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Viewing cable 08STATE120692, BLUE LANTERN SITE VISIT TO LOM PRAHA S.P.

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Reference ID Created Released Classification Origin
08STATE120692 2008-11-13 21:01 2011-08-25 00:00 UNCLASSIFIED Secretary of State
VZCZCXYZ0013
RR RUEHWEB

DE RUEHC #0692 3182114
ZNR UUUUU ZZH
R 132101Z NOV 08
FM SECSTATE WASHDC
TO RUEHPG/AMEMBASSY PRAGUE 9148
INFO RHMCSUU/FBI WASHINGTON DC 1988
RUEAIIA/CIA WASHINGTON DC 0345
RUCPDOC/USDOC WASHINGTON DC 4665
RUEKJCS/SECDEF WASHINGTON DC
RUEPINS/HQ BICE INTEL WASHINGTON DC
UNCLAS STATE 120692 
 
SIPDIS 
PRAGUE FOR DAN GELMAN AND PATRICK ELLSWORTH 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC EZ
SUBJECT: BLUE LANTERN SITE VISIT TO LOM PRAHA S.P. 
POST-SHIPMENT CHECK ON LICENSE 050091548 
 
REF: STATE 91448 
 
1.  SUMMARY: In response to reftel Poloff and PM/DDTC team 
conducted a site visit at Lom Praha S. P. (LP) in order to 
verify its relationship with the Czech Republic Ministry of 
Defense and establish the bona fides of this export involving 
communication and navigation equipment for the Mi-171 
helicopter.  On September 9, 2008 Embassy team met with the 
following LP representatives: Director of Aircraft Division, 
Miroslav Komarek, Security Director, Dusan Franko, and 
Modernization Project Manager, Martin Jilek.  Despite 
concerns over the periodic presence of Russian technicians at 
the Mi-171 worksite, as required under EU regulations, team 
views LP as a reliable recipient of U.S.-origin defense 
articles and technology. 
 
2.    LP presented Embassy team with an end-user statement 
provided by the Czech Republic MoD signed by Acting Director 
Mgr. Jiri Stanek on 19 February 2008; confirming that the 
navigation component parts would be used for testing on the 
Czech Air Force Mi-171Sh helicopter.  The document stated 
further that the goods will remain Czech property and not be 
resold or retransferred.  Post sought to determine LP,s 
familiarity with the International Traffic in Arms 
Regulations (ITAR) and its restrictions on the unauthorized 
retransfer and re-export of United States Munitions List 
(USML) items; stressing in particular the restrictions 
regarding the unauthorized third-party transfer of associated 
technical data.  LP exhibited familiarity with ITAR 
regulations and provided assurances against the unauthorized 
transfer of the component parts and associated technical 
data.  Embassy team,s overall impression was that LP,s 
staff appeared organized, disciplined and generally 
knowledgeable regarding ITAR regulations/restrictions. 
 
3.    Blue Lantern team sought assurances regarding the 
status of Russian technicians who plan to visit LP at certain 
pre-approved times, in order to review status of work on the 
Mi-171 helicopters.  Since the Mi-171,s were originally 
manufactured by Russia, European Union regulations require 
the manufacturer, in this case a team from a Russian Design 
Bureau to provide mechanical inspection and ensure the 
general airworthiness of the helicopters.  The potential 
presence of Russian technicians raised concerns that 
technical data related to U.S.-origin navigation and 
communication systems could be retransferred to Russia.  LP 
explained that the role of the Russian technicians would be 
limited to the installation of larger systems into the 
aircraft, as required under EU regulations.  LP provided 
assurances that Russian entities would not have access to 
U.S.-origin technology, nor would any technical data on such 
systems be shared. 
 
4.    LP,s physical location consists of an office building 
and a series of warehouses large enough to house aircraft. 
Security Director Franko indicated that all USML items 
received by LP are stored under lock and key in the warehouse 
facilities.  Embassy team confirmed their general security 
level while performing an inspection of a warehouse and the 
Mi-171Sh helicopter in which the navigation test equipment 
would be installed.  Inside the warehouse the helicopters 
were cordoned off by a several-foot high opaque fence 
disallowing access to those who would not be working on the 
project.  Mr. Franko indicated that there would also be a 
sign-in roster outside of the warehouse/project entrance 
which would be checked frequently ensuring access to 
authorized personnel only. 
 
5.     Embassy team,s site visit confirms the bona fides of 
the transaction, LP,s relationship to the Czech Republic MoD 
and establishes LP as a generally reliable recipient of USML 
articles. 
RICE