VZCZCXYZ0008
PP RUEHWEB

DE RUEHAK #6501 3281354
ZNR UUUUU ZZH
P 241354Z NOV 06
FM AMEMBASSY ANKARA
TO RUEHC/SECSTATE WASHDC PRIORITY 0063
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RUEUITH/ODC ANKARA TU PRIORITY
RUEHAK/USDAO ANKARA TU PRIORITY

UNCLAS ANKARA 006501 
 
SIPDIS 
 
SIPDIS 
 
DEPARTMENT FOR PM/DTCC - BLUE LANTERN COORDINATOR RICK 
STROBEL 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC TU
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON 
APPLICATION 05-1006551 
 
REF: SECSTATE 146584 
 
¶1.  SUMMARY: Per reftel request, we met with officials from 
Yasar Demirel-Yasar Ticaret (YDYT) to discuss application 
05-1006551, an export license request for armored vehicle 
parts.  According YDYT, there is no impending $1 million USD 
contract with U.S. firm Relli Technology Inc. or any other 
U.S. firm for armored vehicle spares.  YDYT had purchased a 
license for the eventual purchase of up to $1M in spare parts 
from Relli.  End Summary. 
 
¶2.  During a 22 November 2006 meeting at the YDYT office 
building on Ogun Han Caddesi in Iskitler, Ankara, YDYT 
President/CEO Yasar Demirel was very forthcoming about a 
license application for spare parts for M109 self-propelled 
howitzers, M113 armored personnel carriers, and M48 and M60 
main battle tanks that the company purchased in mid-2006, per 
the advice of Relli company officials.  Other YDYT officials 
in attendance were Demirel's son Adnan and his personal 
secretary (NFI).  In response to our questions, Demirel 
 
SIPDIS 
clarified that they currently do not have a prospective deal, 
purchase order, or agreement with Relli for $1 million USD or 
any other amount of armored vehicle spares.  Demirel was 
initially puzzled at Washington's claim that there appeared 
to be a deal for that amount with Relli.  Demirel clarified 
that they had purchased a license that would allow them to 
purchase up to $1 million USD from Relli if needed.  However, 
YDYT has only done approximately $2,000 worth of business 
with Relli in 2006 and does not expect that amount to grow 
substantially through early 2007.  In fact, Demirel indicated 
that YDYT is only selling $1.5 million dollars in armored 
vehicle spares to the entire Turkish Land Forces, a 
significant sale for a Turkish company. 
 
¶3.  Background: The officials indicated that Yasar Machinery 
Company was founded in 1985 as a private company, and that it 
remains private.  Since 2003, YDYT has bid on contracts for 
the Turkish Jandarma and Turkish Land Forces - mainly for 
armored vehicles but also including some for helicopters. 
Although the company has done business with various French, 
German, South Korean, and Israeli companies, Demirel said 
that he prefers dealing with U.S. companies such as Relli, 
ISO Group, SECO, WorldBase, Interstate McBee Flight Source, 
Clark Brothers, and Faria.  The YDYT officials said that they 
represent Interstate McBee in Turkey.  Demirel added that 
currently most of their purchases are made from Israeli 
companies but that he hopes to increase purchases from U.S. 
firms.  YDYT appears to keep proper, detailed records of its 
sales and customers and freely shared some of these files 
with us.  The company is familiar with USML articles, 
particularly with re-exporting, since it has done business in 
the past with U.S. firms.  The building appeared to have an 
appropriate level of security. 
 
¶4.  The YDYT officials were very forthcoming and helpful, and 
showed us several documents and contracts from U.S. companies 
that they had dealt with in previous years.  Based on the 
site visit, the meeting with YDYT officials, and an 
examination of their website, we believe that the company is 
an appropriate candidate for a U.S. export license. 
 
Visit Ankara's Classified Web Site at 
http://www.state.sgov.gov/p/eur/ankara/ 
 
WILSON