BLUE LANTERN: BROKER INQUIRY K-1647

UNCLAS CANBERRA 000967 SENSITIVE SIPDIS STATE FOR PM/DTCC JOUBERT-LINEEB AND EAP/ANZ E.O. 12958: N/A TAGS: ETTC KOMC AS SUBJECT: BLUE LANTERN: BROKER INQUIRY K-1647 REF: SECSTATE 93577 ¶1. (SBU) The Political/Economic Section of U.S. Consulate Sydney spoke on the phone with JOANNE GARDINER, Office Manager of EYLEX PTY LTD (10 Anella Avenue, Unit 9, Castle Hill, New South Wales) on October 20, 2009. 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: Gardiner confirmed EYLEX is registered as a broker for goods for services controlled by U.S. export control laws. She also confirmed the company is in the business of brokering defense articles under the company's legal name at the above address. EYLEX was established in 2003. Its directors are Ross K. Stevens, General Manager, and Todd A. Williams, Sales Manager. The company employs 10 people who all work at the above address. -- 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 Defence Export Control Office for brokering services. However, DECO did agree to run this entity through its database. DECO reports that it has no record of EYLEX applying for export licenses in the past. However, information in their databases suggests entities now connected with EYLEX applied for and received export license approval in Australia in connection with LYNWOOD ELECTRONICS. The last such approval was granted more than 10 years ago. No derogatory information was found on EYLEX in this check. -- 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: Gardiner advised the company does not store items long term and that they do have proper storage and handling facilities on-site. She says EYLEX places orders on behalf of clients, purchases/imports the items, then transfers the items to the client when they arrive. -- What is the nature of its business and what other types of items does it handle? A: Defense communications equipment supply. Eylex imports from the following U.S. companies: -- AMCI - amplifiers and batteries (rechargeable/non rechargeable) -- Ultralife - batteries, etc -- ViaSat - data management systems -- Gentex - intercom systems -- What types of organizations are among its typical clients and in what countries are they located? A: Commonwealth of Australia; paramilitary, police and emergency services; also New Zealand Defense Force on occasion. -- Does the company understand the restrictions on USML items, especially the prohibition against unauthorized re-transfers and re-exports? A: Gardiner told our office EYLEX has an extensive procedure for USML items and that the company follows all requirements. ¶2. (SBU) Please advise if follow-up questions are necessary to verify the bona fides of this individual or entity. ¶3. (SBU) Due to constraints on post resources, post was unable to schedule a site visit to this entity within the proscribed time period.