BLUE LANTERN LEVEL 3 - POST-SHIPMENT END-USE CHECK

UNCLAS KUALA LUMPUR 000793 SIPDIS PM/DTCC - BLUE LANTERN COORDINATOR E.O. 12958: N/A TAGS: ETTC KOMC MY SUBJECT: BLUE LANTERN LEVEL 3 - POST-SHIPMENT END-USE CHECK ON LICENSE 05-050096645 REF: SECSTATE 78796 ¶1. Pursuant to ref, Econoff in late August and early September 2008 was in email and phone contact with Zetro Services, a subsidiary of Zetro Aerospace Corporation. Zetro Services proved to be a cooperative, professional, and well-known company. While we were unable to receive any answers from the Royal Malaysian Air Force (RMAF),our communication with Zetro was very positive and we believe that the company ordered the ref list of C-130 transport aircraft parts for the RMAF Markas Logistik Udara unit. The primary Zetro Services representative, Lt. Col. (Rtd.) Arifuddin Ariffin, said that all parts would be stored by RMAF. He said he could not speak for RMAF, but believed that the storage location would be at the RMAF Markas Logistik Udara. Attempts to learn more from RMAF were unsuccessful, and Embassy DAO and ODC offices were unable to learn anything through their RMAF contacts. However, DAO and ODC spoke highly of Zetro's professionalism and service. ¶2. Zetro Services explained that Zetro did order the ref list of C-130 parts, specifically the 10720-2 Gasket (quantity: 18),MD650 Lamp Indicating (quantity: 105),and 15458-1 Coil Relay (quantity: 4) for RMAF. As background, Ariffin explained that Zetro -- a private company -- was formed in 1982, received an official Government of Malaysia (GOM) registration number (236761-P),and is owned by (Mr.) Dato' Mohamed ((Zamri)) bin Hj. Muda. The company said that it purchases avionics parts for RMAF, but also procures "ground" electronics" such as radios, radar, navigational aids, and electronic warfare equipment. ¶3. Ariffin said that Zetro on 07 November 1998 was awarded two contracts from the GOM which allow them permission to order/purchase parts for all aircraft within the RMAF's inventory. The first contract was given the GOM registration number of KP/PERO-3/UDARA/B/06/1998 (OE) and is for "Contractorisation Agreement for the Supply of Articles and/or Equipment/Systems, Services, and Technical Assistance for Avionics, Aircraft Radio, Aircraft Radar, Aircraft Instruments, Aircraft Electrical, Aircraft Electronics Warfare, and Aircraft Mission Planning Equipment Systems and Accessories, and any Test Equipment and Special Tools." The second contract was given the GOM registration number of KP/PERO-3/UDARA/D/05/1998 (OE) and is for "Contractorisation Agreement for the Supply of Articles and/or Equipment Systems, Services, and Technical Assistance for Ground Electronics, Ground Radio, Ground Radar, Ground Navigational Aids, Electronic Warfare Equipment Systems and Accessories, and any Test Equipment and related Ground Support Equipment and Special Tools." ¶4. Ariffin listed other GOM customers as the Royal Malaysian Police (RMP) and the Department of Civil Aviation (DCA). Ariffin said that Zetro Aerospace and, by default, Zetro Services fully understand the restrictions on the U.S Munitions List (USML) items, especially the prohibition against unauthorized re-transfers or re-exports of USML items. Ariffin said he personally attended the U.S. Export Controls Seminar on 07 April 2008. ¶5. Although only one side of the story was obtained (Zetro's),the company's professional demeanor and cooperation tend to support our opinion that this license order was legitimate. Continued lack of cooperation and contact from RMAF prohibit a complete readout, but DAO and ODC officers spoke highly of Zetro and said it was one of the most professional companies in Malaysia. KEITH