RESULTS OF BLUE LANTERN LEVEL 3 POST-SHIPMENT

UNCLAS TEL AVIV 000870 SIPDIS SENSITIVE SIPDIS E.O. 12958: N/A TAGS: KOMC ETTC RO FR IS SUBJECT: RESULTS OF BLUE LANTERN LEVEL 3 POST-SHIPMENT END-USE CHECK ON LICENSE 05-050010197 REF: A. 05 STATE 176592 ¶B. BUCHAREST 163 ¶1. (SBU) On March 18, Israeli Ministry of Defense Blue Lantern Inquiry Point of Contact, Rami Yungman, sent by FAX to Blue Lantern Officer the following information concerning license 05-050010197. The answers correspond to questions put forward by Blue Lantern Officer to David Block Temin, the Corporate Vice President and General Counsel for Elbit Systems, Ltd., located in Haifa. Block Temin sent the answers via the Israeli MOD, where officials of the MOD's Security Division, MALMAB/DSDE, reviewed them before approving their release to Blue Lantern Officer. ¶2. (SBU) Begin questions and answers: ¶Q. Can you confirm the delivery of the helicopter parts under license 05-050010197? ¶A. We (Elbit Systems, Ltd., or ESL) can confirm the delivery of helicopter parts under DSP-5 license no. 05-050010197 (the License) for the SHREIK Program. ¶Q. What was the specific role of Elbit in this transaction? ¶A. The SHREIK Program relates to the upgrade of three naval helicopters (Puma 330) for the Romanian Ministry of Defense (RMOD) for end use by the Romanian Armed Forces. ESL is the avionics subcontractor for the program to IAR S.A. Brasov of Romania, which is the prime contractor to the RMOD. Rockwell Collins is a subcontractor to ESL for the supply of the items described in the License. The parts shipped by Rockwell Collins under the License were ordered under ESL P/O No. DMF825350 (the Purchase Order, or P/O) for the purpose described above. The quantities are two shipsets for each helicopter, plus one spare shipset, totaling seven shipsets. ¶Q. Did Elbit ever take possession of the shipment before its delivery to Romania? ¶A. ESL did not take possession of the shipments. Rather, the items were delivered as "drop shipments" directly to the foreign consignee, IAR S.A. Brasov, in accordance with the P/O's shipping instructions. ¶Q. If so, can Elbit confirm that all the provisos attached to the license were fulfilled? More specifically, can Elbit confirm that U.S.-origin ECCM/frequency hopping algorithms were not released to a third party? ¶A. ESL believes that all the provisos attached to the License were fulfilled. Specifically, upon becoming aware of the License's provisos, the P/O was revised to eliminate the IIQ and the SATURN (corresponding to the Have Quick IIA and secured radio). Moreover, the P/O does not call for release of U.S. origin ECCM/frequency hopping algorithms. ¶Q. Additionally, please confirm that none of the following was released to a third-party entity: (a) USG datalink message standards/formats; (b) Have Quick IIA; and (c) the USG version of the SINCGARS. ¶A. We can confirm that the above items were not included in the P/O's scope and were not released. ¶3. (SBU) Elbit Systems, Ltd. confirmed in writing that the items detailed in the License and the above question were delivered in the form of shipsets containing each of the above items, as follows: (a) 1st through 4th shipset -- fully delivered; (b) 5th through 7th shipset -- delivery scheduled as per the P/O for November 2007. ¶4. (SBU) Ilan Mazushan of MALMAB/DSDE and Ofer Meishar of Elbit Systems, Ltd. were copied on the written response sent through Rami Yungman at the MOD. ********************************************* ******************** 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