VZCZCXRO3776
OO RUEHDE
DE RUEHAD #0797 1921254
ZNR UUUUU ZZH
O 101254Z JUL 08
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1185
INFO RUEHDE/AMCONSUL DUBAI PRIORITY 7834

UNCLAS ABU DHABI 000797 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR PM/DTCC:TWATKINS 
 
E.O. 12958: N/A 
TAGS: KOMC ETTC US AE
SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON LICENCE 
050056087 
 
REF: A. STATE 05974 
¶B. STATE 64698 
 
SENSITIVE BUT UNCLASSIFIED; PLEASE HANDLE ACCORDINGLY. 
 
¶1.  (U) On July 8, TDY ECONOFF and OFAC Treasury Attache met with Mr. 
Pierre Dupas, Managing Director of the Hassani Clearing and 
Forwarding (HCF) Company, regarding license 050056087 for a 
post-shipment end-use check on CH47C helicopter spare parts for the 
UAE Armed Forces General Headquarters (GHQ).  ECONOFF explained the 
background for the visit and provided information on the U.S. 
munitions licensing system.  Mr. Dupas expressed an understanding of 
the importance of U.S. Munitions List restrictions as well as a 
desire to work with the U.S. Government. 
 
¶2.  (SBU) HCF was incorporated in 1990 and has its head office in Abu 
Dhabi.  The Managing Director of HCF, Mr. Dupas, is a French National 
but also holds a UAE passport.  He has been living in the UAE since 
¶1989.  HCF has an 8000 square meter storage facility in Mina Zayed 
Free Zone as well as a bonded warehouse in Abu Dhabi International 
Airport.  HCF does conduct other services including: offshore 
projects (submarine line services, diving and equipment, etc.), 
general cargo shipping, and packing but its major customer is 
currently the UAE Armed Forces.  According to Mr. Dupas, HCF is the 
UAE Armed Forces exclusive forwarding agent.  Mr. Dupas explained 
that HCF does not store any of the articles procured on behalf of the 
UAE Armed Forces at any of its warehouses.  All articles are 
delivered straight to the UAE GHQ warehouse.  Mr. Dupas stated that 
HCF is not allowed to handle or inspect the items upon delivery to 
the GHQ warehouse.  The HCF contract with the UAE Armed Forces is 
"Delivery Duty Unpaid," in which delivery at the port of arrival in 
the UAE, without getting Customs clearance and without unloading the 
goods, fulfills HCF's obligation under the contract.  Mr. Dupas says 
HCF checks the number of containers for conformity with shipping and 
L/C documents. 
 
¶3.  (SBU) Mr. Dupas added that GHQ does not have the capacity to 
order and track goods on its own and this is the primary reason for 
using HCF for the purposes of these types of transactions.  (NOTE: 
Mr. Dupas also stated that the GHQ warehouse has no inventory control 
with all sorts of items, including munitions, scattered about. END 
NOTE.)  Mr. Dupas expressed familiarity with U.S. regulations 
prohibiting re-transfers and re-exports without USG authorization. 
Mr. Dupas emphasized that he is willing to share any documentation 
the U.S. requires as part of these transactions, including the HCF's 
contract with the UAE Armed Forces, although he will have to put in a 
formal request to the UAEG before he can provide a copy.  HCF has a 
fairly extensive website at http://www.hcf.co.ae/. 
 
¶4.  (SBU) Mr. Dupas stated that he was aware of the license for the 
CH47C helicopter spare parts and that they have been delivered to the 
UAE Armed Forces.  Mr. Dupas produced invoices indicating delivery to 
LTN/II Kuhllood Abdulla, UAE, GHQ Armed Forces, Directorate General 
Purchasing.  However, post has not yet been able to reach UAE GHQ to 
confirm delivery.  Post has sent written inquiries and continues to 
follow-up with UAE GHQ on the delivery on the spare parts.  Post will 
continue to follow up with GHQ on this matter and report septel. 
 
¶5.  (SBU)  Although not part of this post-shipment verification 
license, Mr. Dupas went into some detail regarding license 730003856, 
which involved the shipment of several demonstration model KRISS 
submachine guns for the UAE Armed Forces.  The items were apparently 
delivered to the UAE Armed Forces.  Post can follow-up with the 
matter, if necessary. 
QUINN