BLUE LANTERN LEVEL 3 CASE GC 0084-06

UNCLAS ROME 001150 SIPDIS PM/DTCC TIM WATKINS E.O. 12958: N/A TAGS: ETTC KOMC IT BLUE LANTERN SUBJECT: BLUE LANTERN LEVEL 3 CASE GC 0084-06 REF: SECSTATE 45311 ¶1. EconOff and EconFSN visited Intermark Sistemi, SRL, headquarters April 12, and met with Administrative Director Francesco La Mesa. Founded in 1972, Intermark Sistemi recently split into two groups, Intermark Sistemi- focusing on the Italian market, and Intermark AvioSistemi (AvioSistemi)- working on opportunities exclusively outside of Italy; AvioSistemi will use the LN200 Inertial Measurement Systems technology (IMU) for which the pre-shipment check was required. Intermark AvioSistemi currently has only three employees: Francesco La Mesa, Leonardo Bastianielli, Technical Manager, and an office assistant. La Mesa said AvioSistemi provides sensory technology technical expertise and consulting services, with plans on expanding business outside of Italy only, to avoid competing with Intermark Sistemi clients. ¶2. La Mesa said AvioSistemi will use the IMU devices to survey 1,500 km. of AGIP pipeline in the Niger Delta region. He also said that Russian-based Geokosmos had approached AvioSistemi to partner in the deal. Other partners include BASIS Engineering, based in Milan, and ENG PYPAC, a Nigerian-based company. Previously AGIP had told La Mesa that insufficient funds precluded the survey work, but that AGIP is now re-considering the proposal. No contract has yet been awarded to conduct the survey. ¶3. La Mesa said Intermark Sistemi was an intermediate consignee on a previous State Department license, for a July 2005 project between ITRES, a Canadian-based sensory equipment firm, and the University of Naples. He did not have the license number, but could find it, if necessary. ¶4. AvioSistemi is co-located with Intermark Sistemi, in a residential Rome suburb with some security; to enter into the office a receptionist must release an automatic door lock. La Mesa pointed out that IMU devices would not be kept on AvioSistemi premises, but flown directly to Nigeria on a survey aircraft. AvioSistemi has no clients at the moment, other then AGIP, pending the contract. La Mesa said Intermark Sistemi clients have included Italian civilian and government organizations, including Guardia di Finanza (Italy's financial police),the Italian coast guard, and Augusta Helicopters. ¶5. In post's assessment, AvioSistemi appears to be a reliable recipient of IMU devices. La Mesa founded Intermark Sistemi in 1972, and has been in the remote-sensing equipment business since 1986. BORG