BLUE LANTERN LEVEL 3: POST-LICENSE END-USE

UNCLAS MILAN 000150

SIPDIS


E.O. 12958: N/A
TAGS: ETTC KOMC IT BLUE LANTERN
SUBJECT: BLUE LANTERN LEVEL 3: POST-LICENSE END-USE
CHECK ON APPLICATION GC 0451-05

REF: SECSTATE 39576

1.(U) In response to reftel SecState 39576, Milan
Pol/Mil and Economic Specialist visited the
headquarters of Aermacchi S.p.a. in Venegono Superiore
(near Varese) on April 5 and met with Vice President
Procurement Mauro Mariano and Head of Equipment
Purchasing Gianluca Tamani. Answers to reftel
questions reported below.


2. (U) Only one of the two Secondary Flight Display
Systems (SFDS) units has been installed in the M-311
Fast Jet Trainer, which at the moment is the trainer
prototype that has not been marketed yet. The second
unit is a spare part and therefore has not been
installed. When officer asked to see the spare unit,
they opened the cardboard box with the second unit in
front of us. The SFDS was still wrapped in the bubble
wrap. We were not able to see inside the unit to
verify if the QRS11 sensors were in fact still
embedded because the company representatives explained
that opening the control unit would nullify the
product's warranty.


3. (U) Based on our conversations during our visit, we
believe that the QRS11 sensors are still embedded in
the SFDS units. Aermacchi needs the units as Meggitt
Avionics UK manufactured them, without opening (even
for maintenance or repair). They asked us to let them
know well in advance in case of a second visit should
the SFDS units need to be opened.


4. (U) So far, the Jet Trainers have been used for
demonstration purposes only. They have been displayed
to the public mainly at fairs or competitions,
including: Paris Air Show, Le Bourget, France (2005);
Royal International Air Tattoo, Fairford, the UK
(2005); Demonstration flight for the Turkish Airforce,
Ankara, Turkey (2005); Asian Airshow, Singapore,
(March 2006). They are being operated by two Aermacchi
expert pilots only.


5. (U) We found company management to be well aware of
restrictions on re-transfers of the equipment. They
deal regularly with U.S. restrictions as 60 percent of
their procurement is from U.S. companies, including
Boeing, General Electric and others. They requested,
however, to have an updated list of countries subject
to restrictions, to be sure. Consulate
representatives promised to provide a written list of
no-export countries for their guidance.

DGRAZE