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

UNCLAS STATE 036490

SIPDIS

SIPDIS
OUAGADOUGOU FOR BREANNA GREEN
BRUSSELS FOR PAUL ROHRLICH

E.O. 12958: N/A
TAGS: BE ETTC KOMC UV
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK
ON LICENSE 050095506


1. This is an Action Request. See paragraphs 2 - 5.


2. The Department's Office of Defense Trade Controls
Compliance (PM/DTCC) requests Post's assistance in conducting
a pre-license check on license 050095506 for the export of
manual ammunition link machine to Burkina Faso. 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: To establish the bona fides of this
transaction. Also, the license application states that the
manual machine linker will be operated by A.D. Trade LTD,
Belgium in order to link ammunition that will then be sold to
the Ministry of Defense of Burkina Faso. Posts are requested
to determine the ultimate destination for the defense
articles listed below.


4. ACTION OUAGADOUGOU: Post should make appropriate inquiries
to verify the legitimacy of the proposed transaction. The
following questions for the Ministry of Defense are provided
as suggested guidance:

--Did you order from AD Trade the exact type and quantity of
items listed on this application?

-- Does MOD have a service agreement with AD Trade under
which AD Trade will use the manual machine linker listed
below? Will MOD retain possession of all items listed on this
application once AD Trade has completed its services
involving said items?

-- Is MOD familiar with the restrictions on United States
Munitions List (USML) items, especially the prohibition
against unauthorized re-transfers and re-exports?


5. ACTION BRUSSELS: Post should make appropriate inquiries to
establish the bona fides of foreign consignee, AD Trade LTD,
Belgium. The following questions for AD Trade LTD, Belgium
are provided as suggested guidance:

--Does the company have proper supporting documentation,
including purchase orders from the Ministry of Defense of
Burkina Faso for this proposed transaction?

--Will the company be handling or storing the items listed on
the application? If so, does it have secure facilities and
proper accounting and security procedures for handling these
sensitive USML items? What will become of the manual machine
linker once AD Trade has sold the ammunition to the MOD of
Burkina Faso?

--When was the company established and who are its principals?

--What is the nature of its business -- what types of items
does it handle, does it serve as a broker?

--What types of organizations are among its typical customers
and where are the customers located? Does the company have
an established customer base?

--Does the company keep proper, detailed records of its sales
and customers?

--Does the company understand the restrictions on United
States Munitions List (USML) items, especially the
prohibition against unauthorized re-transfers and re-exports?


6. Details of license applications:


A.

DTC Case: 050095506

QUANTITY/COMMODITY:

1 Manual Machine Linker for Cartridges

800,000 Links M1 for Cartridges (7.62x51 mm for US 0.3
Browning)

License Value: USD $56,550

SELLER:

SARCO Inc
323 Union Street
Stirling, NJ 07980

FOREIGN CONSIGNEE:

A.D. Trade LTD
Vredebaan 69
2640 Mortsel
Belgium
Tel: 32-(9)3-844 24 84

FOREIGN END-USER:

Ministry of Defense
Ouagadougou
Burkina Faso
Tel: (226)50.30.72.14

PURPOSE:

Used by A.D. Trade LTD, Belgium, to link ammunition which is
being sold to the Ministry of Defense of Burkina Faso.


7. Submitted in support of the license application were the
following documents (PM/DTCC will fax documentation to Posts
upon request):

DSP-83 signed by Yero Boly (MOD, Burkina Faso) dated
01/04/2008; Michael DiMaggio of SARCO Inc. 01/24/2008; and
Marcel Zuckerman of AD Trade dated 12/06/2007

Purchase Order No. US 01/07 from AD Trade signed by Marcel
Zuckerman dated 12/10/2007

Purchase Order No. BF 27/2007 from Ministerie La Defense
signed by Noufou Beremwoudougou dated 12/03/2007


8. 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


9. Department is grateful for Post's assistance in this
matter.
RICE