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Cablegate: Blue Lantern Level 3: Post-Shipment End-Use Check

VZCZCXYZ0029
RR RUEHWEB

DE RUEHC #4537 3381858
ZNR UUUUU ZZH
R 041857Z DEC 09
FM SECSTATE WASHDC
TO RUEHWL/AMEMBASSY WELLINGTON 0000
INFO RUEHBY/AMEMBASSY CANBERRA 0000
RUEKJCS/SECDEF WASHINGTON DC
RUCPDOC/USDOC WASHINGTON DC 0000
RHMCSUU/FBI WASHINGTON DC 0000
RUETIAA/DIRNSA FT GEORGE G MEADE MD
RUEAIIA/CIA WASHINGTON DC

UNCLAS STATE 124537

SIPDIS
WELLINGTON FOR MICHAEL LAYNE

E.O. 12958: N/A
TAGS: ETTC KOMC NZ AS
SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK
ON LICENSE 050193101

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 post-shipment check on license 050193101 for the export of
International Traffic in Arms (ITAR)-controlled turbine
engine lubricating oil tanks to Australia. Post is requested
to complete this Blue Lantern inquiry within 45 days. Lack
of response to a Blue Lantern inquiry will affect pending and
future licenses involving parties to this license.

3. Reason for request: Subject application 050193101 is the
third in a series of license request from applicant to export
oil tanks to the Australian Department of Defense (ADOD) via
Milspec Services Pty Ltd (foreign intermediate consignee) and
Safe Air Ltd (foreign consignee). License 050146824
originally approved the export of five tanks. License
050169857 covered three replacement tanks because three of
the five tanks from the original shipment were claimed by
Safe Air to be damaged beyond repair. The subject license
requested export of another three tanks to replace three of
the previously shipped tanks that are again claimed to be in
non-repairable condition.

4. ACTION: The Department requests that Post make inquiries
with Safe Air Ltd. in order to: (1) verify that eleven tanks
were received; (2) verify the claim that six were in
non-repairable condition; (3) verify if the tanks have been
delivered to the ADOD; and (4) determine the disposition of
the non-repairable tanks.

END ACTION.

5. Details of license application:

DTC CASE: 050193101

QUANTITY/COMMODITY:

3 - Turbine Engine Lubrication Oil Tank, Part No. 918918-103

License Value: 54,000.00 USD

(COMMENT: According to US Customs data, the tanks were
exported on 16 October 2009. END COMMENT)

SELLER:

Blue Aerospace LLC
6501 B Nob Hill Road
Tamarac, FL 33321
Tel: 954-718-4404
POC: Sandra Estrada

FOREIGN INTERMEDIATE CONSIGNEE:

Milspec Services Pty Ltd
151 Currumburra Road
Ashmore, QLD 4214
Australia
Tel: 61-7-55579700

FOREIGN CONSIGNEE:

Safe Air Ltd
1 Tancred Crescent Supply Central Blenheim Airport
Marlborough 7204
New Zealand
Tel: 64-3-572-8416

FOREIGN END-USER:

Australian Department of Defense
Russell Offices
Canberra, ACT 2600
Australia

PURPOSE:

For the support of the repair and maintenance of the
Australian Air Force P-3 & C-130 aircraft program.

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

--Purchase Order No. J89537 from Milspec Services, dated 20
January 2009.

--End-Use Certification from Milspec Services, dated 18
February 2009.

--Transmittal Letter from Blue Aerospace, dated 2 October
2009.

--Department of State License for Permanent Export of
Unclassified Defense Articles and Related Unclassified
Technical Data, signed 5 October 2009, approved 14 October
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 Meredith Sundlof. Phone:
202-663-3455; Email: SundlofME@state.gov; SIPRNET:
SundlofME@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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