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

UNCLAS STATE 037284 SIPDIS RIYADH FOR KRISTIN BONGIOVANNI E.O. 12958: N/A TAGS: ETTC KOMC SA SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON APPLICATION 050149165 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 post's assistance in conducting a pre-license check on application 050149165 for the export of F-15 and C-130 component parts to Saudi Arabia. Post is requested to complete this Blue Lantern check within 30 days. Lack of response to a Blue Lantern check will affect pending and future licenses involving parties to this license. ¶3. Reason for request: Lack of documentation from the Saudi MoD and unfamiliar foreign consignee, Al Raha Group for Technical Services, and unfamiliar foreign intermediate consignees, Bin Hassoun Int'l Trade Est. and Fast Balance Office for Salvation Customs. The companies have not appeared on previous licenses nor have the bona fides of the companies been verified by a Blue Lantern check. ¶4. ACTION RIYADH: Embassy is requested to make inquiries with appropriate host government officials to determine if the Saudi MoD ordered the F-15 and C-130 component parts from unfamiliar foreign consignee, Al Raha Group for Technical Services (RGTS) and if so, verify the amounts that were ordered and that they will be used for the purpose stated on the license. PM/DTCC also requests that post conducts a site visit to the company in order to provide Department with an assessment of its business operations and on-site security. Finally, post is asked to assess whether the company appears to be a reliable recipient of USML items. If a site visit is not possible, please inform the PM/DTCC officer. The following questions are provided as suggested guidance: --Does the company have supporting documentation for this proposed transaction? --What role will Bin Hassoun Int'l Trade Est. and Fast Balance Office for Salvation Customs play in the proposed transaction? --Does the company have secure facilities and proper accounting and security procedures for handling sensitive USML items? --What is the exact end-use for these USML items? Will Al Raha Group for Technical Services retain positive control over the F-15 and C-130 component parts at all times? --When was the company established and who are its principals? --What is the nature of its business -- what type of items does it handle, does it serve as a broker? --What type of organizations are among its typical customers and where are the customers located? --Does the company understand the restrictions on United States Munitions List (USML) items, especially the prohibition against unauthorized re-transfers and re-exports? END ACTION ¶5. Details of license application: DTC Case: 050149165 QUANTITY/COMMODITY: 1 Spare parts for U.S. origin aircraft including the F-15 and C-130 and all associated repair and support material with no major components involved License Value: USD 1,000,000.00 SELLER: Able Aerospace Adhesives, Inc. 25032 Anza Drive Valencia, CA 91355 POC is Donna Gonsalves, Tel. 661-257-2500 ext. 105 FOREIGN CONSIGNEE: Al Raha Group for Technical Services (RGTS) Bldg. #40 Gulf Bldg. P.O. Box 325168 Prince Fawaz Street, Malaz Aera Riyadh 11371 Saudi Arabia POC is Yahya Al-Saadi, Tel. (9661) 4765100 FOREIGN INTERMEDIATE CONSINEE Bin Hassoun Int'l Trade Est. Prince Mohammed Street, al-zamil Bldg., 3rd Floor. Postal Code 31421 Dammam Saudi Arabia No POC provided Fast Balance Office for Salvation Customs King Abdul Aziz Street, Bldg. 4, Opposite of Aramex Courier Office Riyadh 11583 Saudi Arabia No POC provided FOREIGN END-USER: Royal Saudi Air Force (RSAF) Col. Saeed M Bahlol Riyadh 11371 Saudi Arabia No POC provided PURPOSE: The end application of the materials required by Al Raha Group Technical Services will be solely for the repair and overhaul of U.S. origin military equipment including the F-15 and C-130. ¶6. Submitted in support of the license application was the following document (PM/DTCC can fax documentation to post upon request): --Letter of Intent submitted by Al Raha Group for Technical Services, signed by CEO Yahya Al-Saadi on 13 January 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 Tim Mazzarelli, Phone: 202-663-3867; Email: MazzarelliTP@state.gov; SIPRNET: MazzarelliTP@state.sgov.gov. The Blue Lantern Guidebook (ref) is available as a PDF file in the Bunche Library's E-Book Collection on the DOS Intranet: http://buncheelectroniclibrary.state.gov/eboo ks/ BlueLanternGuidebook2006%20 final .pdf ¶8. Department is grateful for post's assistance in this matter. CLINTON