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