SWEDEN RESPONSE: BLUE LANTERN LEVEL 3: PRE-LICENSE

UNCLAS STOCKHOLM 000177

SIPDIS

SENSITIVE
SIPDIS

STATE FOR PM/DTCC - BLUE LANTERN COORDINATOR (JSTITZIEL)

E.O. 12958: N/A
TAGS: KOMC ETTC SW
SUBJECT: SWEDEN RESPONSE: BLUE LANTERN LEVEL 3: PRE-LICENSE
END-USE CHECK ON APPLICATION 050087908

REF: STATE 15838


1. (SBU) Summary: Deputy Economic Counselor visited Robert
Eklund, President of Avitronics International AB on March 3.
Eklund said he operates as a distributor and not a broker
because he purchases the searchlights from Spectrolab Inc.
and pays for them against invoice. He maintained that his
only profit comes from the mark-up in price when he sells to
the end-user (Ulan-Ude Aviation Plant),and that he receives
no other remuneration from Spectrolab. Eklund signed the
DSP-83 on September 24, 2007 while his contract with
Spectrolab was valid. Post recommends that Department of
State determine whether Avitronics International AB would be
operating as a broker if the searchlights in question were to
be purchased and shipped to the foreign consignee now that
the distributor agreement with Spectrolab has expired
(November 17, 2007) End Summary.


2. (SBU) On March 3, Deputy Economic Counselor visited Robert
Eklund, President of Avitronics International AB, at his
office located at Veddestavagen 17 in Jarfalla, Sweden.
Eklund was very cooperative throughout the visit, stating
that he had signed the Nontransfer and User Certificate
(DSP-83) and had ordered the commodities specified in reftel
for use on the end-user's Mi-8/17 helicopters. Eklund
verified that the signature on the DSP-83 was his, that he
had indeed ordered the infrared searchlights in question, and
that he owns 100 percent of Avitronics International AB. He
commented that he has represented Spectrolab, Inc., a
wholly-owned subsidiary of the Boeing Company, in the Nordic
countries, Russia and Eastern Europe since 1995. (Note:
Eklund also represents Becker Flugfan, which manufactures VHF
radios, Global Positioning Systems and other aviation-related
equipment, and three other unnamed companies. End Note)
Eklund also said that he ordered the same type of equipment
(infrared searchlights) from Spectrolab 4-5 times previously
in 2007 and that Spectrolab always handles the export license
process. Eklund stated that he has used the foreign
consignee, Varova Oy, to send equipment to the foreign
end-user, Ulan-Ude Aviation Plant, each time.


3. (SBU) Eklund maintained that he is one of four
distributors for Spectrolab worldwide. Avitronics
International AB is responsible for the Nordic countries,
eastern Europe and Russia. Eklund said he operates as a
distributor and not a broker because he purchases the
searchlights from Spectrolab and pays for them against
invoice. He maintained that his only profit comes from the
mark-up in price when he sells searchlights to Ulan-Ude
Aviation Plant, and that he receives no other remuneration
from Spectrolab. He permitted Econoff to take copies of the
first and last page of his distributor agreement with
Spectrolab Inc., but did not want to divulge the content of
the remaining six pages for "reasons of privacy." Econoff
noted that this contract was valid from November 17, 2006 to
November 17, 2007. Eklund admitted that he had not renewed
his contract with Spectrolab, but was hoping to do so "when
time permitted." He added that he does not store the
searchlights at all as he has no storage facilities.
(Comment: Avitronics International AB) operates from a
building that rents individual office space to small
companies. End Comment) Eklund said that he has visited
Ulan-Ude Aviation Plant and toured its operations, but has
not visited the foreign consignee listed in reftel (Varova Oy
in Helsinki, Finland).


4. (SBU) We recommend that Department determine whether or
not Avitronics International AB is operating as a broker.
Foreign Commercial Service staff at post were not aware of
any negative information regarding Eklund or his company.
One FCS local employee stated that he had helped Eklund and
Avitronics AB a few times in the past when Eklund was seeking
to represent U.S. manufacturers of aviation related-products.
SILVERMAN