VZCZCXYZ0020
RR RUEHWEB

DE RUEHC #8133 1561718
ZNR UUUUU ZZH
R 051656Z JUN 09
FM SECSTATE WASHDC
TO RUEHJA/AMEMBASSY JAKARTA 0000
RUEHGP/AMEMBASSY SINGAPORE 0000
INFO RUEAIIA/CIA WASHINGTON DC 0000
RUCPDOC/USDOC WASHINGTON DC 0000
RUEKJCS/SECDEF WASHINGTON DC
RHMCSUU/FBI WASHINGTON DC 0000
RUEPINS/HQ BICE INTEL WASHINGTON DC

UNCLAS STATE 058133 
 
SENSITIVE 
SIPDIS 
SINGAPORE FOR MATT EASTER 
ECON 
JAKARTA FOR PABLO VALDEZ 
ECON 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC SN ID
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK 
ON APPLICATION 050155869 
 
REF: A. 06 SINGAPORE 3391 
     ¶B. 06 JAKARTA 13362 
     ¶C. BLUE LANTERN GUIDEBOOK 2006 
 
¶1. (U) This is an Action Request.  See paragraphs 2-5. 
 
¶2. (U) The Department's Office of Defense Trade Controls 
Compliance (PM/DTCC) requests post's assistance in conducting 
a pre-license check on application 050155869 for the export 
of aircraft spare parts to Indonesia via Singapore.  Post is 
requested to complete this Blue Lantern check within 30 days. 
 Lack of response to a Blue Lantern check will affect pending 
and future applications involving parties to this license. 
 
¶3. (SBU) Reason for request:  several irregularities and 
questions raised by the application's supporting 
documentation.  A Blue Lantern check conducted in fall 2006 
(refs A and B) confirmed relationships among foreign 
consignees Master Logistics and PT Mandira Jaya Abadi and 
foreign end-user the Indonesian Air Force.  However, that 
check also revealed several irregularities and a lack of 
knowledge about U.S. export control laws and regulations by 
the foreign parties.  The documentation submitted in support 
of this application, which is for a significantly larger 
order of United States Munitions List (USML) items than in 
previous licenses, suggests that many of these problems and 
ignorance of legal requirements continues to exist.  For 
example, it is unclear why Singaporean consignee Master 
Logistics is involved in this transaction if the Indonesian 
Air Force is purportedly ordering the parts directly from 
U.S. applicant Merex Inc. 
 
¶4. (U) Posts should make appropriate inquiries with the 
companies and with appropriate host government authorities to 
determine the exact roles of the foreign consignees, to 
verify their bona fides, and to confirm the legitimacy of the 
proposed transaction.  The following questions are provided 
as suggested guidance. 
 
EMBASSY JAKARTA 
 
For the Indonesian Air Force: 
 
--Can you confirm an order for the type and quantity of items 
listed on this application?  With whom was the order placed? 
 
--What are the roles of Master Logistics Pte Ltd and PT 
Mandira Jaya Abadi in this proposed transaction? 
 
--Are Master Logistics and PT Mandira Jaya Abadi official 
suppliers/contractors for the Indonesian Air Force?  Does the 
Indonesian Air Force have any other contracts with the 
company? 
 
--Do the subject aircraft parts have to be routed through 
Master Logistics in Singapore?  If so, why? 
 
For PT Mandira Jaya Abadi: 
 
--What is the company's role in this proposed transaction? 
What is the company's relationship with PT Mandira Jaya Abadi 
and with the Indonesian Air Force? 
 
--Does the company have supporting documentation, including a 
contract and/or purchase orders from the Indonesian Air 
Force, for this proposed transaction? 
 
--Who will be ordering the parts from Merex Inc., PT Mandira 
Jaya Abadi, the Indonesian Air Force, or another entity? 
 
--Will the company be handling or storing the items listed on 
the application?  If so, does it have secure facilities and 
proper accounting and security procedures for handling these 
sensitive USML items? 
 
--When was the company established and who are its principals? 
 
--What is the nature of its business -- what types of items 
does it handle, does it serve as a broker? 
 
--What types of organizations are among its typical customers 
and where are the customers located? 
 
--Does the company understand the restrictions on United 
States Munitions List (USML) items, especially the 
prohibition against unauthorized re-transfers and re-exports? 
 
EMBASSY SINGAPORE 
 
For Master Logistics Pte Ltd: 
 
--What is the company's role in this proposed transaction? 
What is the company's relationship with PT Mandira Jaya Abadi 
and with the Indonesian Air Force? 
 
--Does the company have supporting documentation, including a 
contract and/or purchase orders from the Indonesian Air 
Force, for this proposed transaction? 
 
--Will the company be handling or storing the items listed on 
the application?  If so, does it have secure facilities and 
proper accounting and security procedures for handling these 
sensitive USML items? 
 
--When was the company established and who are its principals? 
 
--What is the nature of its business -- what types of items 
does it handle, does it serve as a broker? 
 
--What types of organizations are among its typical customers 
and where are the customers located? 
 
--Does the company understand the restrictions on United 
States Munitions List (USML) items, especially the 
prohibition against unauthorized re-transfers and re-exports? 
 
¶5. (U) Department requests that Embassy Singapore conduct a 
site visit to the company/companies in order to provide 
Department with an assessment of its business operations and 
on-site security.  If a site visit is not possible, please 
inform PM/DTCC case officer.  Finally, post is asked to 
assess whether the company appears to be a reliable recipient 
of USML items.  End action. 
 
¶6. (SBU) For background, the following details of the license 
in question are provided: 
 
DTC Case: 050155869 
 
QUANTITY/COMMODITY: 
 
Lot   Components and spares for the overhaul, repair and 
support of related parts, components accessories for the 
following aircraft/engines/helicopters: Beechcraft T-34, BAE 
Hawk 109, 209, Douglas TA-4, A4, Bell 204, 412 (PT6 Engine), 
Lockheed F-16, Northrop F-5 (J85 Engine), Rockwell OV-10 
(PTE-331 Engine), Lockheed C-130 (T-46 Engine), CASA CN 235 
(CT-7 Engine), Fokker F-27, Dehavilland DHC-5 
 
License Value: USD 1,000,000.00 
 
SELLER: 
 
Merex Inc. 
853 Via Alondra 
Camarillo, CA 93012 
POC: Julie Williams, tel.: 805-446-2700, ext. 30 
 
FOREIGN CONSIGNEE: 
 
Master Logistics Pte Ltd 
QQ: PT Mandira Jaya Abadi 
Block 1811 Geylang Bahru 
#01-02 Kallang Distripark 
Singapore 339714 
Phone: (65) 63822806 
Fax: (65) 63821068 
 
PT. Mandira Jaya Abadi 
Pusat: 
Jl. Letjen MT Haryono 501 
Semarang - 50241 
Indonesia 
Phone:  62-24-3519547 
Fax:  62-24-3542189 
E-mail: mjabadi@indosat.net.id 
Cabang: 
Jl. Tanjung Duren Barat V/44 
Jakarta - 11470 
Tel.:  62-21-5683815 
Fax:  62-21-5685794 
E-mail: mandirapt@cbn.net.id 
 
FOREIGN END-USER: 
 
Indonesian Air Force 
Dinas Aeronautik a Mabes TNI-AU B2 Lt 5 
Cilangkap-Jakarta 
Indonesia 
 
PURPOSE: 
 
Components and spares for the overhaul, repair and support of 
related parts, components accessories for the following 
aircraft/engines/helicopters: Beechcraft T-34, BAE Hawk 109, 
209, Douglas TA-4, A4, Bell 204, 412 (PT6 Engine), Lockheed 
F-16, Northrop F-5 (J85 Engine), Rockwell OV-10 (PTE-331 
Engine), Lockheed C-130 (T-46 Engine), CASA CN 235 (CT-7 
Engine), Fokker F-27, Dehavilland DHC-5 
 
¶7. (U) Submitted in support of the license application were 
the following documents (PM/DTCC can fax documentation to 
post upon request): 
 
--Nontransfer and Use Certificate (Form DSP-83), listing a 
total parts value of $5 million, signed by Drs. Arismunandar, 
Director PT Mandira Jaya Abadi, and by Anggoro, Head of 
Procurement IAF, undated 
 
--End User Statement / Letter of Intent number 
B/801/III/2009/DIPADAAU from Tentara Nasional Indonesia, 
Markas Besar Angkatan Udara, stating that the Indonesian Air 
Force intends to order from Merex Inc. an estimated 
$1,250,000 per year over a four-year period and that the 
"intermediate consignee / shipment address" will be "Master 
Logistics Pte Lte / QQ: PT. Mandira Jaya Abadi," signed by 
Anggoro, Air First Marshal, Chief of the Procurement Service 
for Vice Chief of Staff on behalf of the Chief of Staff of 
the Indonesian Air Force, dated 4 March 2009 
 
--Letter of Intent from PT. Mandira Jaya Abadi, certifying 
that it is "an approved supplier for the Indonesian Air 
Force" and intends to purchase from Merex Inc. aircraft parts 
worth an estimated $1,250,000 per year over a four-year 
period, signed by Drs. Arismunandar, Director, dated March 3, 
2009 
 
¶8. (U) 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 Judd Stitziel, PM/DTCC, 
Phone: 202-663-3455; email: StitzielJD@state.gov; SIPRNET: 
StitzielJD@state.sgov.gov.  The Blue Lantern Guidebook (ref 
C) is available as a PDF file in the Bunche Library's 
Electronic Library collection on the DOS Intranet: 
http://virtuallibrary.state.gov/ 
BlueLanternGuidebook2006%2520 final .pdf 
 
¶9. (U) Department is grateful for post's assistance in this 
matter. 
CLINTON