Identifier
Created
Classification
Origin
06ANKARA6501
2006-11-24 13:54:00
UNCLASSIFIED
Embassy Ankara
Cable title:  

BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON

Tags:  ETTC KOMC TU 
pdf how-to read a cable
VZCZCXYZ0008
PP RUEHWEB

DE RUEHAK #6501 3281354
ZNR UUUUU ZZH
P 241354Z NOV 06
FM AMEMBASSY ANKARA
TO RUEHC/SECSTATE WASHDC PRIORITY 0063
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RUEUITH/ODC ANKARA TU PRIORITY
RUEHAK/USDAO ANKARA TU PRIORITY
UNCLAS ANKARA 006501 

SIPDIS

SIPDIS

DEPARTMENT FOR PM/DTCC - BLUE LANTERN COORDINATOR RICK
STROBEL

E.O. 12958: N/A
TAGS: ETTC KOMC TU
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON
APPLICATION 05-1006551

REF: SECSTATE 146584

UNCLAS ANKARA 006501

SIPDIS

SIPDIS

DEPARTMENT FOR PM/DTCC - BLUE LANTERN COORDINATOR RICK
STROBEL

E.O. 12958: N/A
TAGS: ETTC KOMC TU
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON
APPLICATION 05-1006551

REF: SECSTATE 146584


1. SUMMARY: Per reftel request, we met with officials from
Yasar Demirel-Yasar Ticaret (YDYT) to discuss application
05-1006551, an export license request for armored vehicle
parts. According YDYT, there is no impending $1 million USD
contract with U.S. firm Relli Technology Inc. or any other
U.S. firm for armored vehicle spares. YDYT had purchased a
license for the eventual purchase of up to $1M in spare parts
from Relli. End Summary.


2. During a 22 November 2006 meeting at the YDYT office
building on Ogun Han Caddesi in Iskitler, Ankara, YDYT
President/CEO Yasar Demirel was very forthcoming about a
license application for spare parts for M109 self-propelled
howitzers, M113 armored personnel carriers, and M48 and M60
main battle tanks that the company purchased in mid-2006, per
the advice of Relli company officials. Other YDYT officials
in attendance were Demirel's son Adnan and his personal
secretary (NFI). In response to our questions, Demirel

SIPDIS
clarified that they currently do not have a prospective deal,
purchase order, or agreement with Relli for $1 million USD or
any other amount of armored vehicle spares. Demirel was
initially puzzled at Washington's claim that there appeared
to be a deal for that amount with Relli. Demirel clarified
that they had purchased a license that would allow them to
purchase up to $1 million USD from Relli if needed. However,
YDYT has only done approximately $2,000 worth of business
with Relli in 2006 and does not expect that amount to grow
substantially through early 2007. In fact, Demirel indicated
that YDYT is only selling $1.5 million dollars in armored
vehicle spares to the entire Turkish Land Forces, a
significant sale for a Turkish company.


3. Background: The officials indicated that Yasar Machinery
Company was founded in 1985 as a private company, and that it
remains private. Since 2003, YDYT has bid on contracts for
the Turkish Jandarma and Turkish Land Forces - mainly for
armored vehicles but also including some for helicopters.
Although the company has done business with various French,
German, South Korean, and Israeli companies, Demirel said
that he prefers dealing with U.S. companies such as Relli,
ISO Group, SECO, WorldBase, Interstate McBee Flight Source,
Clark Brothers, and Faria. The YDYT officials said that they
represent Interstate McBee in Turkey. Demirel added that
currently most of their purchases are made from Israeli
companies but that he hopes to increase purchases from U.S.
firms. YDYT appears to keep proper, detailed records of its
sales and customers and freely shared some of these files
with us. The company is familiar with USML articles,
particularly with re-exporting, since it has done business in
the past with U.S. firms. The building appeared to have an
appropriate level of security.


4. The YDYT officials were very forthcoming and helpful, and
showed us several documents and contracts from U.S. companies
that they had dealt with in previous years. Based on the
site visit, the meeting with YDYT officials, and an
examination of their website, we believe that the company is
an appropriate candidate for a U.S. export license.

Visit Ankara's Classified Web Site at
http://www.state.sgov.gov/p/eur/ankara/

WILSON