BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON

UNCLAS ISLAMABAD 000428 STATE FOR PM/DTCC - BLUE LANTERN COORDINATOR USDOC FOR 3131/USFCS/OIO REGIONAL DIRECTOR/RKREISSL SIPDIS SENSITIVE E.O. 12958: N/A TAGS: BMGT KOMC PK SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON APPLICATON 050117384 REF: 08 SECSTATE 87354 ¶1. (SBU) On February 12 CommCouns and Senior Commercial Specialist visited the Kamra Avionics and Radar Factory (KARF) at Pakistan Aeronautical Complex (PAC),Kamra, and conducted the subject Pre-License End Use Check (PLC). Before conducting the PLC, the USG officials held a discussion with Air Commodore Mujtaba Jamal, Director, Member Commercial PACB, Kamra [Pakistan Aeronautical Complex Board], who signed the end user certificate for the purchase of items listed in reftel. ¶2. (SBU) Air Commodore Jamal confirmed placing the order for the three items listed in reftel, which, according to him, were to be used in the refurbishment of the AN-TPS 43 (Hughes) radars purchased 23 years ago from the U.S. KARF maintains its own technical staff and is responsible for all systems integration work on Pakistani Air Force radars. On average, they overhaul one AN-TPS 43 radar per year. ¶3. (SBU) KARF is knowledgeable about U.S. munitions control regulations. It places orders for spare parts well in advance in order to factor in the time it takes to receive the necessary clearances. Currently, they average 52 weeks to receive spare parts for their current inventory of radars. The Pakistani Air Force cannot afford to upgrade their radar systems and maintaining older systems is thus a very high priority. ¶4. (SBU) According to Commodore Jamal, KARF is almost exclusively a repair, service and overhaul factory for the Pakistan Air Force. The only outside contractors who work with KARF are low-tech suppliers of cable connectors and rubber gaskets, etc. Although within the overall PAC complex there are some cooperative arrangements, the radar facility provides services to the Pakistan Air Force exclusively. Jamal introduced us to his superior, Air Commodore Sherzada Khan, Managing Director, KARF, as well as the Deputy Managing Director, KARF. They gave us a tour of their facility, including a testing laboratory and a fabrication workshop, where one radar was currently being refurbished. During the tour, the KARF officials also demonstrated their stock and inventory management system and procedures. ¶5. (SBU) Earlier, in August 2008, Senior Commercial Specialist called on Jamil Sharif, Director, Tektron International, who confirmed that his company was working with KARF in placing an order for the items listed in reftel with Caliber Sales Engineering, Inc., Pembroke Pines, USA. The Commercial Section has worked with Tektron for the past several years and has never received any adverse information on this company. ¶6. (SBU) The Pakistan Aeronautical Complex is a 100 percent state-owned facility that belongs to the Ministry of Defense Production. It is located in Kamra (approximately 70 kilometers northeast of Islamabad) and consists of four factories: (a) F-6 Rebuild Factory; (b) (b) Mirage Rebuild Factory; (c) Aircraft Manufacturing Factory (AMF) and (d) Avionics and Radar Factory. This facility is fully managed by the Pakistan Air Force and it is the only aeronautical complex of its kind in Pakistan. The overall facility was established in 1971, but the radar facility was established in 1986. ¶7. (SBU) RECOMMENDATION: We found the officials of the Avionics and Radar Factory to be very candid and forthcoming with information. The transaction appears to be a straightforward need for spare parts on very old Hughes radars by a 100 percent government entity. There were no time limits to the discussion and the tour of the facility was thorough and included sections that were beyond the parameters of the PLC/End Use check. Security measures and procedures for inventory control appear to be more than adequate. All requests to visit the facility are vetted by an interagency process and there are multiple layers of screening required to gain access to the facility. Based on the information obtained, Post recommends issuance of the requisite export license.