Blue Lantern Level 3: Pre-License End-Use Check Completed

UNCLAS FRANKFURT 001218 SIPDIS DEPARTMENT FOR PM/DTCC - BLUE LANTERN COORDINATOR SENSITIVE SIPDIS E.O. 12958: N/A TAGS: KOMC ETTC GM SUBJECT: Blue Lantern Level 3: Pre-License End-Use Check Completed for application 050025683 Ref: State 015759 Sensitive but unclassified. Please protect accordingly. ¶1. (SBU) On March 8, ConGen Frankfurt Pol-Econ officer and Pol-Econ specialist visited MSI Aircraft Maintenance Services International GmbH, located in Ruesselsheim (near Frankfurt) to conduct a Blue Lantern pre-license end-use check on application 050025683 (export of EC-135 helicopter spare parts to Germany). Consulate representatives met with MSI owner/Managing Director Marga Blivier and toured the facility including storage and processing areas. ¶2. (SBU) Marga Blivier (a former employee of Honeywell Grimes) purchased German distributor MSI in 1991. MSI distributes aircraft parts (mostly lighting) and services some engines; in addition, it will soon open an Airbus service station in Dubai. Blivier explained its role in the transaction as follows: as former distributor for Honeywell Grimes, MSI has done business with the German police since 2000; although Honeywell now sells parts directly from the U.S., German police continue to use MSI as an intermediary to simplify processing. About 30 percent of MSI's business is domestic (German police are its only government customers, with no military business); non-German customers account for the bulk of its business. MSI is expanding into airliner service in Dubai (and Germany),and is currently awaiting FAA approval as a certified repair station. The Dubai office was created in response to an Airbus initiative to have A-380 repair capacity in close proximity to carrier Emirates (a large A-380 customer). ¶3. (SBU) The components in question are for the maintenance of the EC135 Helicopter; according to the purchase order (which we saw), they are light bulbs and casings. NOTE: the application appears to combine two different orders: one for the Bavarian police and one for the German Border Police (Bundesgrenzschutz/ Bundespolizei), Mrs. Blivier provided the telephone numbers of both contact persons. END NOTE. ¶4. (SBU) MSI appears to be aware of export control restrictions and appears to maintain secure facilities and extensive records. We requested and received documents relating to the orders in question; those documents are stored for ten years. The facility itself appeared secure and orderly, with an alarm system and controlled entry. Access to the compound is restricted; parts are locked. Blivier affirmed that the company follows technology controls and is aware of U.S. export control law; it certified the end users for this order as it does for other transactions with controlled items. ¶5. (SBU) ConGen Munich rep spoke via telephone to the Bavarian police helicopter squadron (Mr. Peter Hauschild) and to the Federal Border police (Mr. Reinhard Schmidt),both of whom confirmed placing recent orders with MSI. Both confirmed they have done business with MSI for years and say they urgently need the spare parts under consideration in this order. ¶6. (U) This message was coordinated with Embassy Berlin and ConGen Munich. POWELL