BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK

UNCLAS STATE 000942

SIPDIS
MALAYSIA FOR WYNNE S. PINKSTON

E.O. 12958: N/A
TAGS: ETTC KOMC MY
SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK
ON LICENSE 050121255

REF: 561599 02 APRIL 2009


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 post-shipment check on license 050121255 for the export of
diesel engines to Malaysia. Post is requested to complete
this Blue Lantern check within 45 days. Lack of response to
a Blue Lantern check will affect pending and future licenses
involving parties to this license.


3. Reason for request: Significant informational concerns
regarding foreign consignee's parent company (see reftel).


4. ACTION KUALA LUMPUR: Post is requested to make inquiries
with host government officials to confirm that the Malaysian
MoD (MMOD) ordered and has received the 48 diesel engines
from foreign consignee, MTU and that the items are being used
for the purpose stated on the license.
END ACTION

COMMENT: According to U.S. Customs data, the following items
were shipped on the following dates:

--18 Compression-Ignition Internal Combust Pist to Turkey on
26 May 2009
--18 Compression-Ignition Internal Combust Pist to Turkey on
3 June 2009
--12 Compression-Ignition Internal Combust Pist to Turkey on
30 June 2009
END COMMENT


5. Details of license application:

DTC Case: 050121255

QUANTITY/COMMODITY:

48 Detroit Diesel Model 5063-539H diesel engine rated 305
BHP

License Value: USD 1,303,632.00

SELLER:

MTU Detroit Diesel, Inc.
13400 Outer Drive, West
Detroit, MI 48239
POC is Robert T. Ragan, Tel. 313-592-3799

FOREIGN CONSIGNEE:

MTU Motor Turbin Sanayi ve Ticaret A.S.
Avrupa Serbest Bolge Subesi Ruhsat No: ASB-45
Istanbul
Turkey
POC is Finance Manager, Sabri Tuncer, Tel. (1) 3135925802

FOREIGN INTERMEDIATE CONSIGNEE

DDEFTECH DRB-HICOM Defense Technologies Sdn. Bhd.
Lot 26 Jalan Pengabit 15/19, Section 15
40200 Shah Alam
Malaysia

FNSS Defense Systems, Inc.
Ankara-Konya Karaloyu Golbasi Cikisi 8. KM
Ankara
Turkey
POC is General Manager, Nail Kurt, Tel. (90) 3124840077

FOREIGN END-USER:

Ministry of Defense Malaysia
Jalan Padang Tembak
50634 Kuala Lumpur
Malaysia
POC is Principal Assistant Secretary Procurement Division
(Unit 1) Malaysia MoD,
Haton Bibi Binti Abdullah, Tel. 550417-08-5932

PURPOSE:

The Model 5063-539H engines are to be used in various armored
vehicles being supplied as CKD kits to DEFTECH in Malaysia.
These engines will be installed in the vehicles assembled by
DEFTECH under the supervision of FNSS Defense Systems in
Malaysia for the MMOD.


6. Submitted in support of the license were the following
documents (PM/DTCC can fax documentation to post upon
request):

--DSP-83 Non Transfer and Use Certificate submitted by the
MMOD and signed by Principal Assistant Secretary Procurement
Division (Unit 1) Malaysia MoD, Haton Bibi Binti Abdullah on
8 August 2008 and by MTU Motor Turbin Sanayi ve Ticaret A.S.
General Manager, Muammer Iyi on 25 July 2008.

--Purchase Order No. 4261007007/C01 submitted by MTU Motor
Turbin Sanayi ve Ticaret A.S. and signed by Finance Manager,
Sabri Tuncer on 22 August 2008.


7. 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 Tim Mazzarelli, Phone:
202-663-3867; Email: MazzarelliTP@state.gov; SIPRNET:
MazzarelliTP@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. Department is grateful for post's assistance in this
matter.
CLINTON