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

VZCZCXYZ0002
RR RUEHWEB

DE RUEHC #7765 3181848
ZNR UUUUU ZZH
R 141844Z NOV 09
FM SECSTATE WASHDC
TO RUEHIN/AIT TAIPEI 0000
INFO RUETIAA/DIRNSA FT GEORGE G MEADE MD
RUCPDOC/USDOC WASHINGTON DC 0000
RUEKJCS/SECDEF WASHINGTON DC
RHMCSUU/FBI WASHINGTON DC 0000
RUEAIIA/CIA WASHINGTON DC

UNCLAS STATE 117765

SIPDIS
AIT-TAIPEI FOR MATTHEW O'CONNOR & MI-YONG KIM

E.O. 12958: N/A
TAGS: ETTC KOMC TW
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK
ON APPLICATIONS 050197967 AND 050198220

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 AIT Taipei's assistance in
conducting a pre-license, end-use check on applications
050197967 and 050198220 for the export of International
Traffic in Arms (ITAR)-controlled datalink equipment to
Taiwan. AIT Taipei is requested to complete this Blue
Lantern inquiry within 30 days. Lack of response to a Blue
Lantern inquiry will affect pending and future licenses
involving parties to this license.

3. Reason for request: Foreign Consignee Carbon-Based
Technology, Inc. has never appeared on a license; sensitive
ITAR equipment.

4. Action: Department requests that AIT Taipei make
inquiries to establish the bona fides of the foreign
consignee in the proposed transactions. If possible, conduct
a site visit to assess the company's reliability as a
recipient of United States Munitions List (USML) items as
well as its operations and on-site security. Emphasize that
the unauthorized re-export or retransfer of USML items is
strictly prohibited. Confirm with the end-user that it
placed the orders for the items listed below for the purpose
stated on the applications. Determine whether any other
Taiwan-based firms are involved in the procurement of the
items. Remind the end-user that the unauthorized re-export or
retransfer of United States Munitions List (USML) items is
strictly prohibited.

The following questions provide guidance:

- Please confirm orders for the items listed on licenses
050197967 and 050198220.

- Does Carbon-Based Technology understand the restrictions
against the unauthorized re-export or retransfer of
U.S.-origin defense articles?

- Does Carbon-Based Technology serve as a broker of USML
articles with any countries besides Taiwan? If so, where? If
your company has offices abroad, where are they located? Has
this company ever used any other names?

- How long has your company been in the business of importing
and selling defense articles?

- What other products are sold by this company?

- How long has Carbon-Based Technology, Inc. been involved
in business operations with End-User Chung Shan Institute of
Science and Technology?

- What business relationship, if any, does your company have
with the Government of Taiwan?

End Action Request.

5. Details of license applications:

DTC CASE: 050197967

QUANTITY/COMMODITY:

1 Lot Components, parts and accessories for Datalink System
for Chung Shyang II UAV Ground Station:
BMU85-4ADSS Upconverter x 2, BMR120-4AT Tracking
Receiver x 2, Feed Antenna x 1
P/N 761363107 x 1, MU-100 Modulator x 2, Control Box
P/N 800600428 x 2 and TBM-400S Modem x 2,
with manuals.

License Value: USD $210,453.

DTC CASE: 050198220

QUANTITY/COMMODITY:

1 Unit Video Transmitter Model BMT85-4A

License Value: USD $2600.

SELLER:

Broadcast Microwave Services, Inc.
Attn: Ann Chen
12367 Crosthwaite Circle
Poway, CA 92064
(858)842-4720

FOREIGN CONSIGNEE:

Wen-Long Chung
Carbon-Based Technology, Inc.
1099-5, Sec. 3
Song Chiu Road
Taichung City (406)
Taiwan
Republic of China
Tel: 886 4 2426 7288
Fax: 886 4 2426 7289

END USER:

Yuan-Hwang Lian
Chief, Remote Control Section
Information & Communication Research Division
Chung Shan Institute of Science & Technology
No. 481 Chia An Sec
Chung-Cheng Road
Chia-An Village
Lung-Tan, Taoyuan
Taiwan
Republic of China

PURPOSE:

Datalink System supports surveillance, coastal patrol and
typhoon damage investigations involving the Chung-Shyang II
UAV. Components and spare parts are for its ground station
with less than 200 kilometer maximum range. The UAV has a 25
kilogram EO payload. The BMT85-4A is a component of Datalink
System and is used for transmission of video and other data
between Chung-Shyang II UAV and its ground station.

6. Submitted in support of the license applications were the
following documents
(PM/DTCC will fax documentation to AIT Taipei upon request):

-- Chung Shan Institute of Science and Technology End-Use
Statement dated 7 September 2009 which references CSIST Order
No. XC98Q20P;

-- U.S. Department of State Non-Transfer and Use Certificate
dated September 2009;

-- Carbon-Based Technology, Inc. Purchase Order No.
PO-98PO408-1.

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 Rachael-Therese S. Joubert-Lin, Phone: 202-663-2950;
Email:
JoubertLinRS@state.gov; SIPRNET: JoubertLinRS@ The Blue
Lantern Guidebook
(ref) is available at
http://www.intelink.sgov.gov/wiki/Department< /a> of
State%27s Blue Lantern End-Use Monitoring Program

8. (U) Department is grateful for AIT Taipei's assistance in
this matter.
CLINTON

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