BLUE LANTERN LEVEL 2: PRE-LICENSE END-USE CHECK

C O N F I D E N T I A L STATE 102684 SENSITIVE SIPDIS LOME FOR ANTHONY ALEXANDER TEL AVIV FOR JASON GRUBB E.O. 12958: DECL: 09/29/2019 TAGS: ETTC KOMC IS TO SUBJECT: BLUE LANTERN LEVEL 2: PRE-LICENSE END-USE CHECK ON LICENSES 050190991 AND 050192065 REF: 09 TBILISI 1560 Classified By: Daniel J. Buzby, for reasons 1.4(a),(b),and (d) ¶1. (U) This is an Action Request. See paragraphs 4 and 5. ¶2. (U) The Department's Office of Defense Trade Controls Compliance (PM/DTCC) requests Post's assistance in conducting a pre-license check on licenses 050190991 and 050192065 for the export of night vision devices and rifles to Togo. 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. (C) Reason for Request: A recent Blue Lantern conducted in Georgia revealed that M. Paz Logistics of Israel drastically inflates prices and encourages customers to deceive the Department by manipulating the stated end-use of defense articles. Also, Global Law Enforcement & Security is an unfamiliar company that has never been subject to a Blue Lantern check. This request is for Posts to establish the bona fides of this transaction and the parties involved. ¶4. (U) Action Lome: Post is requested to establish the bona fides of this transaction and acquire more information about the role of the Israeli companies. The following points are included for guidance: (To Togolese Armed Forces) --Can you confirm the order of the night vision devices (NVDs) and rifles listed on these license applications? --For what will these defense articles be used? With whom did you place the order for these defense articles? --What role did Israeli company M. Paz Logistics play in these transactions? What role did Israeli company Global Law Enforcement & Security play in these transactions? What services did these companies provide? --How were you first introduced to M. Paz Logistics? What are the terms of the agreement between you and M. Paz Logistics in these transactions? What are the names of the ¶M. Paz Logistics representatives with which you have done business? --How were you first introduced to Global Law Enforcement & Security? What are the terms of the agreement between you and Global Law Enforcement & Security in this transaction? What are the names of the Global Law Enforcement & Security representatives with which you have done business? --Did either M. Paz Logistics or Global Law Enforcement & Security receive any fees or commissions for their services in these transactions? --To your knowledge, are there any other companies or individuals involved in these transactions aside from M. Paz Logistics, Global Law Enforcement & Security, and the U.S. vendor? Are any other parties receiving fees or commissions for services rendered in these transactions? If so, please provide names and addresses for these individuals and/or companies. --Why didn't you purchase these items directly from the U.S. vendors? --Please describe the security of your facilities and your inventory control policies and procedures, especially for the NVDs. 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. (U) Action Tel Aviv: Post is requested to establish the bona fides of this transaction and acquire more information about the role of the Israeli companies. Post is also requested to consult the Defense Attache, Legal Attache, Station, and other members of the country team on the bona fides of these companies. The following points are included for guidance: (To M. Paz Logistics) --When was your company established and who are its principals? Does your company or any of its principals do business under any other names? Has your company or any of its principals done business under any other names in the past? Does your company have offices in any other countries? --What products and services does your company provide? Who are your regular business partners and where do they reside? Who are your regular customers and where do they reside? --What is your relationship with Global Law Enforcement & Security? What are the terms of the agreement between your company and Global Law Enforcement & Security in this transaction? --What is your relationship with the Togolese Armed Forces? What are the terms of the agreement between your company and the Togolese Armed Forces in these transactions? Who is your point of contact with the Togolese Armed Forces? --What role is your company playing in these transactions? Is your company receiving any fees or commissions for its services in these transactions? If so, please provide details and documentation. --Is your company paying any fees or commissions to any third parties for their services in these transactions? If so, please provide details and documentation, including name and addresses for these third parties. --Will you ever have physical possession of the defense articles on these licenses? If so, please describe your inventory and security procedures. --Are you familiar with the regulations governing the import and brokering of U.S.-origin defense articles? (To Global Law Enforcement & Security) --When was your company established and who are its principals? Does your company or any of its principals do business under any other names? Has your company or any of its principals done business under any other names in the past? Does your company have offices in any other countries? --What products and services does your company provide? Who are your regular business partners and where do they reside? Who are your regular customers and where do they reside? --What is your relationship with M. Paz Logistics? What are the terms of the agreement between your company and M. Paz Logistics in this transaction? --What is your relationship with the Togolese Armed Forces? What are the terms of the agreement between your company and the Togolese Armed Forces in this transaction? Who is your point of contact with the Togolese Armed Forces? --What role is your company playing in this transaction? Is your company receiving any fees or commissions for its services in this transaction? If so, please provide details and documentation. --Is your company paying any fees or commissions to any third parties for their services in this transaction? If so, please provide details and documentation, including name and addresses for these third parties. --Will you ever have physical possession of the defense articles on this license? If so, please describe your inventory and security procedures. --Are you familiar with the regulations governing the import and brokering of U.S.-origin defense articles? (To Israeli Import/Export and/or Appropriate Law Enforcement Agencies) --Is M. Paz Logistics properly registered and/or authorized by the Government of Israel to broker defense articles in Israel or elsewhere? --Is Global Law Enforcement & Security properly registered and/or authorized by the Government of Israel to broker defense articles in Israel or elsewhere? --Do you have any information on either company or their principals that would question their reliability as a broker or recipient of U.S. defense articles? 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. ¶6. (U) Details of license applications: ¶A. DTC Case: 050190991 QUANTITY/COMMODITY: 2 PVS-7B Night Vision Goggles 2 Test Data Sheets for Each PVS-7B System License Value: USD $6,192 SELLER: Nivisys Industries LLC 400 South Clark Drive Suite 105 Tempe, AZ 85281 Tel: 480-970-3222 FOREIGN CONSIGNEE: M Paz Logistics 20 Hata'as Street, Suite 214 PO Box 86 Kfar-Saba Israel Tel: 972-9-7661555 FOREIGN END-USER: CBA KODJO Kagnarim Officer TAM/FAT S/C General de Brigade Aerienne Ayeva Essofa CEMG/FAT B.P. 938 Lome, Togo PURPOSE: For the sole use by the government officials and security personnel of Togo for the purpose of national security. ¶B. DTC Case: 050192065 QUANTITY/COMMODITY: 4 M&P15 Caliber Rifles, 5.56mm License Value: USD $4,200 SELLER: Smith & Wesson Holding Corporation 2100 Roosevelt Avenue Springfield, MA 01104 Tel: 413-781-8300 FOREIGN CONSIGNEE: M Paz Logistics 20 Hata'as Street, Suite 214 PO Box 86 Kfar-Saba Israel Tel: 972-9-7661555 "Buyer Only" Global Law Enforcement & Security Ltd 11 Granit Street PO Box 3111 Petach Tikvah Israel Tel: None provided "Agent Only" FOREIGN END-USER: Togolese Republic Ministry of Defense Togolese Armed Forces CBA Kodjo Kagnarim Street Lome, Togo PURPOSE: For the sole use of the Togolese Republic Ministry of Defense Togolese Armed Forces in the Country of Togo. ¶7. (U) Submitted in support of the license application were the following documents (PM/DTCC will fax documentation to Posts upon request): ¶A. DSP-83 signed by Brenda Nicacio (Nivisys) dated 09/18/2009; Ayeva Essofa (Togolese Armed Forces) dated 08/19/2009; and Anat Paz-Zarmi (M. Paz) dated 09/08/2009 Letter (End User Certificate) No. 1673/EMG/CAB issued by Ministere de la Defense Nationale signed by illegible dated 08/12/2009 Purchase Order No. 4080-09 from M Paz Logistics to Navisys signed by illegible dated 09/08/2009 ¶B. DSP-83 signed by Cheryl Maron (Smith & Wesson) dated 09/18/2009 and Ayeva Essofa (Togolese Armed Forces) dated 08/13/2009 Letter No. 1747?/EMG/CAB issued by Ministere de La Defense Nationale signed by illegible dated 09/09/2009 Letter (End User Certificate) No. 1685/EMG/CAB issued by Ministere de la Defense Nationale signed by illegible dated 08/13/2009 Purchase Order No. 025-09 from Global Law Enforcement & Security to M Paz Logistics signed by COL Lior Lotan (Ret) dated 08/16/2009 Purchase Order from M Paz Logistics to Smith & Wesson signed by illegible dated 08/20/2009 ¶8. (U) 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 on Intellipedia: http://www.intelink.gov/wiki/ Blue Lantern End-Use Monitoring Program ¶9. (U) Department is grateful for Post's assistance in this matter. CLINTON