BLUE LANTERN: BROKER INQUIRY K-1751

UNCLAS CANBERRA 000971 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-1751 REF: SECSTATE 93709 ¶1. (SBU) U.S. Consulate Sydney's Pol/Econ office spoke by telephone with Lynne Westwood, Compliance Manager with Aerospace and Defense Products PTY LTD, 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: Ms. Westwood confirmed Aerospace and Defense Products PTY LTD located at Unit 1, Apollo Street, Warriewood, NSW, Australia was founded in 1988. The company employs seven people and its directors are David Coleman, Ron Coleman and Elaine Colman. -- 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 Aerospace and Defense Products 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: A: Ms. Westwood confirmed USML items come into Australia licensed and if the company is re-exporting them they have an Australian permit to do so. The company has a locked section for USML products only, away from other products. Westwood explained the company maintains copies of all licenses as well as a complete log of the movement of USML items from the time they are purchased to the time they are supplied to the purchaser. The company also modifies some USML products on-site. In these cases the items may be held on-site for a week. Otherwise the items are held on-site for one or two days before being shipped to clients. -- What is the nature of its business and what other types of items does it handle? A: Ms. Westwood confirmed Aerospace and Defense Products PTY LTD. is registered as a broker for goods and services controlled by U.S. export control laws. However, she questions whether the company needs to be registered. Westwood told our office that Aerospace and Defense Products PTY LTD registered only because they were required to by their U.S. supplier, Cory Electronics. She says Aerospace and Defense Products PTY LTD does not broker and does not plan to. -- What types of organizations are among its typical clients and in what countries are they located? A: Ms. Westwood explained that Aerospace and Defense Products PTY LTD does purchase and import USML products and sells them to various military organizations - the Australian military as well as the air forces of New Zealand, Indonesia, Malaysia and Singapore. Ms. Westwood said the only controlled products the company deals in are: legends (warning caution panels),search lights and exterior/interior lighting for aircraft. She said the company also deals in aircraft instrumentation, lighting, LED sub-miniature lamps, and relay switches. -- Does the company understand the restrictions on USML items, Q-- Does the company understand the restrictions on USML items, especially the prohibition against unauthorized re-transfers and re-exports? A: Ms. Westwood says she and the company are fully aware of the regulations. ¶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.