Cablegate: Blue Lantern Level 3: Pre-License End-Use Check

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TO RUEHAM/AMEMBASSY AMMAN 0000
INFO RUEHGB/AMEMBASSY BAGHDAD 0000
RUEAIIA/CIA WASHINGTON DC 0000
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UNCLAS STATE 123376

SIPDIS
AMMAN FOR MARK E. WILSON
ECON
AMMAN FOR RAJEEV WADHWANI
POLMIL

E.O. 12958: N/A
TAGS: ETTC KOMC JO IZ
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK
ON AGREEMENT TA 0019-07B

REF: BLUE LANTERN GUIDEBOOK 2006

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 pre-license check on technical assistant agreement
amendment TA 0019-07B for the transfer of technical data,
hardware, and defense services necessary for intermediate
maintenance and sustainment of the Iraqi Air Force's fleet of
existing Mi-17 helicopters. Post is requested to complete
this Blue Lantern check within 30 days. Lack of response to
a Blue Lantern check will affect pending and future
applications involving parties to this license.

3. Reason for request: PM/DTCC and the Defense Technology
Security Administration have been unable to verify the
existence of foreign licensee Rainbow Aircraft Parts
International in Jordan. Post should make appropriate
inquiries to verify the existence and the bona fides of
Rainbow Aircraft Parts and confirm the legitimacy of the
proposed transaction. The following questions are provided as
suggested guidance:

--Does the company have proper supporting documentation,
including a contract with ARINC and/or the Iraqi Air Force,
for this proposed transaction?

--Will the company be handling or storing the United States
Munitions List (USML) aircraft parts listed in the agreement?
If so, does it have secure facilities and proper accounting
and security procedures for handling these sensitive USML
items?

--When was the company established and who are its
principals? How many and what types of employees (program
managers, service technicians, etc.) does the company have?

--Does the company appear in Jordanian business directories?
Why does the company not have a website?

--What is the nature of its business -- what types of items
does it handle, does it serve as a broker?

--What types of organizations are among its typical customers
and where are the customers located?

--Does the company understand the restrictions on United
States Munitions List (USML) items, especially the
prohibition against unauthorized re-transfers and re-exports?

Finally, post is asked to assess whether the company appears
to be a reliable recipient of USML items. End action.

4. For background, the following details of the license in
question are provided:

DTC Case: TA 0019-07B

The previously approved agreement (TA 0019-07) and amendment
(TA 0019-07A) authorized the permanent export of $188,000
worth of technical data, $7,468,000 worth of defense
services, and $403,190 worth of defense articles ($15,000,000
total). Under the agreement, ARINC is responsible to train,
assist, and provide hardware to the Iraqi Air Force (IqAF)
for intermediate maintenance and sustainment of their Mi-17
helicopter fleet. Due to miscommunication, Rainbow was not
listed on the two previous authorizations mentioned above,
even though Rainbow is the primary contracting party with
ARINC to provide defense services for the modification of the
IqAF Mi-17 helicopters. The Jordanian company listed as a
party to the agreement on the previous authorizations, Royal
Wings, is in fact a sublicensee of Rainbow.

U.S. APPLICANT:

ARINC
2551 Riva Road
Annapolis, MD 21401
Company contact: Mr. Bela Mariassy, Director Export Compliance
Tel.: 800-633-6882

FOREIGN LICENSEE:

Rainbow Aircraft Parts International Co.
Petra Street, Huwwarah
P.O. Box 4502
Irbid 21110
Jordan

FOREIGN SUBLICENSEE:

Royal Wings
Amman International Airport
Marka 11134, Amman
P.O. Box 341018
Jordan

FOREIGN END-USER:

Iraqi Air Force
TAJI Air Base Iraq
Headquarters at Iraq Air Force (IqAF)
Ministry of Defense
Baghdad International Airport
Baghdad
Iraq

5. Submitted in support of the license application were the
following documents (PM/DTCC can fax documentation to post
upon request):

--Letter from ARINC to PM/DDTC requesting proposed amendment,
dated October 3, 2008, signed by Mr. Bela Mariassy, Director
Export Compliance

--Copy of proposed Technical Assistant Agreement between
ARINC, IqAF, Royal Wings, and Rainbow Aviation

6. 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 Judd Stitziel, PM/DTCC, Phone:
202-663-3455; email: StitzielJD@state.gov; SIPRNET:
StitzielJD@state.sgov.gov. The Blue Lantern Guidebook (ref)
is available as a PDF file in the Bunche Library's Electronic
Library collection on the DOS Intranet:
http://virtuallibrary.state.gov/
BlueLanternGuidebook2006%2520 final .pdf

7. Department is grateful for post's assistance in this
matter.
RICE

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