RESPONSE TO BLUE LANTERN LEVEL 3: PRE-SHIPMENT END-USE

UNCLAS SEOUL 001477 SIPDIS STATE FOR PM/DTCC-BLUE LANTERN COORDINATOR E.O. 12958: N/A TAGS: AU ETTC KOMC KS SUBJECT: RESPONSE TO BLUE LANTERN LEVEL 3: PRE-SHIPMENT END-USE CHECK LICENSE 050081569 REF: A) STATE 061076; B) State 001056 ¶1. Per reftel, post contacted the Defense Acquisition Program Administration (DAPA) and Kyongju Aerospace Electrical Systems (KAES - a DAPA-registered official supplier of defense items) by e-mail and phone. (See reftel B for background information regarding KAES.) Due to resource constraints, a site visit was not conducted. ¶2. Both Ms. LEE, Yeom-kyong at DAPA and Mr. LEE Won-seok at KAES confirmed to post that the licensed items were imported from the United States by CBOL Corporation and delivered to the end-users - ROK Army, Navy and Air Force. Ms. Lee also verified that KAES is an official supplier of the parts listed in reftel A for the following military branches: - In June 2008, KAES delivered 40 main generators to the Korea Aerospace Industries (KAI) to be installed in the T-50; in turn KAI then delivered ten T-50 aircrafts to the ROK Air Force. The purchase order signed between KAI and KAES indicates that the delivery of the main generator parts will be completed by April ¶2011. Documentation also specified that KAES is a DAPA- registered official supplier of main generators that will be incorporated into the T-50 jet trainer that belongs to the ROK Air Force. Supporting documentation will be sent separately by email. - Motors to LIG NEX 1 to be incorporated into VIPERs for delivery to the ROK Army and the ROK Air Force; - Motors and parts for the KT-1 jet trainer directly to the ROK Air Force for their use; and - Motors to Samsung Techwin to be incorporated into Ship-to-Ship Missiles (BR60 and BR80) for delivery to the ROK Navy. Please note that all of the above mentioned companies are DAPA- registered official suppliers of defense articles. ¶3. As stated in reftel B, KAES is well aware of the USML restrictions and appears to maintain its sales records carefully. KAES? main clients are KAI, LIG Nex1, Samsung Techwin and the ROK Air Force. Vershbow