BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK

UNCLAS STATE 102553 SIPDIS KUALA LUMPUR FOR WYNN PINKSTON E.O. 12958: N/A TAGS: ETTC KOMC MY SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON LICENSE 050123747 ¶1. This is an Action Request. See paragraphs 2 - 4. ¶2. The Department's Office of Defense Trade Controls Compliance (PM/DTCC) requests Post's assistance in conducting a pre-license check on license 050123747 for carbines and technical data to Malaysia. Post is requested to complete this Blue Lantern check within 30 days. Lack of response to a Blue Lantern check will affect pending and future licenses involving parties to this license. ¶3. Reason for Request: Any export of firearms valued at one million dollars or more is required to be notified to Congress. This check is to gather pertinent information for Congressional notification and to establish the bona fides of this transaction. This check is also to determine the role of Malaysian company, Anafield. ¶4. Action Request: Embassy is requested to confirm the legitimacy of this transactions between the Government of Malaysia (GOM) and U.S. company, Bushmaster Firearms International. Post is also requested to determine the role of Anafield in this transaction. The following points are included for guidance: TO REPRESENTATIVE OF THE GOM: --Can the GOM confirm it has ordered the firearms listed on this license application? --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? --Will all of the new firearms be used by the Royal Malaysian Police? TO ANAFIELD: --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? --Does Anafield represent either Bushmaster or any agency of the Government of Malaysia in an official capacity? Does Anafield have a contractual relationship with either? --What is Anafield's relationship to GEM Investment Limited? What is GEM's role in this transaction? --Does Anafield understand the registration and licensing obligations of a broker under the International Traffic in Arms Regulation (ITAR)? In its reply, Post may also comment on any other information pertinent to these transactions such as security of facilities, end-use, and concerns about the entities involved. ¶5. Details of license applications: DTC Case: 050123747 QUANTITY/COMMODITY: 4,000 Bushmaster C15 9mm BMP Carbines 3,000 Bushmaster C15P21S 5.56mm Carbines 100 Bushmaster/DPMS .308 Caliber Specialty Rifles 12 Level 3 Armorer Kits Technical Training to Malaysian Officials License Value: USD $11,961,320 SELLER: Bushmaster Firearms International LLC 999 Roosevelt Trail Windham, ME 04062 FOREIGN CONSIGNEE GEM Investment Limited Unit C, 8F, East Wing, Sincere Insurance Building 4-6 Hennessy Road Hong Kong Tel: 852 8175 3593 FOREIGN CONSIGNEE: Anafield SDN BHD Lot 3-M Sentral Exhibition Mall Jalan Tun Sambanthan Kuala Lumpur 50470 Malaysia Tel: 6 03 2273 8652 FOREIGN END-USER: Ministry of Internal Security Kementerian Keselamatan Dalam Negeri Bahagian Perolehan Aras 5 Blok D1 Kompleks D Pusat Pentadbiran Kerajaan Persekutuan Putrajaya 62546 Malaysia Tel: 6 03-88863000 POC: Mr. Suhaimi bin Abdullah PURPOSE: For use by the Royal Malaysian Police ¶6. Submitted in support of the license application were the following documents (PM/DTCC will fax documentation to Posts upon request): DSP-83 signed by and Shannon H. Shuman (Bushmaster) dated 06/17/2008, Mohd Noor B. Yusoff (Anafield) dated 01/10/2008, and Suhaimi bin Abdullah (Ministry of Internal Security) dated 09/27/2008 License to Import No. 55592 signed by HJ Zailan bin HJ Mohamed dated 03/18/2008 End-Use Statement on Ministry of Internal Security Letterhead not dated Purchase Order No. GIL/01/1003/2008 from GEM Investment Ltd signed by Dato Ling Keak Ming dated 08/17/2008 ¶7. Please slug reply for PM/DTCC - BLUE LANTERN COORDINATOR and include the words "Blue Lantern" and the case number in the subject line. POC is Kyle M. Ballard, Phone: 202-663-1929; Email: BallardKM@state.gov; SIPRNET: BallardKM@state.sgov.gov. The Blue Lantern Guidebook (ref) is available as a PDF file in the Bunche Library's E-Book Collection on the DOS Intranet: http://virtuallibrary.state.gov/ BlueLanternGuidebook2006%2520 final .pdf ¶8. Department is grateful for Post's assistance in this matter. RICE