BLUE LANTERN CASE AG-1003-97: CHECK ON BOEING A-4

UNCLAS WELLINGTON 000833

SIPDIS

STATE FOR PM/DTCC-PDADE AND EAP/ANP-DRICCI

E.O. 12958: N/A
TAGS: ETTC KOMC NZ ID US
SUBJECT: BLUE LANTERN CASE AG-1003-97: CHECK ON BOEING A-4
SERVICE AGREEMENT WITH NEW ZEALAND FIRM SAFE AIR LIMITED

REF: STATE 191598


1. Safe AIR Limited of Marlborough, New Zealand, reported
October 26 that it has no record of being informed by
Boeing/McDonnell-Douglas that it should cease servicing
Indonesian AIR FORCE A-4s in 1999. However, the company says
it was well aware of the arms embargo against Indonesia and
complied with it.


2. Safe AIR Limited said it last serviced A-4 jet fighters
for Indonesia in 1999. Under the Manufacturing License
Agreement No. AG-1003-97 from McDonnell-Douglas Corporation
(now Boeing),Safe AIR overhauled two A-4s that the
Indonesian military purchased in 1996 from the U.S.
government. After refurbishing the A-4s, Safe AIR shipped
them to Indonesia, where they were delivered to the
Indonesian AIR FORCE in October 1999. The cost of the
overhaul was US $8 million. Safe AIR Limited said it has not
worked on those aircraft since then or on any others for the
Indonesian AIR Force.
Burnett