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

UNCLAS STATE 016993 SIPDIS MANILA FOR GRAZYNA COFFIN ECON E.O. 12958: N/A TAGS: ETTC KOMC RP SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON LICENSE 050215379 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 license 050215379 for the export of International Traffic in Arms (ITAR)-controlled OV-10 aircraft parts to the Philippines. Post 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: End-Use Statement purportedly provided by the Philippine Air Force (PAF) appears to have been doctored. The document seems to be on legitimate PAF letterhead, but the date, quantities, and signature fields appear to have been altered. In addition, new text appears to have been transposed over the original letterhead. The foreign intermediate consignee, Lesmar Enterprises is also unfamiliar to DDTC (limited licensing history and no previous Blue Lantern checks). Finally, the OV-10 is a platform operated by nations proscribed under Part 126.1 of the ITAR. ¶4. ACTION: The Department requests that Post make inquiries with PAF and Lesmar officials to establish the bona fides of Lesmar in the transaction. Conduct a site visit to assess the company's reliability as a recipient of United States Munitions List (USML) articles as well as an assessment of the company's on-site security and operations. If a site visit is not possible, please inform the PM/DTCC case officer. The following points are included for guidance: --Can Lesmar provide documentation that verifies the end-use of the aircraft parts, such as a contract or purchase order with the PAF? --When was Lesmar established and who are its principals? --What is the nature of the company's business? --What type of organizations are among its typical customers and where are they located? --Does Lesmar understand the restrictions on USML items, especially the prohibition against unauthorized retransfer and re-export? END ACTION. ¶5. Details of license application: DTC CASE: 050215379 QUANTITY/COMMODITY: 48 - Carrier & Button Lining, Part No. SA342-22 License Value: 11,520 USD SELLER: Aerotropic International, Inc. 108 Water Street Castine, ME 04421 Tel: 207-326-9444 POC: Robert L. Scott FOREIGN CONSIGNEE: Global Aviation Spares Pty. Ltd. 34/8 Tilley Lane Frenchs Forest NSW 2086 Australia Tel: 61 (2) 9453 2059 Fax: 61 (2) 9451 7015 POC: Todd Adema FOREIGN INTERMEDIATE CONSIGNEE: Lesmar Enterprises 33 Sanchez Ave. Greenheights Subdivision Paranaque, Metro Manila 1700 Philippines Tel: 63 2 823 7544 POC: Roy Maria FOREIGN END-USER: Philippine Air Force 15th Strike Wing Major Danilo Atienza Air Base Sangley Point, Cavite City Philippines POC: Major Joel A. Inacay, Director for Logistics PURPOSE: Services and maintenance of OV-10 aircraft owned and operated by the PAF. ¶6. Submitted in support of the license application were the following documents (PM/DTCC will email documentation to Post upon request): --Purchase Order No. 6984 submitted by Global Aviation Spares to Aerotropic International, dated 2 February 2010. --End-Use Statement from the PAF, signed by Maj. Joel A. Inacay, dated 5 February 2010. --Department of State License for Permanent Export of Unclassified Defense Articles and Related Unclassified Technical Data, submitted 17 February 2010. 7.(U) 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 Meredith Sundlof. Phone: 202-663-3455; Email: SundlofME@state.gov; SIPRNET: SundlofME@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.(U) Department is grateful for Post's assistance in this matter. CLINTON