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