BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK

UNCLAS STATE 046643 SIPDIS SIPDIS TOKYO FOR CHARLOTTE CROUCH E.O. 12958: N/A TAGS: ETTC KOMC JA SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON APPLICATION 050099140 REF: A. IIR 6 852 0244 08 ¶B. BLUE LANTERN GUIDEBOOK 2006 ¶1. This is an Action Request. See paragraphs 2-4. ¶2. The Department's Office of Defense Trade Controls Compliance (PM/DTCC) requests post's assistance in conducting a pre-license check on application 050099140 for the export of naval vessel parts to Japan. Post is requested to complete this Blue Lantern check within 30 days. Lack of response to a Blue Lantern check will affect pending and future applications involving parties to this license. ¶3. Reason for request: recent media reports about bribery and corruption scandals involving former Yamada company officials (see also ref a). PM/DTCC would like to know if there have been any changes in Yamada's status as a defense contractor/supplier for the Japanese MOD. PM/DTCC also would like reassurance that the company is a reliable recipient of United States Munitions List (USML) articles and technology. Post should make inquiries with appropriate officials to verify the bona fides of Yamada and its status as an official supplier of the Japanese MOD, and to confirm the legitimacy of the transaction proposed by application 050099140. The following questions are provided as suggested guidance: For the Japanese MOD: --Did you order from Yamada the exact type and quantity of items listed on this application? --What is Yamada's current status vis-a-vis the Japan MOD? Have recent media reports about Yamada's past activities had any impact on the company's current contracts or eligibility an official supplier/contractor for the Japan MOD? For Yamada: --Does the company have proper supporting documentation, including purchase orders from the Japan MOD, for this proposed transaction? --Have recent media reports about Yamada's past activities had any impact on the company's current contracts or eligibility an official supplier/contractor for the Japan MOD? --What actions, if any, is Yamada taking in response to the recent media reports? --Has Yamada discovered any indications that current or former company officials ordered the unauthorized re-transfer or misuse of United States Munitions List (UMSL) articles or technology imported from he United States? --Does the company understand the restrictions on USML items, especially the prohibition against unauthorized re-transfers and re-exports? ¶4. Department requests that post conduct a site visit to the company in order to provide Department with an assessment of its business operations and on-site security. If a site visit is not possible, please inform PM/DTCC case officer. Finally, post is asked to assess whether the company appears to be a reliable recipient of USML items. End action. ¶5. For background, the following details of the license in question are provided: DTC Case: 050099140 QUANTITY/COMMODITY: 3 Connector (Part number 508/4/28206/011) 1 Connector (Part number 531/4/01061/003) 1 Connector (Part number 531/4/01062/200) 4 Sleeve (Part number 998/4/84984/105) 18 Battery Lithium (Part number 535/4/00002/001) License Value: USD 1,035.00 SELLER: Avex Aerospace Corporation 361 Van Ness Way Suite 303 Torrance, CA 90501 Company contact: Teresa Nakashima, tel. 310-803-8823 FOREIGN CONSIGNEE: Yamada Corporation 6-1, 1-Chome Roppongi Minato-ku, Tokyo Japan FOREIGN END-USER: The Ministry of Defense of Japan 5-1, Ichigaya Honmura-cho Shinjuku-ku, Tokyo 162-8801 Japan PURPOSE: Replacement parts for Nautis-M data system used on MSC (Mine Sweeper Coastal) Vessel owned and operated by the Ministry of Defense of Japan. ¶6. Submitted in support of the license application were the following documents (PM/DTCC can fax documentation to post upon request): --Purchase order #58314/511P87950EKD from Yamada Corporation to Avex Aerospace Corp., signed by Osamu Okabe, Deputy Director, Defense & Aerosapce Components, dated 2/28/2008 ¶7. Please slug reply for PM/DTCC - BLUE LANTERN COORDINATOR and include the words "Blue Lantern" and the case number in the subject line. POC is Judd Stitziel, PM/DTCC, Phone: 202-663-3455; email: StitzielJD@state.gov; SIPRNET: StitzielJD@state.sgov.gov. The Blue Lantern Guidebook (ref) is available as a PDF file in the Bunche Library's Electronic Library collection on the DOS Intranet: http://virtuallibrary.state.gov/ BlueLanternGuidebook2006%2520 final .pdf ¶8. Department is grateful for post's assistance in this matter. RICE