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.

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Nature of Business
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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

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Typical Customers/Client Base; Planned End Use
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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.

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Storage, Possession, and Restrictions on Re-Export
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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.

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COMMENT: License Application Withdrawn in July 2009
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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