Identifier
Created
Classification
Origin
08KUALALUMPUR874
2008-10-03 07:17:00
UNCLASSIFIED
Embassy Kuala Lumpur
Cable title:  

BLUE LANTERN RESPONSE ON PRE-LICENSE END-USE CHECK

Tags:  ETTC KOMC MY 
pdf how-to read a cable
VZCZCXYZ0000
PP RUEHWEB

DE RUEHKL #0874/01 2770717
ZNR UUUUU ZZH
P 030717Z OCT 08
FM AMEMBASSY KUALA LUMPUR
TO RUEHC/SECSTATE WASHDC PRIORITY 1733
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHMFIUU/HQ BICE INTEL WASHINGTON DC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
RHMFIUU/FBI WASHINGTON DC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
UNCLAS KUALA LUMPUR 000874 

SIPDIS

PM/DTCC - BLUE LANTERN COORDINATOR

E.O. 12958: N/A
TAGS: ETTC KOMC MY
SUBJECT: BLUE LANTERN RESPONSE ON PRE-LICENSE END-USE CHECK
ON LICENSE 050123747

REF: SECSTATE 102553

UNCLAS KUALA LUMPUR 000874

SIPDIS

PM/DTCC - BLUE LANTERN COORDINATOR

E.O. 12958: N/A
TAGS: ETTC KOMC MY
SUBJECT: BLUE LANTERN RESPONSE ON PRE-LICENSE END-USE CHECK
ON LICENSE 050123747

REF: SECSTATE 102553


1. Pursuant to reftel inquiry, Econoff in late September
2008 contacted the Malaysian Ministry of Home Affairs (MHA,
aka also formerly known as the Ministry of Internal Security)
and the Malaysian company "Anafield Sdn Bhd". By 2 October,
both had responded to post inquiries into Anafield's proposed
purchase of several thousand firearms and associated defense
equipment (as listed in reftel). Post was pleased with the
responses and received a separate confirmation of the
legitimacy of the purchase when the MHA's Royal Malaysian
Police Special Branch (RMPSB, equivalent of FBI/CIA) in
September informed Post's office of Regional Affairs that the
firearms procurement was legitimate and intended for GOM use
only.


2. Ministry of Home Affairs: A supervisor within the
ministry, Ms. ((Marhizah)) Abdul Razak, responded to Post's
inquiries. She verified the proposed order by Anafield and
was very familiar with the details.

A) Question: Can the GOM confirm it has ordered the firearms
listed on this license application? Response: Yes, the
Ministry ordered all of the firearms and associated defense
articles through Anafield. The firearms and equipment are
intended for use by RMP, which is subordinated under MHA.

B) Questions: Why is the GOM purchasing this large quantity
of carbines? Are they undergoing a modernization program,
increasing numbers of police or armed forces personnel, etc.?
Response: Yes, this is part of a significant and ongoing
modernization program for RMP. The GOM is increasing the
numbers of RMP personnel throughout the country, and many
older RMP firearms need to be phased out and replaced.

C) Question: Will all of the new firearms be used by the
RMP? Response: Yes! All new firearms are for use only by
RMP, and no other GOM entity. None of them are for the
private sector, and Malaysia has strict private firearms
ownership laws.



3. Anafield: The company responded promptly. The managing
director of Anafield, Mohamed Noor B. Yusoff, personally
responded via email and telephone to Post's inquiry.

A) Questions: Does Anafield ever retain physical possession
of the defense articles listed below? If so, at what
facilities and what measures are taken to assure the security
of these defense articles? What does Anafield do with the
defense articles once received? Response: Anafield said
that it will receive the firearms and associated defense
equipment only when the items arrive at Malaysian Customs,
but would immediately turn the entire shipment over to the
RMP (since RMP is the final end-user). Anafield said that
the firearms and equipment, when not in use, would be stored
at RMP's Central Warehouse, which is a secure storage
facility and not/not open to the public. The warehouse is
located at Polis Diraja Malaysia, Jabatan Logistik (SMS),
Kompleks SMS PDRM, Persiaran Usahawan, Seksyen U1, 40150 Shah
Alam, Selangor, Malaysia. Anafield specifically said that it
will clear the items at Malaysian Customs with officers from
RMP also present, as firearms and associated equipment are
controlled items in Malaysia. Once the items clear Customs,
the shipment will go directly to the Central Warehouse, and
RMP is responsible for control.

B) Questions: Does Anafield represent either Bushmaster or
any agency of the GOM in an official capacity? Does Anafield
have a contractual relationship with either? Response: Yes,
Anafield is the representative for Bushmaster Firearms
International LLC for Malaysia. This can be verified with
Mr. Michael Haugen (U.S. citizen),who is the Law
Enforcement/Military Sales Manager of Bushmaster. He can be
reached at his cell phone (336-207-7180) and office phone
(360-458-6395). Yes, Anafield has a contractual relationship
with the GOM, listed as "Kontrak Pengantian Senjata Api Dan
Amunizi Serta Peralantan Dan Kelengkapan Khas Secara
Rundingan Terus Dengan Syarikat Anafield Sdn Bhd." The
contact number is: KKDN/POL/PT/1/2008.

C) Questions: What is Anafield's relationship to GEM
Investment Limited? What is GEM's role in this transaction?
Response: Gem has assisted Anafield by arranging the
financing with Ambank to provide the letter of credit and
down payment to the manufacturer (Bushmaster). Gem's

directors provided a personal guarantee to Ambank for the
loan. Gem and Anafield have been in negotiations with
Bushmaster from a very early stage of this contract.

D) Question: Does the company understand the registration and
licensing obligations of a broker under the International
Traffic in Arms Regulation (ITAR)? Response: The company
said that it clearly understands the registration and
licensing obligations. The company said it will not/not
re-export the firearms/associated equipment.



4. Post assessment is that MHA and Anafield were very
cooperative in our inquiries, and both have been forthright
and prompt in their responses. We assess that it is a
legitimate deal, and one that the GOM wants to happen soon.
KEITH