BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON LICENSE

UNCLAS KOLKATA 000352 SIPDIS PM/DTCC FOR BLUE LANTERN COORDINATOR (BALLARD) E.O. 12958: N/A TAGS: ETTC KOMC IN SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON LICENSE 050093110 REF: STATE 00118450 ¶1. (SBU) Summary: Post conducted a post-shipment check on license 050093110 and has received confirmation from the end user Ordnance Factory Board (OFB) in Kolkata regarding the receipt of the carbines. Econ FSN visited OFB headquarters in Kolkata and obtained a letter confirming their receipt of the firearms along with a copy of the airway bill. OFB confirmed that the carbines are currently located inside its ammunition factory at Kirkee, Pune in the state of Maharashtra and are being used to test ammunition intended for export to Thailand. OFB expressed interest in additional cooperation with US companies, particularly in the production of ammunition. End Summary. ¶2. (SBU) Econ FSN spoke with Director of Exports at OFB Prakash Agarwala who verbally confirmed that they have received one Bushmaster M4A2 type and one Bushmaster M16A2 type carbine as per license 050093110. On December 15 Econ FSN met Agarwala at the OFB headquarters in Kolkata. Agarwala was quite cooperative and understood the purpose of the visit. He handed over a letter on behalf of OFB acknowledging the receipt and possession of the firearms along with a copy of the airway bill no. 055-38838041 dated July 14, 2008, listing Bushmaster Firearms International LLC as the consignor, the Ordnance Factory Board, Kolkata as the consignee and the declared value of the consignment as USD 1,564. ¶3. (SBU) Agarwala said that the OFB has received an order from the Government of Thailand to supply 5.56 mm caliber cartridges and that the purpose of importing the carbines from Bushmaster International is to test these 5.56 mm cartridges. The imported firearms are currently located at OFB's Ammunition Factory in Kirkee, Pune in the state of Maharashtra. On December 22, Agarwala called Econ FSN with a request to schedule a meeting for a senior OFB official Rajiv Chakraborty with an appropriate Consulate official to discuss possibilities for further collaboration with US companies for the manufacture of ammunition. ¶4. (SBU) Ordnance Factories are departmental factories of the Ministry of Defense (MOD),Government of India. MOD has 39 factories across India manufacturing defense goods primarily for the Indian Armed Forces; however, some production is intended for export. PAYNE