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

S E C R E T STATE 007531 SIPDIS NOFORN SIPDIS TEL AVIV FOR MICHAEL KEYS POL E.O. 12958: DECL: 01/22/2038 TAGS: ETTC KOMC IS SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON APPLICATION 050083287 REF: A. NGIC-2742-0886-07 ¶B. NGIC-2742-1090-06 ¶C. BLUE LANTERN GUIDEBOOK 2006 Classified By: Multiple Sources ¶1. (U) This is an Action Request. See paragraphs 2-4. ¶2. (U) The Department's Office of Defense Trade Controls Compliance (PM/DTCC) requests post's assistance in conducting a pre-license check on application 050083287 for the export of a FLIR camera system to Israel. 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. (S/NF) Reason for request: proliferation concerns. According to refs A and B, proposed Israeli end-user Fibrotex Technologies has sold its camouflage products to government and private end-users in several third countries. Among Fibrotex's customers has been Serbian company Mile Dragic, which may have directly or indirectly sold or be selling camouflage to Syria and Iran. Post should make appropriate inquiries to verify the bona fides of Fibrotex, to determine whether the item proposed for export under this license application might contribute to the undesirable proliferation of camouflage technology to third parties of concern, and to confirm the general legitimacy of the proposed transaction. The following questions are provided as suggested guidance: --Who will be the ultimate end-users of the textiles developed using this FLIR infrared camera system? --What types of organizations are among Fibrotex's typical customers and where are the customers located? --Will Fibrotex re-transfer or re-export this FLIR infrared camera system? --Will Fibrotex export the textiles developed using this FLIR infrared camera system? If so, to whom? --What kinds of accounting and security procedures does Fibrotex have in place for handling this sensitive USML item? --Does the company understand the restrictions on United States Munitions List (USML) items, especially the prohibition against unauthorized re-transfers and re-exports? ¶4. (U) 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. (SBU) For background, the following details of the license in question are provided: DTC Case: 050083287 QUANTITY/COMMODITY: 1 FLIR model SC4000 HS-MWIR (320x256 INSB FPA, 3-5 micron) Infrared Camera System; including 25 mm lens and other parts and accessories to support the system License Value: USD 52,026.00 SELLER: FLIR Systems, Inc. 27700A SW Parkway Avenue Wilsonville, OR 97070 Company contact: Marlene Caban, tel.: 503-498-3547 FOREIGN CONSIGNEE: RDT Equipment & System 5 Ha'arad St. Ramat Hachayal Tel Aviv Israel FLIR Systems AB PO Box 3 Rinkebyvagen 19 Danderyd Sweden FOREIGN INTERMEDIATE CONSIGNEE: Fritz Companies Sweden AB Arlanda Airport Stockholm Sweden (Import agent) FOREIGN END-USER: Fibrotex Technologies P.O. Box 7604 Kiryat Matalon Moshe Dayan St. 16 49170 Petach Tikva Israel Tel.: 972 3 922 3586 Fax: 972 3 922 3533 Website: www.fibrotex.net PURPOSE: The SC4000 unit will be integrated into a laboratory radiometric system and used for textile radiometric properties measurement and for optimizing properties of textiles. This order represents the sale of FLIR SC4000 demo unit, serial number 1011. ¶6. (U) Submitted in support of the license application were the following documents (PM/DTCC can fax documentation to post upon request): --Purchase order no. 4500001361 from FLIR Systems AB in Sweden to FLIR Systems in the U.S., dated 2007-11-22 --Product brochure, including technical drawings and specifications --End-Use Statement from Fibrotex Technologies, signed by Vladimir Kotler, CTO, dated 1.11.2007 --"Security Plan" from Fibrotex Technologies, stating that the FLIR system will be "located at Fibrotex Technologies radiometric laboratory on tripod and will be part of stationary radiometric set up" --U.S. Department of State Nontransfer and Use Certificate (Form DSP-83),signed by Avi Tiv, General Manager, RDT Equipment & Systems, dated 11.04.07; signed by Vladimir Kotler, CTO, Fibrotex Technologies Ltd., dated 11.04.2007; and signed by Arne Almerfors, Man. Dir. (presumably of FLIR Systems AB),dated 11.12.07 ¶7. (U) 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 C) 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. (U) Department is grateful for post's assistance in this matter. RICE