VZCZCXYZ0000
OO RUEHWEB

DE RUEHTV #0985/01 1241348
ZNR UUUUU ZZH
O 041348Z MAY 09
FM AMEMBASSY TEL AVIV
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1641
INFO RUEHNE/AMEMBASSY NEW DELHI PRIORITY 0378
RUEHCG/AMCONSUL CHENNAI PRIORITY 0135
RUEAIIA/CIA WASHDC PRIORITY
RUETIAA/DIRNSA FORT GEORGE G MEADE MD PRIORITY
RUCNFB/FBI WASHDC PRIORITY
RUEKJCS/SECDEF WASHDC PRIORITY
RUCPDOC/USDOC WASHINGTON DC PRIORITY

UNCLAS TEL AVIV 000985 
 
SIPDIS 
SENSITIVE 
 
STATE FOR PM/DTTC - BLUE LANTERN COORDINATOR 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC IN IS
SUBJECT: RESPONSE TO BLUE LANTERN POST-SHIPMENT CHECK ON 
LICENSE 050109444 
 
REF: STATE 28191 
 
¶1. (SBU) Summary: Representatives of Scope Metals Group, 
Ltd., acknowledged contact by Indian company Sudarrshan 
Technical Services regarding the provision of stud nuts to 
the Indian Air Force.  According to Scope Metals General 
Counsel Stanley Frisch and Exports Department Chief Efrat 
Benjamin, their company did not have the stud nuts in supply, 
and contacted U.S. company ISO Group, Inc., as a possible 
foreign intermediate consignee.  Frisch and Benjamin said 
Scope Metals was subsequently "bypassed" as the U.S. and 
Indian companies chose to do business with each other 
directly.  They explained that Scope Metals Group has not 
paid or received any fee or commission regarding the 
transfer, and therefore contend that Scope Metals Group 
should not appear on the export license.  Frisch and Benjamin 
confirmed that Scope Metals Group does not maintain any 
offices in Bangalore.  Polmiloff and Foreign Commercial 
Service (FCS) senior commercial specialist visited Scope 
Metals Group, Ltd., on April 30.  End summary. 
 
¶2. (SBU)  Polmiloff and FCS senior commercial specialist 
visited Scope Metals Group's headquarters and 
industry/warehouse complex in Bene Ayish (approximately 45 
minutes south of Tel Aviv) on April 30.  According to Frisch, 
Scope Metals Group employs approximately 650 persons -- 400 
in Israel and the rest at locations around the world, 
including China, the Czech Republic, Romania, and six 
branches in the United States.  Frisch said the company made 
approximately 1.3 billion shekels in sales for 2008, 35 
percent of which was derived from business outside Israel (12 
percent from exports; 23 percent from foreign subsidiaries). 
Frisch said until 1998, Scope Metals Group remained a 
relatively small company of approximately 50 employees, but 
has grown steadily since.  He acknowledged that the company 
will likely cut back some due to the recent economic crisis, 
but not in a significant fashion. 
 
¶3. (SBU) Benjamin said Scope Metals Group had been contacted 
by Indian company Sudarrshan Technical Services in April 2008 
regarding the provision of stud nuts to the Indian Air Force. 
 Scope Metals Group did not possess the stud nuts in supply, 
and therefore contacted U.S. company ISO in May 2008 as a 
possible foreign intermediate consignee.  Benjamin explained 
that Scope Metals sent its purchase order to ISO while 
simultaneously pursuing an export license with Sudarrshan 
Technical Services in order to expedite the transaction.  She 
provided as evidence copies of the original purchase order 
from Sudarrshan Technical Services to Scope Metals, the 
subsequent purchase order from Scope Metals to ISO, and an 
unfinished export license from Scope Metals to Sudarrshan 
Technical Services.  Benjamin said her company did not hear 
from either the U.S. or Indian companies for several months, 
and subsequently contacted ISO in August 2008 -- wherein 
Scope Metals Group learned that ISO had paid Sudarrshan 
Technical Services directly for the stud nuts. 
 
¶4. (SBU) Benjamin and Frisch stated that Scope Metals Group 
had not paid or received any fee or commission for the 
transaction -- nor did Scope Metals ever retain any physical 
possession of the stud nuts.  According to Benjamin and 
Frisch, Scope Metals contacted Sudarrshan Technical Services 
in September 2008 regarding a commission, but has not heard 
any further word from the Indian company other than the 
promise of "future business" with Scope Metals.  Frisch 
speculated that Sudarrshan Technical Services received a 
"better deal" working directly with ISO, and cut Scope Metals 
out of the transaction.  He added that Scope Metals will not 
pursue the issue of a commission any further with Sudarrshan 
Technical Services. 
 
¶5. (SBU) That said, Frisch and Benjamin contend that Scope 
Metals Group should not appear on the export license between 
ISO and Sudarrshan Technical Services.  They confirmed that 
Scope Metals does not maintain any offices in Bangalore, and 
speculated that whoever had added Scope Metals to the export 
license between ISO and Sudarrshan Technical Services likely 
made a mistake.  Given the fact that Scope Metals had pursued 
an export license with Sudarrshan Technical Services, Frisch 
suggested it was plausible such an error might be made given 
the paperwork associated with the transaction.  He noted that 
Scope Metals is well-versed in U.S. regulations governing the 
 
import of U.S.-origin defense articles, including the 
restrictions on re-transfer and re-export.  As such, Scope 
Metals Group would appreciate an explanation why it was 
included on the export license, Frisch added. 
 
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