US embassy cable - 05SANTODOMINGO2829

UNCLAS SANTO DOMINGO 002829 
 
SIPDIS 
 
STATE FOR: PM/DTCC PETER MAXWELL 
 
E.O. 12958: N/A 
TAGS: ETTC, KOMC, DR 
SUBJECT: DOMINICAN REPUBLIC--BLUE LANTERN APPLICATION 
05-956096 
 
REF: SECSTATE 69855 
 
1. Per reftel request EconOff visited HiRel Systems 
International, LLC (HRSI) in the San Isidro Free Trade Zone 
of Santo Domingo.  The company is a fully-owned subsidiary 
company of HiRel Systems International of the United States. 
EconOff met with General Manager Domingo Gonzalez who has 
headed the manufacturing operation in the Dominican Republic 
since it started operations two years ago. The operation 
makes electromagnetic components used in the manufacture of 
medical and communications equipment. 
 
2. The facility receives all of its input materials from the 
parent company's operation in Dover, New Hampshire, assembles 
the parts and re-exports 100 percent of the finished 
components to the Dover facility by Federal Express or UPS. 
Strict rules granting tax breaks to companies located in 
Dominican free trade zones prohibit the merchandise from 
being sold in-country.  The New Hampshire facility performs 
final quality control, packages the parts and ships them to 
the customer. 
 
3. HiRel Systems' Dominican operation employs 88 Dominicans 
and is in the process of hiring 25 new employees to expand 
its production.  According to Mr. Gonzalez, the operation has 
a higher quality output than a similar assembly operation 
owned by HiRel in China.  The higher reliability combined 
with a quicker turnaround time and reduced shipping costs 
that result from closer proximity to the United States makes 
the Dominican operation more efficient than the one in China 
and Gonzalez is optimistic about the facility's future. 
 
4. EconOff also met with HiRel's local controller, Luis 
Martinez.  Post is not aware of derogatory information about 
the company and HRSI appears to be a reliable recipient of 
controlled technical data for U.S. Munitions List items. 
KUBISKE