BLUE LANTERN LEVEL 2: PRELICENSE CHECK ON 05-934075

UNCLAS ABU DHABI 003253 SIPDIS STATE FOR PM/DTCC - BLUE LANTERN COORDINATOR DAMASCUS FOR DRUBENSTEIN E.O. 12958: N/A TAGS: KOMC ETTC TC SY SUBJECT: BLUE LANTERN LEVEL 2: PRELICENSE CHECK ON 05-934075 REF: STATE 182909 ¶1. REFTEL REQUESTED THAT POST CONDUCT AN ON-SITE VISIT TO MICROHIT TECHNOLOGIES, THE INTERMEDIATE CONSIGNEE ON THE ABOVE-CAPTIONED APPLICATION FOR EXPORT LICENSE. ON SEPTEMBER 8, 2004, COMMERCIAL OFFICER AND EXPORT CONTROL ATTACHE MARY O'BRIEN VISITED THE OFFICES OF MICROHIT AND MET WITH M.P. CHANDRAN, THE MANAGING DIRECTOR OF MICROHIT. MICROHIT IS LOCATED IN A MODERN OFFICE BUILDING IN DOWNTOWN DUBAI AND IS STAFFED BY FIVE PEOPLE, THREE OF WHOM ARE TECHNICALLY TRAINED. MICROHIT, ESTABLISHED IN 2001, IS A SUPPLIER OF COMMUNICATIONS EQUIPMENT, SUCH AS PAGING AND TWO-WAY RADIO SYSTEMS, TO A VARIETY OF ORGANIZATIONS THROUGHOUT THE MIDDLE EAST, INCLUDING ARAMCO AND THE US AIR FORCE. THEY ARE THE EXCLUSIVE AGENTS FOR FOUR AMERICAN COMPANIES, ZETRON, EF JOHNSON, ITRONIX AND VYTEK. CHANDRAN WAS PREVIOUSLY EMPLOYED BY GLENAYRE, AN AMERICAN COMPANY LOCATED IN DULUTH, GEORGIA. WHEN GLENAYRE CLOSED THEIR OFFICES IN THE MIDDLE EAST IN 2001, CHANDRAN WAS RETAINED AS A CONSULTANT TO PERFORM SERVICE ON GLENAYRE EQUIPMENT PREVIOUSLY SOLD IN THE REGION. CHANDRAN ALSO STARTED UP HIS OWN COMPANY TO SELL COMMUNICATIONS EQUIPMENT IN THE REGION. THERE IS NO DEROGATORY INFORMATION CONCERNING THE BUSINESS OPERATIONS OF MICROHIT. ¶2. CHANDRAN SAID HE HAS SOLD COMMUNICATIONS EQUIPMENT TO THE UNITED NATIONS DISENGAGEMENT OBSERVER FORCE (UNDOF) IN SYRIA IN THE PAST, BUT THE EQUIPMENT DID NOT REQUIRE AN EXPORT LICENSE. HE EXPLAINED THAT THE SYSTEM THAT IS THE SUBJECT OF THIS EXPORT LICENSE WILL BE USED BY THE UNDOF AT CAMP FAOUAR IN THE GOLAN HEIGHTS AND WILL CONNECT THE ISOLATED UNDOF OBSERVER STATIONS LOCATED THROUGHOUT THE MOUNTAINOUS REGION TO ONE ANOTHER AND TO THE BASE STATION. CHANDRAN PROVIDED COMMOFF WITH COPIES OF THE PURCHASE ORDER ISSUED BY UNDOF AND A COPY OF THE UNDOF END USE STATEMENT, WHICH SAYS THE EQUIPMENT WILL BE REEXPORTED FROM SYRIA TO A LOCATION OUTSIDE OF THE UNDOF MISSION AREA (SYRIA AND ISRAEL) BY UNDOF UPON COMPLETION OF THE UNDOF MANDATE. COPIES CAN BE PROVIDED UPON REQUEST. ¶3. THE SYSTEM WILL BE TRANSSHIPPED THROUGH DUBAI TO DAMASCUS, WHERE IT WILL BE DELIVERED TO UNDOF'S CLEARING AGENT. UNDOF STAFF WILL TAKE POSSESSION OF THE GOODS FROM THE CLEARING AGENT AND DELIVER IT TO CAMP FAOUAR, WHERE UNDOF PERSONNEL WILL INSTALL THE SYSTEM. CHANDRAN SAID THERE IS SOME URGENCY TO THIS EXPORT BECAUSE WINTER COMES EARLY IN THE MOUNTAINS OF THE GOLAN HEIGHTS AND UNDOF IS HOPING TO GET THE SYSTEM INSTALLED AT THE REMOTE SITES BEFORE THE SNOW FALLS. SISON