VZCZCXYZ0010
RR RUEHWEB

DE RUEHHI #1204 2970729
ZNR UUUUU ZZH
R 230729Z OCT 08
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC 8650
INFO RUEHMD/AMEMBASSY MADRID 0157
RUEAIIA/CIA WASHINGTON DC
RHMFIUU/FBI WASHINGTON DC
RUEKJCS/SECDEF WASHINGTON DC
RUCPDOC/USDOC WASHINGTON DC
RHMFIUU/HQ BICE INTEL WASHINGTON DC

UNCLAS HANOI 001204 
 
SENSITIVE 
SIPDIS 
 
PM/DTCC - BLUE LANTERN COORDINATOR 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC VN
SUBJECT: RESPONSE TO BLUE LANTERN PRE-LICENSE, END USE 
CHECK ON APPLICATION 050112606 
 
REF: SECSTATE 76533 
 
¶1. (SBU) SUMMARY: Per reftel, the Embassy made inquiries with 
the Vietnam Marine Police to assess the end use of items 
stated on the license request and conducted a site visit to 
Van Xuan General Import Company to assess its business 
operations, on-site security, and general reliability as a 
recipient of United States Munitions List (USML) items.  Post 
is confident that the Vietnam Marine Police is the end user 
for the items and the Van Xuan Import Company is a legitimate 
import agent. End summary. 
 
Van Xuan General Import Company 
------------------------------- 
 
¶2. (SBU) In a meeting in Hanoi on October 2, 2008, poloff 
discussed the license application for the Integrated Engine 
Display System (IEDS) with the Manager of the Planning 
Department, Mr. Pham Hoang Thu.  Mr. Thu explained that Van 
Xuan Import Company (VAXUCO) is a Ministry of Defense (MOD) 
company; that is, the company is owned by the MOD and staffed 
with quasi-government employees.  VAXUCO's responsibility is 
to act as the commercial import agent for the MOD.  As a 
MOD-owned company, Van Xuan is essentially part of the 
government bureaucracy.  The company is not in business for a 
profit, but to facilitate transaction of defense articles to 
the various branches of the Vietnamese military, security 
forces, and police. 
 
¶3. (SBU) Mr. Thu produced the contract documents, allowed 
poloff to review the documents, and offered to provide copies 
as needed.  VAXUCO's role is to receive the items upon 
arrival, ensure that all proper paperwork is completed to 
pass through customs, and transfer the items to the Vietnam 
Marine Police. 
 
¶4. (SBU) The company representative appeared to have a strong 
understanding of restrictions on USML, confirming that the 
items would be secured as required.  Mr. Thu also explained 
that retransfer and end use restrictions and requirements are 
listed clearly in the contract and have been explained to the 
Vietnam Marine Police.  Overall, Mr. Thu demonstrated a clear 
knowledge of the rules and a willingness to provide 
information.  Further, he offered to discuss any other case 
involving U.S. equipment, should we have such questions in 
the future. 
 
Vietnam Marine Police 
--------------------- 
 
¶5. (SBU) Poloff and pol FSN met with Rear Admiral Pham Duc 
Linh, Director of the Vietnam Marine Police Headquarters in 
Hai Phong on October 21. ADM Linh confirmed that the Vietnam 
Marine Police (VMP) wish to acquire the items in the license 
application request and offered any information that would 
hasten the process.  He explained that the VMP falls under 
the administration of the MOD, hence the use of the MOD's 
import agent, VAXUCO.  By way of background, ADM Linh 
explained that the VMP is a relatively new organization, 
established in 1998, and the Government of Vietnam is now 
making a significant investment in equipment for VMP.  AMD 
Linh went on to reassure poloff that the equipment will be 
installed on surveillance aircraft that do not have any 
weapons or combat equipment on board.  Regarding retransfer 
requirements, ADM Linh explained that the VMP has no 
intention of transferring any U.S. equipment it acquires as 
it is greatly needed by his organization; however, he clearly 
understood the issue, and not 
ed that all U.S. equipment and materials provided would be 
properly safeguarded and adhere to all contractual 
requirements. 
 
¶6. (SBU) COMMENT: Post believes VMP is the genuine end user 
of the items, and that VAXUCO is a legitimate import agent 
for the MOD and has a high degree of confidence that both 
VAXUCO and the VMP are aware of and intend to fulfill their 
contractual obligations, including the restrictions on 
re-export and retransfer of USML.  End Comment. 
 
¶7. (U) Post point of contact for this matter is Jane 
Bocklage, phone: (84-4) 3850-5081, bocklageje@state.gov. 
MICHALAK