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.

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