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