BLUE LANTERN: BROKER INQUIRY K-2322

UNCLAS CANBERRA 000989

SENSITIVE
SIPDIS

STATE FOR PM/DTCC JOUBERT-LINEEB AND EAP/ANP

E.O. 12958: N/A
TAGS: ETTC KOMC AS
SUBJECT: BLUE LANTERN: BROKER INQUIRY K-2322

REF: SECSTATE 94181


1. (SBU) U.S. Embassy Political/Economic Office spoke with RONALD
GILBERT, managing director of PROLOGUE CONSULTING PTY LTD by phone
on October 30, 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: Gilbert confirmed that Prologue, which operates only out of this
location, is the sole broker in Australia for L3 Communications
defense-related products (telemetry systems) in Australia. The
company has three employees (two embedded in GOA research
institutions) and has represented L3 and its predecessors since

1993.

-- 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 PROLOGUE CONSULTING PTY
LTD has never applied for or been granted export licenses by the
Australian government. No derogatory information was uncovered in
this review.

-- 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: Gilbert said that the equipment in question generally is shipped
direct to the end user. Prologue is occasionally responsible for
handling shipping for repair or servicing, but this is done at the
end-user location by a Prologue employee.

-- 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: Prologue brokers deals between L3 and Australian customers,
including the RAAF, the RAN and the Defense Science and Technology
Office (DSTO). Most of the company's work focuses on telemetry and
data equipment for aerospace research. Some of these deals are
covered by TAAs between L3 and the end-user. The company has no
customers in Australia outside of the government, and no overseas
customers.

-- Does the company understand the restrictions on USML items,
especially the prohibition against unauthorized re-transfers and
re-exports?

A: Gilbert said he and his employees are fully aware of and
compliant with all ITAR-related requirements.


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.