VZCZCXYZ0024
OO RUEHWEB

DE RUEHTV #2655/01 3421323
ZNY SSSSS ZZH
O 081323Z DEC 09
FM AMEMBASSY TEL AVIV
TO RUEHPC/AMEMBASSY LOME IMMEDIATE 0104
RUEHC/SECSTATE WASHDC IMMEDIATE 4518
INFO RUETIAA/DIRNSA FORT GEORGE G MEADE MD PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUCNFB/FBI WASHDC PRIORITY
RUEKJCS/SECDEF WASHDC PRIORITY
RUCPDOC/USDOC WASHINGTON DC PRIORITY

S E C R E T TEL AVIV 002655 
 
SIPDIS 
 
PM/DTCC - BLUE LANTERN COORDINATOR 
 
E.O. 12958: DECL: 12/07/2017 
TAGS: ETTC KOMC TO IS
SUBJECT: RESPONSE TO BLUE LANTERN PRE-LICENSE END-USE 
CHECK, LICENSES 050190991 AND 050192065 
 
REF: A. STATE 102684 
     ¶B. FBI IIR 4212078210 
 
Classified By: Deputy Political Counselor Jan Levin, reasons 1.4 (b),(d 
) 
 
¶1. (S) Summary:  Representatives from M. Paz Logistics and 
Global Law Enforcement and Security confirmed that they are 
for the first time working together to provide night vision 
devices and rifles to the Togolese Armed Forces.  However, 
the company representatives' accounts of the potential 
transaction do not entirely match.  According to M. Paz 
Logistics President Ofir Paz, Global Law Enforcement and 
Security approached Paz Logistics regarding the transaction. 
Paz said Global has significant experience working in Togo, 
and will not take into physical possession the night vision 
devices or rifles.  Global Law Enforcement and Security CEO 
David Tsur was reluctant to provide many details regarding 
this transaction or any other business ventures.  According 
to Tsur, this is the first time his company has worked on a 
contract with the Togolese; he was uncertain whether Global 
would take into physical possession the night vision devices 
and rifles.  Embassy Tel Aviv country team agencies possess 
no local derogatory information on either company, although 
the Legal Attache's office notes several FBI reports on M. 
Paz Logistics president Ofir Paz.  End summary. 
 
¶2. (SBU) Per ref A, Poloff and FCS senior commercial 
specialist met on October 15 with M. Paz Logistics President 
Ofir Paz and Vice President for Operations Anat Paz-Zarmi at 
the company's offices in Kfar Sava, Israel.  Paz Logistics 
was established in 1983; its core business involves 
representation and consultancy to foreign (mainly U.S.) 
Original Equipment Manufacturers (OEMs) of defense and 
homeland security systems.  The company's main customer base 
is the IDF, Israel National Police (INP), and GOI.  Its 
product line includes land-based warfare systems, weapons 
systems and ammunition, electro-optical and electronic 
equipment, armored vehicles, and satellite communication and 
navigation systems. 
 
¶3. (SBU) Paz, who employs 11 persons at that office, appeared 
at ease with the process and questioning -- he "does things 
by the book."  Paz explained that he was one of the first 
Israeli brokers registered with the State Department, having 
obtained his license three or four years ago.  He claims that 
the license gives his company prestige, which helps pull in 
more business. 
 
¶4. (SBU) Paz said that his company works with suppliers to 
find products on behalf of other companies.  He added that 
finding the goods, plus handling all of the logistical 
details -- taxes, customs, licensing -- is the service his 
company provides.  According to Paz, in the last two to three 
years, M. Paz Logistics has started brokering international 
defense deals in addition to deals with U.S. companies.  Paz 
said this is a relatively new function for his business, but 
it now accounts for over 40 percent of company revenue.  He 
noted that the rest of his business involves representing 
companies to the Israel Defense Force. 
 
¶5. (SBU) Paz said his company is not looking to expand to the 
international market where he would deal directly with 
customers, but he made passing reference to the seemingly 
frequent overseas visits where he works "in support of his 
suppliers."  He mentioned a number of countries, including 
Georgia, Kazakhstan, Azerbaijan, Ukraine, Poland, the Czech 
Republic, and Cyprus.  When asked if M. Paz maintained any 
other offices, Paz explained that he has a company in the 
British Virgin Islands.  He said that the company tried to 
obtain a broker's license but was rejected.  Paz added that 
the company does not engage in any weapons sales, nor does it 
do business with the United States. 
 
¶6. (SBU) According to Paz, Global Law Enforcement and 
Security approached M. Paz Logistics with a request for a 
"long list of products" -- primarily not defense-related -- 
to be delivered to the Togolese.  Paz said that Global works 
with Togo "all the time."  He averred that Global came to Paz 
because of M. Paz's reputation as a supplier.  Global had 
previously requested price quotes from Paz, but this was the 
first transaction between the two -- though Paz added that he 
was hopeful that a second contract would be signed soon. 
 
¶7. (SBU) Paz said that Global will not take into possession 
any of the goods slated for delivery to Togo, and that M. Paz 
Logistics would send the goods directly to Togo while working 
through the MOD's Directorate for Defense Exports.  He added 
that the contract total was approximately USD 240,000, which 
represents the cost of the items, plus commission, mark-up, 
and shipping costs which are passed along without mark-up to 
the customer.  Paz possessed documentation in support of the 
license application. 
 
¶7. (SBU) On December 3, poloff spoke by phone to Global Law 
Enforcement and Security CEO David Tsur, who was overseas on 
a business trip.  Poloff attempted to arrange a site visit to 
Global Law Enforcement and Security on multiple occasions, 
but was told by company representatives that a visit was not 
possible due to the fact that Tsur was abroad.  Tsur said 
that Global Law Enforcement and Security was established in 
2008, and is a subsidiary of Global CST and the Mikal Group, 
with offices located in Petah Tikvah. 
 
¶8. (SBU) According to Tsur, Global does not sell products -- 
"we sell know-how." He described Global as a consulting firm 
for primarily countries' law enforcement agencies.  Tsur said 
his company also consults on large events, such as the 
Olympics and soccer games.  Tsur declined to name specific 
countries, noting that he works in Eastern Europe, South 
America, and Africa -- he did mention Nigeria as one of his 
clients. 
 
¶9. (SBU) When asked about his relationship with M. Paz 
Logistics, Tsur declined to give information regarding the 
terms of the agreement between the two companies.  He 
confirmed that this was the first time the two had done 
business together, but he had known about M. Paz Logistics 
when he worked for the Israel National Police (INP).  Tsur 
described this latest venture with M. Paz as "okay," and that 
the M. Paz's contract bid was acceptable -- he acknowledged 
that this transaction served as a test to determine if M. Paz 
was a reliable partner.  He confirmed that M. Paz was 
responsible for "buying and shipping everything." 
 
¶10. (SBU) When asked about his relationship with the Togolese 
Armed Forces, Tsur said he "does not get involved."  He noted 
that he has a subcontractor who works directly with the 
Togolese, but he declined to mention the name of the company. 
 According to Tsur, this was the first time his company had 
worked on a contract involving the Togolese.  Since the 
conversation was by phone, Tsur could not provide 
documentation in support of the license application. 
 
¶11. (SBU) Tsur acknowledged that Global is paying M. Paz a 
commission for its services in the transaction.  He said he 
did not know if Global would ever take physical possession of 
the night vision devices and rifles.  Tsur claimed some 
familiarity with regulations governing the import and 
brokering of U.S.-origin defense articles, but acknowledged 
that he relies upon the Israeli MOD to inform him of any 
obligations. 
 
¶12. (S) Embassy Tel Aviv country team members possessed no 
local derogatory information on these companies.  However, 
Embassy Tel Aviv Legal Attache's office noted that the FBI 
had recently sent a note (072/09) to the INP with 
supplemental information on Ofir Paz in an effort to assist 
the INP in its determination whether an investigation on Paz 
be initiated in Israel.  Further, an FBI IIR (ref B) notes 
that Paz brokered a deal in which defective M-4s were sold to 
Georgia. 
CUNNINGHAM