BLUE LANTERN LEVEL 3: POST SHIPMENT END-USE CHECK

UNCLAS PRAGUE 000094 SENSITIVE SIPDIS DEPARTMENT FOR EUR/CE, PM/DTTC, AND ISN E.O. 12958: N/A TAGS: ETTC KOMC EZ SUBJECT: BLUE LANTERN LEVEL 3: POST SHIPMENT END-USE CHECK ON LICENSE 050109596 REF: 08 STATE 111546 1.(SBU) Summary and Comment: In response to reftel, Embassy officers conducted a site visit on February 5, 2009 to determine if Aero Vodochody had received 5 accelerators for L-159 airplanes. During their visit, the team met with Mr. David Jirman, Procurement Specialist for the firm. Jirman presented all of the proper paperwork as the deal,s intermediary and presented Embassy officers with documentation that showed that the 5 units were already transferred to the Czech Air Force and were now at Chaslov, the Czech Air Force,s main base. The team determined that Aero Vodochody appears to be a reliable recipient of U.S.-origin defense articles under United States Munitions List (USML). End Summary and Comment. 2.(U) Mr. Jirman began the discussion with a short presentation of the history and current status of Aero Vodochody. He then showed the team the full set of paperwork for the deal, including: purchase order, receiving report, invoice for payment, and, most importantly, an end-user certificate from the Czech Ministry of Defense (MOD). Mr. Josef Sedlik signed the certificate on behalf of the Czech MOD on June 19, 2008 and indicated that the Czech Air Force would utilize these 5 accelerometers as spare parts for their L-159 aircraft. Jirman stated that the company solely served as the intermediary for this transaction between the U.S. supplier and the MOD. 3.(U) The team reviewed with Mr. Jirman the requirements for re-export of any item on the USML. He stated that Aero Vodochody understands and always complies with all EU and Czech regulations, as well as U.S. re-export requirements for USML items under ITAR. 4.(SBU) Aero Vodochody is located in a large facility with its own airfield just north of Prague. Jirman gave the team a tour of the company's facilities. He said that the firm supplies parts to the Czech Air force, stores several L-159 airplanes, makes parts for civilian jets, and assembles helicopters for Sikorsky. Aero Vodochody,s level of security was adequate. The facility is surrounded by a fence andQwell-guarded. All guests have to be escorted and all vehicles are searched entering and leaving the premises. Thompson-Jones