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Viewing cable 09KUALALUMPUR275, BLUE LANTERN RESPONSE ON PRE-LICENSE END-USE CHECK

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Reference ID Created Released Classification Origin
09KUALALUMPUR275 2009-04-14 02:35 2011-08-26 00:00 UNCLASSIFIED Embassy Kuala Lumpur
VZCZCXYZ0001
PP RUEHWEB

DE RUEHKL #0275/01 1040235
ZNR UUUUU ZZH
P 140235Z APR 09
FM AMEMBASSY KUALA LUMPUR
TO RUEHC/SECSTATE WASHDC PRIORITY 2595
INFO RHMFIUU/HQ BICE WASHINGTON DC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
RUEKJCS/SECDEF WASHDC PRIORITY
RHMFIUU/FBI WASHINGTON DC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
UNCLAS KUALA LUMPUR 000275 
 
SIPDIS 
 
PM/DTCC - BLUE LANTERN COORDINATOR 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC MY
SUBJECT: BLUE LANTERN RESPONSE ON PRE-LICENSE END-USE CHECK 
ON APPLICATION 050151602 
 
REF: SECSTATE 30163 
 
1. Pursuant to reftel request, Econoff and Econ FSN on the 
morning of 10 April 2009 visited the office of Delta Masis 
Sdn Bhd to establish the bona fides of the company and 
determine if reftel proposed sale appeared legitimate.  Early 
during the week of 5 April, Delta was amenable to a visit but 
requested that a meeting be delayed until the 10th so that 
two senior Delta officials who were traveling would be 
available for the meeting.  Three Delta officials received 
Econoff and FSN at their office building, which is a three 
story office within a Malaysian office building containing 
other businesses.  Delta's main office was on the top floor, 
with the middle floor reserved as a training area; the bottom 
floor is not occupied but will probably be rented out. 
Delta's offices were modern and, according to Delta, have 
been occupied for the past two-and-a-half years.  Scattered 
throughout the office were miscellaneous defense-related 
paraphernalia, such as models of aircraft and naval vessels, 
plus several copies of defense magazines.  Econoff spotted 
three other people who appeared to be employees. 
 
2.  The two officials who had recently returned from 
traveling greeted Econoff.  They were Masri Muhammad 
(Director of Business Development for Delta) and who was the 
team lead for Delta; Wan Zulkifli Wan Ishak (Director of 
Contracts and Business Operations), who was the 
second-highest ranking officer present; and Moh'd Affis 
Mohamad (Project Manager), who was relatively quiet 
throughout the meeting but knowledgeable about many defense 
deals.  All of the Delta officials were knowledgeable of the 
reftel proposed deal and were very cooperative.  Masri and 
Wan said that they have been dealing for almost seven years 
with the U.S. company cited in reftel --  Harris Corporation 
-- and had traveled to Harris's corporate offices in 
Rochester, NY. 
 
3.  Regarding reftel proposed sale, the Delta officials said 
that the company wished to purchase the four SPR Advanced 
Multiband Team Tactical Radio Systems and that the PASKAL 
(Malaysian Naval Special Forces) was the intended recipient. 
Delta Masis was established on 11 May 1994 and has four 
primary divisions: a) Armament Systems Division (including 
munitions and weapons accessories); b) Information Systems 
Division (including signal monitoring systems, sensors, and 
cameras); c) Electro-Optical Systems Division (including 
night vision goggles and mini-monoculars); and the 
Specialized Mobility Platforms Division (including military 
radios and tactical repeaters).  Delta's core customers are 
mainly the Malaysian military and other government agencies, 
such as the Royal Malaysian Army, Royal Malaysian Navy, and 
Royal Malaysian Air Force  The primary procurement office for 
these services is located at Kementerian Pertahanan Malaysia, 
Wisma Pertahanan, Jalan Padang Tembak, 50634 Kuala Lumpur, 
Malaysia.  Another leading customer is the Defense Technology 
Research Center located at 17-19 Jalan Syeksyen 3/6, Taman 
Kayang Utama, 43000 Kajang, Selangor Darul Ehsan, Malaysia. 
A third leading customer is the Ministry of Home Affairs 
(including the Royal Malaysian Police), located at Block D1 
and D2, Kompleks D, Pusat Pentadbiran Kerajaan Persekutan 
62546 Putrajaya, Malaysia.  A fourth customer is the Ministry 
of Finance (including Customs) located at No. 3, Persiaran 
Perdana, Precint 2, 62596, Putrajaya.  Other customers 
include shipbuilders and engineering companies, including 
Mara Shipyard and Engineering (Terengganu, Malaysia), Kay 
Marine Sdn Bhd (Terengganu), and Lumut Naval Dockyard (Lumut, 
Perak, Malaysia).  All three Delta officials said that they 
were familiar with the unauthorized re-export or re-transfer 
of U.S.-origin defense equipment. 
 
4.  Masri and Wan also said they have traveled relatively 
extensively throughout the U.S., including Florida, Arizona, 
and Louisiana.  Masri and Wan said that Delta is licensed by 
the Government of Malaysia (GOM) to buy and sell 
defense-related equipment.  The officials cited a previous 
deal in April 2007 completed with Harris which was worth $2.5 
million USD on military radios.  The officials also described 
a deal in transferring a stock of approximately 13,500 
U.S.-manufactured M-16 rifles back to the U.S.  Masri and Wan 
said that the M-16s had originally been purchased by the GOM 
"years ago" and had never been used but, by today's standards 
-- such as the U.S. M-4 rifle -- these M-16s represented an 
older generation and were considered obsolete.  Delta 
apparently served as the transfer point between the rifles 
and their transfer back to the USG.  Masri and Wan said that 
both the USG and Colt Firearms were involved in this 
 
transfer, but had been officially approved by the USG in 
February 2009.  They said that Harris representatives, who 
are based at Harris's southeast Asia office in Manila, 
occasionally traveled to Kuala Lumpur to meet with Delta 
Masis. 
 
5.  All of the officials had business cards and welcomed 
follow-on contact.  All three officials spoke excellent 
English, and were helpful, knowledgeable, and familiar with 
U.S. laws and regulations.  We believe that Delta Masis is a 
legitimate Malaysian company, and it has been one of the most 
cooperative companies to date.  We recommend approval of the 
reftel proposed sale. 
KEITH