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

VZCZCXYZ0013
RR RUEHWEB

DE RUEHC #1561 3631800
ZNR UUUUU ZZH
R 291755Z DEC 09
FM SECSTATE WASHDC
TO RUEHWL/AMEMBASSY WELLINGTON 0000
INFO RHMCSUU/FBI WASHINGTON DC 0000
RUEAIIA/CIA WASHINGTON DC
RUCPDOC/USDOC WASHINGTON DC 0000
RUEKJCS/SECDEF WASHINGTON DC
RUEPINS/HQ BICE INTEL WASHINGTON DC 0000

UNCLAS STATE 131561

SIPDIS
NEW ZEALAND FOR MICHAEL LAYNE

E.O. 12958: N/A
TAGS: ETTC KOMC NZ
SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK
ON LICENSE 050020134

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 050020134 for the
export of night vision devices (NVDs) to
New Zealand. Post is requested to complete this Blue Lantern
check within 45 days. Lack of response to a Blue Lantern
check will affect pending and future licenses involving
parties to this license.

3. Reason for request: Unfamiliar foreign consignee and
end-user, Southern Lakes Helicopter.
The company has appeared on previous licenses but the
company's bona fides have not been
verified by a Blue Lantern check. Moreover, due to the
sensitivity of the
equipment and the potential for their diversion or misuse,
the Department of State and the Department of Defense have
policies of carefully scrutinizing NVD export licenses and
taking steps to ensure proper end-use. Provisos attached
to these licenses obligate the end-user to secure the NVDs
from loss, theft, or unauthorized access, and to perform
routine inventory checks by serial number. These records
are to be made available for review upon US Government
request. Specific to license 050020134 is a proviso
stipulating that
that the NVDs must ONLY be used when performing search and
rescue (S&R)
and emergency medical service (EMS) operations for Government
of New Zealand (GONZ) agencies
only and must not be used in conjunction with any independent
commercial operations.

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4. Action Request: Post is requested to make inquiries
to confirm continued possession by Southern Lakes Helicopter
of
the NVDs, to determine the serial numbers of the NVDs, and
to verify that all NVDs are secure and being used only for
the purpose stated on the license. Department requests
that post conduct a site visit, if possible, in order to
gather and verify this information and establish the bona
fides of
unfamiliar foreign end-user, Southern Lakes Helicopters. If
a site visit is
not possible, please obtain official written confirmation
of receipt and possession and inform PM/DTCC case officer.

The following questions are provided as suggested guidance:

--Does the company have a current contract with GONZ agencies
for performing S&R and EMS operations?

--Does the company have secure facilities and proper
accounting and security procedures for handling sensitive
USML items?

--What is the exact end-use for this USML item?

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

--What is the nature of its business -- what type of items
does it handle?

--What type of organizations are among its typical customers
and where are the customers located?

--Does the company understand the restrictions on United
States Munitions List (USML) items, especially the
prohibition against unauthorized re-transfer and re-export?
END ACTION

5. For background, the following details of the license in
question are provided:

DTC Case: 050020134

QUANTITY/COMMODITY:

2 ITT Model F4949F, Gen III AN/AVS 9 Night Vision Goggle
with FOM of 1600 or less including accessories

License Value: USD 21,000.00

COMMENT: According to U.S. Customs data, 2 NVDs were exported
to New Zealand on 29 July 2007
END COMMENT

SELLER:

Aviation Specialties Unlimited, Inc.
4632 W. Aeronca St.
Boise, ID 83705
POC is Chris Atwood, Tel. 208-287-5389

FOREIGN CONSIGNEE:

Southern Lakes Helicopter
Lakefront Dr. P.O. Box 156
Te Anau
New Zealand
POC is Richard Hayes, Tel. (03) 249 7167

FOREIGN END-USER:

Southern Lakes Helicopter
Lakefront Dr. P.O. Box 156
Te Anau
New Zealand
POC is Richard Hayes, Tel. (03) 249 7167

PURPOSE:

Night vision equipment to be used to improve safety during
night air operations and for S&R and EMS missions conducted
through established government contracts.

6. 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 Tim Mazzarelli, Phone:
202-663-3867; Email: MazzarelliTP@state.gov; SIPRNET:
MazzarelliTP@state.sgov.gov. The Blue Lantern Guidebook
(ref) is available as a PDF file in the Bunche Library's
E-Book Collection on the DOS Intranet:
http://buncheelectroniclibrary.state.gov/eboo ks/
BlueLanternGuidebook2006%20 final .pdf


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

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