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