EXTRANCHECK: PRELICENSE CHECK ZAD ELECTRONICS

UNCLAS ABU DHABI 000314 SIPDIS USDOC FOR 532/OEA/STWADDY/MICHELLE ZAGER USDOC FOR 3131/USFCS/OIO/ANESA/RD/B ORR SECSTATE FOR EB/ESP AND NEA/LAURA MALENAS US CUSTOMS HQ FOR STRATEGIC INVESTIGATIONS LONDON FOR FCS WILLIAM BREKKE LONDON FOR CUSTOMS ATTACHE ROME FOR CUSTOMS ATTACHE DUBAI FOR FCS E.O. 12958: N/A TAGS: ETTC TC SUBJECT: EXTRANCHECK: PRELICENSE CHECK ZAD ELECTRONICS REFTEL USDOC 06400, LICENSE APPLICATIONS D303088 AND D303089 ¶1. REFTEL REQUESTED THAT AMEMBASSY ABU DHABI CONDUCT PLC FOR TWO EXPORT LICENSE APPLICATIONS LISTING ZAD ELECTRONICS AS THE ULTIMATE CONSIGNEE. THE CONTACT NUMBERS LISTED IN THE CABLE, 04-269-7588 AND 050-788-5969, ARE A FAX MACHINE AND MOBILE PHONE, RESPECTIVELY. ¶2. ON 12/29/02, FCS CONTACTED MR. OSAMA (NFI) AT THE MOBILE PHONE NUMBER PROVIDED. MR. OSAMA FIRST STATED THAT HE KNEW NOTHING ABOUT THE ORDER BUT SAID HIS CO-WORKER, MAJID HAMDI, MAY HAVE ORDERED THE ITEMS. MR. OSAMA STATED THAT MAJID HAMDI WAS VISITING THE UK AND WOULD RETURN SOMETIME IN THE NEAR FUTURE. FCS LEFT CONTACT NUMBERS WITH MR. OSAMA FOR MAJID HAMDI TO CALL FCS UPON HIS RETURN. ¶3. ON 01/05/03, FCS AGAIN CONTACTED MR. OSAMA BY PHONE TO SEE IF MAJID HAMDI HAD RETURNED FROM THE UK. MR. OSAMA, WHO REFUSED TO PROVIDE HIS FAMILY NAME, SAID ZAD ELECTRONICS IS NO LONGER INTERESTED IN PURCHASING THE SUBJECT ITEMS. DURING THIS CONVERSATION MR. OSAMA SAID THAT MAJID HAMDI DOES NOT WORK FOR ZAD ELECTRONICS, BUT IS INSTEAD A FRIEND OF MR. OSAMA. MAJID HAMDI HAD ASKED MR. OSAMA TO USE HIS COMPANY TO FACILITATE THE ORDER OF THE SUBJECT ITEMS FROM THE U.S. MR. OSAMA SAID FURTHER THAT HIS FRIEND IS A RESIDENT OF THE UK AND DOES NOT RESIDE IN THE UAE. PLEASE NOTE THAT THE FOREIGN PURCHASER IS LISTED ON THE APPLICATION AS SHOGUN INC LTD T/A SHOGUN ELECTRON, 35 A WOODSTOCK AVE, LONDON, UK. MR. OSAMA DID NOT KNOW WHETHER MAJID HAMDI IS CONNECTED WITH SHOGUN INC. ¶4. RECOMMENDATION: POST RECOMMENDS REJECTION OF THIS EXPORT LICENSE AS THE ULTIMATE CONSIGNEE LISTED ON THE APPLICATION IS LIKELY BEING USED AS A STRAW MAN FOR A POSSIBLE DIVERSION. POST ALSO RECOMMENDS AGAINST RETURN WITHOUT ACTION BASED ON A CANCELED ORDER. SINCE A DIRECT EXPORT TO THE UK MIGHT NOT REQUIRE AN EXPORT LICENSE, POST ALSO RECOMMENDS THAT OEE CONDUCT AN OUTREACH VISIT TO THE EXPORTER TO CONFIRM THE REJECTION AND DISCUSS ACTION IN THE EVENT OTHER ORDERS ARE RECEIVED FROM SHOGUN IN THE UK. WAHBA#