(U) BLUE LANTERN PRE-LICENSE END USE CHECK ON

S E C R E T STATE 000369 NOFORN SENSITIVE SIPDIS FOR ECON MEGAN L. SELMON E.O. 12958: DECL: 25X1-HUMAN TAGS: CO ETTC KOMC PM SNAR TH SUBJECT: (U) BLUE LANTERN PRE-LICENSE END USE CHECK ON APPLICATION TAA 0361-04F AND TAA 4140-08D REF: A. 06 STATE 92781 07 JUN 2006 ¶B. 06 BOGOTA 7094 04 AUG 2006 ¶C. STATE 99488 24 SEP 2009 ¶D. BOGOTA 3361 12 NOV 2009 ¶E. 90 BOGOTA 7550 16 MAY 1990 ¶F. IIR 6 819 0285 92 18 DEC 1991 ¶G. IIR 6 022 0061 93 23 OCT 1992 ¶H. IIR 6 819 0486 93 03 MAR 1993 ¶I. IIR 6 022 0380 93 23 MAR 1993 ¶J. IIR 6 022 0410 93 25 MAR 1993 ¶K. IIR 6 022 0452 93 09 APR 1993 ¶L. 1993-08-20-18.19.33 20 AUG 1993 ¶M. IIR 6 022 0326 94 17 JUN 1994 ¶N. 96 BOGOTA 5708 13 JUN 1996 ¶O. IIR 7 500 0135 04 23 MAR 2004 ¶P. IIR 7 111 0669 04 04 MAY 2004 Classified By: MULTIPLE SOURCES ¶1. (U) This is an action message. See paragraphs 2-9. ¶2. (U) The Department's Office of Defense Trade Controls Compliance (PM/DTCC) requests post assistance in conducting a pre-license check on two amendments to previously approved Technical Assistance Agreements (TAAs). 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. (U) Reason for request: TAA 0361-04F pertains to the provision of defense services, unclassified defense articles and technical data in support of the government of Colombia's illicit crop eradication program, through fixed and rotary wing aircraft operations, maintenance, training, and logistics support. TAA 4140-08D pertains to the transfer of surveillance and security-related defense articles, defense services, and unclassified technical data to help maintain security in Thailand's southern region. Both TAAs seek to add the same foreign party, Colombian company Vertical de Aviacion Ltda. On TAA 0361-04F, the applicant wishes to add Vertical de Aviacion as a sub-licensee for general aircraft repair. On TAA 4140-08D, the applicant wishes to add Vertical de Aviacion as a subcontractor to install camera systems on helicopters. A previous amendment to one of these TAAs (TAA 0361-04B),sought to add Vertical de Aviacion as a licensee for aircraft repair and maintenance, however, this request was denied by the Department due to a Blue Lantern check that was closed unfavorably (Ref. A-B). More recently, post responded favorably to a Blue Lantern check on the bona fides of Vertical de Aviacion as a U.S. registered broker (Ref. C-D). Because of this variance in post responses, PM/DTCC wishes to conduct another check in order to resolve this discrepancy and also obtain additional information from Vertical de Aviacion. ¶4. (S//NF) Ref. A requested post's assessment of classified reporting found on Vertical de Aviacion, HelitaxiLtda (the former name of Vertical de Aviacion),and its owner, Byron Lopez Salazar, alleging corruption, narcotrafficking, and money laundering. Post consulted with the DATT, FBI, USMILGROUP, and DEA at embassy, and confirmed the accuracy of this reporting (Ref. B). ¶5. (U) According to Jane's and Dun & Bradstreet reports, Vertical de AviacionLtda was established in 1982 as Helitaxi Ltda. The name of the company was changed to Vertical de Aviacion in September 2002. The president of Helitaxi/Vertical de Aviacion is Byron Lopez Salazar (one or more of his sons are also involved in this and related businesses). The following are excerpts about Helitaxi, Byron Lopez Salazar, and Vertical de Aviacion from 12 reports dated 1990-2004 (two of these reports were cited in Ref. A). ¶6. (S//NF) SUBJ: AG INVESTIGATES ALLEGED COMMUNICATIONS BETWEEN EX PRESIDENT LOPEZ MICHELSEN AND PABLO ESCOBAR. Byron Lopez is believed to have criminal contacts. (Ref. E); SUBJ: DRUG ACTIVITIES/INFRASTRUCTURE IN THE MELGAR, TOLIMA DEPT. Byron Lopez is the owner of Helitaxi. The firm was once taken over by authorities because it was created with monies coming from the drug trade. (Ref. F); SUBJ: HEROIN TRAFFICKING. Helicopters belonging to Helitaxi allegedly land in Barua, load drums of unknown type chemicals, and transport the drums to the laboratory which is located on a ranch. Reportedly, the helicopter registration numbers are removed when they are used for illegal purposes. (Ref. G); SUBJ: BASIC DATA ON HELITAXI LTDA, COLOMBIAN COMMERCIAL HELICOPTER SERVICE.HelitaxiLtda has a history of involvement in drug activities. (Ref. H); SUBJ: HEROIN TRAFFICKING ACTIVITIES. Allegedly, two Helicopters registered to the Colombian company Helitaxi were used to transport the chemicals to the laboratory. (Ref. I); SUBJ: AIR INTELLIGENCE. DEA intelligence suggests that three Russian Antonov (AN-74) troop transport/cargo jet aircraft recently purchased by HelitaxiLtda, Bogota, Colombia might be used to transport drugs. (Ref. J); SUBJ: AIR INTELLIGENCE. Since Feb. 93, reports have addressed recent aircraft acquisitions by three Colombian cartel-related air transportation companies-- HelitaxiLtda, Aviation Total de Colombia, and Aero Tumi in Peru, as well as speculated on their possible illicit employment. (Ref. K); SUBJ: NARCOTICS TRAFFICKER LEONIDAS VARGAS VARGAS.Aerocafe S.A. is owned by Leonidas Vargas Vargas. Aircraft seized at El Dorado International Airport, Bogota, Colombia, was purchased in September 1992 by Colombian company HelitaxiLtda on Aerocafe's behalf. The owner of Helitaxi, Byron Lopez, owns property in the same area as Nelson Fabio. In 1991, Helitaxi possibly sold an aircraft to Aerocafe S.A. (Ref. L); SUBJ: RUSSIAN MADE HELICOPTERS IN COLOMBIA. Past (DEA) reporting indicatedHelitaxi possibly may have been involved in drug smuggling. (Ref. M); SUBJ: SOURCE LISTS MONEY LAUNDERERS AND FRONT MEN. Carlos Alberto Plata Gomez, an oil industry analyst, gave the names of other frontmen and money launderers: -- Byron Lopez Salazar; owner of Helitaxi, a company that rents the services of helicopters. Plata described Lopez as the biggest money launderer in Colombia, laundering money up to USD five billion for the cartel, many othernarco groups (including the remnants of the Medellin cartel),and emerald miners/dealers. Plata said Lopez is a frontman for Fabio Villegas. --Uto Saenz, money launderer from Pereira who works with Byron Lopez. --Jesus Guerrero; big money launderer, owner of Servientrega delivery service, works with Byron Lopez. --Eduardo Escobar; drug trafficker, associate and friend of Byron Lopez. (Ref. N); SUBJ: ALLEGED CORRUPTION WITH TIES TO THE PRESIDENCY RELATED TO AVIATION REPAIR PARTS CONTRACT. Byron Lopez, owner of Vertical de Aviacion, is the son-in-law of former Colombian president and current Secretary General of the OAS, Cesar Gaviria. As early as 1977, Byron Lopez and his former company Helitaxi have been under suspicion by the DEA for alleged narcotrafficking, illicit production of narcotics and money laundering. In 1986, DEA requested a FAA watch on a aircraft owned by Lopez for suspicious activity and possible transportation of narcotics. In March 1991, he was alleged to have established ties with the Medellin drug cartel. In 1994, Lopez drew the attention of the FBI which had Lopez under suspicion for alleged narcotrafficking and money laundering with known narcotraffickers. (Ref. O); SUBJ: COLOMBIAN MI-17 UPGRADES. Vertical de Aviacionis leasing MI-17s to Colombian government in fight against drugs. Vertical de Aviacion has 400 employees of which 60 are Russian. (Ref. P) ¶7. (U) ACTION: PM/DTCC requests post's assessment of Ref. A-B and E-O in regards to its accuracy, credibility, and currency. Please seek assistance of all relevant country team personnel to review/assess this information. ¶8. (U) Post is also requested to contact Vertical de Aviacion. The U.S. Department of State DDTC Statement of Registration brokering application for Vertical de Aviacion Ltda identifies Fernando Jose Lopez as CEO of the company. Lopez signed the brokering application on 01/30/2009. Completed application forms are legal documents. Lopez's signature on the form attested to the "Truth of All Statements Made Herein Under Penalty According to Federal Law". One required question on the brokering application asked if the Registrant (Vertical de AviacionLtda) is Owned And/Or Controlled By Foreign Persons. No response was provided to this question. In fact, Dun & Bradstreet, and other sources show that Vertical de AviacionLtda is a subsidiary of Icaro International Services S.A. of Panama. Icaro International Services owns 80% of Vertical de Aviacion. Thus Fernando Jose Lopez/Vertical de Aviacion is potentially in violation of USG federal law. Request Vertical de Aviacion to provide complete street and mailing address information for Icaro International Services S.A., including phone numbers, points of contact, Panama identification and registration numbers. The government of Panama agency and/or commercial/legal office for establishing offshore companies that maintains Icaro International Services' registration records should also be identified, including complete address and contact information. Vertical deAviacion should also provide date of registration, i.e., whenIcaro International Services S.A. was established, and ownership data (name and address of all public and private persons or other entities who own or control any part of Icaro). Lastly, Vertical de Aviacion should identify all other companies, businesses, or entities that are partly or fully owned by Icaro International Services S.A. ¶9. (U) Additionally, Ref. P and other sources indicate that Vertical de AviacionLtda employs a significant number of Russian foreign nationals. According to the International Traffic in Arms Regulations (ITAR) Parts 124.8 and 125.1, technical data or services exported pursuant to a licensed agreement may not be transferred or disclosed to foreign nationals of another country (other than the country of ultimate destination) without prior written approval of DDTC. Ref. D furthermore states that Vertical de Aviacion is interested in importing NVGs, a particularly sensitive technology. Due to these ITAR requirements and the potential risk of diversion of sensitive technology, please request that Vertical de Aviacion provide the full names and identification numbers of all the Russian foreign nationals currently employed by Vertical de Aviacion and any of its co-located companies. END ACTION. ¶10. (U) License Information: A) DDTC Case Number TAA 0361-04F LICENSE VALUE: USD 330,000,000.00 APPLICANT: DynCorp International LLC 3190 Fairview Park Drive Falls Church, Virginia 20242 USA FOREIGN CONSIGNEE: Vertical de AviacionLtda Nueva Zona de Aviacion General Hangar 19 ViaCatam Aeropuerto Internacional El Dorado Bogota, DC COLOMBIA FOREIGN END USER: Government of Colombia STATEMENT OF PURPOSE: General aircraft repair. B) DDTC Case Number TAA 4140-08D LICENSE VALUE: USD 9,700,000.00 APPLICANT: Aria International Holdings Inc. 4821 29th Street North Arlington, Virginia 22207 USA FOREIGN CONSIGNEE: Vertical de AviacionLtda Nueva Zona deAviacion General Hangar 19 ViaCatam Aeropuerto Internacional El Dorado Bogota, DC COLOMBIA FOREIGN END USER: Royal Thai Army RatchadamnoenNok Road, Bangkok THAILAND STATEMENT OF PURPOSE: Install three camera systems on RTA helicopters and prepare three additional aircraft so that the cameras can be swapped out and installed on the flight line. This will require the installation of wire harnesses and brackets for the six helicopters. ¶11. (U) Please slug reply for PM/DTCC - BLUE LANTERN COORDINATOR and include the words "Blue Lantern" and the DDTC Case Numbers in the subject line. POC on this case is Peter Sabatini, PM/DTCC, phone: 202-663-2819; email: sabtinipj@state.sgov.gov, psabatini@state.ic.gov. The most current Blue Lantern Guide Book is available at http://fsi.state.gov/fsi/spas/default.asp?ID= 1588. Department thanks Post for its assistance in this matter. CLINTON