VZCZCXYZ0019
PP RUEHWEB

DE RUEHTV #1004/01 1271348
ZNR UUUUU ZZH
P 061348Z MAY 08
FM AMEMBASSY TEL AVIV
TO RUEHC/SECSTATE WASHDC PRIORITY 6598
INFO RUEHNE/AMEMBASSY NEW DELHI PRIORITY 0364
RUETIAA/DIRNSA FORT GEORGE G MEADE MD
RUEAIIA/CIA WASHDC
RUCNFB/FBI WASHDC
RUCPDOC/USDOC WASHDC
RUEKJCS/SECDEF WASHDC
RHMFIUU/HQ BICE INTEL WASHINGTON DC

UNCLAS TEL AVIV 001004 
 
SIPDIS 
SENSITIVE 
 
STATE FOR PM/DTCC - BLUE LANTERN COORDINATOR 
STATE FOR NEA/IPA (PECCIA) 
NEW DELHI FOR JONATHAN S. FISCHER 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC IN IS
SUBJECT: RESULTS OF BLUE LANTERN LEVEL 3 PRE-LICENSE 
END-USE CHECK ON APPLICATION 05-050095903 
 
REF: STATE 37830 
 
¶1. (SBU) Per reftel instructions, emboffs visited Orbit/FR 
Engineering, Ltd., a subsidiary of Orbit-Alchut Technologies 
in Netanya on May 6, and met with Vice President for Systems 
Research and Development Noah Isman, Senior Antenna 
Measurement Scientist Asi Geva, Customer Support Officer 
Carmit Kachan, and Security Consultant Sagy Itzhak.  An 
information security officer from the Israeli MOD's Security 
Directorate (MALMAB/DSDE), Kobi Fogler, also participated in 
the meeting.  Emboffs collected the following information: 
 
A) Bona Fides:  Orbit/FR Engineering Ltd. is a subsidiary of 
Orbit-Alchut Technologies, and the more specific foreign 
consignee in the transaction covered under license 
application 05-050095903.  Orbit/FR representatives provided 
a brief PowerPoint presentation illustrating their place in 
the Orbit conglomerate, and their business of developing and 
retailing antenna components and systems.  Sixty-one percent 
of Orbit/FR's shares are held by Orbit Technologies Group. 
Orbit/FR is to be sold to France, and Orbit-Alchut 
Technologies is the holding company.  Completion of the sale 
is pending USG approval.  Orbit/FR's shares are traded on the 
NASDAQ, and its corporate headquarters are located in 
Pennsylvania.  Orbit/FR's customers include domestic and 
global companies in satellite, aerospace, automotive, and 
academic industries, such as Sony-Ericsson, Boeing, 
Lufthansa, and Ford Motor Company.  Clients are military and 
civilian, and range in size from large-scale defense 
contractors to individuals.  Orbit was founded in 1951 and 
dealt with electronics.  It then expanded into research and 
development, and began developing its own line of products. 
The "FR" portion of its name derives from Flamm and Russell, 
a company which it bought in the 1990s. 
 
B) Use of Licensed Technologies:  Vice President Noah Isman 
described the four antenna switches covered by the export 
license application in question as "very simple parts" used 
for operating a test antenna, which can measure the efficacy 
of other antenna transmitters.  The switch itself is designed 
for integration into an established antenna range system and 
permits users to connect to multiple transmitters and test 
each one at a time.  Testing will take place in India, and 
Isman thought it likely the antenna transmitters to be tested 
are for a military application.  Customer Support Officer 
Carmit Kachan showed emboffs copies of the purchase order, 
numbered 111037, which listed the supplier as REMEC, a 
subsidiary of Cobham Holdings, and was signed by Mark Fulling 
of Cobham, Inc. Isman likewise provided an end-user 
declaration confirming Defense Avionics Research 
Establishment (DARE) in Bangalore, India, as the recipient of 
the antenna switches.  The end-user declaration was signed by 
"R.P. Ramalinjan, Distinguished Scientist and Director." 
Kachan noted that she is Orbit FR's POC for the Israeli MOD's 
Security Directorate (MALMAB/DSDE).  Isman said this is the 
first time he is selling to this specific end-user, but noted 
that he already has several other customers in the India 
defense establishment.  Isman said he has worked with REMEC 
before, and that Orbit/FR has received controlled items from 
U.S. suppliers in the past that were covered by export 
licenses. 
 
C) Company Records and On-Site Security:  Security Consultant 
Sagy Itzhak assured emboffs that controlled technologies are 
very well protected at Orbit/FR.  He noted that all of 
Orbit/FR's employees have at least a "confidential" level 
security clearance, and that only employees working on a 
project ever handle that project's technologies.  Itzhak 
explained that controlled items licensed by State and 
Commerce are secured in a separate section of the warehouse 
and are labeled with a sticker identifying them as an 
"article under control."  He stated that he requires the 
company to maintain detailed files for each transaction, and 
that Orbit FR is moving towards an entirely automated records 
system. 
 
D) Company's Understanding of USML Restrictions:  Itzhak 
stated with confidence that he is very well read on the USML 
restrictions and the requirements for transacting controlled 
items.  Emboffs assessed that Isman and the other company 
 
officials in the meeting likewise understood the importance 
of abiding by USML protocol.  Per instructions in reftel, 
emboffs reiterated that any re-export of controlled items 
covered by U.S. export licenses requires approval prior to 
re-export. 
 
¶2. (SBU) Based on the above, emboffs believe Orbit/FR is a 
bona fide company specializing in the research, development, 
and sale of antenna measurements components and systems, and 
is playing a legitimate role as consignee in a legitimate 
transaction. 
 
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Visit Embassy Tel Aviv's Classified Website: 
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JONES