NETHERLANDS/BLUE LANTERN CHECK ON APPLICATION 610001190

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STATE FOR PM/DTCC (BLUE LANTERN COORDINATOR/JSTITZIEL)
STATE ALSO FOR EUR/WE (TSMITH)
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E.O. 12958: N/A
TAGS: ETTC KOMC NL
SUBJECT: NETHERLANDS/BLUE LANTERN CHECK ON APPLICATION 610001190

REF: STATE 148187

THIS MESSAGE IS SENSITIVE BUT UNCLASSIFIED. PLEASE HANDLE
ACCORDINGLY.


1. (SBU) Emboffs met November 20 with F.W. Wichhart, Managing
Director of Reomie, to conduct reftel pre-license check and related
site visit for the re-transfer of armored vehicle parts from the
Netherlands to Columbia. The license application covered:

-- 23 Cooling System Kit parts used on M113A2 armored personnel
carriers
-- 23 External Fuel Tank parts used on M113A2 armored personnel
carriers


2. (SBU) Wichhart said Reomie was founded in Osterbeek in 1944 to
salvage jeeps and jeep parts from the battlefields of Operation
Market Garden. The company later purchased surplus trucks from the
U.S. and Dutch armies and converted them to civilian use. Reomie
then expanded to large-lot purchases from Germany, Belgium, the
Netherlands, and the U.S. -- including from the Defense
Reutilization and Marketing Service, Wichhart noted. He added that
Reomie had a large truck exporting business to the Philippines
during the 1960's and 70's, selling a few thousand trucks for
logging and sugar cane production until the peso devaluation made
the company's products too expensive. Once much larger, Reomie now
has 13 employees, roughly $3 million in sales per year, and was
established at its current address in Ooij about 40 years ago,
Wichhart said. Reomie's core business is vintage military vehicle
salvage focusing on M151 Willys jeeps and M35 2.5 ton "Deuce and a
half" trucks. The company refurbishes but does not manufacture its
parts.


3. (SBU) Post also submits the following answers in response to
reftel request.

-- According to Wichhart, the Cooling Systems Kits were obtained
three to four years ago from Germany and the External Fuel Tanks
obtained about two years ago from a dealer in Holland.

-- The proposed transaction was initiated by Ken Everson, President
of International Parts Supply Corp. Wichhart said Everson sought
reftel parts from Reomie's listing in the ILS. According to
Wichhart, ILS is an online system for inventory and sales. Wichhart
confirmed that Everson had purchased parts from Reomie in the past.

-- Wichhart showed Emboffs boxes labeled as containing Cooling
Systems Kits manufactured by FMC Corporation of San Jose,
California. Post estimates that there were roughly 200 boxes stored
in a large warehouse on the Reomie premises. The warehouse had
regular doors and locks and the premises were surrounded by a 10
foot fence.

-- Wichhart noted that he obtained the authorization to export U.S.
origin parts from Dutch Customs, adding that it was Reomie "standard
practice" to do so for such parts and also those deemed by Dutch
Customs to be "Strategic Goods," or goods requiring a Dutch export
license. When asked about whether he obtained permission from the
State Department, Wichhart reiterated that he had "proper export
licenses to the U.S." and authorization from Dutch Customs, adding
that Customs had found his export procedures "100 percent OK" in an
audit finalized November 19. Wichhart did not refer to, or seem to
recognize, U.S. export control regulations, and was also unaware
that International Parts Supply Corp intended to ship the parts
onward to Columbia and added that he "has no visibility or control
over subsequent exports".

-- On record keeping, Wichhart said every item was entered into
ILS. Based on its identifying information, ILS determined whether
the good was strategic or not, flagging it accordingly for
compliance with Dutch export control requirements.

-- Wichhart said reftel order would be filled from inventory.
Emboffs were also shown a stock of at least six M113 engines.

-- Wichhart is the owner and decision-maker at Reomie. His wife is
the other principal, serving as Director, book-keeper, and export
control compliance officer. Wichhart noted that the business, and
the time he would devote to it, was "winding down."
-- Wichhart noted the majority of his customers were World War II
Jeep collectors located throughout Western and Central Europe.
Wichhart said that had not acquired strategic goods for several
years as surplus sources were rapidly diminishing.


4. (U) Emboff interactions with Wichhart were cordial and
professional. Wichhart was extremely cooperative and receptive to
Emboff queries, and offered to continue consultations if Post had
further questions.

GALLAGHER