NETHERLANDS: BLUE LANTERN BROKER INQUIRY, RON

UNCLAS THE HAGUE 000670 SENSITIVE SIPDIS STATE FOR PM/DTTC E.O. 12958: N/A TAGS: ETTC KOMC NL SUBJECT: NETHERLANDS: BLUE LANTERN BROKER INQUIRY, RON SMEELE, CASE NO. K-1683 REF: A. STATE 94263 ¶B. THE HAGUE 368 SENSITIVE BUT UNCLASSIFIED; PLEASE HANDLE ACCORDINGLY. ¶1. (SBU) Post has confirmed that Ron Smeele's company Applied Research Laboratory Europe (ARLE) is a bona fide broker/recipient of United States Munitions List (USML) items. Embassy officials conducted a site visit of ARLE in April 2008 as part of an application check. As reported ref B, the result of that visit was positive. However, provisos were subsequently added to ARLE's licenses that the company may not handle or store USML commodities. This proviso has adversely affected ARLE's business as well as U.S. manufacturers that sell their products through ARLE to the Dutch military and law enforcement market. Post believes the provisos are not warranted and should be removed from ARLE's licenses. ¶2. (SBU) EconOff visited ARLE's new office and storage site on October 30, 2009. The new location is Losplaats 14-16, Uden 5404NJ, the Netherlands. The facility is adequate for storing USML items. ARLE prefers to send products directly to its government end-use customers (mostly Dutch military and law enforcement authorities). However, ARLE does need to keep a small quantity of products at its secure facility for demonstration purposes to potential customers. The are several layers of security protecting each item ARLE stores: -- The office building is discreet, nothing would indicate sensitive items are stored there. -- The building's front door is protected by a lock and alarm system. -- There are motion detectors in the building's hallways. -- The fireproof door to the secure storage room in the basement is steel reinforced with several horizonal and vertical bolts. -- An alarm is triggered if the door is opened. -- Directly behind the door is a heavy-duty locked metal gate. -- Inside the room, all sensitive items are stored in a Smith and Wesson professional grade safe. -- All security components were installed by the Dutch subsidiary of international security firm Chubb. -- Chubb also provides ongoing security services at the premises. Any alarm would notify a local patrol to investigate. ¶3. (SBU) ARLE has recently hired a second employee. Both he and ARLE's director Ron Smeele are veterans of Dutch police SWAT teams. They fully understand and comply with restrictions on USML items. Smeele continues to work with U.S. manufacturers of night vision equipment and chemical, biological, radioactive, nuclear (CBRN) protective gear to source the best U.S. products for government end-users. LEVIN