BLUE LANTERN BROKER INQUIRY - CASE K/2356

UNCLAS HELSINKI 000400 SIPDIS STATE FOR PM/DTCC E.O. 12958: N/A TAGS: ETTC KOMC UK FI SUBJECT: BLUE LANTERN BROKER INQUIRY - CASE K/2356 REF: STATE 94817 ¶1. In response to the Department's Blue Lantern request, PolEconoff and Econ Assistant conducted a visit at Cojot Oy's Espoo headquarters on October 19, 2009 and met with Managing Director Samu Lentonen to talk about Cojot's application for a US defense articles/services brokering license. ¶2. Managing Director Samu Lentonen stated that the company applied for a U.S. brokering license at the end of 2008 at the request of their cooperation partner L-3 TRL, the UK subsidiary of the US Company L-3 Communications Group plc. Cojot's partnership with L-3 TRL is limited to marketing L-3's products within Finland. Cojot does not actually import or otherwise handle L-3's products, which it would only physically possess samples of products for marketing purposes and does not engage in brokering. L-3 TRL ships all products directly to its customers without involving Cojot. Outside of Cojot's relationship with L-3 TRL, it is not involved in brokering or otherwise handling or storing U.S. defense articles or services. ¶3. Cojot Oy is a well-respected and long established Finnish company, designing and developing VHF/UHF/SHF wideband antenna equipment for mobile military communication and electronic countermeasure applications. All manufacturing is outsourced. Almost all products are designed and manufactured in Finland (some manufacturing in Estonia). Office is located in Espoo, Paivankakkarantie 10, 02270 Espoo. ¶4. A small operation, Cojot Oy has annual sales of 2.4 million euros and employs 11 people. Cojot is a pioneer and leading manufacturer of field-proven mobile military wideband antennas and accessories, utilizing VHF, UHF and SHF bands, with no competitors in Finland and only a few in Europe. Cojot's product range covers antennas for military manpack, man portable and vehicle applications as well as highly sophisticated wideband and multiband antennas for CIMIC (Civil-Military Co- operation) and Public Safety applications in the 20 - 6000 MHz range. ¶5. Cojot was founded in 1986 in Espoo, Finland by Mr Veijo Haapanen, who still is a board member. The company's Managing Director is Mr Samu Sulo Olavi Lentonen, Chairman of the Board Mr Erkki Aukusti Valkeasuo and board members Mr Markku Tapio Jenu and Mr Esko Ilari Vainio. Due to fierce competition Cojot changed its course in 2000, moved away from manufacture of civilian antennas and started developing antennas for the military. The Finnish Defense Forces were Cojot's first customer and a serving FDF officer sits on Cojot's board. Cojot supplies defense industry and military contractors worldwide, together with defense forces in crisis management operations and public safety authorities. Cojot's customized products are currently in service with several NATO member countries (for example in Afghanistan) and armed forces worldwide. Post has no criminal or other derogatory background information regarding Cojot, its officers or directors. Lentonen stated that Cojot does not do business with state sponsors of terrorism or countries under U.S. or international sanctions. ¶6. Mr Eero Aho, Head of Export Control Unit, Ministry of Foreign Affairs and Ms Sanna Poutiainen, responsible for licensing of military items at the Ministry of Defense (MOD),stated that the company has requested a classification of their main products under Finnish law and regulations. According to the MOD, which is responsible for classification of arms, those products (antennae) are not classified as defense articles under Finnish law. However, if the company is going to act as a broker of U.S. origin defense articles (arms) or services in the future, it also must apply for a brokering license in Finland. ORECK