BLUE LANTERN: BROKER INQUIRY K-0946

UNCLAS CANBERRA 000970 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-0946 REF: SECSTATE 93697 ¶1. (SBU) U.S. Consulate General Sydney's Political/Economic Office spoke with ANDREW MACLAURIN, director of ALLIED DATA SYSTEMS PTY LTD by phone on October 21, 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: Maclaurin confirmed the legal name of his company and its address: 30/5 Ponderosa PDE, Warriewood, NSW, Australia. Maclaurin also confirmed he is the sole director of the company which was established in 1983 and employs seven people, all based 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. No history of application or derogatory information was found 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: Maclaurin advised the company does not normally store such items. He says his company receives an order from a client, buys the equipment, imports the items and ships them directly to clients. He says they may be held in a safe overnight before being shipped out. He says the quantity of such items is so low he does not have any specific accounting procedures for handling them. -- What is the nature of its business and what other types of items does it handle? A: Apart from import and resale, ALLIED also develops and manufactures small systems going to defense and industrial projects. For example, the company developed a training system that is used on Australian navy frigates. Maclaurin says embedded computer systems are their main business. -- What types of organizations are among its typical clients and in what countries are they located? A: Thales Australia; British Aerospace Australia; some customers in the U.S. New York - Data Device Corporation (supply them with printed circuit boards and small systems using materials imported from the U.S.) in New York, ITT in Salt Lake City; plethora of smaller companies they deal with as well in Australia. -- Does the company understand the restrictions on USML items, especially the prohibition against unauthorized re-transfers and re-exports? A: Maclaurin said he does not fully understand all U.S. regulations, but enough to ensure his company complies with U.S. and Australia law. He says he does absolutely understand the prohibition on unauthorized re-transfers and re-exports. ¶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.