BLUE LANTERN LEVEL 3: PRE-LICENSE CHECK ON

UNCLAS MUSCAT 001056

SIPDIS

SENSITIVE
SIPDIS

FOR PM/DTTC

E.O. 12958: N/A
TAGS: ETTC KOMC MU
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE CHECK ON
APPLICATION 050070744

REF: STATE 150486


1. (U) The following message reports the results of a
pre-license check conducted by the Political/Economic section
and the Office of Military Cooperation on reftel application.



2. (SBU) On November 7, Econoff met with Shanfari Group of
Companies Projects Manager Bakheet Mattar Ahmed al-Shanfari
to discuss the purchase of reftel items for the Royal Guard
of Oman. Shanfari confirmed that his company was an agent
for the Royal Guard, and produced the contract for the
purchase of C15 (formerly OA-15) semi-automatic assault
rifles, signed by Shanfari officials, Major General Khalifa
bin Abdullah bin Said al-Junaibi of the Royal Guard, and
representatives of Cerberus GmbH. Shanfari noted that the
company would not be storing the weapons, but that they would
immediately be taken into the Royal Guard's possession once
they arrived at the airport. Shanfari produced the company's
registration certificate from the Ministry of Commerce and
Industry.


3. (SBU) On November 12, Major General Khalifa bin Abdullah
bin Said al-Junaibi of the Royal Guard of Oman affirmed the
reftel order to the Office of Military Cooperation and noted
that the company was an official supplier for the
organization. Junaibi stated that Shanfari Group of
Companies, a "reputable group of companies in Oman," was
Cerberus GmbH's local representative. The Royal Guard
selected Cerberus' products on the basis of market research
and tests, according to Junaibi.


4. (SBU) Comment: The Shanfari Group of Companies is a
well-known trading house in Oman. The company was
established in 1970 by Saeed bin Ahmed al-Shanfari, who
previously served as the Minister of Oil and Gas and Minister
of Agriculture and Fisheries. In addition to military sales,
the company is involved in the construction, transport and
logistics, manufacturing, and tourism sectors. It also
serves as one of the representatives of the Jeep brand in
Oman. The company's projects manager was open and upfront
about the company's dealings with Cerberus, noting that it
was selected for this order on the basis of its high-quality
equipment. Shanfari understood the restrictions on United
States Munitions List items, and appeared keen on ensuring
that his company stayed clear of suspicious arms sales. End
Comment.
GRAPPO