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

UNCLAS ROME 003397 SIPDIS SIPDIS SENSITIVE PM/DTCC - BLUE LANTERN COORDINATOR, TWATKINS E.O. 12958: N/A TAGS: ETTC KOMC IT SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON APPLICATIONS 050021339, 050021760, 050021768 REF: SECSTATE 195926 ¶1. (SBU) Emboffs met with Mario Barbetti, General Manager of Pansystem s.r.l., in Rome December 27. (Note: Reftel lists the company's name as "Pansystems." Please note correct company name is "Pansystem s.r.l.") ¶2. (SBU) Barbetti began by wondering why the USG was reviewing one order (DTC case 050021339/JN1092-09),as it was "only 50 pieces of metal," specifically, a metal ring that attaches a cable to a plug connector. Barbetti was "upset" at the delay in the order and asked why it had been delayed. ¶3. (SBU) Econoff explained that Pansystem s.r.l. was unknown to USG export control officials and that there was concern that his company could be related to Pansystems of North Korea. Barbetti underscored that his company was not associated with North Korea and explained that Pansystem s.r.l. was a distributor operating on the "national level" (i.e., within Italy) and rarely ever exported materials for resale. Barbetti then produced several transaction receipts with Joslyn Sunbank Co LLC (Seller) and Alenia Aeronautica SPA (Foreign End-user) confirming the delivery of three orders cited in reftel. ¶4. (SBU) Background. Pansystem s.r.l. is a private company with 25 employees. It is the official distributor of Joslyn Sunbank Co LLC products within Italy and supplies Italy's defense, space, and railway industries. Pansystem s.r.l. counts among its clients Finmecanica and SELEX. Barbetti also claimed that the company is the biggest distributor of Tyco International products in Italy. In post's assessment, Pansystem s.r.l. appears to be a reliable company. Econoff and EconFSN toured the company's facilities and spoke with several employees. Additionally, the company is located in an outlaying residential area in Rome and appeared secure, with surveillance cameras and an access-controlled gate surrounding the property. SPOGLI