BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK (ITRES

UNCLAS CALGARY 000100 SENSITIVE SIPDIS STATE FOR PM/DTTC, PASS TO MAZZARELLI E.O. 12958: N/A TAGS: ETTC KOMC CA SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK (ITRES RESEARCH) REF: 2009 STATE 58613 ¶1. (SBU) In response to Reftel, post conducted a site visit to the facilities of ITRES Research, the subject of this Blue Lantern request, on October 23, 2009. ¶2. (SBU) NOTE: This license request may be overcome by events as company representatives tell post that they have determined that they do not require a license for the equipment they acquired, and have therefore been in touch with the licensing authority to withdraw the application (see para 7). Post will nevertheless share all pertinent information pursuant to his Blue Lantern request for the file, and/or for use with future inquiries or license applications. End Note. -------------- Nature of Business -------------- ¶3. (SBU) ITRES Research is a well-established corporation in Calgary, Alberta, Canada, in the business of building and selling high-tech optic sensors for electronic mapping. They build thermal optic sensors to mount on, or in, the belly of slow-flying airplanes with sensors to feed collected data electronically to computers for planning land use. ITRES Research sells both the device housing and the computer analysis service for gathered mapping data. ITRES Research has been in business for over 40 years, and has roughly 35 full-time employees. ¶4. (SBU) Post met with the following ITRES representatives: Doug Davison, ITRES President and CEO; Tyme Witte brood, Director of Project Management and Finance; and JoAnne DeVries, Export Control Manager. The company's contact information follows: #110, 3553 31 Street NW Calgary AB Canada Main telephone: 1-403-250-9944 Fax: 1-403-250-9916 -------------- - Typical Customers/Client Base; Planned End Use -------------- - ¶5. (SBU) Past clients have included: the U.S. Army Corps of Engineers (used with construction of water barriers in Mississippi and Louisiana following Hurricane Katrina); several U.S. Army bases using their services to detect heat loss; and U.S.-based Tuck Mapping. Davison estimates that approximately 35 to 40 percent of their client base is in the U.S. with other work in Europe, specifically in Spain and France, and some in Japan. -------------- -------------- Storage, Possession, and Restrictions on Re-Export -------------- -------------- ¶6. (SBU) ITRES Research has a secure storage facility and laboratory space in a professional research park in Calgary, with 24-hour security. ITRES has also appointed an employee to follow licensing processes full-time to ensure they are in compliance with various applicable regulations. In instances where equipment is used in European or Japanese environments, Davison reports that ITRES obtains advance permission from Canadian Federal Authorities (DFAIT) in Ottawa. -------------- -------------- COMMENT: License Application Withdrawn in July 2009 -------------- -------------- ¶7. (SBU) Davison and IRES Export Controls Manager JoAnn DeVries told post that although they filed an application for importation under United States Munitions List (USML) in January 2009, after consulting with a specialist in such matters, they have determined that the items they plan to import are not governed by the USML. Ms. DeVries reports that ITRES has therefore withdrawn its application on July 7, 2009 and has provided full documentation to the licensing authority in this regard. Nevertheless, post notes that this is a well-established company with an interest in long-term importation and use, with professional secure facilities and a long-standing contractor relationship with the U.S. military. The fact that they have assigned an employee to manage such matters full time signifies a seriousness and professionalism, and post concludes that ITRES Research would be a reliable steward of any equipment listed on the USML. LOCHMAN