BLUE LANTERN CHECK: TUNISIAN MOD LICENSES

UNCLAS TUNIS 000605

SIPDIS

SIPDIS

STATE FOR NEA/MAG (HARRIS AND HOPKINS) AND PM/RSAT (ARNETT)

E.O. 12958: N/A
TAGS: ETTC KOMC MARR TS
SUBJECT: BLUE LANTERN CHECK: TUNISIAN MOD LICENSES
05-998131 AND 05-991008

REF: STATE 52041


1. THIS MESSAGE CONTAINS AN ACTION REQUEST. PLEASE SEE PARA 4.


2. As instructed in reftel, on May 15 PolMilOff conducted a
post-shipment end-use check on applications 05-998131 and
05-991008 for the export of F-5 aircraft spares to the
Tunisian Ministry of National Defense (MND). PolMilOff met
with the following officials at the Ministry of National
Defense in Tunis to conduct the post-shipment verification:

-- COL Hussein Al-Abeid, Logistics Division, Tunisian Air
Force
-- MAJ Monji Najjar, Contracts and Transit Division, Tunisian
Air Force
-- COL Mohamed Issaoui, Security, Tunisian Air Force
-- MAJ Rym Belhiba, Department of International Cooperation
and Relations, MND

Al-Abeid and Najjar confirmed that the Tunisian Air Force had
ordered F-5 parts from Commerce Overseas Corporation. Najjar
had copies of all relevant parts' contracts and confirmed
that all parts are for the exclusive use of the Tunisian Air
Force. Regarding case 05-998131, Najjar said that the MND
had signed three contracts (2004 - $155,800, 2005 - $192,500,
and 2006 - $210,000) with Commerce Overseas and was currently
reviewing if a fourth and final contract for F-5 spare parts
would be signed in 2007. Regarding case 05-991008, Najjar
said the MND had initially planned to purchase two
gyroscopes. However, the price had risen to $148,000, so the
MND had purchased one gyroscope and sent two MND gyroscopes
for repair by Commerce Overseas.


3. Najjar and Al-Abeid confirmed that all parts received to
date were in use, in storage or used and disposed. The
Tunisian Air Force's twelve F-5 aircraft are all located at
the Sidi Ahmed Air Base in Bizerte (northern Tunisia).
Access to the airbase is strictly controlled, and on base
personnel are restricted to those areas they are authorized
to work. F-5 parts are stored in restricted access
warehouses, however, the MND is not aware of the specific
storage provisos associated with the export licenses. The
MND's copy of the contracts has no reference to storage
provisos or license requirements, other than to say that the
contract is in compliance with appropriate US export
licensing.


4. ACTION REQUEST: Post requests that PM/RSAT provide copies
of any Defense Trade Control procedures, policies and
regulations that explain the need for US export licensing in
commercial military sales contracts to the Tunisian Ministry
of National Defense. Al-Abeid said that the MND was not
familiar with U.S. defense trade controls procedures related
to commercial sales contracts. Al-Abeid requested Post
provide further details about the Defense Trade Controls
Compliance procedures so that the MND can ensure all
necessary regulations and procedures are outlined in their
future commercial contracts.


5. RECOMMENDATION: Post finds the transactions to be
legitimate and the Tunisian Ministry of National Defense to
be a reliable party to receive USML items and/or technology.
GODEC