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Cablegate: Response to Blue Lantern Level 3

VZCZCXYZ0006
OO RUEHWEB

DE RUEHTV #2456/01 3131451
ZNR UUUUU ZZH
O 091451Z NOV 09
FM AMEMBASSY TEL AVIV
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4159
INFO RUEHSI/AMEMBASSY TBILISI PRIORITY 0117
RUETIAA/DIRNSA FORT GEORGE G MEADE MD PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUCNFB/FBI WASHDC PRIORITY
RUEKJCS/SECDEF WASHDC PRIORITY
RUCPDOC/USDOC WASHINGTON DC PRIORITY

UNCLAS TEL AVIV 002456

SENSITIVE
SIPDIS

PM/DTCC - BLUE LANTERN COORDINATOR

E.O. 12958: N/A
TAGS: ETTC KOMC GG IS
SUBJECT: RESPONSE TO BLUE LANTERN LEVEL 3
POST-LICENSE/PRE-SHIPMENT END USE CHECK, LICENSES 050171347
AND 050172400

REF: STATE 88035

1. (SBU) Summary: RPA Port Aviation represents foreign
airlines cargo services in Israel, including Uzbekistan
Airways and Georgian Airlines. According to RPA Port
Aviation Airport Office Manager Refael Dayan, the company has
had a long-standing relationship with the Government of
Georgia. However, Dayan said RPA Port Aviation has only
recently started forwarding defense articles, and described
the company's relationship with Falcon Defense Group as
relatively new. Dayan said RPA Port Aviation relies on a
private cargo security facility at Ben Gurion International
Airport to store shipments clearing Israeli customs. While
Dayan seemingly has a firm grasp of U.S. defense export
regulations, he could not accurately answer whether RPA Port
Aviation possesses a U.S. brokering license. Dayan confirmed
that RPA Port Aviation is a registered broker in Israel.
Polmiloff discussed these issues with Dayan on November 9.
End Summary.

2. (SBU) Per reftel, polmiloff visited the Tel Aviv offices
Migdalor Building, 1 Ben Yehuda Street) of RPA Port Aviation
on November 9. According to Airport Office Manager Refael
Dayan, RPA Port Aviation is a subsidiary of RPA Port LTD,
which has been operating for the last 35 years under owner
and CEO Dov Rapaport. In addition to international
forwarding, Dayan said RPA Port LTD represents several
foreign airlines' cargo and ticketing services in Israel.
Besides RPA Port Aviation, RPA Port LTD also consists of RPA
Port International and RPA Port Panorama. RPA Port
International is a forwarding and customs clearing company
that transports cargo throughout the former Soviet Union.
According to Dayan, RPA Port International claims expertise
in customs brokerage, import/export services, and logistics,
including land transportation, shipping warehousing,
inspections, ship operations, and chartering. RPA Port
Panorama is the ticketing agent for "Uzbekistan Airways" in
Israel.

3. (SBU) Dayan said RPA Port Aviation represents several
foreign airlines in Israel, and is the general sales agent
for Uzbekistan Airways and Georgian Airlines cargo air
freights. Dayan noted that the company's headquarters is
based in Haifa (2 Hanamal Street), but maintains offices at
Ben Gurion International Airport (Maman Building, No. 1103),
Tel Aviv, and Ashdod, and works through a local agent in
Eilat. He explained that RPA Port Aviation ships "all kinds
of cargo," from perishables and livestock to military
equipment. Dayan claimed RPA Port Aviation only forwards
defense articles to foreign government ministries -- not to
"small companies." He said less than one percent of RPA Port
Aviation's annual sales are comprised from U.S.-origin
defense articles. Dayan was reluctant to divulge any of RPA
Port Aviation's other foreign government clients for
proprietary reasons.

4. (SBU) Dayan said RPA Port Aviation's relationship with the
Government of Georgia has spanned "a number of years," or as
long as there have been direct Georgian Airlines flights to
and from Israel. He said RPA Port Aviation had only recently
began brokering defense articles, and confirmed that the
company is a registered broker within Israel. RPA Port
Aviation's relationship with Falcon Defense Group also is
relatively new, he explained. When asked about a U.S.
brokering license, Dayan provided a copy of a DSP-119 form
dated March 19, 2009, listing both RPA Port Aviation and
Falcon Defense Group as proof RPA Port Aviation was a
registered U.S. broker. He explained that RPA Port Aviation
receives a commission for its forwarding services; this
commission is in addition to air freight, handling and
storage fees.

5. (SBU) Dayan said RPA Port Aviation does not technically
take any shipment into possession. Rather, Dayan confirms
upon a shipment's arrival its authenticity based on
documentation submitted in support of its license
application. While clearing customs, the shipment is stored
with Maman Cargo and Security, a former state-owned security
company located at Ben Gurion International Airport that was
privatized in 1989. According to Dayan, the shipment is
placed in a secure cage located in a Maman Cargo and Security
warehouse. Maman Cargo and Security controls access to the


cage, which includes 24-hour armed security and video cameras
-- "not even I have access to the shipment," Dayan said. He
explained that it typically takes several days for shipments
to clear customs before they are forwarded on to their final
destination.

6. (SBU) Dayan possessed documentation in support of the two
Falcon Defense Group transactions (reftel), including copies
of end user certificates, purchase orders, and DSP-5s. While
seemingly confused about the question regarding a U.S.
brokering license, Dayan appeared familiar with regulations
governing the brokering of U.S.-origin defense articles,
including restrictions on re-transfer and re-export.
CUNNINGHAM

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