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

UNCLAS STATE 063103

SIPDIS
ABU DHABI FOR OLIVER JOHN

E.O. 12958: N/A
TAGS: ETTC KOMC AE
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK
ON LICENSE 050104817


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 050104817 for the export of
carbines, accessories and training to the United Arab
Emirates. 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: Firearms sales that exceed $1 million
require notification to Congress. This request is in support
of the Congressional Notification and to exercise due
diligence to establish the bona fides of this transaction.


4. Action Request: Post is requested to establish the bona
fides of this transaction by making appropriate inquires to
authorities at the Critical National Infrastructure Authority
and the International Golden Group. The following questions
are provided for guidance:

For Critical National Infrastructure Authority:

--Did the Critical National Infrastructure Authority order
the items listed below? Can the Critical National
Infrastructure Authority provide the supporting documentation?

--For what will these firearms be used? What will happen to
the displaced firearms once these M4s are issued?

--What is the role of the International Golden Group in this
transaction?

--Is the International Golden Group an official
supplier/contractor for the UAE Government? Does the
Critical National Infrastructure Authority have any other
contracts with the company?

For International Golden Group:

--Please describe your role in this proposed transaction.

--Does the company have proper supporting documentation,
including a contract from the Sri Lanka Navy/Air Force, for
this proposed transaction?

--Does the company understand the restrictions on United
States Munitions List (USML) items, especially the
prohibition against unauthorized re-transfers and re-exports?
Does the company understand that USML items may be used only
for the specific purpose stated on the export license?

--If serving as a broker in this proposed transaction, are
you aware that U.S. law requires brokers of USML items to
register with the State Department and to obtain prior
authorization for many brokered transactions?

--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?

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

--What types of organizations are among its typical customers
and where are the customers located?

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 other entities
involved.


5. Details of license applications:

DTC Case: 050104817

QUANTITY/COMMODITY:

1419 Colt M4 Carbines

1564 Insight Integrated Sighting Modules

1419 ARMS Bi-Level SIR Systems

Spare Parts for the Above-listed

1419 ARMS #40 Low Profile Rear Sights

1419 ARMS #23 Quick Detach Throw Lever Pistol Grips

1419 Colt Blank Fires

1419 Pelican Case #1750

1419 SureFire Vertical Foregrips, Model M900A

1419 Cinch Spacer Clips

10 Colt Upper Receivers

6 Armorer Kit

5-Day "Train the Trainer Operations Maintenance Course"

3-Day Armorer Course

License Value: USD $10,000

SELLER:

Colt Defense LLC
547 New Park Avenue
West Hartford, CT 06110

FOREIGN INTERMEDIATE CONSIGNEE:

International Golden Group
Corniche Road
Abu Dhabi
United Arab Emirates

FOREIGN CONSIGNEE:

Same as End-User

FOREIGN END-USER:

Critical National Infrastructure Authority
CNIA Security FORCE
Abu Dhabi
United Arab Emirates

PURPOSE:

For use by the Critical National Infrastructure Authority


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

Three DSP-83 signed by Col. Muheir Ali Al Khateiri (Director
General of CNIA) no date and Ernest Hinze dated 05/05/2008

Contract Number CNIA/10/03/2008/33/1 signed by Muhair Ali Al
Khatri dated 03/11/2008

Purchase Order from Critical National Infrastructure
Authority (no date or PO number, maybe just translation)


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