VZCZCXYZ0000
RR RUEHWEB

DE RUEHC #8122 1821409
ZNR UUUUU ZZH
R 011346Z JUL 09
FM SECSTATE WASHDC
TO RUEHTV/AMEMBASSY TEL AVIV 0000
INFO RUETIAA/DIRNSA FT GEORGE G MEADE MD 0000
RUEAIIA/CIA WASHINGTON DC 0000
RHMCSUU/FBI WASHINGTON DC 0000
RUEKJCS/SECDEF WASHINGTON DC
RUCPDOC/USDOC WASHINGTON DC 0000

UNCLAS STATE 068122 
 
SIPDIS 
TEL AVIV FOR JASON GRUBB 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC IS
SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK 
ON LICENSES 050121146 AND 050098938 
 
¶1. This is an Action Request. See paragraphs 2 - 4. 
 
¶2. The Department's Office of Defense Trade Controls 
Compliance (PM/DTCC) requests Post's assistance in conducting 
a post-shipment check on licenses 050121146 and 050098938 for 
the export of gyroscopes to Israel.  Post is requested to 
complete this Blue Lantern check within 45 days. Lack of 
response to a Blue Lantern check will affect pending and 
future licenses involving parties to this license. 
 
¶3. Reason for Request: The provisos on these licenses state 
that no depot level maintenance or repairs can be done 
outside the United States.  The provisos also state that the 
gyroscopes cannot be used in Missile Technology Control 
Regime (MTCR) Category I items.  This check is to confirm 
that the foreign consignees and the Israeli Ministry of 
Defense (IMOD) are adhering to these provisos and are using 
the items for the purpose stated on the license. 
 
¶4. Action Request:  Post is requested to confirm with the 
foreign consignees listed below that the gyroscopes on these 
licenses were integrated into unmanned aerial vehicles (UAVs) 
and delivered to the IMOD.  Post is also requested to verify 
with the IMOD that these UAVs were, in fact, received.  In 
addition, Post is requested to inquire about any maintenance 
or repairs that these gyroscopes may have undergone.  The 
following points are included for guidance: 
 
(To Israel Aerospace Industries) 
 
--Did you receive all the gyroscopes listed below?  How were 
they used by your company?  Can you provide documentation 
regarding the final disposition of all of these gyroscopes? 
 
--Did you retain any of these gyroscopes?  If so, please 
provide any documentation that describes the ultimate end-use 
of the gyroscopes you have retained. 
 
--Please describe any maintenance or repairs that these 
gyroscopes may have undergone, including details about what 
maintenance/repairs were performed, where they were conducted 
and by whom. 
 
--Are you familiar with the regulations governing the import 
of U.S.-origin defense articles, including restrictions on 
re-transfer or re-export? 
 
(To Silver Arrow) 
 
--When was your company established and who are its 
principals? 
 
--What products and services does your company provide?  Who 
are your regular customers and where do they reside? 
 
--Did you receive all the gyroscopes listed below?  How were 
they used by your company?  Can you provide documentation 
regarding the final disposition of all of these gyroscopes? 
 
--Did you retain any of these gyroscopes?  If so, please 
provide any documentation that describes the ultimate end-use 
of the gyroscopes you have retained. 
 
--Please describe any maintenance or repairs that these 
gyroscopes may have undergone,  including details about what 
maintenance/repairs were performed, where they were conducted 
and by whom. 
 
--Are you familiar with the regulations governing the import 
of U.S.-origin defense articles, including restrictions on 
re-transfer or re-export? 
 
(To IMOD) 
 
--Can you confirm the order of Heron UAVs from Israel 
Aerospace Industries?  Can you confirm the order of 
HERMES-450 UAVs from Elbit/Silver Arrow?  Do these UAVs 
contain VG700MB-201 and VG34-0803 vertical gyroscopes, 
respectively?  Can you confirm the receipt of all the 
gyroscopes listed below? 
 
--Please describe any maintenance or repairs that these 
gyroscopes may have undergone, including details about what 
maintenance/repairs were performed, where they were conducted 
and by whom. 
 
In its reply, Post is encouraged to comment on any 
information pertinent to this transaction such as security of 
facilities, end-use, and concerns about the entities involved. 
 
¶5. Details of license applications: 
 
¶A. 
 
DTC Case: 050121146 
 
QUANTITY/COMMODITY: 
 
15 Vertical Gyroscopes VG700MB-201 (P/N 8350-0281-01) 
 
License Value: USD $194,250 
 
SELLER: 
 
Crossbow Technology, Inc. 
4145 N. First Street 
San Jose, CA 95134 
 
FOREIGN CONSIGNEE: 
 
Israel Aerospace Industries LTD. 
MALAT Division 
Ben Gurion International Airport 
LOD, 70100 
Israel 
Tel: 972-3-9359335 
 
FOREIGN END-USER: 
 
Israel Ministry of Defense 
Hakirya 
Tel Aviv 
Israel 
 
PURPOSE: 
 
For the avionics system of the Heron UAV 
 
¶B. 
 
DTC Case: 050098938 
 
QUANTITY/COMMODITY: 
 
22 Vertical Gyroscopes VG34-0803 
 
License Value: USD $228,866 
 
SELLER: 
 
Goodrich Corporation Rosemount Aerospace Inc 
14300 Judicial Road 
Burnsville, MN 55306 
 
FOREIGN CONSIGNEE: 
 
Silver Arrow (subsidiary of Elbit Systems) 
24 Einstein Street, Technology Park Kiryat Weizmann 
Nes-Ziona 70400 
Israel 
Tel: 972-8-9306137 
 
FOREIGN END-USER: 
 
Israel Ministry of Defense 
Kiria 
Tel Aviv 
Israel 
 
PURPOSE: 
 
The gyroscopes will be installed in the UAV HERMES-450 being 
delivered to the Israel Ministry of Defense 
 
¶6. Submitted in support of the license application were the 
following documents (PM/DTCC will fax documentation to Posts 
upon request): 
 
¶A. 
 
Signed DSP-83 Nontransfer and Use Certificate signed by 
Michael Dierks (Crossbow) dated 29 Aug 2008, Amos Gilad 
(Political-Military Bureau, Israeli MOD) dated 26 May 2008, 
and Rami Cohen (Israel Aerospace Industries) dated 22 April 
2008 
 
Purchase Order No. U000015541 issued by Israel Aerospace 
Industries dated 14 Aug 2008 
 
¶B. 
 
Signed DSP-83 Nontransfer and Use Certificate signed by Mark 
Wilson (Goodrich) dated 9 Apr 2008, Amos Gilad 
(Political-Military Bureau, Israeli MOD) dated 4 Mar 2008, 
and Shimon Sarid (Silver Arrow) dated 3 Feb 2008 
 
Purchase Order No. SFO002729 issued by Silver Arrow dated 8 
Jan 2008 
 
¶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 Kyle M. Ballard, Phone: 
202-663-1929; Email: BallardKM@state.gov; SIPRNET: 
BallardKM@state.sgov.gov.  The Blue Lantern Guidebook (ref) 
is available as a PDF file on Intellipedia: 
http://www.intelink.gov/wiki/ 
Blue Lantern End-Use Monitoring Program 
 
¶8. Department is grateful for Post's assistance in this 
matter. 
CLINTON