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