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

UNCLAS STATE 103101 SIPDIS CANBERRA FOR DAVID ATKINSON E.O. 12958: N/A TAGS: ETTC KOMC AS SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON LICENSES 050132093 AND 050192341 ¶1. This is an Action Request. See paragraph 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 050132093 AND 050192341 for the export of rifles and components to Australia. 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: Russian Mosin M91/30 sniper rifles are popular with many insurgent groups around the world. Australian company Lawrance Ordnance has imported a significant quantity of these rifles from the United States in recent years, but has never been subject to a Blue Lantern check. A proviso was placed on export license 050132093 requiring Lawrance Ordnance to obtain signatures on U.S. Nontransfer and Use Certificates (DSP-83s) for each customer that purchases such rifles. This request is to establish the bona fides of Lawrance Ordnance and verify that the company has adhered to this proviso. (NOTE: 050132093 has been approved and 050192341 is pending the results of this Blue Lantern request). ¶4. Action Request: Post is requested to establish the bona fides of end-user Lawrance Ordnance by making inquiries to representatives of the company and appropriate authorities of the Government of Australia. Post is also requested to verify that the end-user requires purchasers of Mosin M91/30 sniper rifles to sign DSP-83 Nontranfer and Use Certificates. The following points are included for guidance: (To Lawrance Ordnance) --When was your company established and who are its principals? --What products and services does your company provide? Who are your regular customers and where do they reside? --What are you annual sales of U.S.-origin firearms? --Do you sell firearms to customers that reside outside Australia? --To whom do you usually sell Mosin M91/30 rifles? What are they generally used for? How many of these rifles do you generally sell per year? --Did Century Arms notify you in writing that Lawrance Ordnance is required to obtain a signed DSP-83 Nontransfer and Use Certificate, including serial numbers, for each customer that purchases the Soviet Mosin M91/30 Bolt Action Rifle and is required to send that signed DSP-83 back to Century Arms? If available, please provide any correspondence you received from Century Arms explaining these requirements. --Has Lawrance Ordinance obtained these signed documents as required by the terms of U.S. export license 050132093? Please provide documentation demonstrating your compliance with these requirements. --Are you familiar with the regulations governing the import of U.S.-origin defense articles, including restrictions on re-transfer or re-export? (To Appropriate Import/Export and/or Law Enforcement Authorities) --Is Lawrance Ordinance properly authorized to import and sell defense articles in Australia? --Do you have any information on Lawrance Ordinance that would question their reliability as a 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. ¶5. Details of license applications: ¶A. DTC Case: 050132093 QUANTITY/COMMODITY: 105 Russian M44 Bolt Action Rifles, 7.62 x 54R 20 Russian Nagant 1895 Revolvers, 7.62 x 38R 20 Soviet Mosin M91/30 Bolt Action Sniper Rifles, 7.62 x 54R 5 Mark III Flare Pistols Parts and Components for Enfield Rifles License Value: USD $24,604 SELLER: Century Arms, Inc. 236 Bryce Blvd Fairfax, VT 05454 FOREIGN END-USER: Lawrance Ordnance Ground Floor, 802 George Street Sydney Australia Tel: (61 2) 9212 5673 Mobile: 0414 762 308 PURPOSE: For commercial resale in Australia ¶B. DTC Case: 050192341 QUANTITY/COMMODITY: 300 Mosin Nagant M91/30 Bolt Action Sniper Rifles, 7.62 x 54R License Value: USD $18,000 SELLER: Century Arms, Inc. 236 Bryce Blvd Fairfax, VT 05454 FOREIGN END-USER: Lawrance Ordnance Ground Floor, 802 George Street Sydney NSW 2000 Australia Tel: (61 2) 9212 5673 Mobile: 0414 762 308 PURPOSE: For commercial resale in Australia ¶6. Submitted in support of the license application were the following documents (PM/DTCC will fax documentation to Posts upon request): ¶A. DSP-83 Nontransfer and Use Certificate signed by George Samson (Century Arms) dated 10/23/2008 and Simon Lawrance (Lawrance Ordnance) dated 10/25/2008 Import Authorization No. N 081578 issued by Australian Customs Service signed by Christie Palmer dated 08/27/2008 Purchase Order from Lawrance Ordnance signed by Simon Lawrance dated 10/23/2008 ¶B. DSP-83 Nontransfer and Use Certificate signed by George Samson (Century Arms) dated 09/26/2009 and Simon Lawrance (Lawrance Ordnance) dated 09/14/2009 Import Authorization No. N 091449 issued by Australian Customs Service signed by Sue Walter dated 04/09/2009 Purchase Order from Lawrance Ordnance signed by Simon Lawrance dated 09/14/2009 ¶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 on Intellipedia: http://www.intelink.gov/wiki/ Blue Lantern End-Use Monitoring Program ¶8. Department is grateful for Post's assistance in this matter. CLINTON