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Viewing cable 08STATE36935, BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK

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Reference ID Created Released Classification Origin
08STATE36935 2008-04-09 15:05 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Secretary of State
VZCZCXYZ0008
RR RUEHWEB

DE RUEHC #6935 1001510
ZNR UUUUU ZZH
R 091505Z APR 08
FM SECSTATE WASHDC
TO RUEHTV/AMEMBASSY TEL AVIV 0000
INFO 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
UNCLAS STATE 036935 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
TEL AVIV FOR MICHAEL KEAYS 
POL 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC IS
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK 
ON APPLICATION 050093749 
 
REF: A. IIR 7 739 0806 07 
     B. 7 739 0803 07 
     C. 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 050093749 for the export 
of brush DC motors to Israel.  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: unfamiliar watchlisted foreign 
consignee and unfamiliar foreign intermediate consignee. 
Foreign consignee Bental is on PM/DTCC's Watchlist, and its 
bona fides have never been verified by a Blue Lantern check. 
Refs A and B also raise concerns.  PM/DTCC is also unfamiliar 
with foreign intermediate consignee Servotronix Ltd.  Post 
should make appropriate inquiries to verify the bona fides of 
Bental and Servotronix, assess the companies' ability and 
willingness to protect United States Munitions List (USML) 
technology, confirm the legitimacy of the proposed 
transaction, and determine whether any other foreign parties 
not listed on the license application will be involved in the 
proposed transaction.  The following questions are provided 
as suggested guidance: 
 
For the Israel MOD: 
 
--Are you familiar with Bental and Servotronix Ltd.? 
 
--Did you order from Bental and Servotronix the exact type 
and quantity of items listed on this application?  For what 
purpose will the parts be used?  Who will perform the repairs 
of turret control engines on the Merkava MK 3 tank? 
 
--Are Bental and Servotronix official suppliers/contractors 
for the Israel MOD?  Does the Israel MOD have any other 
contracts with the company? 
 
For Bental and Servotronix: 
 
--Does the company have proper supporting documentation, 
including purchase orders from the Israel MOD, for this 
proposed transaction? 
 
--What will happen with the parts once they arrive in Israel? 
 Who will perform the repairs of turret control engines on 
the Merkava MK 3 tank? 
 
--Will the company be handling or storing the items listed on 
the application?  If so, does it have secure facilities and 
proper accounting and security procedures for handling these 
sensitive USML items? 
 
--When was the company established and who are its principals? 
 
--What is the nature of its business -- what types of items 
does it handle, does it serve as a broker? 
 
--What types of organizations are among its typical customers 
and where are the customers located? 
 
--Does the company understand the restrictions on United 
States Munitions List (USML) items, especially the 
prohibition against unauthorized re-transfers and re-exports? 
 
4. (U) Department requests that post conduct site visits to 
the companies in order to provide Department with an 
assessment of their business operations and on-site security. 
 If site visits are not possible, please inform PM/DTCC case 
officer.  Finally, post is asked to assess whether the 
companies appear to be reliable recipients of USML items. 
End action. 
 
5. (SBU) For background, the following details of the license 
in question are provided: 
 
DTC Case: 050093749 
 
QUANTITY/COMMODITY: 
 
47    QTG-1701-A Brush DC Motor with Tachometer 
1     Documentation Package 
 
License Value: USD 44,240.00 
 
SELLER: 
 
Danaher Corporation 
2099 Pennsylvania Avenue NW, 12th Floor 
Washington, DC 20006 
Tel.: 540-633-5572 
 
Subsidiary: 
Kollmorgen Corporation 
501 W. Main Street 
Radford, VA 24141 
Tel.: 540-633-5579 
Company contact: Carolyn Richards 
 
FOREIGN CONSIGNEE: 
 
Bental 
Kibutz Marom 
PO 12436 Golan North 
Golan 
Israel 
 
FOREIGN INTERMEDIATE CONSIGNEE: 
 
Servotronix Ltd. 
(aka Danaher Motion Israel) 
Deniv Park 21C Yagia Kapayim St. 
Petach Tikva 49130 
Israel 
 
FOREIGN END-USER: 
 
Israel Ministry of Defense 
Hakirya 
Tel Aviv 61909 
Israel 
 
PURPOSE: 
 
Repairs of turret control engines on the Merkava MK 3 (tank) 
 
6. (U) Submitted in support of the license application were 
the following documents (PM/DTCC can fax documentation to 
post upon request): 
 
--Cover letter from Danaher Motion explaining proposed 
transaction, signed by Rob Miller, Account Manager, 
International, Kollmorgen Aerospace and Defense (Division of 
Danaher Corporation), dated March 10, 2008 
 
--Purchase order DS800052 from Danaher Motion Israel 
(Servotech) to Danaher Motion, signed by Efrat Yefet, dated 
17 January 2008 
 
--End-user statement, signed by (illegible), Danaher Motion 
Israel (Servotech), dated 17/02/2008 
 
--Technical drawing and specifications 
 
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 Judd Stitziel, PM/DTCC, 
Phone: 202-663-3455; email: StitzielJD@state.gov; SIPRNET: 
StitzielJD@state.sgov.gov.  The Blue Lantern Guidebook (ref 
C) 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 
 
8. (U) Department is grateful for post's assistance in this 
matter. 
RICE