VZCZCXYZ0022
RR RUEHWEB

DE RUEHC #5838 0461606
ZNR UUUUU ZZH
R 151603Z FEB 08
FM SECSTATE WASHDC
TO RUEHMO/AMEMBASSY MOSCOW 0000
RUEHSM/AMEMBASSY STOCKHOLM 0000
INFO RUEHHE/AMEMBASSY HELSINKI 0000
RUEAIIA/CIA WASHINGTON DC 0000
RUCPDOC/USDOC WASHINGTON DC 0000
RUEKJCS/SECDEF WASHINGTON DC
RHMCSUU/FBI WASHINGTON DC 0000
RUEPINS/HQ BICE INTEL WASHINGTON DC 0000

UNCLAS STATE 015838 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
MOSCOW FOR NICKOLAS KATSAKIS 
POLMIL 
STOCKHOLM FOR OLIVIA HILTON 
ECON 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC RS
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK 
ON APPLICATION 050087908 
 
REF: BLUE LANTERN GUIDEBOOK 2006 
 
¶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 application 050087908 for the export 
of infrared searchlight equipment to Russia.  Post is 
requested to complete this Blue Lantern check within 30 days. 
 Lack of response to a Blue Lantern check will affect pending 
and future applications involving parties to this license. 
 
¶3. (SBU) Reason for request:  foreign end-user and consignee 
are both on PM/DTCC's Watchlist; vague and suspicious end-use 
statement; possible involvement of an unregistered broker. 
Foreign end-user Ulan-Ude Aviation Plant is on PM/DTCC's 
Watchlist and has never had its bona fides verified by a Blue 
Lantern check.  An additional cause for concern is the 
end-use statement that the infrared searchlight equipment 
will be installed on a helicopter owned by Ulan Ude, which 
purportedly will be operated by the company on behalf of the 
Russian Federal Customs Service.  In addition, foreign 
intermediate consignee Avitronics International AB appears to 
be acting as a broker in this proposed transaction.  However, 
the company is not registered with the Department's 
Directorate of Defense Trade Controls (PM/DDTC) as a broker 
of USML parts, as required under U.S. law.  Embassy Moscow 
should make appropriate inquiries to verify the bona fides of 
Ulan Ude and confirm the legitimacy of the proposed 
transaction.  Embassy Stockholm should make appropriate 
inquiries to determine whether Avitronics is acting as a 
broker in this proposed transaction and whether the company 
is aware that U.S. law requires brokers of USML items to 
register with PM/DDTC.  The following questions are provided 
as suggested guidance: 
 
For the Russian Federal Customs Service, Siberian Department, 
Buryatia Branch: 
 
--Have you hired Ulan Ude to use its helicopters to perform 
services on behalf of your agency? 
 
--If so, does Ulan Ude require an infrared searchlight?  What 
exact services will Ulan Ude performing on behalf of the 
Russian Federal Customs Service? 
 
For Ulan Ude Aviation Plant: 
 
--Does the company have proper supporting documentation, 
including a contract from the Russian Federal Customs 
Service, for this proposed transaction? 
 
--Does the company understand the restrictions on United 
States Munitions List (USML) items, especially the 
prohibition against unauthorized re-transfers and re-exports? 
 Does the company understand that USML items may be used only 
for the specific purpose stated on the export license? 
 
For Avitronics International AB: 
 
--Please describe your role in this proposed transaction. 
 
--If serving as a broker in this proposed transaction, are 
you aware that U.S. law requires brokers of USML items to 
register with the State Department and to obtain prior 
authorization for many brokered transactions? 
 
¶4. (SBU) For background, the following details of the license 
in question are provided: 
 
DTC Case: 050087908 
 
QUANTITY/COMMODITY: 
 
1     SX-16 in flight changeover infrared searchlight assembly 
1     SX-16 in flight changeover infrared searchlight, gimbal 
assembly 
1     SX-16 in flight changeover infrared searchlight, 
control box assembly 
1     SX-16 in flight changeover infrared searchlight, cable 
assembly flex 
1     SX-16 in flight changeover infrared searchlight, cable 
assembly external 
1     SX-16 in flight changeover infrared searchlight, 
operation and maintenance manual 
 
License Value: USD 27,601.00 
 
SELLER: 
 
The Boeing Company 
100 North Riverside 
Chicago, IL 60606 
Company contact: Julio Santiago, tel.: 703-4654-3650 
 
Spectrolab, Inc. 
(Wholly owned subsidiary of The Boeing Company) 
12500 Gladstone Avenue 
Sylmar, CA 91342 
Company contact: Stephen P. Wallace, tel. 818-898-2831 
 
FOREIGN CONSIGNEE: 
 
Varova Oy 
East Harbour Sompasaari, Makasiini S-1 
Helsinki 
Finland 
 
FOREIGN INTERMEDIATE CONSIGNEE: 
 
Avitronics International AB 
Box 607 
S-175 26 Jarfalla 
Sweden 
 
FOREIGN END-USER: 
 
Ulan-Ude Aviation Plant 
1, Khorinskaya Street 
Ulan-Ude 670009 
Russia 
 
PURPOSE: 
 
Commodities for use on end user's helicopter model Mi-8/17 
used for Russian customs purposes 
 
¶5. (U) Submitted in support of the license application were 
the following documents (PM/DTCC can fax documentation to 
post upon request): 
 
--Nontransfer and Use Certificate (Form DSP-83), signed by 
Robert Eklund, Director, Avitronics a.b., dated 09.24.2007; 
and signed by Leonid Belykh, General Director, Ulan Ude 
Aviation Plant, dated 12.07.2007 
 
--Product brochure including technical specifications 
 
--Cover letter from Spectrolab explaining the proposed 
transaction, signed by Stephen P. Wallace, Manager of 
Contracts, dated January 29, 2008 
 
--Supplementary statement of purpose from Ulan Ude Aviation 
Plant, signed by E. Milischuk, 1st Deputy General Director, 
dated February 11, 2008, stating "This is to certify that 
SX-16 IFCO Searchlight (part number 025000-131) manufactured 
by Spectrolab Inc. is intended to be installed on Mi-17 
helicopter owned by Ulan Ude Aviation plant.  The helicopter 
in question will be operated by Ulan Ude Aviation plant for 
Russian Federal Customs Service, Siberian Department, 
Buryatia Branch, Bld 4, Karl Marx Boulevard, 670031 Ulan Ude, 
Buryatia Republic, Russian Federation.  Ulan Ude Aviation 
plant has all necessary infrastructure for helicopter 
operation such as pilots, helipads, jet fuel station, air 
traffic control tower, etc.  Purpose of use: forestry, 
transportation routes and border patrol to interdict illegal 
export of timber and other natural resources." 
 
¶6. (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 Judd Stitziel, PM/DTCC, 
Phone: 202-663-3455; email: StitzielJD@state.gov; SIPRNET: 
StitzielJD@state.sgov.gov.  The Blue Lantern Guidebook (ref) 
is available as a PDF file in the Bunche Library's Electronic 
Library collection on the DOS Intranet: 
http://virtuallibrary.state.gov/ 
BlueLanternGuidebook2006%2520 final .pdf 
 
¶7. (U) Department is grateful for post's assistance in this 
matter. 
RICE