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Viewing cable 08SEOUL1033, RESPONSE TO BLUE LANTERN LEVEL 1: POST-

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Reference ID Created Released Classification Origin
08SEOUL1033 2008-05-21 03:39 2011-08-25 00:00 UNCLASSIFIED Embassy Seoul
VZCZCXYZ0001
RR RUEHWEB

DE RUEHUL #1033/01 1420339
ZNR UUUUU ZZH
R 210339Z MAY 08
FM AMEMBASSY SEOUL
TO RUEHC/SECSTATE WASHDC 0071
INFO RUCPDOC/USDOC WASHDC 6897
RUEKJCS/SECDEF WASHINGTON DC
RUEPINS/HQ BICE INTEL WASHINGTON DC
UNCLAS SEOUL 001033 
 
SIPDIS 
 
STATE FOR PM/DTCC-BLUE LANTERN COORDINATOR 
 
E.O. 12958: N/A 
TAGS: AU ETTC KOMC KS
SUBJECT:  RESPONSE TO BLUE LANTERN LEVEL 1: POST- 
SHIPMENT END-USE CHECK LICENSE 050047010 
 
REF: A) STATE 47861 
 
1.  Per reftel, post contacted the Defense Acquisition Program 
Administration (DAPA) and EO System Co. Ltd. by email and phone. 
Due to resource constraints, a site visit was not conducted. 
 
2.  DAPA's International Cooperation Division Export-Import Control 
 
Officer Ms. Lee Yoem-kyong confirmed that EO System has been a 
DAPA registered defense material supplier since 1984.  EO System is 
an 
official supplier of Night Monocular Scopes and Day & Night Sight 
and 
Night Driver Viewers that are primarily installed in armored 
vehicles for 
the Korean Marine Corps under the Ministry of National Defense 
(MND). 
The EO supplies these items directly to ROK MND.  Moreover, EO 
System is an official and primary supplier of binocular, monocular 
and 
periscopes for defense purposes for the ROK Marine Corps. 
 
3. DAPA confirmed that in 2006 it signed a contract with Samsung 
Techwin to supply 42 armored vehicles (1 intended for the commander 
 
and 41 intended for the Korean Marine Corps).  The contracting 
period is 
from March 2008 to August 2010.  DAPA also reported that under the 
contract between EO and Samsung Techwin, the EO's delivery of the 
remaining 30 Gunner Viewer (IR module integrated) sets is scheduled 
to 
be completed by December 17, 2009. 
 
4. During initial conversations last week with Mr. Hwang In-seop, 
EO's 
Sales Manager, Post was informed that EO had imported the infrared 
radars from Selectron.  However, in a subsequent conversation on May 
20, 
2008 with Mr. Bae Kyu-yong, EO's Purchasing Manager, it was 
explained 
that the company had canceled the initial order for infrared devices 
from 
Selectron because the U.S. Company had been unable to meet EO's 
delivery dates. 
 
5.  In August 2007, EO placed an order for 15 infrared devices from 
SCD, 
an Israeli firm, and took delivery in September 2007.  EO plans to 
import 
the remaining infrared devices required to fulfill its contract from 
SCD 
although the additional order has not yet been placed.  EO 
understood 
that SCD's infrared devices were Israeli developed.  Mr. Bae 
admitted that 
the confusion on this case was due to miscommunications within EO. 
 
6.  Ms. Lee at DAPA was unable to confirm EO's account of the change 
in 
suppliers because DAPA does not check every single part that is used 
in 
the assembly of contracted goods.  DAPA reported that its main 
concern is 
that the completed armored vehicle sold by Samsung Techwin operates 
as 
ordered. 
 
7.  DAPA reported that with respect to the 41 E3500 - infrared 
modules, 
EO System's role is to integrate the imported infrared devices into 
the 
Gunner Viewers and supply them to Samsung Techwin, a direct supplier 
 
of armored vehicles equipped with the Gunner Viewers.  If EO had not 
 
canceled the order with Selectron, the transactions of the infrared 
devices 
would have been as follows: 
 
Selectron (US seller)  =>  EO System (Foreign Consignee and local 
supplier of Gunners' Viewer)  =>  Samsung Techwin (Supplier of 
armored 
vehicles equipped with the Gunners' Viewers assembled by US 
manufactured IR modules)  => ROK Marine Corps/MND (End-user) 
 
8.  DAPA officials reported that on December 24, 2007 EO System had 
 
delivered 11 sets of the Gunner Viewers to Samsung Techwin, 
 
presumably 
with the devices supplied by SCD.  Samsung Techwin subsequently 
delivered three completed armored vehicles to the ROK Marine 
Corps/MND (one on March 28 2008, and two on April 30 2008) that 
contain Gunner Viewers integrated by EO System. 
 
9.  In Post's conversations with EO System, it was unclear if EO or 
 
Selectron had informed MND and Samsung Techwin about reporting a 
loss or theft within 15 days. 
 
VERSHBOW