BLUE LANTERN: BROKER INQUIRY K-2361

UNCLAS CANBERRA 000969 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-2361 REF: SECSTATE 93726 ¶1. (SBU) U.S. Consulate General Sydney's Political/Economic Office spoke with JOHN A. ROBINSON, director of INFRATHERM PTY LTD by phone on October 23, 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: Robinson confirmed the legal name of his company and that the company is in the business of brokering defense articles and defense services at the following address: 462 Terrace Road, Freemans Reach, NSW, Australia. The company maintains a second sales office: 15B Sandstone Crescent, Tascott, NSW, Australia; 02 4322 2100. Robinson also confirmed he and MIKE RATNE (sales director) are both directors of the company which was established in 1997. They employ one other staff member, an accountant/clerical employee. Robinson confirmed the company has been registered since last year and has recently sent in payment to renew registration. The company initially registered at the request of an American supplier. -- 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 confirms that INFRATHERM PTY LTD has applied for and been granted export licenses by the Australian government in the past. -- 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: Robinson advised his company does not normally store the cameras for longer than a day or two before sending them to clients. He says INFRATHERM imports the cameras, checks to make sure they are working and sends them to clients. When held on-site, Robinson says the cameras are kept in a locked workshop area. The company does not have any specific accounting procedures for USML items, but does maintain copies of licenses in locked files. -- What is the nature of its business and what other types of items does it handle? What types of organizations are among its typical clients and in what countries are they located? A: INFRATHERM works with thermal imaging cameras which they purchase and supply to various entities, including police and paramilitary, in Australia. Robinson identified the Australian Federal Police as the company's biggest client. He says the cameras are mainly used for security and in most cases are transferred to clients without alteration, though he says at times his company does mount the cameras on a pan and tilt device before they are sent to clients. INFRATHERM also sells the cameras to army and police in New Zealand and has been trying to obtain clients in Malaysia. Robinson says the company also sells the cameras for commercial/industrial use; for example, to a steel plant to monitor possible overheating. -- Does the company understand the restrictions on USML items, especially the prohibition against unauthorized re-transfers and Qespecially the prohibition against unauthorized re-transfers and re-exports? A: Robinson claims to understand the restrictions and said he knows USML items cannot be re-shipped without the proper paperwork and licensing. ¶2. (SBU) 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-up questions are necessary to verify the bona fides of this individual or entity.