VZCZCXYZ0802
OO RUEHWEB

DE RUEHTV #2202/01 2800801
ZNR UUUUU ZZH
O 070801Z OCT 09
FM AMEMBASSY TEL AVIV
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3707
INFO RUCPDOC/USDOC WASHINGTON DC PRIORITY
RHEFDIA/DIA WASHDC PRIORITY
RUCNFB/FBI WASHDC PRIORITY
RUETIAA/DIRNSA FORT GEORGE G MEADE MD PRIORITY
RUEAIIA/CIA WASHDC PRIORITY

UNCLAS TEL AVIV 002202 
 
SIPDIS 
SENSITIVE 
 
STATE FOR PM/DTTC 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC IS
SUBJECT: BLUE LANTERN BROKER INQUIRY -- CASE NO. K-2400 
 
REF: STATE 100105 
 
¶1. (SBU) Summary:  FMS Aerospace is a two-person intermediary 
in the field of aerospace and defense favorably known to 
Post.  According to owner Tal Barak, FMS Aerospace has no 
interest in handling nor possesses the facilities to store 
U.S. Munitions List (USML) controlled items.  Barak 
acknowledged limited knowledge of U.S. export control 
regulations, no contact with the MOD Defense Export Control 
Directorate, and little interest in pursuing business 
ventures requiring export licenses.  Barak did not understand 
why a principal -- L3 Communications -- requested FMS 
Aerospace obtain a U.S. brokering license.  He acknowledged 
payment difficulties with the license application, and had 
all but abandoned the application until contacted by emboffs. 
 Barak was willing to resume the application process via 
alternate payment methods, but has several additional 
questions regarding his application.  End summary. 
 
¶2. (SBU) Per reftel, Polmiloff and FSC senior commercial 
specialist met with Mr. Tal Barak, owner of FMS Aerospace 
LTD, at his offices located at 12 Kehilat Venezia Street, Tel 
Aviv on October 6.  Barak's FMS Aerospace LTD is favorably 
known to Embassy Tel Aviv's Commercial Section; Post does not 
possess any information of criminal or derogatory background 
regarding the company.  Barak said he formed FMS Aerospace in 
2002 after several years working as an independent 
consultant.  According to Barak, FMS Aerospace currently has 
two employees -- including himself -- who rely exclusively on 
their electronics expertise resulting from university and 
military service. 
 
¶3. (SBU) Barak said that FMS Aerospace deals exclusively as 
an intermediary in the field of aerospace and defense with 
U.S. or Western European principals -- "not from Eastern 
Europe or Russia," he added.  He explained that 40 percent of 
FMS Aerospace's business derived from Israel Aerospace 
Industries' business jet division, which has since been 
canceled out following the recent economic downturn.  Barak 
said FMS Aerospace deals exclusively with commercial aspects 
of any business venture, and has no interest in handling or 
storing controlled defense items.  He noted that FMS 
Aerospace possesses no secure facilities to store such items; 
as an intermediary, FMS Aerospace simply facilitates contact 
between suppliers and buyers. 
 
¶4. (SBU) Barak claimed little knowledge of U.S. defense 
export control regulations or restrictions involving USML 
controlled items.  He noted that one of his principals -- L3 
Communications -- had requested he obtain a U.S. brokering 
license.  Barak said he has had no contact with the MOD's 
Defense Export Control Directorate, nor has he attended any 
training seminars on defense export control regulations 
sponsored by the MOD.  Barak said that he has applied for 
export control licenses in the past, but only encounters one 
or two cases per year requiring export licenses. 
 
¶5. (SBU) Barak acknowledged that it was not clear to him why 
L3 Communications had asked him to obtain a brokering 
license; he was not aware, for example, that his company 
could appear on export licenses as an intermediary, although 
he claimed to have obtained export licenses in the past for 
tactical radio equipment.  Barak stated categorically that he 
would just assume conduct business deals that did not require 
export licenses. 
 
¶6. (SBU) Barak was surprised to hear from the embassy 
regarding his brokering license; he said he had "all but 
given up" the application process after experiencing payment 
difficulties.  He provided copies of letters received from 
DTTC, noting that the checks he had sent from his Israeli 
bank would not clear.  Barak did not think to contact his 
bank to determine whether it might possess U.S. subsidiaries, 
and prior to contact from the embassy, had opted to abandon 
his brokering application. 
 
¶7. (SBU) Following the meeting with emboffs, Barak appeared 
willing to contact his bank regarding payment possibilities, 
or potentially to utilize an alternate bank with U.S. 
subsidiaries.  However, he had several questions regarding 
FMS Aerospace's brokering application.  In an August 16, 2009 
letter, DTTC noted FMS Aerospace must pay USD 2,250 by 
September 30, 2009.  A subsequent letter from DTTC dated 
August 26 indicated continued problems clearing FMS 
Aerospace's check from an Israeli bank, and requested it pay 
USD 1,750 via a U.S. bank by September 30.  Barak asked about 
the application fee discrepancy, whether this fee was 
one-time or annual, and if it was still possible to pursue 
the application given the fact that the deadline had already 
expired.  He stated, however, that he would not likely 
continue to pursue the application without a guarantee that 
the application would be approved. 
CUNNINGHAM