Identifier
Created
Classification
Origin
09KUALALUMPUR986
2009-12-10 09:17:00
UNCLASSIFIED
Embassy Kuala Lumpur
Cable title:  

BLUE LANTERN RESPONSE ON PRE-LICENSE END-USE CHECK

Tags:  ETTC KOMC MY 
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VZCZCXYZ0001
PP RUEHWEB

DE RUEHKL #0986/01 3440917
ZNR UUUUU ZZH
P 100917Z DEC 09
FM AMEMBASSY KUALA LUMPUR
TO RUEHC/SECSTATE WASHDC PRIORITY 3568
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHMFIUU/HQ BICE INTEL WASHINGTON DC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
RHMFIUU/FBI WASHINGTON DC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
UNCLAS KUALA LUMPUR 000986 

SIPDIS

PM/DTCC - BLUE LANTERN COORDINATOR

E.O. 12958: N/A
TAGS: ETTC KOMC MY
SUBJECT: BLUE LANTERN RESPONSE ON PRE-LICENSE END-USE CHECK
ON LICENSE 050196536

REF: SECSTATE 110736

UNCLAS KUALA LUMPUR 000986

SIPDIS

PM/DTCC - BLUE LANTERN COORDINATOR

E.O. 12958: N/A
TAGS: ETTC KOMC MY
SUBJECT: BLUE LANTERN RESPONSE ON PRE-LICENSE END-USE CHECK
ON LICENSE 050196536

REF: SECSTATE 110736


1. Pursuant to reftel inquiry, Econoff on 9 December 2009
conducted a site visit to Seri Aero Jaya (SAJ) Sdn Bhd and
met with Director Zubir Ismail to learn more about SAJ and
attempt to determine the legitimacy of the proposed purchase
of aircraft parts for the Royal Malaysian Air Force (RMAF).
SAJ's office is located within an older office building in a
middle-class neighborhood. Zubir said that SAJ was founded
by his father -- Mohamed Ismail -- in 1980, and moved to its
current location at the address provided in reftel. Zubir
said he has been working at the company for the past seven
years. During a discussion of SAJ's business, clients, and
portfolio, Zubir remarked that SAJ was focusing heavily on
emergency/rescue and survival equipment to maximize its
potential sales to the Malaysian military services. Zubir
claimed that the sale of aircraft parts to the RMAF had
become its second-tier focus, and that a relatively new
expansion into the Malaysian oil and gas sector (namely with
Petronas) was a much lower third-tier priority. Zubir
commented that SAJ wanted to expand into the lucrative oil
and gas sector, but this was a new effort for the company and
it had to focus on selling aircraft parts to the RMAF to stay
profitable. Zubir said SAJ had expanded its sales of
emergency/rescue equipment to the RMAF, Royal Malaysian Navy,
and the Malaysian Department of Civil Aviation.


2. Regarding the reftel inquiry, Zubir showed Econoff a
contract from the RMAF dated December 2003 (valid through
December 2011) that listed the types of aircraft for which
SAJ could procure spares. Zubir said that SAJ had no foreign
customer sales and fully understood the USML restrictions on
the export or re-sale of U.S. origin military and aviation
equipment. Zubir disclosed that SAJ is an importer of spare
parts for the British-manufactured Hawk aircraft within the
RMAF's inventory. However, SAJ does not re-export Hawk
equipment. SAJ is also the RMAF's importer of equipment from
another British company, Airborne Systems (formerly GQ
Parachutes). Zubir said the primary RMAF office with which
SAJ communicates is:

RMAF Air Logistic HQ
c/d KL Air Base
Old Airport Road
50460 Kuala Lumpur Malaysia
phone: (6-03) 2117-1133



3. Econoff inquired into the reftel information that SAJ was
attempting to import parts from a U.S. company, Feecorp, for
aircraft and helicopters that are not in the RMAF's
order-of-battle. Zubir said that this was a simple mistake,
as he had been using a form letter from Feecorp that listed
these other types of airframes (such as F-16 Falcons, AH-64
Apaches, etc.),and showed Econoff a series of letters
between Feecorp and SAJ that indicated a series of
corrections for SAJ's proposal to purchase aircraft parts
from Feecorp for aircraft that the RMAF operated. The series
of letters appeared normal and appeared to back-up Zubir's
explanation. Zubir gave Econoff photocopies of this letter
exchange, as well as a company profile of SAJ that provided
many details on the company, including biographic data on
Zubir, his father, and other employees.


4. Zubir inquired if Post could ask the status of a blanket
license that SAJ applied for in May 2009, using a U.S. firm
(CAMAR Aircraft Parts in Los Angeles, California). Econoff
said he would include this information in Post's cable
response as an fyi. Zubir appreciated this assistance, and
said that he welcomed any follow-on contact from Econoff as
needed.


4. Also pursuant to reftel, Econoff attempted to communicate
with the RMAF, particularly Post's occasionally reliable
contact Major Shafik (FNU) to inquire about SAJ.
Unfortunately, phone calls to Major Shafik's office went
unanswered, and no other RMAF contacts were available at this
time.


5. Post assessment is that SAJ is a legitimate Malaysian
company that procures aircraft parts for the RMAF. Without
further information, it is impossible to determine if SAJ
procures parts and sends them to destinations outside
Malaysia. However, armed with the information we have
available, we assess that SAJ's proposed business contract
appears legitimate and the company was very cooperative.

KEITH

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