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Cablegate: Blue Lantern Level 3: Post-License/Pre-Shipment

VZCZCXYZ0019
RR RUEHWEB

DE RUEHC #5613 0201910
ZNR UUUUU ZZH
R 201904Z JAN 10
FM SECSTATE WASHDC
TO RUEHLO/AMEMBASSY LONDON 0000
INFO 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 005613

SENSITIVE
SIPDIS
LONDON FOR RAMON ESCOBAR

E.O. 12958: N/A
TAGS: ETTC KOMC UK
SUBJECT: BLUE LANTERN LEVEL 3: POST-LICENSE/PRE-SHIPMENT
END-USE CHECK ON LICENSE 050203970

REF: A. A. 2006 BLUE LANTERN GUIDEBOOK
B. B. IIR 7 114 1010 06 OF 31 MAY 2009

1. (U) This is an Action Request. See paragraphs 2-4.

2. (U) The Department's Office of Defense Trade Controls
Compliance (PM/DTCC) requests Post's assistance in conducting
a post-license/pre-shipment check on license 050203970 for
the export of International Traffic in Arms (ITAR)-controlled
aircraft parts to the United Kingdom. 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. (SBU) Reason for request: Concerns about foreign consignee
Aviation Trading Co. (a.k.a. Hayward and Green Aviation Ltd.)
(see ref B). Additionally, the license request is only
supported by a "blanket" Letter of Intent ($1 million request
for various spare parts for multiple different aircraft).
Aviation Trading's website describes itself as a leading
stockist and distributor. This line of business, combined
with the open-ended blanket license, is a scenario that
suggests stockpiling of parts by Aviation Trading
(stockpiling is forbidden under the ITAR without a specific
agreement to do so). No firm purchase orders were submitted.

4. (U) ACTION: The Department requests that Post make
inquiries to verify Aviation Trading is a bona fide supplier
of aircraft parts to the foreign end-user, the UK Royal Air
Force (RAF). Post is also requested to remind Aviation
Trading officials of the restrictions on USML items,
especially the prohibition against unauthorized re-transfer
and re-export. The Department anticipates that a
post-shipment end-use check may be necessary in the future to
verify that all items have been received by the UK Royal Air
Force.

The following questions are provided for guidance:

--Can Aviation Trading provide documentation that verifies
the end-use of the aircraft parts, such as a contract or
purchase order?

-- Does Aviation Trading intend to re-export or retransfer
any of these items to any user other than RAF?

--Does Aviation Trading have system in place to ensure that
USML items received under this license are only provided to
the RAF, and not a different end-user?

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

END ACTION.

5. (U) Details of license application:

DTC CASE: 050203970

QUANTITY/COMMODITY:

Lot - Spare parts and components for multiple aircraft,
ground support equipment, avionics, engine, and airframe in
the UK Royal Air Force.

License Value: 1,000,000.00 USD

SELLER:

Associated Aircraft Mfg. & Sales
2735 NW 63rd Ct.
Fort Lauderdale, FL 33309
Tel: 954-772-6606 ext. 333
POC: Mimi Bergevin

FOREIGN CONSIGNEE:

Aviation Trading
Unit 1 & 2 Terry's Cross Farm Horn Lane
Woodmancote W. Sussex BN59SA
United Kingdom
Tel: 44 (0) 1273 494216
POC: Jeremy Green, Sales Director

FOREIGN END-USER:

UK Ministry of Defence
Main Building, Whitehall
London, SW1A 2HB
United Kingdom

PURPOSE:

For maintenance and repair of the following aircraft in the
UK MOD inventory: BAE Hawk T1, T1A, T2; Tornado GR4.F3;
Harrier GR-7, GR7A, GR9, T10, T12; Eurofighter Typhoon T1,
F2, FGR4; Westland Sea King HAR3A, Eurocopter Puma HC1;
Nimrod R1; Boeing Chinook HC2, HC2A; Boeing C17A Globemaster
III; Lockheed C-130, C1, C3, C3A, C4, C5.

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

--Letter of Intent signed by Mr. Jeremy Green, dated 5
November 2009.

--Department of State License for Permanent Export of
Unclassified Defense Articles and Related Unclassified
Technical Data, signed 7 December 2007, approved 18 December
2009.

7. (U) 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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