VZCZCXYZ0023
RR RUEHWEB

DE RUEHC #8702 3502114
ZNR UUUUU ZZH
R 162112Z DEC 09
FM SECSTATE WASHDC
TO RUEHLO/AMEMBASSY LONDON 0000
INFO RUEKJCS/SECDEF WASHINGTON DC
RUCPDOC/USDOC WASHINGTON DC 0000
RHMCSUU/FBI WASHINGTON DC 0000
RUETIAA/DIRNSA FT GEORGE G MEADE MD
RUEAIIA/CIA WASHINGTON DC

UNCLAS STATE 128702 
 
SIPDIS 
LONDON FOR RAMON ESCOBAR 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC UK
SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK 
ON MANUFACTURING AGREEMENT (MA) 3518-08 
 
REF: 2006 BLUE LANTERN GUIDEBOOK 
 
¶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  check on manufacturing agreement (MA) 3518-08 for the 
export of International Traffic in Arms (ITAR)-controlled 
technical data and hardware related to components for the 
F135 Propulsion System Short-Take-Off/Verticle-Landing 
(STOVL) for the F-35 Joint Strike Fighter Program.  Post is 
requested to complete this Blue Lantern inquiry within 45 
days.  Lack of response to a Blue Lantern inquiry will affect 
pending and future licenses involving parties to this license. 
 
¶3. Reason for request: Numerous sublicensees.  MA 3518-08 
authorizes the use of 648 foreign sublicenses by the one 
foreign signatory to the Agreement, Rolls Royce.  This raises 
concern that ITAR-controlled data and hardware may not be 
adequately protected or that it may be provided to 
unauthorized entities. 
 
¶4. ACTION: The Department requests that Post make inquiries 
with Rolls Royce to assess its compliance with its 
obligations under MA 3518-08 with regard to sublicensees and 
that it has done an adequate job of notifying its subs of 
their ITAR-responsabilities. 
 
The following questions are provided for guidance: 
 
--Have all sublicensees signed Non-Disclosure Agreements 
(NDAs) prior to receiving data or hardware, as required by 
Article I, Section 4.b of MA 3518-08?  Please provide copies. 
 The NDA template was provided to Rolls Royce under Exhibit 1 
to Attachment D of the signed agreement. 
 
--How are sublicensees made aware that the data and/or 
hardware they receive under this Agreement is 
ITAR-controlled? Per Article II, No. 6 of ITAR 124.9 Required 
Clauses, Rolls Royce must incorporate a Destination Control 
Statement on all approprite documentation whenever 
ITAR-controlled articles are transferred. 
 
--Have the sublicensees been asked if they employ any dual 
nationals or third-country nationals who may receive 
technical data or hardware related to MA 3518-08?  Is there 
documentation available that lists those individuals and 
their nationalities? Note: Article I, Section 4.c of MA 
3518-08 states that following nationalities are permitted 
under the Agreement: NATO, European Union, Australia, Japan, 
New Zealand, and Switzerland. 
 
--To date, what companies have received data and/or hardware 
from Rolls Royce related to the Joint Strike Fighter STOVL 
Lift system? 
 
END ACTION. 
 
¶5. Details of agreement application: 
 
DTC CASE: MA 3518-08 and Amendment A 
 
COMMODITY: 
 
Technical data and hardware related to components for the 
F135 Engine Propulsion System Short-Take-Off/Verticle-Landing 
(STOVL) for the F-35 Joint Strike Fighter Program. 
 
Agreement Value: 83,060,000.00 USD 
 
US APPLICANT: 
 
United Technologies Corporation 
Pratt & Whitney 
400 Main Street 
East Hartford, CT 06108 
Tel: 860-557-3648 
POC: Jerry Young 
 
FOREIGN SIGNATORY: 
 
Rolls Royce 
65 Buckingham Gate 
London SW1E 6AT 
England 
United Kingdom 
 
PURPOSE: 
 
The scope of this effort entails the provision of F135 
Propulsion System technical data and defense services to 
enable Rolls Royce to manufacture the STOVL Lift Systems and 
parts and components thereof for end-use in the F35 
"Lightning II" (aka Joint Strike Fighter) Aircraft. 
 
¶6. Submitted in support of the license application were the 
following documents (PM/DTCC will email documentation to Post 
upon request): 
 
--Signed MA 3518-08, dated 2 March 2009. 
 
--Transmittal Letter from United Technologies Corporation 
(Pratt & Whitney), dated 29 July 2009 
 
--Proposed Amendment A to Manufacturing Agreement MA 3518-08. 
 
¶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 Meredith Sundlof. Phone: 
202-663-3455; Email: SundlofME@state.gov; SIPRNET: 
SundlofME@state.sgov.gov.  The Blue Lantern Guidebook (ref) 
is available as a PDF file at 
http://www.intelink.sgov.gov/wiki/Blue Lantern End-Use 
Monitoring Program. 
 
¶8. Department is grateful for Post's assistance in this 
matter. 
CLINTON