Blue Lantern License 050205274 Response

UNCLAS GABORONE 001024

SIPDIS

STATE FOR PM/DTCC - BLUE LANTERN COORDINATOR
STATE FOR KYLE M. BALLARD

E.O. 12958: N/A
TAGS: PARM ETRD ECON BC
SUBJECT: Blue Lantern License 050205274 Response

REF: STATE 128516


1. SUMMARY. In response to action request contained reftel, post
spoke to Mr. Maheshbhai Patel of Clover Industrial Supplies
("Clover") and the Deputy Commissioner of the Botswana Police
Service ("BPS") - Support Services to obtain information related to
the pre-license check for Clover. Post has confirmed with the BPS
that Clover's order conforms to their requested order, that Clover
is in possession of a valid import license and that the BPS will
take possession of the items upon their entry into Botswana. Post
has no detrimental information to convey related to this enquiry.
END SUMMARY.
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Clover Industrial Supplies
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2. Clover was established in 1987. Its principals are Mr. Maheshbhai
Patel and Stanly Timuhwe. The parent company, Clover Group, consists
of Clover Industrial Supplies and Harvey World Travel. (Note.
Currently, Harvey World Travel is the Embassy's contracted travel
agent. End note.) Harvey World Travel's principals are also
Maheshbhai Patel and Stanley Timuhwe. Clover is located in a well
established strip mall in the middle of Gaborone. The office has a
shop in the front, which is open to the public, and the offices are
in the back. The shop/office has been in this location since Clover
opened in 1987.

3. Clover trades in and provides the following in its normal course
of business: hospital supplies (lab, medical equipment and
consumables),cleaning chemicals and equipment, police, civil
defense and military uniforms and protective clothing and aircraft
equipment. Mr. Patel stated that the company's email address is
cloverchemicals@mega.bw because the majority of elements the
company deals with involve chemicals. Regular customers of Clover
are: the Government of Botswana, major companies residing in
Botswana such as Botswana Meat Commission, Debswana Diamond Mining
Company, and the Botswana Telecommunications Corporation. Clover
supplies all the above companies with their industrial and supply
needs.

4. The ordered supplies will be the first U.S. origin defense
articles that Clover has sold. Clover does not sell any defense
articles to customers that reside outside Botswana. In the present
case, Clover became involved with ordering defense articles after it
won a government tender to supply the BPS with the ordered items.
After winning the tender, Clover approached UK based Quartermasters
Ltd. ("Quartermaster") and requested that Quartermaster assist them
by obtaining quotations from various suppliers. In order for Clover
to service the tender, Clover had to obtain an import permit from
the Central Arms Registry, which is an oversight mechanism within
the Government of Botswana set up to monitor and regulate the import
and movement of dangerous goods, such as guns and explosives. Clover
will not have physical possession of the defense articles listed at
any point. The BPS will escort the articles from the port of entry
to their warehouse.

5. Mr. Patel stated that Clover is familiar with the regulations
governing U.S. origin defense articles. He said that Clover is in
possession of a "United States of America NONTRANSFER AND USE
CERTIFICATE" that stipulates restrictions on unauthorized
re-transfer or re-export, and that Clover had reviewed the document
and was now familiar wih its contents. Mr. Patel, who is a member
Qand wa now familiar with its contents. Mr. Patel, who is a member
of the American Business Council (ABC),also said he decided to
source the articles from the U.S. market after he had a discussion
at ABC about involving the U.S. market.
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Botswana Police Service
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6. The BPS confirmed that the items contained in the order matched
what the BPS requested in both type and quantity. The BPS also
confirmed that in addition to 170,000 rounds of ammunition, 7.62 x
39mm ball, 2 C4 RDX plastic explosives, and 1,000 ALSG972 smoke
grenades, there were also detonation devices ordered. All of the
items ordered will be used by the BPS for law enforcement training
or other law enforcement activities.


7. Deputy Commissioner Ikwatlhaeng G. Bagopi confirmed that the
import permit issued by the Central Arms Registry, which is titled
as an "Acquisition Permit" but "Acquisition" is crossed out and
"Import" is handwritten, is a valid import permit. He further
stated that the document could function in either/both capacities.
Regarding Clover's role in this transaction, the Deputy Director
stated that Clover only sources the items and negotiates the prices
and will not ever have physical possession of the items as the BPS
will pick them up directly from customs at the airport. Deputy
Commissioner Bagopi had nothing further that he wanted to add to the
inquiry.

HAMILTON