US embassy cable - 04ANKARA5202

UNCLAS ANKARA 005202 
 
SIPDIS 
 
PLS PASS TO PM/DTCC -- BLUE LANTERN COORDINATOR. 
 
E.O. 12958: N/A 
TAGS: KOMC, ETTC, TU 
SUBJECT: BLUE LANTERN: CHECK ON ELSAN DEFENSE AND 
COMMUNICATIONS INC 
 
REF: STATE 181000 
 
1. ON SEPTEMBER 10, 2004, EMBASSY BLUE LANTERN OFFICER MET 
WITH THE PRESIDENT AND SENIOR VICE PRESIDENT OF ELSAN 
CORPORATION AT ITS OFFICE LOCATED AT THE ADDRESS GIVEN IN 
REFTEL.  DURING THE MEETING PRESIDENT ONUR GOKCE AND VP KEMAL 
CELIK OUTLINED THE STRUCTURE, ORGANIZATION AND OPERATIONS OF 
ELSAN CORPORATION, AND PROVIDED WRITTEN DETAILS OF THEIR 
CONTRACTS AND BUSINESS LICENSES WITH US COMPANIES. 
 
2. THE ELSAN OFFICERS REPORTED HAVING CONTRACTUAL 
RELATIONSHIPS WITH TEN US COMPANIES INCLUDING SMITH AND 
WESSON, BOEING, AND HUGHES NETWORK SYSTEMS. THEY HAVE BEEN IN 
BUSINESS SINCE 1983 AND REPRESENT US COMPANIES IN TURKEY WHO 
SEEK TO SELL PRODUCTS.  ACCORDING TO THE REPRESENTATIVES WE 
SPOKE WITH, ELSAN ITSELF SELLS NO PRODUCTS.  ITS PARTICULAR 
SPECIALTY IS BROKERING SALES BETWEEN US COMPANIES AND THE 
TURKISH MILITARY AND CIVILIAN GOVERNMENT.  THEY CHARACTERIZED 
THEIR BUSINESS SECTOR AS "MARKET MAKING", WHEREBY THEY ARE 
RETAINED BY FOREIGN COMPANIES TO IDENTIFY TURKISH CUSTOMERS. 
THEY RECEIVE A FEE BASED ON A CONTRACT OR COMMISSION FOR THE 
BROKERING OF DEALS BETWEEN THE TWO COMPANIES.  ELSAN ALSO 
REPRESENTS ISRAELI DEFENSE COMPANIES IN TURKEY -- AZIMUTH 
TECHNOLOGIES BEING THEIR PRIMARY ISRAELI PARTNER.  ELSAN 
STRESSED THAT THEY ARE NOT END-USERS OF ANY PRODUCT OR 
SERVICE, BUT RATHER INTERMEDIARIES TO THE END USER. 
 
3. ADDITIONALLY, ELSAN CFO NESRIN FIRTINA REVIEWED WITH BLUE 
LANTERN OFFICER THE LICENSES AND REGISTRATION PAPERS REQUIRED 
BY TURKISH REGULATORY AUTHORITIES, PARTICULARLY IN 
TRANSACTIONS RELATED TO ARMAMENTS.  THE COMPANY EMPLOYS CIRCA 
30 PEOPLE, AND MAINTAINS AN OFFICE IN VIENNA, VIRGINIA. 
 
4. BASED ON THE INFORMATION OBTAINED DURING THE MEETING, 
EMBASSY BELIEVES ELSAN TO BE A LEGITIMATE REGISTERED BROKER 
IN TURKEY. 
EDELMAN