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

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TO RUEHOT/AMEMBASSY OTTAWA PRIORITY 6429
INFO RUEHGA/AMCONSUL CALGARY PRIORITY 2461
RUEHON/AMCONSUL TORONTO PRIORITY 7035
RUEAIIA/CIA WASHINGTON DC
RHMCSUU/FBI WASHINGTON DC 5724
RUCPDOC/USDOC WASHINGTON DC 5566
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RUEPINS/HQ BICE INTEL WASHINGTON DC

UNCLAS SECTION 01 OF 02 STATE 091636

SIPDIS
OTTAWA FOR LORI BALBI

E.O. 12958: N/A
TAGS: ETTC KOMC CA
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK
ON APPLICATION 050186457

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 pre-license check on application 050186457 for the export
of an infrared camera to Canada. 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 licenses involving parties to this license.

3. Reason for request: Sensitive commodity and unfamiliar
end-user High Power Maintenance Ltd. The company has not
appeared on any previous license applications, nor have its
bona fides been verified by a Blue Lantern check.

4. ACTION: Department requests that Embassy make appropriate
inquiries to verify the bona fides of unfamiliar foreign
end-user High Power Maintenance Ltd. and to confirm the
legitimacy of this proposed transaction. PM/DTCC also
requests that post conducts a site visit to the company in
order to provide Department with an assessment of its
business operations and on-site security. Finally, post is
asked to assess whether the company appears to be a reliable
recipient of USML items. If a site visit is not possible,
please inform the PM/DTCC officer.

The following questions are provided as suggested guidance:

--Does the company have secure facilities and proper
accounting and security procedures for handling sensitive
USML items?

--What is the exact end-use for this USML item? Will High
Power Maintenance Ltd. retain positive control over the
infrared camera at all times?

--When was the company established and who are its
principals?

--What is the nature of its business -- what type of items
does it handle?

--What type 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-transfer and re-export?

END ACTION

5. Details of license application:

DTC Case: 050186457

QUANTITY/COMMODITY:

1 FLIR GF320 (320x240) infrared gas leak detection camera;
including parts and accessories

License Value: USD 101,940.00

SELLER:

FLIR Systems, Inc.
27700 SW Parkway Avenue
Wilsonville, OR 97070
POC is Marlene Caban, Tel. 503-498-3547

FOREIGN CONSIGNEE:

FLIR Systems Ltd.
25 Esquire Road
North Billerica, MA 01862
No POC provided

FOREIGN INTERMEDIATE CONSIGNEE

STATE 00091636 002 OF 002

Advantex International Freight Forwarders
1935 Drew Road, Unit 14
Mississauga, Ontario
Canada
POC is National Operations Manager, F.E. Hood, No Tel.
provided

FOREIGN END-USER:

High Power Maintenance Ltd.
432 Schooner Landing NW
Calgary, AB
Canada
POC is President, Barry Gilbert, No tel. provided

PURPOSE:

The system will be used for the purpose of monitoring,
correcting, and controlling fugitive gas emissions.

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

--DSP-83 Nontransfer and Use Certificate signed by Barry
Gilbert, President, High Power Maintenance Ltd. on 10 August
2009, and by F.E. Hood, National Operations Manager, Advantex
International Freight Forwarders on 13 August 2009

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 Tim Mazzarelli, Phone:
202-663-3867; Email: MazzarelliTP@state.gov; SIPRNET:
MazzarelliTP@state.sgov.gov. The Blue Lantern Guidebook
(ref) is available as a PDF file in the Bunche Library's
E-Book Collection on the DOS Intranet:
http://buncheelectroniclibrary.state.gov/eboo ks/
BlueLanternGuidebook2006%20 final .pdf

8. Department is grateful for post's assistance in this
matter.
CLINTON

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