VZCZCXYZ0001
PP RUEHWEB

DE RUEHKL #0986/01 3440917
ZNR UUUUU ZZH
P 100917Z DEC 09
FM AMEMBASSY KUALA LUMPUR
TO RUEHC/SECSTATE WASHDC PRIORITY 3568
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHMFIUU/HQ BICE INTEL WASHINGTON DC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
RHMFIUU/FBI WASHINGTON DC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY

UNCLAS KUALA LUMPUR 000986 
 
SIPDIS 
 
PM/DTCC - BLUE LANTERN COORDINATOR 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC MY
SUBJECT: BLUE LANTERN RESPONSE ON PRE-LICENSE END-USE CHECK 
ON LICENSE 050196536 
 
REF: SECSTATE 110736 
 
¶1.  Pursuant to reftel inquiry, Econoff on 9 December 2009 
conducted a site visit to Seri Aero Jaya (SAJ) Sdn Bhd and 
met with Director Zubir Ismail to learn more about SAJ and 
attempt to determine the legitimacy of the proposed purchase 
of aircraft parts for the Royal Malaysian Air Force (RMAF). 
SAJ's office is located within an older office building in a 
middle-class neighborhood.  Zubir said that SAJ was founded 
by his father -- Mohamed Ismail -- in 1980, and moved to its 
current location at the address provided in reftel.  Zubir 
said he has been working at the company for the past seven 
years.  During a discussion of SAJ's business, clients, and 
portfolio, Zubir remarked that SAJ was focusing heavily on 
emergency/rescue and survival equipment to maximize its 
potential sales to the Malaysian military services.  Zubir 
claimed that the sale of aircraft parts to the RMAF had 
become its second-tier focus, and that a relatively new 
expansion into the Malaysian oil and gas sector (namely with 
Petronas) was a much lower third-tier priority.  Zubir 
commented that SAJ wanted to expand into the lucrative oil 
and gas sector, but this was a new effort for the company and 
it had to focus on selling aircraft parts to the RMAF to stay 
profitable.  Zubir said SAJ had expanded its sales of 
emergency/rescue equipment to the RMAF, Royal Malaysian Navy, 
and the Malaysian Department of Civil Aviation. 
 
¶2.  Regarding the reftel inquiry, Zubir showed Econoff a 
contract from the RMAF dated December 2003 (valid through 
December 2011) that listed the types of aircraft for which 
SAJ could procure spares.  Zubir said that SAJ had no foreign 
customer sales and fully understood the USML restrictions on 
the export or re-sale of U.S. origin military and aviation 
equipment.  Zubir disclosed that SAJ is an importer of spare 
parts for the British-manufactured Hawk aircraft within the 
RMAF's inventory.  However, SAJ does not re-export Hawk 
equipment.  SAJ is also the RMAF's importer of equipment from 
another British company, Airborne Systems (formerly GQ 
Parachutes).  Zubir said the primary RMAF office with which 
SAJ communicates is: 
 
RMAF Air Logistic HQ 
c/d KL Air Base 
Old Airport Road 
50460 Kuala Lumpur Malaysia 
phone: (6-03) 2117-1133 
 
 
¶3.  Econoff inquired into the reftel information that SAJ was 
attempting to import parts from a U.S. company, Feecorp, for 
aircraft and helicopters that are not in the RMAF's 
order-of-battle.  Zubir said that this was a simple mistake, 
as he had been using a form letter from Feecorp that listed 
these other types of airframes (such as F-16 Falcons, AH-64 
Apaches, etc.), and showed Econoff a series of letters 
between Feecorp and SAJ that indicated a series of 
corrections for SAJ's proposal to purchase aircraft parts 
from Feecorp for aircraft that the RMAF operated.  The series 
of letters appeared normal and appeared to back-up Zubir's 
explanation.  Zubir gave Econoff photocopies of this letter 
exchange, as well as a company profile of SAJ that provided 
many details on the company, including biographic data on 
Zubir, his father, and other employees. 
 
¶4.  Zubir inquired if Post could ask the status of a blanket 
license that SAJ applied for in May 2009, using a U.S. firm 
(CAMAR Aircraft Parts in Los Angeles, California).  Econoff 
said he would include this information in Post's cable 
response as an fyi.  Zubir appreciated this assistance, and 
said that he welcomed any follow-on contact from Econoff as 
needed. 
 
¶4.  Also pursuant to reftel, Econoff attempted to communicate 
with the RMAF, particularly Post's occasionally reliable 
contact Major Shafik (FNU) to inquire about SAJ. 
Unfortunately, phone calls to Major Shafik's office went 
unanswered, and no other RMAF contacts were available at this 
time. 
 
¶5. Post assessment is that SAJ is a legitimate Malaysian 
company that procures aircraft parts for the RMAF.  Without 
further information, it is impossible to determine if SAJ 
procures parts and sends them to destinations outside 
Malaysia.  However, armed with the information we have 
available, we assess that SAJ's proposed business contract 
appears legitimate and the company was very cooperative. 
 
KEITH