US embassy cable - 04ABUDHABI2187

UNCLAS ABU DHABI 002187 
 
SIPDIS 
 
STATE FOR PM/DTCC - BLUE LANTERN COORDINATOR 
ROME FOR DHS ATTACHE 
 
E.O. 12958: N/A 
TAGS: KOMC, ETTC, TC 
SUBJECT: BLUE LANTERN LEVEL 3: END USE CHECK ON 
APPLICATION 05-918265 
 
 
1. On June 23, 2004, Commercial Officer Mary O'Brien 
met with Mumtaz A. Kayyali, General Manager of Gulf 
Aerospace Company, aka GACO, at GACO's offices in Abu 
Dhabi.  Mr. Kayyali, who is an aeronautical engineer, 
received his degree from the University of Cairo and 
also studied in the UK.  He served in the UAE air force 
for 25 years and retired from there a little over 2 
years ago, when he established GACO.  GACO is part of a 
group of companies owned by Mohammed al Qamzi, general 
manager of Etisalat, the UAE telecommunications giant. 
The group also includes other companies that have 
checked out favorably by the Foreign Commercial Service 
(FCS) in the UAE. 
 
2. GACO is a relatively small company with six 
employees and sells only to the UAE military.  GACO 
does not export any products from the UAE and has no 
business dealings with any nations embargoed by the 
U.S.  GACO has been working with FCS UAE on other UAE 
air force projects, including the `hush house' for the 
F-16 fighter aircraft soon to be delivered to the UAE. 
GACO expects to sign that contract in conjunction with 
the U.S. company, Vitalink, in the next 7-10 days. 
GACO has recently signed a full-on support contract 
with the UAE air force that will give GACO priority 
consideration and more favorable payment terms. 
 
3. GACO is also in partnership with a UK firm, Maplin, 
to provide technical assistance to the UAE navy. 
Maplin in partnership with GACO has 3 people located at 
the port of Jebel Ali to provide support to frigates 
based there. 
 
4. GACO was the purchaser for the items shipped under 
State Department export license 05-918265.  After a 
competitive bidding process, GACO was awarded the bid 
acceptance and purchased the goods from Aviation 
Support International.  As is the usual practice here 
in the UAE, the goods were shipped from the U.S. on May 
1, 2004, consigned directly to UAE GHQ General 
Purchasing Directorate.  The goods never came into the 
possession of GACO as the purchaser.  GHQ cleared the 
goods from customs and in this case, the items were 
delivered to the armed forces' stores in Suwaihan.  Mr. 
Kayyali provided Commoff with a copy of the delivery 
order showing that the goods were received by the UAE 
armed forces in Suwaihan on 5/17/2004. 
 
5. These items will be used by the UAE air force's own 
technicians and will not be installed by GACO 
personnel.  GACO therefore has no information as to the 
current status of the items except that they are in the 
possession of the UAE air force. 
 
6.  Commoff considers GACO a reliable recipient of U.S. 
origin goods and technology. 
 
ALBRIGHT