BLUE LANTERN: BROKER INQUIRY K-0935

UNCLAS CANBERRA 000958 SENSITIVE SIPDIS STATE FOR PM/DTCC JOUBERT-LIN E.O. 12958: N/A TAGS: ETTC KOMC AS SUBJECT: BLUE LANTERN: BROKER INQUIRY K-0935 REF: SECSTATE 93587 ¶1. (SBU) Melbourne econoff conducted a telephone interview with FRANK LAZZAROTTI of MICROSECURE CORP., located at 100 Austins Road, Humevale, Victoria on October 20. The following information is intended to answer questions in reftel: -- Confirm that this entity is in the business of brokering defense articles and defense services at the location(s) indicated under its legal name(s); A: Microsecure operates as a legal entity from the address provided in reftel. -- Determine whether this entity is authorized to conduct such activities in its home country, whether the entity has any criminal or other derogatory background, and whether Post has any information on its brokering or arms export activities that may involve proscribed entities such as countries under U.S. or international sanctions, or designated state sponsors of terrorism; A: There is no legal requirement for an entity to be licensed or reviewed by the Australian Defense Export Control Office for brokering services. However, DECO did agree to run this entity through its database. No derogatory information or record of Microsecure ever having applied to export goods requiring a DECO license in Australia was found. -- Will the brokering firm be handling or storing USML items on behalf of its clients? If so, does it have secure facilities and proper accounting and security procedures for handling sensitive USML items? A: Microsecure periodically stores documents and demonstration equipment. They keep these items in a class B safe and Lazzarotti stated that all of Microsecure's procedures are fully compliant with the Australian Defense Security Authority requirements and concurrent U.S. requirements. -- When was the company established and who are its principals? How many employees? A: Microsecure was established under its current name in ¶1998. Frank Lazzarotti is the company's sole director and shareholder. There are a total of 12 employees. -- What is the nature of its business and what other types of items does it handle? A: Microsecure consults, designs and develops capabilities for secure (encrypted) communications such as telephones. They broker the importation of items from Harris Technologies into Australia. -- What types of organizations are among its typical clients and in what countries are they located? A: Microsecure contracts with the Australian Department of Defense as well as state governments in Australia. There are no foreign customers apart from the United States. -- Does the company understand the restrictions on USML items, especially the prohibition against unauthorized re-transfers and re-exports? A: Mr. Lazzarotti stated that he is fully aware of and complies with these restrictions. He noted that Microsecure has no ability to re-export due to the stringent guidelines that he follows. ¶2. (SBU) This cable was written with input from ConGen Melbourne. Due to constraints on post resources, post was unable to schedule a site visit to this entity within the proscribed time period. Please advise if follow-on questions are necessary to verify the bona fides of this individual or entity. CLUNE