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

UNCLAS STATE 122438

SIPDIS
ISLAMABAD FOR JONATHAN HOLLAND

E.O. 12958: N/A
TAGS: ETTC KOMC PK
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK
ON LICENSE 050200840


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 050200840 for the export of
pistols to Pakistan. 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: The FN Herstal Five-Seven pistol on
this license is often cited as a favorite for organized
criminals. The documentation submitted in support of this
license request includes a letter from the Ministry of
Commerce, but it is unclear if the letter constitutes import
authorization. Also, there is no Blue Lantern history for
end-user Hira Arms. This request is for Post to determine if
the proper import authorization has been granted and to
establish the bona fides of the end-user.


4. Action Request: Post is requested to establish the bona
fides of end-user Hira Arms by making inquiries to
representatives of the company and appropriate authorities of
the Government of Pakistan (GOP). Post is also requested to
determine if import authorization has been granted for these
pistols. The following points are included for guidance:

(To Hira Arms)

--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 your annual sales of U.S.-origin firearms?

--Do you sell firearms to customers that reside outside
Pakistan? If so, who are these customers and where do they
reside?

--What are these pistols generally used for in Pakistan?

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

(To Appropriate Import/Export and/or Law Enforcement
Authorities)

--Is Hira Arms properly authorized to import and sell defense
articles in Pakistan?

--Does the import of these pistols require import
authorization from the Government of Pakistan? If so, does
the letter to Hira Arms from the Ministry of Commerce dated
10/06/2009 constitute such authorization?

--Do you have any information on Hira Arms that would call in
to 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, restrictions on the import of these firearms,
end-use, and concerns about the entities involved.


5. Details of license applications:

DTC Case: 050200840

QUANTITY/COMMODITY:

20 FN Five-Seven Pistols, 5.7 x 28mm Caliber

License Value: USD $17,680

SELLER:

RSR Group
4405 Metric Drive
Winterpark, FL 32792

FOREIGN END-USER:

Hira Arms
7 Nila Gumbad
54000 Lahore
Pakistan
Tel: 92 42 7310992 / 7322223 / 7310505

PURPOSE:

For commercial resale in Pakistan


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 Cathy Mandery (RSR Group) dated 11/18/2009
and Fayyaz Malik (Hira Arms) not dated

Letter to Hira Arms from Ministry of Commerce on the
"Enhancement of Import Ceiling for Non-Prohibited Bore Arms
and Ammunition" signed by Muhammad Arifullah dated 10/06/2009

Purchase Order from Hira Arms signed by Fayyaz Malik dated
09/10/2009


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