EXTRANCHECK: POST-SHIPMENT VERIFICATION: KING FAISAL

UNCLAS RIYADH 001626 USDOC FOR 532/OEA/L.HINES/W. HIGGINS STATE FOR EB/ESP DHS FOR ICE/STRATEGIC SIPDIS E.O. 12958: N/A TAGS: BEXP ETRD ETTC AE SUBJECT: EXTRANCHECK: POST-SHIPMENT VERIFICATION: KING FAISAL SPECIALIST HOSPITAL AND RESEARCH CENTER REF: USDOC 06546 ¶1. Reftel requested that Post conduct a post-shipment verification of a Waters 2695 Separations Module and a Waters 2998 Photodiode Array Detector and related equipment exported as No License Required by Waters Corporation, Milford, MA. This order was placed through Waters Europe and Gulf Scientific Corporation (GSC),Dubai, UAE for the ultimate end-user which is listed as the King Faisal Specialist Hospital and Research Center (KFSHRC). (Note: KFSHRC is a Saudi government facility.) ¶2. On 27 Oct 2008, prior to meeting with subject end user, Regional Export Control Officer (ECO) Nasir Khan and U.S. Embassy Riyadh Commercial Specialist Ahmed Al-Khayyat were met Mr. Abdullah Medani, Gulf Scientific Corporation (Saudi Arabia),Mr. Wahib S. Afyouni, Managing Director of Gulf Scientific (UAE),and a Mr. Michael Schmidl, the Austria based Sales Manager of Waters Europe all of whom just happened to be attending a symposium at KFSHRC. Afyouni explained the very close and unique relationship between Gulf Scientific and KFSHRC. He stated that GSC is the sole Waters representative in the gulf region they are the only ones allowed to sell directly to KFSHRC. GSC has nearly 11 engineers that support and install equipment at KFSHRC. ECO explained that while he appreciated Afyouni's information, he just needed to talk directly to the KFSHRC official responsible for these items. ¶3. After facilitation by Afyouni, ECO met with Mr. Hakem H. Al-Enazi, Manager, Logistics & Facilities, KFSHRC. Al-Enazi explained that he it was KFSHRC policy to be fully transparent. ECO queried El-Enazi regarding the shipment in question. El-Enazi explained that in 2007 they received only one 2695 unit per his inventory. However, he explained that KFSHRC re-serializes equipment into its own inventory numbers and thus it would not be able to track this specific equipment based on GSC or Waters numbers. He showed ECO the unit received in 2007 but ECO was unable to determine if this unit was related to the Sept 2007 shipment. ¶4. El-Enazi provided ECO a tour of several lab facilities all of which contained a number of Waters 2695 Separations Modules and Photodiode Detectors. El-Enazi stated that KFSHRC has over 50 of the 2695 separations modules all from Waters and most acquired through GSC but some were from local distributors prior to GSCs exclusivity agreement with Waters. He explained that these modules are used interchangeably and often the parts of the equipment are switched out between the various labs in KFSHRC depending on the work being done. ECO noted numerous lab facilities with a several Waters 2695 units. These units appeared to have a modular designed enabling them to be interchanged with other units. FRAKER