BLUE LANTERN PRE-LICENSE END USE CHECK ON TAA

UNCLAS STATE 005981

SIPDIS

SIPDIS
FOR POL OLIVER J. MOSS

E.O. 12958: N/A
TAGS: ETTC KOMC UK
SUBJECT: BLUE LANTERN PRE-LICENSE END USE CHECK ON TAA
3645-07


1. This is an action message. See paragraphs 2-4.


2. The Department's Office of Defense Trade Controls
Compliance (PM/DTCC) requests post assistance in conducting a
pre-license check on a Technical Assistance Agreement (TAA)
for the export of technical data associated with GPS to the
United Kingdom. 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 licenses
involving parties to this license.


3. Reason for request: Internet search information shows the
Foreign End User, Spirent Communications, as having multiple
commercial transactions with Chinese entities. These
dealings include sales to the Chinese firm Huawei
Technologies, an entity which news reporting describes as
having "deep ties" to the People's Liberation Army (PLA).
The new TAA includes language from Spirent which states that
they sell "their GPS simulation products to USG customers as
well as to other EU national governments." TAA also states
that "Spirent Comm works through the UK MoD and the US GPS
Wing for approvals when they sell the products to customers
outside of the US." The latter statement potentially leaves
open the possibility that Spirent has sold, or would sell,
GPS simulation products to China if the transaction were
approved by the UK MoD. PM/DTCC therefore would like to
conduct a Blue Lantern check to determine whether or not
Spirent has sold GPS simulation products to China, and the
extent of UK MoD's knowledge and approval of any such
transactions.


4. ACTION: Please contact both the Foreign End User, Spirent
Communications, and the UK MoD, and make inquires about the
sale of GPS simulation products to China. The following
questions are provided as suggested guidance.

For Spirent Communications:

--Has Spirent sold, or offered for sale, any GPS simulation
products to China? If yes, please describe which type(s) or
model(s),the quantity, dates of transaction, plus the names
of all Chinese entities involved in each transaction.

--Were all Spirent sales or offers of GPS simulation products
to China submitted to the UK MoD for approval? If yes,
please provide the dates that these requests were submitted
to the UK MoD, the point of contact at the MoD who received
the Spirent requests, and the dates of approval or
disapproval. If no, please specify of which sales or offers
the UK MoD was not notified.

--Has Spirent sold any GPS simulation products to China which
contained U.S.-origin components? Also, has Spirent sold any
GPS simulation products to China containing any elements
(design, parts, hardware, software, source code, test
equipment, etc.) that were originally based upon or derived
from United States Munitions List (USML) technical data,
assistance, equipment, or components?

--Does Spirent understand the restrictions on USML
commodities under the Arms Export Control Act (AECA),
particularly with regards to the prohibition against
re-transfers or re-exports without express USG authorization?

For the UK MoD:

--Has Spirent Communications ever requested approval from the
UK MoD for sales of GPS simulation products to China? If
yes, please provide details about these requests, i.e., how
many, dates, type or model of GPS product, name of Chinese
entities involved in the transaction, and ultimate MoD
decision regarding the proposed or actual sale.

--(If no to the above question) Would the UK MoD consider for
approval a request by Spirent for the sale of GPS simulation
products to China?

END ACTION.


5. License Information:

DDTC Case Number TAA 3645-07

QUANTITY/COMMODITY:

01 Technical Data associated with GPS, including but
not limited to Interface Control Documents (ICDs),Interim
Revision Notices (IRNs),Test Vectors, Prime Item Development
Specifications, Acceptance Test Procedures and Test Programs,
Test Data, User Manuals, Software Drivers, and other data
necessary to support development of the test equipment
interface

LICENSE VALUE: USD 100,000.00

APPLICANT:

Spirent Holdings Corporation
1300 Veterans Highway
Hauppauge, New York 11788 USA

SOURCE:

Spirent Federal Systems Inc.
22345 La Palma Avenue, Ste. 105
Yorba Linda, California 92887 USA

FOREIGN END USER:

Spirent Communications PLC
Aspen Way, Paignton
Devon TQ4 7QR
UNITED KINGDOM

STATEMENT OF PURPOSE:

For developing and selling equipment including GPS simulators
and other test equipment by Spirent to their customers,
including the U.S. Government.


6. Please slug reply for PM/DTCC - BLUE LANTERN COORDINATOR
and include the words "Blue Lantern" and the DDTC Case Number
in the subject line. POC on this case is Peter Sabatini,
PM/DTCC, phone: 202-663-2819; ClassNet email:
sabtinipj@state.sgov.gov; OpenNet email:
sabatinipj@state.gov. The 2006 Blue Lantern Guide Book is
available on OpenNet at
http://fsi.state.gov/fsi/spas/default.asp?ID= 1588
Department thanks Post for its assistance in this matter.
RICE