FAVORABLE REPLY TO BLUE LANTERN BROKER INQUIRY

UNCLAS MADRID 001126 SIPDIS FOR PM/DTCC BLUE LANTERN COORDINATOR AND RACHAEL-THERESE S. JOUBERT-LIN STACIE ZERDECKI, EUR/WE E.O. 12958: N/A TAGS: ETTC KOMC SP SUBJECT: FAVORABLE REPLY TO BLUE LANTERN BROKER INQUIRY CASE NO. K-1914 (RAFAEL F. GARCIA) REF: A. STATE 99586 ¶B. MADRID 722 ¶1. Pursuant to reftel A request for input on the bona fides of registered broker Rafael Garcia Tudela, General Manager of Europavia Espana, S.A., Post reiterates its favorable assessment of both Europavia and Mr. Garcia. As reported (ref B) subsequent to a July 2009 site visit to calle Jorge Juan 30, including a thorough company presentation, Post considers Europavia and Mr. Garcia to be reliable brokers and recipients of United States Munitions List (USML) items. Subject broker is known well and favorably to the U.S. Commercial Service, which has facilitated contacts between Europavia and U.S. companies seeking Spanish partners. Europavia enjoys an excellent reputation and represents several U.S. firms in Spain. The following information is keyed to the questions found at paragraph 4 (ref A) and reiterates information provided previously in ref B. ¶2. Post confirms that this entity is in the business of brokering defense articles and defense services at the location indicated under its legal name. ¶3. Yes, Europavia is a regular supplier, primarily for military aircraft maintenance, registered with the Spanish Ministry of Defense Directorate General for Armament and Material (DGAM) (ref B). Post has no derogatory information on Europavia and no reason to suspect the company's involvement with proscribed entities. ¶4. Will the brokering firm be handling or storing USML items on behalf of its clients? If so, does it have secure facilities and proper accounting and security procedures for handling sensitive USML items? Europavia does not habitually store USML items or any other components ordered on behalf of its clients. Its warehouse, while secure, can only accommodate a small volume of goods. Most equipment is delivered to the warehouse space in the garage below its offices and subsequently leaves via courier services. ¶5. When was the company established and who are its principals? How many employees? As reported ref B, Europavia was established in 1965 and employs 15 people in its Madrid office. Europavia is privately held, wholly owned by principal French shareholder Eurotradia International, a consulting and services industry (ref B),which is in turn held by major European entities. Rafael Garcia Tudela is General Manager of the Madrid-based Europavia. Miguel Angel Tapia Carrasco, considered by USCS to be "one of the best professionals in this sector" is the company's general counsel or "delegate counselor." ¶6. What is the nature of its business and what other types of items does it handle? Please see reftel B, paras 6 and 7. ¶7. What types of organizations are among its typical clients and in what countries are they located? Please see reftel B, paras 6, 7, and 9. ¶8. Does the company understand the restrictions on USML items, especially the prohibition against unauthorized re-transfers and re-exports? YES. Nonetheless, Rafael Garcia, the subject of this tasking and report, sought Post's assistance in July 2009 in clarifying when the company's transactions might be subject to end-use prohibitions. Please see reftel B, para 8 for Garcia's specific questions (to date unanswered by PM/DTCC) about significant military equipment vs. dual-use items. Post would appreciate a direct PM/DTCC point of contact for Mr. Garcia in this regard, in the event the company has recommendations for the periodic review of the USML. CHACON