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