EXTRANCHECK: PRELICENSE CHECK CSI MIDDLE EAST

UNCLAS ABU DHABI 000050

SIPDIS

USDOC FOR 532/OEA/STWADDY/MICHELLE ZAGER
SECSTATE FOR EB/ESP
US CUSTOMS HQ FOR STRATEGIC INVESTIGATIONS
ROME FOR CUSTOMS ATTACHE
DUBAI FOR FCS
USDOC 3151 FOR FCS OIO/DIRECTOR

E.O. 12356: N/A
TAGS: ETTC TC
SUBJECT: EXTRANCHECK: PRELICENSE CHECK CSI MIDDLE EAST

REF(S): USDOC O6224; APPLICATION NO. D302748


1. ON 17 DEC COMMERCIAL OFFICER MARY O'BRIEN MET WITH EMAD
BITAR OF CSI MIDDLE EAST AND COR CORBEEK OF EMERSON EUROPE
REGARDING PRELICENSE CHECK RQUESTED IN REFTEL.

2. EMERSON PROCESS MANAGEMENT, FORMERLY EMERSON ELECTRIC,
HAS RECENTLY PURCHASED COMPUTATIONAL SYSTEMS, INC, (CSI) OF
KNOXVILLE, TN. (WWW.CSIMEANSRELIABILITY.COM) CSI IS KNOWN TO
COMMOFF AS A DISTRIBUTOR OF THERMAL IMAGING EQUIPMENT,
INCLUDING FLIR, IN SOUTHEAST ASIA.

3. EARLIER IN THE DAY, COMMOFF O'BRIEN MET WITH MR. BITAR
AT MEOS REGARDING ANOTHER PRELICENSE CHECK (D302543) THAT
ALSO INVOLVED CSI. DURING THAT MEETING, MR. BITAR OF CSI
SAID HE WAS UNAWARE OF ANOTHER ORDER AND PERHAPS HIS BOSS
HAD ORDERED IT WITHOUT HIS KNOWLEDGE. ARRANGEMENTS WERE
MADE TO MEET AT THE PREMISES OF EMERSON/CSI LATER THAT DAY.

4. EMERSON AND CSI MIDDLE EAST SHARE OFFICE SPACE IN THE
JEBEL ALI FREE ZONE. COMOFF MET WITH BITAR AND HIS MANAGER,
COR CORBEEK. CORBEEK EXPLAINED THE CAMERA WOULD BE USED IN
TRAINING CLASSES AT EMERSON'S FACILITY FOR PEOPLE FROM
AROUND THE GULF REGION, NORTH AFRICA, AND SOUTH ASIA. COMOFF
VISITED A CLASS IN SESSION THAT INCLUDED REPRESENTATIVES
FROM MOROCCO, UAE, AND KUWAIT, AS WELL AS A LARGE WELL
EQUIPPED STOREROOM WHERE CSI/EMERSON KEEP A VARIETY OF
INSTRUMENTS FOR TRAINING PURPOSES.

5. WHEN ASKED WHO PLACED THE ORDER ON CSI EUROPE, CORBEEK
SAID IT WAS BITAR, WHO HAD EARLIER SAID HE WAS UNAWARE OF
THE TRANSACTION. WHEN ASKED FOR A COPY THE PURCHASE ORDER
CSI MIDDLE EAST HAD SENT TO CSI EUROPE, BITAR SAID HE WOULD
HAVE TO LOOK FOR IT AND FAX IT TO THE FCS OFFICE. THE
PURCHASE ORDER IS DATED 12/19 TWO DAYS AFTER THE VISIT AND
WAS FAXED TO THE FCS OFFICE ON 12/22. IT ALSO APPEARS THE
PURCHASE ORDER WAS PLACED ON CSI IN THE U.S. RATHER THAN
ELECTROPHYSICS BECAUSE IT SAYS EX WORKS KNOXVILLE WHICH IS
WHERE CSI IS HEADQUARTERED.

6. ON 12/23, COMMOFF RECEIVED A LETTER FROM MR. BITAR
WHEREIN HE FIRST SAYS THE ORDER WAS FOR AN UNNAMED CUSTOMER
IN RAS AL KHAIMAH. COMOFF HAS ATTEMPTED TO CONTACT CSI TO
CLARIFY THE IDENTITY OF THE CUSTOMER IN RAS AL KHAIMAH BUT
IT APPEARS THE CSI IS CLOSED DURING THIS HOLIDAY WEEK. THE
LETTER THEN GOES ON TO SAY THE UNIT WILL BE KEPT IN BELGIUM
AND USED IN TRAINING IN A VARIETY OF PLACES INCLUDING THE
MIDDLE EAST. NO MENTION WAS MADE OF THIS DURING THE MEETING
AT CSI/EMERSON. THE LETTER AND PURCHASE ORDER DOCUMENTS
HAVE BEEN IMAGED AND CAN BE EMAILED FOR EA AND INTERAGENCY
REVIEW.

7. CONTACTS MADE BY OEE HQ (MICHELLE ZAGER) TO THE
APPLICANT, ELECTROPHYSICS, INDICATE THEY HAVE NO
DOCUMENTATION OF THIS ORDER, STATING THEY ARE ACTING AS A
MIDDLEMAN BETWEEN RAYTHEON AND CSI. ELECTROPHYSICS SAYS CSI
BELGIUM WILL BE THE OWNER OF THE CAMERA AND WILL SEND IT TO
DISTRIBUTORS AS NEEDED AND THEN HAVE THE DISTRIBUTORS RETURN
THE CAMERA TO BELGIUM WHEN NOT IN USE.

8. NOTE THAT THE SALE OF A CAMERA TO MEOS WAS SUPPORTED BY
A BXA-711 BUT THAT NO BXA-711 APPEARS TO HAVE BEEN COMPLETED
BY CSI MIDDLE EAST IN THIS CASE. PERHAPS ELECTROPHYSICS
CONSIDERS THIS AN EXPORT FOR DEMONSTRATION; HOWEVER, IT IS
NOT CLEAR WHETHER DEMONSTRATION INCLUDES TRAINING IN THE USE
AND OPERATION OF THE CAMERA AND ACCOMPANYING SOFTWARE.

9. CSI MIDDLE EAST IS THE SOLE PRESENCE OF CSI IN THIS
PART OF THE WORLD. THEY ARE A LEGITIMATE COMPANY WITH A
LEGITIMATE NEED FOR THIS PRODUCT, ALTHOUGH THEY WERE
SOMEWHAT EVASIVE IN THEIR ANSWERS.

10. THE MAIN FOCUS OF THIS CHECK THOUGH REVEALS THAT THE
OWNER, CONSIGNEE AND PARTY FIRST RESPONSIBLE FOR COMPLIANCE
WITH ANY LICENSE CONDITIONS WOULD BE CSI EUROPE. COMOFF
SUGGESTS THAT CSI EUROPE AS WELL AS CSI MIDDLE EAST BE
REQUIRED TO AGREE IN ADVANCE TO ANY LICENSE CONDITIONS,
INCLUDING A SECURITY PLAN AND PROHIBITIONS ON TRAINING
PERSONNEL FOR EMBARGOED DESTINATIONS.

WAHBA#