Blue Lantern Level 3: Pre-License End-Use Check on

UNCLAS FRANKFURT 000241 STATE FOR EUR/CE PETER SCHROEDER STATE FOR PM/DTCC - BLUE LANTERN COORDINATOR TIM MAZZARELLI SENSITIVE SIPDIS E.O. 12958: N/A TAGS: ETTC KOMC SP GM SUBJECT: Blue Lantern Level 3: Pre-License End-Use Check on Application 050136522 REF: STATE 135076 ¶1. (SBU) Reftel requested that post conduct a bona fides site visit to Zeltmann GmbH and a pre-license check on application 050136522. ConGen Pol-Econ Off conducted the site visit with junior directors Peter Zeltmann and Achim Zeltmann on January 14. Established in 1964 by current senior director Kurt Zeltmann, the company sells spare parts for military vehicles such as the M113, M109 and M60 and had an annual turnover of 2,698,671 euros in 2008. ¶2. (SBU) Zeltmann does on occasion procure parts from other distributors to facilitate transactions to end users. The company understands prohibitions of United States Munitions List (USML) in regards to stockpiling, re-transfers and re-exports. 95% of business is done domestically with providers to the Germany army, but the company also exports to companies and militaries in Italy, Spain, Turkey and other NATO members. ¶3. (SBU) Zeltmann keeps accounts of its transactions. It has supporting documentation for this transaction and all parts are going to Spain, although no contract has been signed. Security at the facility is very modest as the company sells only spare parts. Two storage facilities are locked up at night but there are no cameras, security system, or guards. Items are never stored offsite. The Zeltmanns claim they have never experienced a robbery. German export control officials from the Federal Office of Economics and Export Control (BAFA) conduct an inspection of the company every four years. ¶4. (SBU) Zeltmann GmbH appears to be a reliable recipient of USML items. ¶5. This cable was coordinated with Embassy Berlin. POWELL