RESPONSE TO BLUE LANTERN LEVEL 3

UNCLAS TEL AVIV 002456 SENSITIVE SIPDIS PM/DTCC - BLUE LANTERN COORDINATOR E.O. 12958: N/A TAGS: ETTC KOMC GG IS SUBJECT: RESPONSE TO BLUE LANTERN LEVEL 3 POST-LICENSE/PRE-SHIPMENT END USE CHECK, LICENSES 050171347 AND 050172400 REF: STATE 88035 ¶1. (SBU) Summary: RPA Port Aviation represents foreign airlines cargo services in Israel, including Uzbekistan Airways and Georgian Airlines. According to RPA Port Aviation Airport Office Manager Refael Dayan, the company has had a long-standing relationship with the Government of Georgia. However, Dayan said RPA Port Aviation has only recently started forwarding defense articles, and described the company's relationship with Falcon Defense Group as relatively new. Dayan said RPA Port Aviation relies on a private cargo security facility at Ben Gurion International Airport to store shipments clearing Israeli customs. While Dayan seemingly has a firm grasp of U.S. defense export regulations, he could not accurately answer whether RPA Port Aviation possesses a U.S. brokering license. Dayan confirmed that RPA Port Aviation is a registered broker in Israel. Polmiloff discussed these issues with Dayan on November 9. End Summary. ¶2. (SBU) Per reftel, polmiloff visited the Tel Aviv offices Migdalor Building, 1 Ben Yehuda Street) of RPA Port Aviation on November 9. According to Airport Office Manager Refael Dayan, RPA Port Aviation is a subsidiary of RPA Port LTD, which has been operating for the last 35 years under owner and CEO Dov Rapaport. In addition to international forwarding, Dayan said RPA Port LTD represents several foreign airlines' cargo and ticketing services in Israel. Besides RPA Port Aviation, RPA Port LTD also consists of RPA Port International and RPA Port Panorama. RPA Port International is a forwarding and customs clearing company that transports cargo throughout the former Soviet Union. According to Dayan, RPA Port International claims expertise in customs brokerage, import/export services, and logistics, including land transportation, shipping warehousing, inspections, ship operations, and chartering. RPA Port Panorama is the ticketing agent for "Uzbekistan Airways" in Israel. ¶3. (SBU) Dayan said RPA Port Aviation represents several foreign airlines in Israel, and is the general sales agent for Uzbekistan Airways and Georgian Airlines cargo air freights. Dayan noted that the company's headquarters is based in Haifa (2 Hanamal Street),but maintains offices at Ben Gurion International Airport (Maman Building, No. 1103), Tel Aviv, and Ashdod, and works through a local agent in Eilat. He explained that RPA Port Aviation ships "all kinds of cargo," from perishables and livestock to military equipment. Dayan claimed RPA Port Aviation only forwards defense articles to foreign government ministries -- not to "small companies." He said less than one percent of RPA Port Aviation's annual sales are comprised from U.S.-origin defense articles. Dayan was reluctant to divulge any of RPA Port Aviation's other foreign government clients for proprietary reasons. ¶4. (SBU) Dayan said RPA Port Aviation's relationship with the Government of Georgia has spanned "a number of years," or as long as there have been direct Georgian Airlines flights to and from Israel. He said RPA Port Aviation had only recently began brokering defense articles, and confirmed that the company is a registered broker within Israel. RPA Port Aviation's relationship with Falcon Defense Group also is relatively new, he explained. When asked about a U.S. brokering license, Dayan provided a copy of a DSP-119 form dated March 19, 2009, listing both RPA Port Aviation and Falcon Defense Group as proof RPA Port Aviation was a registered U.S. broker. He explained that RPA Port Aviation receives a commission for its forwarding services; this commission is in addition to air freight, handling and storage fees. ¶5. (SBU) Dayan said RPA Port Aviation does not technically take any shipment into possession. Rather, Dayan confirms upon a shipment's arrival its authenticity based on documentation submitted in support of its license application. While clearing customs, the shipment is stored with Maman Cargo and Security, a former state-owned security company located at Ben Gurion International Airport that was privatized in 1989. According to Dayan, the shipment is placed in a secure cage located in a Maman Cargo and Security warehouse. Maman Cargo and Security controls access to the cage, which includes 24-hour armed security and video cameras -- "not even I have access to the shipment," Dayan said. He explained that it typically takes several days for shipments to clear customs before they are forwarded on to their final destination. ¶6. (SBU) Dayan possessed documentation in support of the two Falcon Defense Group transactions (reftel),including copies of end user certificates, purchase orders, and DSP-5s. While seemingly confused about the question regarding a U.S. brokering license, Dayan appeared familiar with regulations governing the brokering of U.S.-origin defense articles, including restrictions on re-transfer and re-export. CUNNINGHAM