Search

 

Cablegate: Blue Lantern: Verifying Bona Fides of Registered

VZCZCXYZ0019
RR RUEHWEB

DE RUEHC #9593 2671813
ZNR UUUUU ZZH
R 241753Z SEP 09
FM SECSTATE WASHDC
TO RUEHIN/AIT TAIPEI 0000
INFO RUCPDOC/USDOC WASHINGTON DC 0000
RUEKJCS/SECDEF WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC
RHMCSUU/FBI WASHINGTON DC 0000
RUETIAA/DIRNSA FT GEORGE G MEADE MD
RUEAIIA/CIA WASHINGTON DC

UNCLAS STATE 099593

SIPDIS
AIT TAIPEI FOR MATTHEW E. O'CONNOR
ECON

E.O. 12958: N/A
TAGS: ETTC KOMC TW
SUBJECT: BLUE LANTERN: VERIFYING BONA FIDES OF REGISTERED
BROKER JOSEPH G.L. CHENG - CASE NO. K-2388

REF: A. SECTION 38(B)(1)(A)(II) OF THE ARMS EXPORT CONTROL
B. ACT (AECA)(22 U.S.C. 2778)

1. This is an Action Request. See paragraphs 3-4.

2. U.S. embassies have frequently inquired about the
legitimacy of arms export transactions involving U.S.
contractors and host-country partners in support of U.S.
efforts in Iraq and Afghanistan, or other U.S. government
programs. The Department's Office of Defense Trade Controls
Compliance (PM/DTCC) wishes to inform AIT Taipei that U.S. or
foreign persons who are involved in brokering U.S. defense
articles or services, or any defense articles or services
pursuant to U.S. procurement contracts for Iraq and
Afghanistan or other destinations under USG auspices, must be
registered with PM/DTCC and obtain Department's approval for
their brokering activities.

3. ACTION: PM/DTCC requests AIT Taipei's assistance in
conducting an inquiry into the brokering activities of the
U.S. registered broker listed below to substantiate its bona
fides. Department requests that AIT Taipei conduct a site
visit to the company in order to assess its business
operations, on-site security, and reliability as a
broker/recipient of United States Munitions List (USML)
items. If a site visit is not possible, please inform the
PM/DTCC case officer. AIT Taipei is requested to complete
this inquiry within 60 days:

JOSEPH G.L. CHENG, GENERAL MANAGER
SUM-MIT CO., LTD
6F 230 YUNG JIH ROAD
TAIPEI
TAIWAN, REPUBLIC OF CHINA

4. The following points are provided for guidance:

-- Confirm that this entity is in the business of brokering
defense articles and defense services at the location(s)
indicated under its legal name(s);

-- Determine whether this entity is authorized to conduct
such activities in its home country, whether the entity has
any criminal or other derogatory background, and whether Post
has any information on its brokering or arms export
activities that may involve proscribed entities such as
countries under U.S. or international sanctions, or
designated state sponsors of terrorism;

-- Will the brokering firm be handling or storing USML items
on behalf of its clients? If so, does it have secure
facilities and proper accounting and security procedures for
handling sensitive USML items?

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

-- What is the nature of its business and what other types of
items does it handle?

-- What types of organizations are among its typical clients
and in what countries are they located?

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

END ACTION.

--------------------------------------------- ---------
BACKGROUND ON BROKERING REGISTRATION AND AUTHORIZATION
--------------------------------------------- ---------

5. PM/DTCC provides the following background information on
the requirements for registration and obtaining prior
approvals for brokering activities:

The requirements for Registration and Obtaining Prior
Approvals for Brokering Activities are based in the Arms
Export Control Act (AECA). The Brokering Requirements are
administered by PM/DTCC.

Section 38(b)(1)(A)(II) of the AECA requires registration for
any person "who engages in the business of brokering
activities with respect to the manufacture, export, import,
or transfer of any defense article or defense service".

According to the International Traffic in Arms Regulations
(ITAR) Section 129.2(a), a broker is defined as:

"any agent for others in negotiating or arranging contracts,
purchases, sales or transfers of defense articles or defense
services in return for a fee, commission, or other
consideration."

Additionally, ITAR Section 129.2(b) states that "brokering
activities means acting as a broker as defined (above), and
includes financing, transportation, freight forwarding, or
taking of any other action that facilitates the manufacture,
export or import of a defense article or defense service,
irrespective of its origin."

Authorization is typically required for brokering activity.
However, some activities are exempt from these requirements
depending on the commodity, the countries involved, and the
existence of previous authorizations. Any questions about
specific cases may be directed to this office to the
attention of Deborah Carroll, Chief, Compliance &
Registration. Phone: 202-663-2809; SIPRNET
carrolld@state.sgov.gov.

End background on brokering registration and authorization.

6. Please slug reply for PM/DTCC and include the words "Blue
Lantern Broker Inquiry" and the case number in the Subject
line. POC is Rachael-Therese S. Joubert-Lin, Phone:
202-663-2950; Email: JoubertLinRS@state.gov;
SIPRNET:JoubertLinRS@state.sgov.gov. The Blue Lantern
Guidebook is available as a PDF file at
http://www.intelink.sgov.gov/wiki/
Blue Lantern
End-Use Monitoring Program.

7. Department is grateful for AIT Taipei's assistance in
this matter.
CLINTON

© Scoop Media

 
 
 
World Headlines

 

UN: COVID Contributed To 69,000 Malaria Deaths WHO Finds, Though ‘Doomsday Scenario’ Averted
Disruptions due to the COVID-19 pandemic resulted in considerable increases in malaria cases and deaths between 2019 and 2020, the World Health Organization (WHO) said on Monday... More>>



Save The Children: World Leaders Urged To Halt Escalating Hunger Crisis

A group of 120 non-governmental organisations has joined forces in an open letter calling on world leaders to do more to halt a devastating global hunger crisis as new analysis shows the number of people likely to be in need of humanitarian aid in 2022 could rise by 17%...More>>

WMO: Another La Niña Impacts Temperatures And Precipitation – But Not Climate Change
La Niña has developed for the second consecutive year and is expected to last into early 2022, influencing temperatures and precipitation. Despite the cooling influence of this naturally occurring climate phenomenon, temperatures in many parts of the world are expected to be above average because of the accumulated heat trapped in the atmosphere...
More>>


Cook Islands: First COVID Case "historical"

The 10 year old child who provided two ‘weak positive’ covid test results after arriving in Rarotonga last Thursday, has returned a negative result in his latest test. That means he’s not infectious and this is an historical case... More>>


Oxfam: Failure To Vaccinate The World Created Perfect Breeding Ground For Omicron, Say Campaigners

Campaigners from the People’s Vaccine Alliance say the refusal of pharmaceutical companies to openly share their vaccine science and technology and the lack of action from rich countries to ensure access to vaccines globally have created the perfect breeding ground for new variants such as Omicron... More>>


World Food Programme: Millions More In Need Of Food Assistance As A Direct Result Of Conflict In Northern Ethiopia

The number of people in need of humanitarian food assistance across northern Ethiopia has grown to an estimated 9.4 million as a direct result of ongoing conflict, the United Nations World Food Programme (WFP) announced today... More>>