BLUE LANTERN PRE-LICENSE END USE CHECK ON

C O N F I D E N T I A L SECTION 01 OF 02 NICOSIA 000760 SIPDIS SIPDIS FOR PM/DTCC - BLUE LANTERN COORDINATOR PETER SABATINI E.O. 12958: DECL: 09/13/2017 TAGS: CY EI ETTC KOMC SUBJECT: BLUE LANTERN PRE-LICENSE END USE CHECK ON APPLICATION 05-050054319 REF: A. A. SECSTATE 113031 ¶B. B. NICOSIA 00663 Classified By: Deputy Chief of Mission Jane B. Zimmerman for reasons 1. 4 (b) and (d). ¶1. (SBU) On 07 September 2007, PolOff was contacted by Yiannis Thedouolou, the Managing Director of Laserlabs Ltd., the Foreign Intermediate Consignee for the Reftel A requested Pre-License Check (PLC) on Application 05-05005431927. Theodoulou advised that Andor Technology, the Foreign Consignee for the fiber optic coupler, had decided not to wait for a U.S. export license and had obtained a similar, Chinese component. Andor shipped the iStar camera to Theodoulou and he planned on delivering it to Professor Andreas Othonos, the Foreign End User, at the University of Cyprus on 11 September. PolOff confirmed with Theodoulou that the camera had been delivered as planned on 11 September. Prior to this development, PolOff had completed site visits to both the University of Cyprus and Laserlabs on 27 and 31 August respectively. Post had planned on providing a favorable report on the PLC for 05-05005431927. This has been overtaken by events, but we would still like to document the findings from our site surveys. ¶2. (SBU) On 27 August, PolOff met with Professor Andreas Othonos at the University of Cyprus. Othonos showed PolOff the physics laboratory where the iStar camera would be used. Othonos showed PolOff the exact spot where the device would be installed and stated he had no intention of using the device anywhere but the lab and the location he had showed PolOff. Othonos planned on using the camera as part of dynamic research of semi-conductors, explaining the camera/image intensifier would be attached to a spectrometer and would allow him to track reactions in semi-conductors which had been "excited" by laser light. The goal of the research was to detect luminescence emitted by the semi-conductors when they reacted to the laser beam. Othonos advised that he, two post-doctorate researchers and four to five graduate students would have access to the device. As graduate studies are taught in Greek, there is a limited pool of graduate students at the University; no Syrian, Chinese or Iranian nationals will have access to the device. Othonos will perform the installation and the primary users, in addition to himself, will be his post-doctorate researchers and his graduate students. The lab is secured by an alarm system, with Othonos and his post-doctorate assistants having the alarm code. Othonos has a key to the lab and his post-doctorate researchers had to get a key from him to access the lab. Graduate students cannot be left in the lab alone, either Othonos or his post-doctorate researchers must be present. ¶3. (SBU) Othonos provided copies of Greek-language paperwork concerning the iStar camera, which were from the University's tender board. The University had opened a tender for the device, which Laserlabs had been awarded Othonos did not have the order paperwork for the device, since Laserlabs had these documents. He explained how the tender process worked at the University, and that the iStar camera was purchased with funds set aside by the Republic of Cyprus to comply with the European Union mandate for member states to reserve funding for academic research. At the conclusion of the site visit, PolOff ensured Othonos understood the restrictions on the use of items on the U.S. Munitions List and which were covered by the Arms Control Export Act. PolOff highlighted the need for Othonos (University) to obtain USG authorization for any proposed transfer or re-export of the fiber optic coupler; Othonos understood his obligations. ¶4. (C) On 31 August, PolOff traveled to Limassol (22 Amathus Ave) to meet with Theodoulou and obtain copies of the order Laserlabs Ltd submitted for the iStar/image intensifier. During the site surveys for the iStar, PolOff observed nothing which would have given him pause in providing a favorable recommendation. In subsequent contact with Theodoulou on 07 and 11 September, Theodoulou told PolOff that Andor had decided not to wait for a U.S. export license. Theodoulou did not know about the change until he received the complete iStar camera with fiber optic coupler in early September. Following receipt, he contacted the company to ask how the camera could have been sent to him without the U.S. export license. Andor advised Theodoulou it did not want to wait for the U.S. license and a suitable Chinese substitute had been found which allowed them to send the NICOSIA 00000760 002 OF 002 complete device to Theodoulou. Post discovered nothing which would have led us to believe that the iStar camera and fiber optic coupler would be used in a manner inconsistent with the stated end use. We do find the late change by Andor interesting and note that Theodoulou was denied an export license for the Reftel B order. While we have no information which would indicate that Theodoulou was behind the switch to a Chinese fiber optic coupler to avoid another possible U.S. export license denial, we wish to highlight that this is within the realm of possibility. SCHLICHER