Netherlands Blue Lantern: Post-Shipment End-Use Check on

UNCLAS THE HAGUE 000252 SIPDIS STATE FOR PM/DTCC - TWATKINS USDOC for 532/OEA USDOC for 3133/USFCS/OIO/JBREIDENSTINE/PBUCHER USDOC for 4212/USFCS/MAC/EUR/OWE/DCALVERT SENSITIVE SIPDIS E.O. 12958: N/A TAGS: ETTC KOMC FR NL SUBJECT: Netherlands Blue Lantern: Post-Shipment End-Use Check on License 050061621 REF: STATE 10193 SENSITIVE BUT UNCLASSIFIED; PLEASE HANDLE ACCORDINGLY. ¶1. (U) SUMMARY: Post verified AD-S' role as a foreign intermediary for the French Air Force (FAF) and the company appeared to be a responsible recipient of USML items. END SUMMARY. ¶2. (SBU) Emboffs met with Peter de Smalen, Director, AD-S on March 3 to conduct reftel post-shipment verification and site visit in relation to the export of a large quantity of C-130 spare parts to the FAF. AD-S is a subsidiary of Avio-Diepen, an independent distributor in the aerospace industry. Avio-Diepen acquired the AD-S business in November 2006. De Smalen explained that AD-S' core activity is brokering military aviation spare parts and it is one of the Netherlands' leading independent traders in this sector. For the purpose of comparison, he mentioned Derco Aerospace and Kellstrom Industries (both U.S. companies) as competitors. De Smalen said that AD-S' revenue in 2007 was approximately 12 million Euros and it had ten full-time employees. He said that AD-S focuses its sales efforts on a short list of about ten established customers, including the Dutch Armed Forces, NAMSA (NATO's centralized procurement arm),OGMA (Industria Aeronautica de Portugal),the Portuguese Air Force, the FAF, the Singapore Air Force, and Singapore Technologies (ST Engineering). ¶3. (SBU) Regarding license 050061621 for the export of C-130 aircraft spare parts to the FAF, de Smalen said that AD-S had won a tender to supply the parts and was sourcing them from R.S. Aviation in Florida. He said that, to date, AD-S had only supplied parts totalling several thousand dollars but that R.S. Aviation had suggested obtaining a blanket license for USD 2 million to cover present and future shipments to the FAF. De Smalen provided Emboffs with purchase orders, invoices, and contracts for R.S. Aviation, AD-S, and OGMA (the foreign consignee for the FAF parts). Post can provide copies upon request. ¶4. (U) De Smalen assured Emboffs that every employee at AD-S takes license compliance very seriously. He appeared to have a firm understanding of the obligations associated with the export license. Emboff interactions with de Smalen were cordial and professional. Gallagher