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

UNCLAS STATE 120913 SIPDIS BAKU FOR ROBERT J. GAVERICK POL-ECON CHIEF & PETER D. ANDREOLI POL BUCHAREST FOR CHRISTOPHER A. ELLIS ECON COUNS. E.O. 12958: N/A TAGS: ETTC KOMC AJ RO SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON APPLICATION 050201153 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 Posts' assistance in conducting a pre-license check on application 050201153 for the export of an International Traffic in Arms (ITAR)-controlled IFF Transponder to Azerbaijan. Posts are requested to complete this Blue Lantern check within 30 days. Lack of response to Blue Lantern inquiries will affect pending and future licenses involving parties to this license. ¶3. Reason for Request: To verify bona fides of transaction and establish role of Foreign Consignee Aerostar S.A.; unusual routing; diversion concerns. ¶4. Action Bucharest: Department requests that Post make inquiries to verify Aerostar S.A.'s role in the transaction listed below for the purpose stated on the application. Determine whether any other Romanian-based entities are involved in the procurement of the item. 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. The following questions are provided as guidance: Please confirm an order for the item listed on license ¶050201153. - Does this company serve as a broker of USML articles with any countries besides Romania and Azerbaijan? If so, where? If the company has offices abroad, where are they located? Has this company ever used any other names? - How long has the company been in the business of importing and selling defense articles? - What other products are sold by this company? - How long has this company been involved in business operations with the Government of Azerbaijan; do you have a regular business relationship with Azerbaijan? -- Does the company have proper supporting documentation from the Azerbaijan MOD for the proposed transaction? -- Does the company understand the restrictions against the unauthorized re-export or retransfer of U.S.-origin defense articles? Action Baku: Confirm that the Azerbaijan Ministry of Defense (MOD) ordered the IFF Transponder listed on the license application for the specified purpose. Inquire about Romanian Foreign Consignee Aerostar S.A.'s specific role in this transaction, and determine how long the Azerbaijan MOD has done business with this entity. Determine if Aerostar S.A. is an official supplier/contractor for the MOD, and obtain the specifics of any other contracts this entity currently holds with the MOD. End Action Request. ¶5. Details of license application: DTC Case: 050201153 QUANTITY/COMMODITY: 1 Model 57 IFF Transponder, P/N 4083500-0550 License Value: USD $122,000. SELLER: Raytheon Company Network Centric Systems 1300 East Joppa Road Baltimore, MD 21286 (410)583-4079 FOREIGN CONSIGNEES: Sharona T. Schneider Export Licensing Administrator Dov Lahat, Buyer Elbit Systems 61 Ha Yotzrim Street P.O. Box 650 Karmiel 20101 Israel Tel: 972 4831 7884; 972 4 9901 1111 Fax: 972 4831 6968; 972 4 9901 1100 Mr.Dan Ionesi Aerostar S.A. Condirolor 9, Bacau Romania END-USER: Lieutenant Colonel Oktay Badalov Fuad Mamedov Aoil Guseynov Azerbaijan Air Force Ministry of Defense Parliament Prospect 3 Baku AZ0073 Azerbaijan PURPOSE: For Ground Radar Upgrade Program: Integration of Western IFF system in existing Search Radars. ¶6. Submitted in support of the license application were the following documents (PM/DTCC will fax documentation to Posts upon request): -- U.S. Department of State Nontransfer and Use Certificate (DSP-83) dated November 2009; -- Elbit Systems' Purchase Order No. DLF900243 dated April ¶2009. ¶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@state.sgov.gov. The Blue Lantern Guidebook (ref) is available as a PDF file at http://www.intelink.sgov.gov/wiki/Blue Lantern End-Use Monitoring Program. ¶8. Department is grateful for Posts' assistance in this matter. CLINTON