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

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DE RUEHC #0913 3281411
ZNR UUUUU ZZH
R 241406Z NOV 09
FM SECSTATE WASHDC
TO RUEHKB/AMEMBASSY BAKU 0000
RUEHBM/AMEMBASSY BUCHAREST 0000
INFO RUEHTV/AMEMBASSY TEL AVIV 0000
RUETIAA/DIRNSA FT GEORGE G MEADE MD
RUEAIIA/CIA WASHINGTON DC
RHMCSUU/FBI WASHINGTON DC 0000
RUCPDOC/USDOC WASHINGTON DC 0000
RUEKJCS/SECDEF WASHINGTON DC

UNCLAS STATE 120913

SIPDIS
BAKU FOR ROBERT J. GAVERICK
POL-ECON CHIEF & PETER D. ANDREOLI
POL
BUCHAREST FOR CHRISTOPHER A. ELLIS
ECON COUNS.

E.O. 12958: N/A
TAGS: ETTC KOMC AJ RO
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK
ON APPLICATION 050201153

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 Posts'
assistance in conducting a pre-license check on application
050201153 for the export of an
International Traffic in Arms (ITAR)-controlled IFF
Transponder to Azerbaijan. Posts are requested to complete
this Blue Lantern check within 30 days. Lack of response to
Blue Lantern inquiries will
affect pending and future licenses involving parties to this
license.

3. Reason for Request: To verify bona fides of transaction
and establish role of Foreign Consignee Aerostar S.A.;
unusual routing; diversion concerns.

4. Action Bucharest: Department requests that Post make
inquiries to verify Aerostar S.A.'s role in the transaction
listed below for the purpose stated on the application.
Determine whether any other Romanian-based entities are
involved in the procurement of the item. 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.

The following questions are provided as guidance:

Please confirm an order for the item listed on license
050201153.

- Does this company serve as a broker of USML articles with
any countries besides Romania and Azerbaijan? If so, where?
If the company has offices abroad, where are they located?
Has this company ever used any other names?

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

- What other products are sold by this company?

- How long has this company been involved in business
operations with the Government of Azerbaijan; do you have a
regular business relationship with Azerbaijan?

-- Does the company have proper supporting documentation from
the Azerbaijan MOD for the proposed transaction?

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

Action Baku: Confirm that the Azerbaijan Ministry of Defense
(MOD) ordered the IFF Transponder listed on the license
application for the specified purpose. Inquire about
Romanian Foreign Consignee Aerostar S.A.'s specific role in
this transaction, and determine how long the Azerbaijan MOD
has done business with this entity. Determine if Aerostar
S.A. is an official supplier/contractor for the MOD, and
obtain the specifics of any other contracts this entity
currently holds with the MOD.

End Action Request.

5. Details of license application:

DTC Case: 050201153

QUANTITY/COMMODITY:

1 Model 57 IFF Transponder, P/N 4083500-0550

License Value: USD $122,000.

SELLER:

Raytheon Company
Network Centric Systems
1300 East Joppa Road
Baltimore, MD 21286
(410)583-4079

FOREIGN CONSIGNEES:

Sharona T. Schneider
Export Licensing Administrator
Dov Lahat, Buyer
Elbit Systems
61 Ha Yotzrim Street
P.O. Box 650
Karmiel 20101
Israel
Tel: 972 4831 7884; 972 4 9901 1111
Fax: 972 4831 6968; 972 4 9901 1100

Mr.Dan Ionesi
Aerostar S.A.
Condirolor 9, Bacau
Romania

END-USER:

Lieutenant Colonel Oktay Badalov
Fuad Mamedov
Aoil Guseynov
Azerbaijan Air Force
Ministry of Defense
Parliament Prospect 3
Baku AZ0073
Azerbaijan

PURPOSE:

For Ground Radar Upgrade Program: Integration of Western IFF
system in existing Search Radars.

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

-- U.S. Department of State Nontransfer and Use Certificate
(DSP-83) dated November 2009;

-- Elbit Systems' Purchase Order No. DLF900243 dated April
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 Rachael-Therese S. Joubert-Lin,
Phone: 202-663-2950; Email: JoubertLinRS@state.gov; SIPRNET:
JoubertLinRS@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 Posts' assistance in this
matter.
CLINTON

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