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

UNCLAS STATE 090321 SIPDIS QUITO FOR MARC PANNELL E.O. 12958: N/A TAGS: EC ETTC KOMC SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON LICENSES 050117804, 050117818, 050117829 AND 050117848 REF: 03 QUITO 1058 ¶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 licenses 050117804, 050117818, 050117829 and 050117848 for the export of automatic weapons and grenade launchers Ecuador. 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 these transactions for significant quantities of automatic weapons and grenade launchers. Previous Blue Lantern (REFTEL) indicated that foreign intermediate consignee, MG Suber & Associates, used family members as end-users in order to circumvent import limits set by the Government of Ecuador. This check is to assure that the end-user, Armada del Ecuador (Tel: (5934) 2203353),has legitimately ordered the defense articles listed below. ¶4. Action Request: Post is requested to establish the bona fides of these transactions by making appropriate inquires to authorities at Armada del Ecuador. Particular attention should be paid to the quantities on the export licenses versus the quantities expected by Armada del Ecuador. The following questions are provided for guidance: (To Armada del Ecuador) --Can you confirm the orders for the firearms listed on these license applications? --Why is the GOE purchasing this large quantity of firearms and grenade launchers? Is Armada del Ecuador undergoing a modernization program, increasing numbers for personnel, etc? --What will GOE do with the weapons that are being displaced? 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: ¶A. DTC Case: 050117804 QUANTITY/COMMODITY: 8 M2HB Machine Guns, .50 Caliber License Value: USD $200,000 SELLER: MLM International Corp 7914 Queenair Drive Gaithersburg, MD 20879 FOREIGN INTERMEDIATE CONSIGNEE: MG Suber & Associates Amazonas 477 y Roca Edificio Banco Los Andes, Of 1008 Quito, Ecuador FOREIGN END-USER: Armada del Ecuador Direccion General del Material Base Naval Sur Guayaquil, Ecuador Tel: (5934) 2203353 PURPOSE: For use by the Ecuadorian Navy and Marine infantry units responsible for operations on the Northern Border. ¶B. DTC Case: 050117818 QUANTITY/COMMODITY: 10 M60E4/MK43 Machine Guns, 7.62 x 51mm Caliber License Value: USD $120,000 SELLER: MLM International Corp 7914 Queenair Drive Gaithersburg, MD 20879 FOREIGN INTERMEDIATE CONSIGNEE: MG Suber & Associates Amazonas 477 y Roca Edificio Banco Los Andes, Of 1008 Quito, Ecuador FOREIGN END-USER: Armada del Ecuador Direccion General del Material Base Naval Sur Guayaquil, Ecuador Tel: (5934) 2203353 PURPOSE: For use by the Ecuadorian Navy and Marine infantry units responsible for operations on the Northern Border. ¶C. DTC Case: 050117829 QUANTITY/COMMODITY: 695 M16 M4A3 Carbines, 5.56 Caliber License Value: USD $834,382 SELLER: MLM International Corp 7914 Queenair Drive Gaithersburg, MD 20879 FOREIGN INTERMEDIATE CONSIGNEE: MG Suber & Associates Amazonas 477 y Roca Edificio Banco Los Andes, Of 1008 Quito, Ecuador FOREIGN END-USER: Armada del Ecuador Direccion General del Material Base Naval Sur Guayaquil, Ecuador Tel: (5934) 2203353 PURPOSE: For use by the Ecuadorian Navy and Marine infantry units responsible for operations on the Northern Border. ¶D. DTC Case: 050117848 QUANTITY/COMMODITY: 50 M203 Grenade Launchers License Value: USD $103,195 SELLER: MLM International Corp 7914 Queenair Drive Gaithersburg, MD 20879 FOREIGN INTERMEDIATE CONSIGNEE: MG Suber & Associates Amazonas 477 y Roca Edificio Banco Los Andes, Of 1008 Quito, Ecuador FOREIGN END-USER: Armada del Ecuador Direccion General del Material Base Naval Sur Guayaquil, Ecuador Tel: (5934) 2203353 PURPOSE: For use by the Ecuadorian Navy and Marine infantry units responsible for operations on the Northern Border. ¶6. Submitted in support of the license application were the following documents (PM/DTCC will fax documentation to Posts upon request): ¶A. Purchase Order No. 08-053 from Armada del Ecuador signed by Jose Mino Alcivar dated 07/28/2008 DSP-83 signed by Jose Mino Alcivar dated 07/28/2008, Fabian Jarrin Moreno dated 07/28/2008, and A. Jeanroy dated 08/06/2008 End User Certification issued by Armada del Ecuador signed by Fabian Jarrin Mreno dated 07/28/2008 ¶B. Purchase Order No. 08-052 from Armada del Ecuador signed by Jose Mino Alcivar dated 07/28/2008 DSP-83 signed by Jose Mino Alcivar dated 07/28/2008, Fabian Jarrin Moreno dated 07/28/2008, and A. Jeanroy dated 08/06/2008 End User Certification issued by Armada del Ecuador signed by Fabian Jarrin Mreno dated 07/28/2008 ¶C. Purchase Order No. 08-051 from Armada del Ecuador signed by Jose Mino Alcivar dated 07/28/2008 DSP-83 signed by Jose Mino Alcivar dated 07/28/2008, Fabian Jarrin Moreno dated 07/28/2008, and A. Jeanroy dated 08/06/2008 End User Certification issued by Armada del Ecuador signed by Fabian Jarrin Mreno dated 07/28/2008 ¶D. Purchase Order No. 08-060 from Armada del Ecuador signed by Jose Mino Alcivar dated 07/28/2008 DSP-83 signed by Jose Mino Alcivar dated 07/28/2008, Fabian Jarrin Moreno dated 07/28/2008, and A. Jeanroy dated 08/06/2008 End User Certification issued by Armada del Ecuador signed by Fabian Jarrin Mreno dated 07/28/2008 ¶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