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

UNCLAS STATE 119710

SIPDIS
ASUNCION FOR LUIS HERNANDEZ

E.O. 12958: N/A
TAGS: ETTC KOMC PA
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK
ON LICENSE 050200473


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 license 050200473 for the export of
rifles and a suppressor to Paraguay. 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: This transaction is for significant
defense articles and involves an unfamiliar party. This
request is for Post to establish the bona fides of this
transaction and foreign intermediate consignee, SIT
Security-Intelligence-Technology.


4. Action Request: Post is requested to establish the bona
fides of this transaction and foreign intermediate consignee,
SIT Security-Intelligence-Technology by making inquiries to
representatives of the company and appropriate authorities of
the Government of Paraguay. The following points are
included for guidance:

(To National Police of Paraguay)

--Can you confirm the order for these firearms and the
suppressor

--How will these items be used by the National Police? Will
they be transferred to any other entities within the
Paraguayan Government? Will they be used by any
non-government entities?

--Will SIT Security-Intelligence-Technology ever have
physical possession of these items? Who else may be handling
these defense articles prior to delivery to the National
Police?

--Do you have any information on SIT
Security-Intelligence-Technology that would call in to
question their reliability as a recipient of U.S. defense
articles?

(To SIT Security-Intelligence-Technology)

--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 role is your company playing in this transaction?

--Will you ever have physical possession of these items? If
so, please describe the security measures and procedures in
place to secure these items.

--Are you familiar with the regulations governing the import
of U.S.-origin defense articles, including restrictions on
re-transfer or re-export?

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:

DTC Case: 050200473

QUANTITY/COMMODITY:

3 McMillan TAC-308 Rifles, .308 Caliber

2 McMillan TAC-50 Rifle, .50 Caliber

4 Leupold Mark 4 8.5-25x x 50mm Scopes

1 Elite Iron Bravo Suppressor

4 Spare Parts Kits

License Value: USD $39,271

SELLER:

Falcon Defense Group
3940 Bardstown Road, Suite 2C
Louisville, KY 40218

FOREIGN INTERMEDIATE CONSIGNEE:

SIT Security-Intelligence-Technology
Av Primer Presidente 2128
Asuncion
Paraguay
Tel: (595 21) 224 667
Email: sit@sit.com.py

FOREIGN END-USER:

Ministry of Interior
National Police
Asuncion
Paraguay

PURPOSE:

Official use by Paraguyan National Police for law enforcement.


6. Submitted in support of the license application were the
following documents (PM/DTCC will fax documentation to Posts
upon request):

DSP-83 signed by Steve Herberth (Falcon Defense) dated
11/12/2009 and Rafael Filizzola Serra (Ministry of Interior)
dated 10/26/2009

Import Authorization issued by War Material Division,
National Register of Weapons to Dario Karmel dated 05/14/2009
(NOTE: Only translation was provided)

Letter of End User Intent from the Ministry of Interior
signed by Rafael Filizzola Serra dated 10/27/2009

Purchase Order from SIT S.A. signed by Dario Karmel dated
10/27/2009


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