Cablegate: Blue Lantern Level 3: Post-Shipment End-Use Check

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INFO RUEHMT/AMCONSUL MONTREAL 0060
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RUEAIIA/CIA WASHINGTON DC
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UNCLAS SECTION 01 OF 02 STATE 122385

SIPDIS
OTTAWA FOR LORI BALBI

E.O. 12958: N/A
TAGS: ETTC KOMC CA
SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK
ON THE EXPORT OF U.S. DEFENSE ARTICLES CITING THE CANADIAN
EXEMPTION

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 Embassy's assistance in
conducting a post-shipment check on a transaction citing the
Canadian exemption for the export of displacement gyroscopes
to Canada. Embassy is requested to complete this Blue
Lantern check within 45 days. Lack of response to a Blue
Lantern check will affect pending and future licenses
involving parties to this license.

3. Reason for request: Under ITAR 126.5 (Canadian Exemption),
certain United States Munitions List (USML) items may be
exported to Canada without a license. Some items on USML
Category VIII - which includes displacement gyroscopes - may
be subject to Missile Technology Control Regime (MTCR)
restrictions and may require a license depending on commodity
specification and type. DDTC requests this check based on
vague description of commodity and end-use in export filing.

4. ACTION OTTAWA: Mission Canada is requested to make
inquiries with appropriate MHD International Aviation Parts
(MHD) officials to obtain all relevant details regarding the
export of displacement gyroscopes to Canada citing the
Canadian exemption, including exact commodity description and
technical parameters for performance and capability, number,
type, dollar value, and serial number of items. (See
paragraph 5 for details of export, including filer
identification and shipping reference numbers).

The following questions are provided as suggested guidance:

--What were the exact United States Munitions List (USML)
articles exported to you on February 21st 2007? (Automated
Export System (AES) filing data provides the following
information, "displacement gyroscope".) Please provide
detail on model, type and technical specifications.

--What is the exact end-use for these USML items? Will MHD
be the sole end-user and retain positive control over the
displacement gyroscopes at all times? Will they be
transferred to other end-users in Canada or re-exported?

--Does the company understand the restrictions on USML items,
especially the prohibition against unauthorized re-transfer
and re-export?

END ACTION.

5. Details of the AES filings:

--EXPORT 1 - QUANTITY/COMMODITY:

Quantity not provided

Commodity - Vague description cited as, "displacement
gyroscope"

Stated Value: USD 5,580.00

Export Date - 21 February 2007

ITAR Exemption Number - 126.5B

Filer Identification Number - 521893632

Shipping Reference Number - 42021116

Export Identification Code - 95309106200

U.S. EXPORTER:

Lockheed Martin
244 Terminal Rd. Bldg. 1051
Greenville, SC 29605
POC is Mr. Cureton, Tel. 864-236-3281

ULTIMATE CONSIGNEE

STATE 00122385 002 OF 002

MHD International Aviation Parts
1830 Marie Victorin
St. Bruno, Quebec
Canada J3V6B9
No POC provided

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 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 on Intellipedia:
http://www.intelink.gov/wiki/
Blue Lantern End-Use Monitoring Program.

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

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