyomachi
Nagasaki
Japan
POC is President, Yuji Morishita, Tel. 095-850-7836

FOREIGN END-USER:

Ministry of Defense Japan
5-1 Ichigaya Honmura, Shinjyuku
Tokyo
Japan
No POC provided

PURPOSE:

Repair, Maintenance, replacement, and overhaul.

6. Submitted in support of the license application was the
following document (PM/DTCC can fax documentation to post
upon request):

--Letter of Intent submitted by Unitech Corporation, signed
by President, Yuji Morishita on 1 July 2009.

7. 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 Tim Mazzarelli, Phone:
202-663-3867; Email: MazzarelliTP@state.gov; SIPRNET:
MazzarelliTP@state.sgov.gov. The Blue Lantern Guidebook
(ref) is available as a PDF file at
http://www.intelink.sgov.gov/wiki/Blue Lantern End-Use
Monitoring Program.

8. Department is grateful for post's assistance in this
matter.
CLINTON

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