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