RESULTS OF BLUE LATERN APPLICATION 050177010 - PRE-LICENSE

UNCLAS RIGA 000375 SIPDIS DEPARTMENT FOR PM/DTCC-BLUE LATERN COORDINATOR E.O. 12958: N/A TAGS: ETTC KOMC GV PN LG SUBJECT: RESULTS OF BLUE LATERN APPLICATION 050177010 - PRE-LICENSE CHECK REF: STATE 068170 ¶1. Summary. On July 10, post met with Hansa Electronics SIA President Jevgenijs Orlov and Director Anatoliy Arkhipov to conduct a pre-license check for the sale of a FLIR Model SeaFlir II thermal imaging system. The Hansa officials stated they had been briefed by FLIR on USML guidelines and restrictions prior to the pre-license check. The company provided detailed descriptions of the transaction and presented documentation of their capabilities and records of providing similar services. Post has no reason to suspect any irregularities with Hansa's role in this transaction. End summary. -------------- Company Background -------------- ¶2. Hansa Electronics SIA was established in 1997. The company originated as the Marine Electronics Division of the Latvian Shipping Company prior to privatization. The company changed its name from Hansa Elektronikas to Hansa Electronics in 2005 for business reasons. Hansa Electronics provides service in sales, installation, and maintenance of marine hardware and software. It serves both government and private corporate customers around the world, but primarily in the Port of Riga. Hansa officials claim they are licensed distributors of products made by Raytheon and other major international manufacturers, and are certified by the American Bureau of Shipping. -------------- Current Transaction -------------- ¶3. According to Orlov, Hansa Electronics previously equipped vessels of the Equatorial Guinea Ministry of Defense with FLIR Voyager II thermal imaging systems. This commercial system has proven insufficient for Equatorial Guinea's anti-piracy efforts. Thus, the Equatorial Guinean Ministry of Defense is seeking the more capable SeaFLIR II thermal imaging system. Orlov explained that the Ministry of Defense contracted Intracostal Trading Services S.A. of Panama to find a supplier of the upgraded thermal imaging system. Intracostal will purchase the product from Hansa, which is already a licensed dealer of other FLIR products, although this is the company's first sale involving a USML-listed item. Orlov also mentioned the possibility that Hansa will be contracted to install the system on the Equatorial Guinean vessel, as a deal with a Spanish marine technology installation company dissipated. The SeaFLIR II system will be shipped directly from Boston to Malabo, Equatorial Guinea and thus the proper procedures for handling USML-listed items at Hansa's Riga facility are not necessary. ¶4. Hansa Electronics does possess supporting documentation for the proposed transaction of the SeaFLIR II thermal imaging system. Post obtained copies of the following documents: A letter of intent to sell from FLIR's President to Hansa Electronics detailing DOS requirements to execute the transaction; DSP-83 End-User forms including End-Use Statement and DOS Non-transfer and Use Certificate; and Customer Information Sheets (End User and Consignees). At this time, post has not obtained a DSP-83 form from Hansa Electronics which would be required if Hansa is contracted to install the SeaFLIR system. ROGERS