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

UNCLAS STATE 009435 SENSITIVE C O R R E C T E D COPY (SENSITIVE CAPTION ADDED) SIPDIS KUALA LUMPUR FOR WYNN S. PINKSTON ECON E.O. 12958: N/A TAGS: ETTC KOMC MY SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON LICENSE 050210579 REF: A. 2006 BLUE LANTERN GUIDEBOOK ¶B. STATE 5003 ¶C. KUALA LUMPUR 12 ¶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 050210579 for the export of International Traffic in Arms (ITAR)-controlled F-5 parts to Malaysia. 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: Unfamiliar foreign consignee, Dinamik Maju Bumi Sdn Bhd (DMB) (no licensing history); no documentation from end user, Royal Malaysian Air Force (RMAF); parts at risk of diversion. 4.(SBU) ACTION: The Department requests that Post make inquiries with appropriate officials to establish the bona fides of DMB 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. In light of the well-publicized case of the stolen F-5E engines, Post is also recommended to seek some clarification from RMAF as to their requirements regarding F-5 aircraft; some Malaysian officials have suggested that the F-5 is an obsolete platform, yet DDTC continues to see license applications for the export of F-5 parts to Malaysia (reftels). The following points are included for guidance: --Can Dinamik Maju Bumi provide documentation that verifies the end-use of the aircraft parts, such as a contract or purchase order with the RMAF? --When was Dinamik Maju Bumi 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 Dinamik Maju Bumi understand the restrictions on USML items, especially the prohibition against unauthorized retransfer and re-export? END ACTION. ¶5. Details of license application: DTC CASE: 050210579 QUANTITY/COMMODITY: 1 - Cover, Access, Aircraft Door Assembly, Aileron Actuator Lower Wing Access LH, Honeycomb Bonded, P/N 14-24401-1 License Value: 7,200 USD SELLER: WBParts, Inc. 2300 Commerce Park Drive Unit 15 Palm Bay, FL 32905 Tel: 321-473-6075 ext. 701 POC: Jerome Pepin FOREIGN CONSIGNEE: Dinamik Maju Bum Sdn Bhd No. 10-1A, Jalan SBC 4 Taman Sri Batu Caves Selangor 68100 Malaysia Tel: 03-61850403 H/P: 012-6099833 Fax: 03-61858679 Registration No: 861649-X POC: K. Ramesh FOREIGN END-USER: Royal Malaysian Air Force Air Logistic HQ Kuala Lumpur Air Base Old Airport Road Kuala Lumpur 50460 Malaysia PURPOSE: For use on RMAF F-5 aircraft. ¶6. Submitted in support of the license application were the following documents (PM/DTCC will email documentation to Post upon request): --Purchase Contract No. BMB//0045/E/09, undated. --End Use Declaration signed by K. Ramesh of DMB, dated 20 October 2009. --Department of State License for Permanent Export of Unclassified Defense Articles and Related Unclassified Technical Data, submitted 21 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