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

UNCLAS STATE 087354 SENSITIVE SIPDIS ISLAMABAD FOR CAROLINE DOW E.O. 12958: N/A TAGS: ETTC KOMC PK SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON APPLICATION 050117384 REF: 2006 BLUE LANTERN GUIDEBOOK ¶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 050117384 for the export of defense hardware to Pakistan. Post is requested to complete this Blue Lantern inquiry within 30 days. Lack of response to a Blue Lantern inquiry will affect pending and future licenses involving parties to this license. ¶3. (SBU) Reason for request: All foreign parties to the proposed transaction are on PM/DTCC's watch list. End-user Kamra Avionics and Radar Factory has been involved in previous transactions with Mehmood Traders, another watchlisted Pakistani firm. Prior Blue Lantern inquiries on these entities have yielded inconclusive and/or unfavorable results. ¶4. (U) Action Islamabad: Department requests that Post make appropriate inquiries to confirm the bona fides of all parties involved in the proposed transaction and verify that Kamra Avionics and Radar Factory ordered the United States Munitions List (USML) items listed on the application for the stated purpose. Post also is requested to determine if the Pakistan Ministry of Defense is a party to the proposed transaction. The following questions provide suggested guidance for confirming the legitimacy of the foreign intermediate consignee and foreign consignees' roles in the proposed transaction: Does the company have proper supporting documentation, including purchase orders from Kamra Avionics and Radar Factory for this proposed transaction? --What entity will be actually integrating the USML items into the AN/TPS-43 ground-based radar? --Is Kamra Avionics and Radar Factory the ultimate end-user of the AN-TPS-43 ground-based radar? If not, who is? --Will your firm be handling or storing the items listed on the application? If so, does it have secure facilities and proper accounting and security procedures for handling these sensitive USML items? --When was the company established and who are its principals? --What is the nature of its business -- what types of items does it handle, does it serve as a broker? --What types of organizations are among its typical customers and where are the customers located? --Does the company understand the restrictions on United States Munitions List (USML) items, especially the prohibition against unauthorized re-transfers and re-exports? ¶5. (U) Department requests that Post conduct site visits to the companies in order to provide Department with an assessment of their business operations and on-site security. If site visits are not possible, please inform PM/DTCC case officer. Finally, Post is asked to assess whether the companies appear to be reliable recipients of USML items. End Action Request. ¶6. (SBU) Details of license application: DTC Case: 05-050117384 QUANTITY/COMMODITY: 1 PN 602B883H01 Filament Txfr 2 PN 359D435H01 W/G Flexible 2 PN 636A046H01 Shaft Encoder License Value: USD $35,980. SELLER: Caliber Sales Engineering, Inc. One S.W. 129th Avenue, Suite 105 Pembroke Pines, FL 33027 954-430-6234 FOREIGN INTERMEDIATE CONSIGNEES: Tektron International 01, First Floor, Block 13-O Market F-7 Islamabad Pakistan FOREIGN CONSIGNEE: M D KARF PAC Kamra Dist Attock Kamra Pakistan END-USER: Kamra Avionics & Radar Factory (a/k/a KARF) Pakistan Aeronautical Complex - Attock Kamra Pakistan PURPOSE: Components will be used in support of the maintenance of the AN/TPS-43 ground-based radar. ¶7. (U) Submitted in support of the license application were the following documents (PM/DTCC will fax documentation to Post upon request): -- Nontransfer and Use Certificate (DSP-83) dated 01 August 2008 -- Contract No. PACB/786/72400044/0117-A/P-4 dated 23 June 2008 -- Purchase Order from End-User to U.S. Applicant dated 28 June 2008 ¶8. (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 Rachael-Therese S. Joubert-Lin, Phone: 202-663-2950; Email: JoubertLinRS@state.gov; SIPRNET: JoubertLinRS@state.sgov.gov. The Blue Lantern Guidebook (ref) is available as a PDF file in the Bunche Library's E-Book Collection on the DOS Intranet: http://buncheelectroniclibrary.state.gov/eboo ks/ BlueLanternGuidebook2006%20 final .pdf ¶9. (U) Department is grateful for Post's assistance in this matter. RICE