ANGOLA BLUE LANTERN UPDATE ON LICENSES 05-928494

UNCLAS LUANDA 000204

SIPDIS

SENSITIVE
SIPDIS

DEPT FOR PM/DTC

E.O. 12958: N/A
TAGS: ETTC KOMC AO
SUBJECT: ANGOLA BLUE LANTERN UPDATE ON LICENSES 05-928494
AND 05-962056

REF: A. LUANDA 1338


B. LUANDA 1673

1.(SBU) Embassy Tel Aviv received the following two letters
regarding Israeli participation in sales of regulated
equipment to Angolan entities, which were forwarded via
e-mail to Embassy Luanda and PM on February 21, 2007. For
the official record, Embassy Luanda is transmitting the text
of the letters as found below. Both letters were generated
by the Israeli Ministry of Defense dated January 8 and
January 9, 2007 and refer to the Blue Lantern cases in
reftels A and B.


2. (SBU) First Letter - Text:

January 8, 2007

Dubi Galezky
Head of Enforcement and Outreach Unit
Department of Defense Export Control
Israel Ministry of Defense
Ha-Kiriya
Tel-Aviv


Dear Mr. Galezky,

Further to the request of the Israel Ministry of Defense
(IMOD) for information relating to the end of use of a U.S
ITAR control item sold by Elbit Systems Ltd. (Elbit) for end
use in Angola, please be advised as follows.

-- In 2004, Elbit purchased from Uni-Cast Inc. (Uni-Cast),of
Londonderry, New Hampshire, 58 computer housing castings for
use in connection with artillery systems sold for end use by
the Angolan Army.

-- The castings were manufactured by Uni-Cast per an Elbit
design, specification and mold.

-- Elbit has provided the IMOD with a copy of the DSP-5
export license granted in June 2004 for export of the
castings for end use in Angolan artillery units by the
Angolan Army.

-- A review of the current status of the 58 castings
purchased indicates:
-- 44 were delivered to Angolan Army through Elbit,s
prime contractor,
LR Avionics Technologies Ltd.;
-- 5 were scraped in the MRP process; and
-- 9 are currently in inventory marked for the
designated end use (2 stored
in the completed products warehouse and 7 stored in
the top assembly
warehouse).

-- Elbit's recent review of the DSP-5 license in response to
the IMOD enquiry indicates that LR Avionics was inadvertently
omitted from the list of intermediate consignees. However,
it should be noted that as part of Elbit,s general
enhancement of its export control process, and prior to and
unrelated to the IMOD,s enquiry on Angola, Elbit has
implemented a number of steps that mitigate the possibility
of such inadvertent omissions being made in the future with
respect to intermediate consignees.

-- We understand that the IMOD will advise the U.S.
authorities regarding the above-mentioned information as
appropriate.

Sincerely,

Michal Stavi
Export control Coordinator

End Text


3. (SBU) Second Letter - Begin Text

January 9, 2007

Mr. Michael C. Keays
First Secretary
Political-Military Affairs
United States Embassy Israel

Enquiry Regarding End Use of U.S. Componens in Angola

In response to the letter dated May 16, 2006 sent by the US

Charge d' affairs in Angola to the Israeli Ambassador there
regarding the Angolan position on US end use inspections, and
request for information regarding certain transactions, we
would like to inform you as follows:

With regard to your request for assistance in explaining to
the relevant authorities of Angola the procedures with regard
to US origin items, IMOD officials (SIBAT) met with senior
officials of Angolan Army and brought up the issue, stressing
that such end-use confirmation is standard US procedure and
that cooperation with USG on this matter is commended. The US
Ambassador to Angola was informed of this in the course of a
meeting with the Israeli Ambassador and IMOD officials held
in Luanda in September 2006.

Pursuant to your request for information regarding License
05-9284945 and License Application 05-962056, our
investigation has provided the following findings:

License 05-9284945
--------------

Elbit System Ltd. Ordered 58 computer housing castings from
Uni-cast Inc., for which export license no. 9284945 was
issued in June 2004. the housings were received by Elbit on
26 September 2004 (twenty seven (27) units) and 7 December
2004 (thirty one (31) units). Forty-four (44) units were
supplied to the Angolan Army through LR Avionics Technologies
Ltd. Five (5) units did not pass quality assurance tests.
Nine (9) units are currently in Elbit's inventory (1) two (2)
units are in the company's complete product warehouse and
seven (7) units are in the top assembly warehouse.

Attached is a copy of an End User certificate issued by the
Ministry of Defense of the Republic of Angola.

Following IMOD questions to Elbit on the issue, we were
notified by the company that its review had indicated that LR
Avionics was inadvertently omitted from the list of
intermediate consignees. Elbit had also advised us that as
part of the company's general enhancement of its export
control process and prior to and unrelated to the recent
case, it had implemented a number of steps that mitigate the
possibility of such inadvertent omissions being made in
future (see attached letter submitted to IMOD by Elbits
Export Control Coordinator)

License Application 05-962056
--------------

Elta ordered two 2129 radars from Telephonics which were to
be supplied to Elbit for end use by the Army of Angola.
Telephonics did not succeed in obtaining an export license
for the radar in time for supply and therefore the
above-mentioned order was cancelled.


Eli Pincu

Director

End Text.
EFIRD