BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK

UNCLAS STATE 117765 SIPDIS AIT-TAIPEI FOR MATTHEW O'CONNOR & MI-YONG KIM E.O. 12958: N/A TAGS: ETTC KOMC TW SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON APPLICATIONS 050197967 AND 050198220 REF: 2006 BLUE LANTERN GUIDEBOOK 1.This is an Action Request. See paragraphs 2-4. ¶2. The Department's Office of Defense Trade Controls Compliance (PM/DTCC) requests AIT Taipei's assistance in conducting a pre-license, end-use check on applications 050197967 and 050198220 for the export of International Traffic in Arms (ITAR)-controlled datalink equipment to Taiwan. AIT Taipei is requested to complete this Blue Lantern inquiry within 30 days. Lack of response to a Blue Lantern inquiry will affect pending and future licenses involving parties to this license. ¶3. Reason for request: Foreign Consignee Carbon-Based Technology, Inc. has never appeared on a license; sensitive ITAR equipment. ¶4. Action: Department requests that AIT Taipei make inquiries to establish the bona fides of the foreign consignee in the proposed transactions. If possible, conduct a site visit to assess the company's reliability as a recipient of United States Munitions List (USML) items as well as its operations and on-site security. Emphasize that the unauthorized re-export or retransfer of USML items is strictly prohibited. Confirm with the end-user that it placed the orders for the items listed below for the purpose stated on the applications. Determine whether any other Taiwan-based firms are involved in the procurement of the items. Remind the end-user that the unauthorized re-export or retransfer of United States Munitions List (USML) items is strictly prohibited. The following questions provide guidance: - Please confirm orders for the items listed on licenses 050197967 and 050198220. - Does Carbon-Based Technology understand the restrictions against the unauthorized re-export or retransfer of U.S.-origin defense articles? - Does Carbon-Based Technology serve as a broker of USML articles with any countries besides Taiwan? If so, where? If your company has offices abroad, where are they located? Has this company ever used any other names? - How long has your company been in the business of importing and selling defense articles? - What other products are sold by this company? - How long has Carbon-Based Technology, Inc. been involved in business operations with End-User Chung Shan Institute of Science and Technology? &#x000A;- What business relationship, if any, does your company have with the Government of Taiwan? End Action Request. ¶5. Details of license applications: DTC CASE: 050197967 QUANTITY/COMMODITY: 1 Lot Components, parts and accessories for Datalink System for Chung Shyang II UAV Ground Station: BMU85-4ADSS Upconverter x 2, BMR120-4AT Tracking Receiver x 2, Feed Antenna x 1 P/N 761363107 x 1, MU-100 Modulator x 2, Control Box P/N 800600428 x 2 and TBM-400S Modem x 2, with manuals. License Value: USD $210,453. DTC CASE: 050198220 QUANTITY/COMMODITY: 1 Unit Video Transmitter Model BMT85-4A License Value: USD $2600. SELLER: Broadcast Microwave Services, Inc. Attn: Ann Chen 12367 Crosthwaite Circle Poway, CA 92064 (858)842-4720 FOREIGN CONSIGNEE: Wen-Long Chung Carbon-Based Technology, Inc. 1099-5, Sec. 3 Song Chiu Road Taichung City (406) Taiwan Republic of China Tel: 886 4 2426 7288 Fax: 886 4 2426 7289 END USER: Yuan-Hwang Lian Chief, Remote Control Section Information & Communication Research Division Chung Shan Institute of Science & Technology No. 481 Chia An Sec Chung-Cheng Road Chia-An Village Lung-Tan, Taoyuan Taiwan Republic of China PURPOSE: Datalink System supports surveillance, coastal patrol and typhoon damage investigations involving the Chung-Shyang II UAV. Components and spare parts are for its ground station with less than 200 kilometer maximum range. The UAV has a 25 kilogram EO payload. The BMT85-4A is a component of Datalink System and is used for transmission of video and other data between Chung-Shyang II UAV and its ground station. ¶6. Submitted in support of the license applications were the following documents (PM/DTCC will fax documentation to AIT Taipei upon request): -- Chung Shan Institute of Science and Technology End-Use Statement dated 7 September 2009 which references CSIST Order No. XC98Q20P; -- U.S. Department of State Non-Transfer and Use Certificate dated September 2009; -- Carbon-Based Technology, Inc. Purchase Order No. PO-98PO408-1. ¶7. Please slug reply for PM/DTCC - BLUE LANTERN COORDINATOR and include the words "Blue Lantern" and the case number in the subject line. POC is Rachael-Therese S. Joubert-Lin, Phone: 202-663-2950; Email: JoubertLinRS@state.gov; SIPRNET: JoubertLinRS@ The Blue Lantern Guidebook (ref) is available at http://www.intelink.sgov.gov/wiki/Department< /a> of State%27s Blue Lantern End-Use Monitoring Program ¶8. (U) Department is grateful for AIT Taipei's assistance in this matter. CLINTON