NETHERLANDS/BLUE LANTERN CHECK ON APPLICATION

UNCLAS SECTION 01 OF 02 THE HAGUE 000368 SIPDIS SENSITIVE SIPDIS STATE FOR PM/DTCC (BLUE LANTERN COORDINATOR/JSTITZIEL) STATE ALSO FOR EUR/WE (TSMITH) USDOC FOR 532/OEA USDOC FOR 3133/USFCS/OIO/JBREIDENSTINE/PBUCHER USDOC FOR 4212/USFCS/MAC/EUR/OWE/DCALVERT E.O. 12958: N/A TAGS: ETTC KOMC NL JO SUBJECT: NETHERLANDS/BLUE LANTERN CHECK ON APPLICATION 050092988 REF: STATE 32414 SENSITIVE BUT UNCLASSIFIED; PLEASE HANDLE ACCORDINGLY. ¶1. (SBU) SUMMARY: Emboffs conducted a site visit per reftel of Applied Research Laboratory Europe BV (ARLE) on April 18. Although a sole proprietorship, ARLE appears to be a bona fide intermediary. ARLE stores items in a safe drilled into the concrete floor of a garage which is connected to a house alarm network. However, ARLE does not intend to take physical possession of the night sights referenced in application 050092988. These, and any other sensitive items ARLE brokers, are shipped directly from the U.S. manufacturer to the end-user. END SUMMARY. -------------- --- Background on Applied Research Laboratory Europe -------------- --- ¶2. (SBU) Emboffs met April 18 with Ron Smeele of ARLE at his home, which also serves as ARLE's office. Smeele is sole propietor of ARLE, which he established in 2004. Prior to that, he served four years in the Korps Mariniers (Dutch marine corps) and seventeen years with the Dutch police Arrest Team (SWAT equivalent) in The Hague, including as an academy trainer. In 2004, ARLE initially was contracted to provide "close protection" services to the Dutch Ambassador in Baghdad. Returning to the Netherlands, Smeele recognized a business opportunity because, he said, Dutch security forces lack cutting edge procurement knowledge about equipment and methods. Using his understanding of Dutch forces' mission needs and his extensive contacts with U.S. equipment manufacturers, Smeele acts as an independent consultant and broker for tactical training and equipment. For example, Smeele said that he had recently taken a Dutch anti-terrorist unit to the U.S. to learn from the Los Angeles Police Department's experience in preparing for a chemical, biological, radiological, or nuclear (CBRN) attack. -------------- Relationship with Major Ghazi -------------- ¶3. (SBU) Smeele said that he first met Major Ghazi (whom he referred to as Jordanian King Abdullah II's nephew) at a major equipment trade show in the U.S. Ghazi was looking for lots of equipment, according to Smeele, but had not had much luck procuring directly from U.S. companies. Over a period of a couple years, including a visit to Ghazi's unit in Jordan, Smeele established a business relationship of trust with him. Ghazi now orders equipment from ARLE, which sources products from U.S. manufacturers. Ghazi represents ARLE's first customer outside of the Netherlands. Smeele said that Ghazi typically buys two units of a product and tests them in Jordan, with Smeele's on-site training, before making a large order. ¶4. (SBU) Smeele said that Ghazi has not taken delivery of any night vision scopes listed in application 050092988. He explained that the 250 quantity on the DSP-83 was intended to cover orders over a multi-year period. He said that ARLE does not intend to take physical possession of any equipment that includes thermal or laser technology. Instead, ARLE has the equipment shipped directly from the U.S. manufacturer to the end-user; he said this was a safer and cheaper method. Smeele said that ARLE did have approximately 70 "monoscopes" stored on premises, awaiting Dutch government approval to export them to Jordan. (Note: Smeele subsequently informed Emboffs that the Dutch approved this license. End note.) He showed Emboffs how he stores these items -- a Smith and Wesson safe drilled into the concrete floor of the garage. Emboffs noted the glass panels in the doors leading to the garage. Smeele said the garage was connected to the house alarm system, which alerts a local response force in the event the alarm is triggered. ¶5. (SBU) Smeele assured Emboffs that he understands fully the prohibitions against unauthorized re-transfers and re-exports THE HAGUE 00000368 002 OF 002 of United States Munitions List items. He said that ARLE submits required reports annually to the Department and has had no trouble complying with the USG's procedures. Smeele said he maintains all ARLE sales and customer records on his computer at his home office. Gallagher