BLUE LANTERN LEVEL 1: POST-SHIPMENT END-USE CHECK

UNCLAS STATE 119552 SENSITIVE SIPDIS CAIRO FOR MELISSA CLINE E.O. 12958: N/A TAGS: ETTC KOMC EG SUBJECT: BLUE LANTERN LEVEL 1: POST-SHIPMENT END-USE CHECK ON LICENSES 050073373 AND 050120640 REF: EMAIL BALLARD-CLINE ¶1. (U) This is an Action Request. See paragraph 4. ¶2. (U) The Department's Office of Defense Trade Controls Compliance (PM/DTCC) requests Post's assistance in conducting a post-shipment check on licenses 050073373 and 050120640 for the export of firearms to Egypt. Post is requested to complete this Blue Lantern check within 45 days. Lack of response to a Blue Lantern check will affect pending and future licenses involving parties to this license. ¶3. (SBU) Reason for Request: Information obtained by PM/DTCC indicates that a Smith & Wesson firearm originally exported to M. M. Fathallah of Egypt bearing serial number BJM3308 may have been re-exported without Department authorization. This request is for Post to inquire with M. M. Fathallah about the current disposition of all the firearms bearing the serial numbers listed in REFTEL. Post is also requested to establish a baseline for M. M. Fathallah's annual sales of U.S.-origin firearms. ¶4. (SBU) Action Request: Post is requested to verify that the firearms listed below were received by M. M. Fathallah and to determine the company's annual sales of U.S.-origin firearms. Post is also requested to review the records of sale for all the serial numbers listed in REFTEL to determine if any were re-exported. Finally, Post should obtain all available information on the Smith & Wesson firearm bearing serial number BJM3308 (exported on license 050120640) and provide that information to PM/DTCC. The following points are included for guidance: (To M. M. Fathallah) --What are your annual sales of U.S.-origin firearms? --Can you confirm receipt of all the firearms listed on these licenses? --Do you sell firearms to customers that reside outside Egypt? --Are you familiar with the regulations governing the import of U.S.-origin defense articles, including restrictions on re-transfer or re-export? --Please provide all sales records for the firearms received in these transactions. (NOTE: Post should use this information to determine the current disposition of Smith & Wesson BJM3308 and provide this information to PM/DTCC. END NOTE) 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) Details of license applications: ¶A. DTC Case: 050073373 QUANTITY/COMMODITY: 20 9mm Pistols (S&W 910) 10 9mm Pistols (S&W M&P) 10 9mm Pistols (S7W SW9VE) License Value: USD $16,050 SELLER: RSR Group 4405 Metric Drive Winterpark, FL 32792 FOREIGN END-USER: M.M. Fathallah 24 Saad Zagloul St. Alexandria, Egypt Tel: 203 4808340 / 4807725 AND 1 Abdel Khalik Sarwat Street Cairo, Egypt Tel: 202 25751448 / 25760582 PURPOSE: Commercial resale in Egypt. ¶B. DTC Case: 050120640 QUANTITY/COMMODITY: 40 9mm Pistols (Sig Sauer P229) 70 9mm Pistols (S&W 5906) License Value: USD $113,620 SELLER: RSR Group 4405 Metric Drive Winterpark, FL 32792 FOREIGN END-USER: M.M. Fathallah 24 Saad Zagloul St. Alexandria, Egypt Tel: 203 4808340 / 4807725 AND 1 Abdel Khalik Sarwat Street Cairo, Egypt Tel: 202 25751448 / 25760582 PURPOSE: Commercial resale in Egypt. ¶6. (U) 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 End Use Certificate signed by Cathy Mandery (RSR Group) dated 10/31/2007 and Mohamed M. Fathallah dated 10/24/2007 Import license (and translation) for M.M. Fathallah dated 26 August 2007 (License No. 19813) Order Confirmation Letter from M.M. Fathallah dated 21 August 2007 Importers Record (and translation) for MM. Fathallah issued by Egyptian Ministry of External Trade and Industry ¶B. DSP-83 Nontransfer and End Use Certificate signed by Cathy Mandery (RSR Group) dated 08/27/2008 and Mohamed M. Fathallah dated 05/22/2008 Import license (and translation) for M.M. Fathallah dated 26 August 2007 (License No. 19813) Order Confirmation Letter from M.M. Fathallah dated 22 May 2008 Importers Record (and translation) for MM. Fathallah issued by Egyptian Ministry of External Trade and Industry ¶7. (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 ¶8. (U) Department is grateful for Post's assistance in this matter. CLINTON