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Viewing cable 08STATE130257, BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK

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Reference ID Created Released Classification Origin
08STATE130257 2008-12-11 18:10 2011-08-25 00:00 UNCLASSIFIED Secretary of State
VZCZCXYZ0004
RR RUEHWEB

DE RUEHC #0257 3461817
ZNR UUUUU ZZH
R 111810Z DEC 08
FM SECSTATE WASHDC
TO RUEHSG/AMEMBASSY SANTIAGO 0000
INFO RUEAIIA/CIA WASHINGTON DC 0000
RUCPDOC/USDOC WASHINGTON DC 0000
RUEKJCS/SECDEF WASHINGTON DC
RHMCSUU/FBI WASHINGTON DC 0000
RUEPINS/HQ BICE INTEL WASHINGTON DC
UNCLAS STATE 130257 
 
SIPDIS 
SANTIAGO FOR JENNIFER SPANDE 
POL 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC CI
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK 
ON APPLICATION 050135240 
 
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 application 050135240 for the export 
of UH-1H helicopter parts to Chile.  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:  unusual end-use by an unfamiliar 
foreign end-user and an unfamiliar consignee, neither of whom 
has appeared on any previous license applications.  Post 
should make appropriate inquiries to verify the bona fides of 
private Chilean companies Flight Service, S.A., and JL 
Commercial Services, to determine how one of the companies 
came to be in possession of one or more UH-1H military 
helicopters, and to confirm the legitimacy of the proposed 
transaction. The following questions are provided as 
suggested guidance: 
 
--When was the company established and who are its principals? 
 
--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? 
 
--Do Flight Service and/or JL Commercial Services own and/or 
operate UH-1H military helicopters?  If so, how many UH-1H 
helicopters does the company own?  How and from whom did the 
company acquire the helicopters?  Does the company have 
certification that the UH-1H helicopters were officially 
de-militarized?  (COMMENT:  Judging from the company's 
website, Flight Service appears to own at least four UH-1H 
helicopters. END COMMENT.) 
 
--Which entity is performing the forest fire fighting 
services?  On whose behalf are the services being performed? 
For what other purposes does the company use the UH-1H 
helicopters? 
 
--Do the helicopters really require $3 million worth of spare 
parts, or is a lesser amount more realistic? 
 
--What is the relationship between the two companies, and 
what exact roles will they play in the proposed transaction? 
--Will the company be handling or storing the items listed on 
the application?  If so, does it have secure facilities and 
proper accounting and security procedures for handling these 
United States Munitions List (USML) items? 
 
--Does the company understand the restrictions on USML items, 
especially the prohibition against unauthorized re-transfers 
and re-exports? 
 
4. Department requests that post conduct a site visit to JL 
Commercial Services -- and to Flight Service, if possible -- 
in order to provide Department with an assessment of its 
business operations and on-site security.  If a site visit is 
not possible, please inform PM/DTCC case officer.  Finally, 
post is asked to assess whether the companies appear to be 
reliable recipients of USML items.  End action. 
 
5. For background, the following details of the license in 
question are provided: 
 
DTC Case: 050135240 
 
QUANTITY/COMMODITY: 
 
1     Miscellaneous spare parts for the maintenance, repair 
and/or overhaul of the T53L13B gas turbine engine for the 
Bell Helicopter model UH-1H helicopter 
 
License Value: USD 3,000,000.00 
 
SELLER: 
 
Transupport, Inc. 
53 Turbine Way 
Merrimack, NH 03054 
Company contact: Jeffrey Foote, tel.: 603-424-3111 
 
FOREIGN CONSIGNEE: 
 
JL Commercial Services 
Av. Fidias #769A 
La Reina 
Santiago de Chile 7870446 
Chile 
Telephone/fax: (56-2) 4151614 
Mobile: 89709100 
E-mail: jlcomser@vtr.net 
Website: www.jlcomser.com 
Company contact: Juan J. Loyola, Legal Representative 
 
FOREIGN END-USER: 
 
Flight Service, S.A. 
Alonso Ovalle #237 L San Andres 
Concepcion 
Chile 
Website:  www.flightservice.cl 
 
PURPOSE: 
 
For the maintenance, repair and/or overhaul of the T53L13B 
gas turbine engine used on the Bell model UH-1H helicopter by 
the end-user...for fighting forest fires. 
 
6. Submitted in support of the license application were the 
following documents (PM/DTCC can fax documentation to post 
upon request): 
 
--Letter of intent from JL Commercial Service to Transupport 
advising of the intent to purchase $3 million worth of 
T53L13B gas turbine engine spare parts during fiscal years 
2008-2001 and stating that the "the end user of these spare 
parts will be the JL Commercial Services in Chile," signed by 
Juan J. Loyola, Legal Representative, dated 11 November 2008. 
 
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 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 
 
8. Department is grateful for post's assistance in this 
matter. 
RICE