RESPONSE TO BLUE LANTERN LEVEL 3 LICENSE 05-050050727

UNCLAS SEOUL 000341 SIPDIS 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 LICENSE 05-050050727 REF: A) STATE 00005069 ¶1. Per reftel, Econoff and staff from the Joint U.S. Military Affairs Group (JUSMAG) contacted the Defense Acquisition Program Administration (DAPA),the Republic of Korea's Air Force (ROKAF), Cosco Technology and Bluenier (formally Hass International) by phone and fax. Due to resource constraints, a site visit was not conducted. ¶2. Cosco, which is based in Seoul, is not listed with DAPA or the ROKAF as an official supplier, according to our contacts at DAPA and Cosco Technology. On January 22, 2008 and February 4, 2008 Cosco Sales Manager Kim (Ryan) Joon-ho confirmed (1) Bluenier as its main client and (2) its subcontract from Bluenier to supply specific parts. Kim noted he fully understands U.S. restrictions under the USML articles on the re-transfer and re-export of these products. ¶3. Post was informed that on September 20, 2007 Hass International was renamed Bluenier due to a change in the head of the company. Mr. Jin Won Gyoon, in International Contracts Department at DAPA, confirmed that Bluenier is an officially registered "Procurement Company" not an "Offshore Procurement Company." This means that Bluenier sources its spare parts from different countries around the world. Bluenier maintains its own production facility in Seoul that provides parts and maintenance services to ROKAF, and to a lesser degree the ROK Navy and Army. The majority of Blueneir's business is conducted with these particular clients. ¶4. In addition, Cosco's Mr. Kim confirmed that on February 5, 2008 his company received the shipment referred to in PO # CP 020070529-1. This shipment had been delayed. Mr. Kim also reported that due to the Lunar New Year holidays in Seoul (February 6-8),the shipment was held at Cosco's secure warehouse until after the holidays. Cosco delivered the shipment to Bluenier on February 11, ¶2008. In 2-3 weeks Post will contact ROKAF to confirm its receipt of the parts and any maintenance work done by Blueneir. ¶5. Requested documentation to follow by email to PM/DTCC - Tim Watkins Vershbow