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.



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