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

UNCLAS STATE 103371 SIPDIS SAN SALVADOR FOR BRENT CHRISTENSEN E.O. 12958: N/A TAGS: ES ETTC KOMC SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON LICENSE 050124009 REF: 2006 BLUE LANTERN GUIDEBOOK ¶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 post-license/pre-shipment check on license 050124009 for the export of pistols to El Salvador. Post is requested to complete this Blue Lantern check within 45 days. Lack of response to a Blue Lantern check will affect pending and future licenses involving parties to this license. ¶3. Reason for Request: The import authorization issued by the National Defense Minister states that the authorization was given "under promise swap agreement." This request is to determine what this "swap agreement" entails and to verify the bona fides of this transaction. ¶4. Action Request: Post is requested to establish the bona fides of this transaction by making appropriate inquiries to representatives of the Government of El Salvador and the foreign intermediate consignee, Centrum, SA. Post is also requested to determine if the "swap agreement" involves any United States Munitions Listed defense articles that are not listed on this license. If so, Post is requested to provide the type, make, and model of the defense articles, if possible. The following points are included for guidance: (To Policia Nacional Civil (PNC)) --Can the PNC confirm it has ordered the firearms listed on this license application? --The import authorization issued by the National Defense Minister mentions a "swap agreement." Can you explain what this means? What are the terms of this agreement? Is this a barter deal and, if so, what is used as payment for this transaction? -- If the swap involves weapons originally exported from the U.S., you may require authorization for re-transfer. --What is the role of Centrum, SA in this transaction? (To Centrum, SA) --What is Centrum's role in this transaction? Does the company represent either Beretta or any agency of the Government of El Salvador in an official capacity? Does the company have a contractual relationship with either? --Does Centrum 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 Centrum do with the defense articles once received? --What will Centrum receive in exchange for the firearms listed below? What does the "swap agreement" entail? What does Centrum intend to do with any defense articles it receives through this transaction? In its reply, Post may also comment on any other information pertinent to these transactions such as security of facilities and concerns about the entities involved. ¶5. Details of license application: DTC Case: 050124009 QUANTITY/COMMODITY: 1,000 Beretta Model 92Fs 9mm Pistols License Value: USD $379,000 SELLER: Beretta USA 17601 Beretta Drive Accokeek, MD 20607 FOREIGN INTERMEDIATE CONSIGNEE: Centrum, SA de CV Urb. San Ernesto PSJE Pasaje San Carlos #149 San Salvador El Salvador Tel: (503) 2211-3454 FOREIGN END-USER: Policia Nacional Civil de Salvador Edificio Santa Elena No. 2 Calle Conchagua Ote. Urbanizacion Santa Elena, Antiguo Cuscatlan La Libertad, San Salvador El Salvador PURPOSE: For the exclusive use of the National Police of El Salvador ¶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 Jeffrey Reh (Beretta) dated 06/19/2008, Francisco Jose Rovira (PNC) dated 03/28/2008, and Gustavo Lopez Davidson (Centrum) dated 02/12/2008 Import Authorization No. 3037 (also listed as Autorizacion No. 19) issued by the National Defense Minister dated 02/26/2008 (date stamped 09/02/2008) signed by Vice Minister Marco Antonio Palacios Luna Purchase Order from Centrum undated and unsigned ¶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