BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK

UNCLAS STATE 127325

SENSITIVE
SIPDIS
BERLIN FOR SHANE PETERSEN

E.O. 12958: N/A
TAGS: ETTC KOMC GM BM
SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK
ON LICENSES TA113-04C

REF: CIA OSC SEP20061124035010 - RANGOON THE NEW
LIGHT OF MYANMAR IN ENGLISH 24 NOV 06


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 Technical Assistance Agreement
TA113-04C for the export to Germany of technical data related
to the production of ammunition manufacturing equipment.
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: This Technical Assistance
Agreement (TAA) is for the transfer of technical data to
Germany to facilitate the design and production of ammunition
manufacturing equipment. The end-user in this TAA Fritz
Werner Industrie-Ausrustungen GmbH of Germany (Fritz Werner
Germany) will produce the ammunition manufacturing equipment.
The company has a long history in Burma that culminated in
the establishment of Myanmar Fritz Werner Industries Co. Ltd.
in Burma (Myanmar Fritz Werner). Burma is currently a
proscribed country under part 126.1 of the International
Traffic in Arms Regulations (ITAR). The current relationship
between Fritz Werner Germany and Myanmar Fritz Werner is
unclear. Open source reporting indicates that a delegation
from Fritz Werner Germany was in Burma as recently as
November 2006 (REFTEL). This check is to determine the
extent of Fritz Werner Germany's involvement with Myanmar
Fritz Warner and to establish the bona fides of the German
company.


4. (SBU) Action Request: Post is requested to establish the
bona fides of German end-user Fritz Werner
Indusrtie-Ausrustungen GmbH by making inquiries with
representatives of the company and German government
officials. Specifically, Post is requested determine the
relationship between the company and Myanmar Fritz Werner
Industries Co. Ltd. of Burma. Post is also requested to make
inquiries with other U.S. agencies at Post for any
information on the company. The following points are
included for guidance:

(To Fritz Werner Indusrtie-Ausrustungen GmbH)

--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 you annual sales of U.S.-origin defense articles,
technical data, and services?

--Do you sell U.S.-origin defense articles, technical data,
or services to customers that reside outside Germany? Do you
ever use U.S.-origin technical data to manufacture defense
articles that are then sold to parties outside Germany?

--Do you have any offices or subsidiaries outside Germany?
If so, what are the names of these companies and where do
they reside? Please explain your relationship to these
companies.

--Do you have an official relationship with Myanmar Fritz
Werner Industries Co. Ltd. of Burma? If so, please describe
this relationship. Do you provide any defense articles or
services to this company or the Government of Burma?

--Are you familiar with the regulations governing U.S.-origin
defense articles and technical data, including restrictions
on re-transfer, re-export, and changes in end-use?

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

--Do you have any information on Fritz Werner
Indusrtie-Ausrustungen GmbH that would question their
reliability as a recipient of U.S. defense articles or
technical data?

--Are you aware of any business relationships with
questionable entities outside Germany?

--Is trade with entities in Burma legal under German laws and
regulations?

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:

DTC Case: TA113-04C

QUANTITY/COMMODITY:

Equipment and technical data for ammunition case forming for
5.56mm, 7.62mm, and .50 caliber ammunition

License Value: USD $298,000

SELLER:

Alliant Techsystems Inc.
Lake City Ammunition Division
Highways 7 & 78
Independence, MO 64051-1000

FOREIGN END-USER:

Fritz Werner Industrie-Ausrustungen GmbH
IndustrieStraBe 13
65366 Geisenheim, Germany

PURPOSE:

For the design and production of ammunition manufacturing
equipment to be used by Alliant Techsystems Inc.'s Lake City
Ammunition Division


6. (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


7. (U) Department is grateful for Post's assistance in this
matter.
CLINTON