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

S E C R E T STATE 007832

SIPDIS
KUALA LUMPUR FOR WYNN S. PINKSTON
ECON
JAKARTA FOR PABLO VALDEZ
ECON

E.O. 12958: DECL: 01/31/2020
TAGS: ETTC KOMC MY ID
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK
ON LICENSE 050210189

REF: A. 2006 BLUE LANTERN GUIDEBOOK

B. CIA TD-314/070468-09

Classified By: PM/DTCC Director Lisa Studtmann
for reasons 1.4 (b) and (d)

1.(U) This is an Action Request. See paragraphs 2-4.

2.(U) The Department's Office of Defense Trade Controls
Compliance (PM/DTCC) requests Post's assistance in conducting
a pre-license check on license 050210189 for the export of
thirteen (13) International Traffic in Arms (ITAR)-controlled
C-130 aircraft wheel tires to Indonesia. 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.(S) Reason for request: Foreign intermediate
consignee/freight forwarder, Hexmann Logistics (M) Sdn Bhd
(Hexmann),is an entity of concern due to derogatory
intelligence reporting (see ref B); the website of foreign
consignee, Namida Holdings (M) Sdn Bhd (Namida),indicates it
is in the herbal tea sales business (see
www.namidaholdings.com); unusual routing (part purchaser, PT
Prakarsa Mandiri Abadi (PMA),is located in Indonesia and the
"SHIP TO" address is located in Malaysia, while the foreign
end-user is the Indonesian Air Force); freight forwarder
(Hexmann) and foreign consignee (Namida) are located at the
same address.

4.(U) ACTION JAKARTA: The Department requests that Post
confirm that the foreign end-user, Indonesian Air Force (IAF)
ordered all items listed for the purpose stated on the
application.

ACTION KUALA LUMPUR: The Department requests that Post make
inquiries with appropriate officials to establish the bona
fides of Namida 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 Namida provide documentation that verifies the end-use
of the aircraft parts, such as a contract or purchase order
with the IAF?

--When was Namida established and who are its principals?

--What is the nature of the company's businesses -- does the
company normally trade in defense articles?

(COMMENT: Namida's website indicates that it has an
aircraft/railway parts supplier subsidiary named Vas Aero
Malaysia Sdn Bhd. with web address http://vasaero.com. Vas
Aero is not listed on the license application. END COMMENT.)

--What type of organizations are among its typical customers
and where are they located?

--Does Namida understand the restrictions on USML items,
especially the prohibition against unauthorized
re-transfer and re-export?

END ACTION.

5.(U) Details of license application:

DTC CASE: 050210189

QUANTITY/COMMODITY:

13 - Wheel Tire, P/N 250A200

License Value: 152,490 USD

SELLER:

Wesco Manufacturing Inc.
299 Duffy Avenue
Hicksville, NY 11801
Tel: 516-933-1900
POC: Rita Vitali

FOREIGN CONSIGNEES:

PT Prakarsa Mandiri Abadi
Jl. Pasundan I No. 28
Bogor 16967
Indonesia
Tel: (62-22) 7806958
Fax: (62-22) 7837652
POC: Taufan, Director

Namida Holdings (M) Sdn Bhd
No. 100 Jalan Kapar 27/89
Megah Indah Industrial
Taman Alam Megah 40000 Shah Alam
Selangor
Malaysia

FOREIGN INTERMEDIATE CONSIGNEE:

Hexmann Logistics (M) Sdn Bhd
No. 100 Jalan Kapar 27/89
Megah Indah Industrial
Taman Alam Megah 40000 Shah Alam
Selangor
Malaysia
Tel: 603-5191 1333
Fax: 603-5191 0842

FOREIGN END-USER:

Indonesian Air Force
Mabes Au Cilangkap
Jakarta 13870
Indonesia

PURPOSE:

Repair and maintenance of C-130 aircraft for Indonesia Air
Force.

6.(U) Submitted in support of the license application were
the following documents (PM/DTCC will fax documentation to
Post upon request):

--Purchase Order No. PMA-077/09-Rev1 submitted by PMA to
Wesco, dated 23 December 2009.

--Letter of Intent submitted by PMA to Wesco, dated 11
January 2010.

--Department of State License for Permanent Export of
Unclassified Defense Articles and Related Unclassified
Technical Data, submitted 19 January 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