RESULTS OF BLUE LANTERN LEVEL 3 PRE-LICENSE

UNCLAS TEL AVIV 001004 SIPDIS SENSITIVE STATE FOR PM/DTCC - BLUE LANTERN COORDINATOR STATE FOR NEA/IPA (PECCIA) NEW DELHI FOR JONATHAN S. FISCHER E.O. 12958: N/A TAGS: ETTC KOMC IN IS SUBJECT: RESULTS OF BLUE LANTERN LEVEL 3 PRE-LICENSE END-USE CHECK ON APPLICATION 05-050095903 REF: STATE 37830 ¶1. (SBU) Per reftel instructions, emboffs visited Orbit/FR Engineering, Ltd., a subsidiary of Orbit-Alchut Technologies in Netanya on May 6, and met with Vice President for Systems Research and Development Noah Isman, Senior Antenna Measurement Scientist Asi Geva, Customer Support Officer Carmit Kachan, and Security Consultant Sagy Itzhak. An information security officer from the Israeli MOD's Security Directorate (MALMAB/DSDE),Kobi Fogler, also participated in the meeting. Emboffs collected the following information: A) Bona Fides: Orbit/FR Engineering Ltd. is a subsidiary of Orbit-Alchut Technologies, and the more specific foreign consignee in the transaction covered under license application 05-050095903. Orbit/FR representatives provided a brief PowerPoint presentation illustrating their place in the Orbit conglomerate, and their business of developing and retailing antenna components and systems. Sixty-one percent of Orbit/FR's shares are held by Orbit Technologies Group. Orbit/FR is to be sold to France, and Orbit-Alchut Technologies is the holding company. Completion of the sale is pending USG approval. Orbit/FR's shares are traded on the NASDAQ, and its corporate headquarters are located in Pennsylvania. Orbit/FR's customers include domestic and global companies in satellite, aerospace, automotive, and academic industries, such as Sony-Ericsson, Boeing, Lufthansa, and Ford Motor Company. Clients are military and civilian, and range in size from large-scale defense contractors to individuals. Orbit was founded in 1951 and dealt with electronics. It then expanded into research and development, and began developing its own line of products. The "FR" portion of its name derives from Flamm and Russell, a company which it bought in the 1990s. B) Use of Licensed Technologies: Vice President Noah Isman described the four antenna switches covered by the export license application in question as "very simple parts" used for operating a test antenna, which can measure the efficacy of other antenna transmitters. The switch itself is designed for integration into an established antenna range system and permits users to connect to multiple transmitters and test each one at a time. Testing will take place in India, and Isman thought it likely the antenna transmitters to be tested are for a military application. Customer Support Officer Carmit Kachan showed emboffs copies of the purchase order, numbered 111037, which listed the supplier as REMEC, a subsidiary of Cobham Holdings, and was signed by Mark Fulling of Cobham, Inc. Isman likewise provided an end-user declaration confirming Defense Avionics Research Establishment (DARE) in Bangalore, India, as the recipient of the antenna switches. The end-user declaration was signed by "R.P. Ramalinjan, Distinguished Scientist and Director." Kachan noted that she is Orbit FR's POC for the Israeli MOD's Security Directorate (MALMAB/DSDE). Isman said this is the first time he is selling to this specific end-user, but noted that he already has several other customers in the India defense establishment. Isman said he has worked with REMEC before, and that Orbit/FR has received controlled items from U.S. suppliers in the past that were covered by export licenses. C) Company Records and On-Site Security: Security Consultant Sagy Itzhak assured emboffs that controlled technologies are very well protected at Orbit/FR. He noted that all of Orbit/FR's employees have at least a "confidential" level security clearance, and that only employees working on a project ever handle that project's technologies. Itzhak explained that controlled items licensed by State and Commerce are secured in a separate section of the warehouse and are labeled with a sticker identifying them as an "article under control." He stated that he requires the company to maintain detailed files for each transaction, and that Orbit FR is moving towards an entirely automated records system. D) Company's Understanding of USML Restrictions: Itzhak stated with confidence that he is very well read on the USML restrictions and the requirements for transacting controlled items. Emboffs assessed that Isman and the other company officials in the meeting likewise understood the importance of abiding by USML protocol. Per instructions in reftel, emboffs reiterated that any re-export of controlled items covered by U.S. export licenses requires approval prior to re-export. ¶2. (SBU) Based on the above, emboffs believe Orbit/FR is a bona fide company specializing in the research, development, and sale of antenna measurements components and systems, and is playing a legitimate role as consignee in a legitimate transaction. ********************************************* ******************** Visit Embassy Tel Aviv's Classified Website: http://www.state.sgov.gov/p/nea/telaviv You can also access this site through the State Department's Classified SIPRNET website. ********************************************* ******************** JONES