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

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RR RUEHWEB

DE RUEHC #3909 3371457
ZNR UUUUU ZZH
R 031452Z DEC 09
FM SECSTATE WASHDC
TO RUEHKL/AMEMBASSY KUALA LUMPUR 0000
RUEHGP/AMEMBASSY SINGAPORE 0000
INFO RUEAIIA/CIA WASHINGTON DC
RHMCSUU/FBI WASHINGTON DC 0000
RUETIAA/DIRNSA FT GEORGE G MEADE MD
RUCPDOC/USDOC WASHINGTON DC 0000
RUEKJCS/SECDEF WASHINGTON DC

UNCLAS STATE 123909

SIPDIS
KUALA LUMPUR FOR WYNN PINKSTON
ECON
SINGAPORE FOR MATTHEW EASTER
ECON

E.O. 12958: N/A
TAGS: ETTC KOMC MY SN
SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK
ON LICENSE 05-1008904

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 post-shipment check on license 05-1008904 for the export of
International Traffic in Arms (ITAR)-controlled night vision
devices (NVDs) to Malaysia. Posts are 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: 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 U.S. Government
request.

4. Action Kuala Lumpur: The Department requests that Post
inquire within the Malaysian Government to confirm the
continued possession of the NVDs by the Royal Malaysian
Police, Narcotics Department. Verify the serial numbers of
the NVDs and confirm that all of them are secure and being
used only for the purpose stated on the license. Department
further requests that Post conduct a site visit in order to
gather and verify this information. If a site visit is not
possible, please obtain official, written confirmation of
receipt and possession of the NVDs by the end-user, and
inform the PM/DTCC case officer.

Action Singapore: Post is requested to make appropriate
inquiries with Foreign Consignee Lexian Electronics to
determine its specific role, and confirm the legitimacy of
the transaction.

The following questions are provided as guidance:

-- How long has this company been involved in business
operations with the Malaysian government? Does it have a
regular business relationship with the Malaysian government?

--Does the company have secure facilities and proper
accounting and security procedures for handling sensitive
United States Munitions List (USML) items?

--Were all of the NVGs ordered by Lexian provided to the
Royal Malaysian Police? If not, where are the others?

--Does Lexian Electronics understand the restrictions on USML
items, especially the prohibition against unauthorized
re-transfer and re-export?

END ACTION

5. Details of license application:

DTC Case: 05-1008904

QUANTITY/COMMODITY:

10 AN/PVS-7B Style, GEN III FOM 1250 Night Vision Goggles

License Value: USD 31,265.

COMMENT: According to U.S. export data, "Prism Binoculars"
were exported to Malaysia on 01 November 2006.

END COMMENT

SELLER:

DRS Technologies, Inc.
Night Vision Systems, Inc.
542 Kemmerer Lane
Allentown, PA 18104
Tel: (6102) 391-9101

FOREIGN (INTERMEDIATE) CONSIGNEE:

Graham R. Dare
Managing Director
Lexian Electronics Pte Ltd.
346 Balestier Road, #06-05
Singapore 329776
Tel: 65 6256 4148
Fax: 65 6256 4127
Email: lexelec@singnet.com.sg

FOREIGN END-USER:

Khairul Naim Bin Adham
Pen. Setiausaha (PL) T4
Royal Malaysian Police
Kesselamatan DLM Negeri Kem
Bahagian Perolehan
Bukit Aman
Kuala Lumpur 50560
Malaysia

PURPOSE: For use in night patrols.

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

-- Department of State License for Permanent Export of
Unclassified Defense Articles and Related Unclassified
Technical Data with Provisos dated 11 August 2006;

-- Department of State Nontransfer and Use Certificate dated
22 August 2005;

-- Lexian Electronics' End Use Statement for Purchase Order
LX(S)/200/014/1061 dated 23 January 2006.

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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