VZCZCXYZ0005
PP RUEHWEB

DE RUEHC #6926 1281238
ZNR UUUUU ZZH
P R 081226Z MAY 09
FM SECSTATE WASHDC
TO RUEHTV/AMEMBASSY TEL AVIV PRIORITY 8052
INFO RUEHYN/AMEMBASSY SANAA 9088
RUEAIIA/CIA WASHINGTON DC 6936
RHMCSUU/FBI WASHINGTON DC 4038
RUCPDOC/USDOC WASHINGTON DC 5086
RUEKJCS/SECDEF WASHINGTON DC
RUEPINS/HQ BICE INTEL WASHINGTON DC

UNCLAS STATE 046926 
 
SIPDIS 
TEL AVIV FOR JASON GRUBB 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC IS
SUBJECT: BLUE LANTERN CHECK ON POSSIBLE UNAUTHORIZED 
RETRANSFER OF M-113 ENGINES BY THE GOVERNMENT OF ISRAEL 
 
REF: 2006 BLUE LANTERN GUIDEBOOK 
 
¶1. This is an Action Request.  See paragraphs 2-5. 
 
¶2. The Department's Office of Defense Trade Controls 
Compliance (PM/DTCC) requests Embassy's assistance in 
conducting a Blue Lantern check to verify the possible 
unauthorized retransfer of M-113 engines by the Government of 
Israel.  Post is requested to complete this Blue Lantern 
check within 30 days. 
 
¶3. Background: In June 2008, the Department's Directorate of 
Defense Trade Controls (DDTC) received a request from U.S. 
company Pan Pacific Enterprises (PPE) for authorization to 
export 30 U.S.-origin M-113 diesel engines (worth USD 
236,000) to the Yemeni Army.  PPE indicated that it would 
obtain the U.S.-origin engines from a private Israeli 
company, L.A. Nordan (Nordan).  Included in the supporting 
documentation was a letter from PPE claiming that Nordan 
received the engines from the Israeli Ministry of Defense 
(IMOD). The engines had been removed from M-113 Armored 
Personnel Carriers originally sold by the USG to the GOI 
under the Foreign Military Sales (FMS) program. 
 
¶4. PM/DTCC has verified through the Defense Security 
Cooperation Agency (DSCA) that the USG indeed has transferred 
via FMS the same type of M-113 engines to the GOI in the past 
but has not approved any retransfers of M-113 engines or 
vehicles from the GOI to any private Israeli firms. 
 
¶5. ACTION TEL AVIV: Post is requested to make inquiries with 
L.A. Nordan and appropriate host government officials to 
determine if the GOI retransferred to L.A. Nordan any M-113 
engines or other parts that were originally acquired via FMS 
from the United States.  If such a retransfer did occur, post 
is requested to obtain all relevant details, including: date 
of transfer; financial considerations/compensation; number, 
type, and serial number of items; names and titles of 
individuals involved; and requests, if any, for permission to 
transfer the articles to L.A. Nordan.  POC at L.A. Nordan is 
Didi Aspis, Tel. 972-99547416, Box 0412 Herzila Pituach 
Israel, Israel 46701.  Post is encouraged to share with L.A. 
Nordan and host government officials the letter mentioned in 
para 6 below. (Note: PM/DDTC has recently discussed this 
matter with GOI representatives, including IMOD/MALMAB's Nir 
Ben Moshe, former Defense Cooperation Director at the Israeli 
Embassy in Washington.) 
END ACTION 
 
¶6. Submitted in support of this request is the following 
document (PM/DTCC will fax document to post): 
 
--Letter from Pan Pacific Enterprises to PM/DDTC, signed by 
President David C. Pan, dated 11 June 2008, indicating that 
the M-113 engines were originally supplied to the Israeli 
Government under various FMS programs. 
 
¶7. 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 Tim Mazzarelli, PM/DTCC, Phone: 
202-663-3867. 
 
¶8. Department is grateful for Embassy's assistance in this 
matter. 
CLINTON