ECUADOR BLUE LANTERN - END-USE CHECK ON LICENSE

C O N F I D E N T I A L QUITO 000269 SENSITIVE SIPDIS PM/DTCC - BLUE LANTERN COORDINATOR E.O. 12958: DECL: TEN YEARS TAGS: ETTC KOMC EC IS SUBJECT: ECUADOR BLUE LANTERN - END-USE CHECK ON LICENSE 050118116 REF: STATE 29851 ¶1. (SBU) Embassy attempted to carry out a post-shipment check on license 050118116 for the export of inertial measurement units (IMUs) to Ecuador. However, the IMUs, a component to the Unmanned Aerial Vehicles (UAVs) sold to the Ecuadorian military by Israeli Aerospace Industries (IAI), have not been received by Ecuador. ¶2. (SBU) In establishing the status of the purchase, Embassy officials spoke with Ecuadorian Coast Guard Commander Captain Carlos Vallejo who confirmed press reports that the purchase and delivery of UAVs from IAI had been delayed. On April 13, President Correa publicly threatened to cancel the contract with IAI if it did not deliver the UAVs soon. According to Vallejo, however, the reason for the delay in delivery is that IAI is still pending a written authorization from the British government for the sale of a separate UAV component -- an electrical optical unit -- pursuant to confirmation by the GOE that the UAVs would not be used for offensive purposes. Vallejo estimated that delivery of the UAVs (and IMUs) would be completed in May or June 2009. ¶3. (SBU) Post will follow up with the GOE at a later date to determine final outcome of the expected delivery of the UAVs and to complete a post-shipment check. HODGES