RESULTS OF BLUE LANTERN LEVEL 3 POST-SHIPMENT

UNCLAS TEL AVIV 003459 SIPDIS SENSITIVE SIPDIS STATE FOR PM/DTCC - BLUE LANTERN COORDINATOR STATE FOR NEA/IPA (PECCIA) E.O. 12958: N/A TAGS: ETTC KOMC SP IS SUBJECT: RESULTS OF BLUE LANTERN LEVEL 3 POST-SHIPMENT END-USE CHECK ON LICENSE 05-956960 REF: STATE 142256 ¶1. (SBU) Acting on instructions in reftel, Embassy Blue Lantern officer and Senior Commercial specialist met with Spectronix Vice President for Marketing Amos Gonen to (a) ask him if his company has any connection to Spectronics in Dallas, Texas; and (b) to confirm the details in the transaction covered by export license 05-956960. ¶2. (SBU) Gonen said there is no connection between his company and the Spectronics company in Dallas, Texas (the company that is the subject of a law enforcement investigation for alleged diversion of sensitive defense articles),and appeared to have never heard of the company in Texas. Gonen said Spectronix, Ltd. was established in 1967 and is a public company. Spectronix, Ltd. is a supplier to BAE Systems. It is now the chosen supplier of the fire detection and suppression system for the Mine-Resistant Ambush-Protected (MRAP) vehicles being used by the U.S. military in Iraq. ¶3. (SBU) Regarding the transaction covered by export license 05-956960, Gonen confirmed (a) that his company had ordered 75 244-28585 cables from Meggitt Safety Systems, Inc. in Simi Valley, California; (b) that his company received the cables back in 2005; (c) that they were integrated into control units made by his company in Sderot (Spectronix, Ltd.); and (d) that the control units were then shipped to General Dynamics Santa Barbara Systems in Sevilla, Spain for fitting into the Pizarro armored fighting vehicle. Gonen explained that the cables in question are usually used in heat detection systems located within the engine compartments of aircraft or vehicles. In the case of the cables in question, these were integrated into a fire detection system in the Pizarro, the Spanish version of the Bradley Armored Fighting Vehicle. Gonen added that, as far as he understood, the cables in question are no longer considered controlled items by the USG. He noted that the product the cables are used in is considered unclassified in Israel. ¶4. (SBU) Gonen said that Spectronix, Ltd. has had a relationship with Meggitt Safety Systems, Inc. for many years. His company employs about 120 people. All of its facilities except one office are located in Sderot. Gonen said that Blue Lantern Officer and Senior Commercial Specialist were welcome to visit the facilities at any time. He stressed that the majority of what Spectronix produces is for export, and that his relations with U.S. clients are critical. It is, in his view, absolutely vital that he operates according to U.S. laws and regulations, as he does not wish to damage his company's standing in the U.S. He feels confident that he knows and understands U.S. export control laws and regulations, and is complying with them. Gonen also appeared more familiar than most interlocutors of his type with the changes that are taking place in Israel's export control system. Gonen pointed out that because he still has to obtain Israeli export licenses for Spectronix Ltd.'s exports, the Israeli MOD's Export Division (SIBAT) takes an interest in Spectronix Ltd.'s activities. The MOD's Directorate for Security (MALMAB/DSDE) does not oversee Spectronix, Ltd.'s security, however, and has no representative at the company's facilities. ¶5. (SBU) Gonen said Spectronix, Ltd. maintains records of all the parts it imports, uses, and exports, and expressed confidence he could provide the paperwork on a particular item if it were requested. He turned over a copy of purchase order 62613 dated July 2, 2005 which confirmed the details of the transaction covered by export license 05-956960. (NOTE: It has been sent by FAX to 202-261-8198. END NOTE.) ¶6. (SBU) Gonen said that Spectronix, Ltd. has been a supplier to General Dynamics Santa Barbara Systems (Spain's chief armored vehicle manufacturer) for many years, even since before its privatization by the Spanish Government, and its purchase by General Dynamics. ¶7. (SBU) COMMENT: Based on the information obtained during the interview with Amos Gonen, emboffs believe that Spectronix, Ltd. is a legitimate company and should be viewed favorably as a recipient of controlled items covered by export licenses issued by the Departments of State and Commerce. The transaction covered by export license 05-956960 appears to have been carried out according to U.S. law and regulations. Spectronix, Ltd. does not appear to have any connection with Spectronics in Dallas, Texas. END COMMENT. ********************************************* ******************** Visit Embassy Tel Aviv's Classified Website: http://www.state.sgov.gov/p/nea/telaviv You can also access this site through the State Department's Classified SIPRNET website. ********************************************* ******************** JONES