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

UNCLAS STATE 128516

SIPDIS
GABORONE FOR SCOTT HAMILTON
LONDON FOR PAULA WIKLE

E.O. 12958: N/A
TAGS: ETTC KOMC BC UK
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK
ON LICENSE 050205274


1. This is an Action Request. See paragraph 4 - 5.


2. The Department's Office of Defense Trade Controls
Compliance (PM/DTCC) requests Post's assistance in conducting
a pre-license check on license 050205274 for the export of
ammunition and explosives to Botswana. 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 items on this license request are
particularly sensitive due to their vulnerability to
diversion and their lethality. In addition to the items
listed below, the purchase order from Clover Industrial
Supplies and the End User Certificate from the Botswana
Police Service includes detonators, fuses, and detonator
chords. This check is to establish the bona fides of the
transaction and the parties involved.


4. Action Gaborone: Post is requested to establish the bona
fides of this transaction and the parties involved by making
inquiries to representatives of Clover Industrial Supplies
and appropriate authorities of the Government of Botswana.
The following points are included for guidance:

(To Clover Industrial Supplies)

--When was your company established and who are its
principals?

--What other companies are part of the Clover Group? Who are
the principals of the Clover Group?

--What products and services does your company provide?
Please explain why your company email address is
"cloverchemicals@mega.bw" and describe the elements of your
business that involve the use and/or sale of chemicals.

--Who are your regular customers and where do they reside?

--What are your annual sales of U.S.-origin defense articles?


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

--What role is your company playing in this transaction?
What role does Qurtermaster's Ltd. of the United Kingdom play
in this transaction?

--The import permit issued by the Central Arms Registry of
the Botswana Police Service grants permission to "Stores
Officer Quarter of Master Stores P.O. Box 10037 Gaborone."
What role is Clover Industrial Supplies playing in this
transaction?

--Will you ever have physical possession of the defense
articles listed below? If so, please describe the security
measures and procedures your company has in place.

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

(To Botswana Police Service)

--Can you confirm that your agency placed this order? Please
verify the exact commodities and quantities you require.

--For what will these items be used?

--The import permit issued by the Central Arms Registry (Form
No. 4) is titled as an "Acquisition Permit" but "Acquisition"
is crossed out and "Import" is handwritten. Is this a valid
import permit?

--The import permit grants permission to "Stores Officer
Quarter of Master Stores P.O. Box 10037 Gaborone." What role
is Clover Industrial Supplies playing in this transaction?
Does Clover Industrial Supplies require import authorization
from the Government of Botswana?

--Will any company ever have physical possession of these
items?

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. Action London: Post is requested to establish the bona
fides of this transaction and Quartermaster's Ltd. by making
inquiries to representatives of the company. The following
points are included for guidance:

(To Quartermaster's Ltd.)

--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?
Were your products and services sought by ALS Technologies of
the United States of by Clover Industrial Supplies of
Botswana?

--What role is Clover Industrial Supplies playing in this
transaction? What is your relationship to Clover Industrial
Supplies and/or the Clover Group?

--Will you ever have physical possession of the defense
articles listed below? If so, please describe the security
measures and procedures your company has in place.


6. Details of license applications:

DTC Case: 050205274

QUANTITY/COMMODITY:

170,000 Round of Ammunition, 7.62 x 39mm Ball

2 C4 RDX Plastic Explosives

1,000 ALSG972 Smoke Grenades

License Value: USD $49,170

SELLER:

ALS Technologies Inc
1103 Central Blvd
Bull Shoals, AR 72619

FOREIGN INTERMEDIATE CONSIGNEE:

Quartermaster's Ltd.
Trinity House, Heather Park Drive
Wembley, Middlesex, HAO ISU
United Kingdom

FOREIGN CONSIGNEE:

Clover Industrial Supplies PTY LTD
Plot No. 1277 Old Labatse Road
Gaborone
Botswana
Tel: 3953035
Email: cloverchemicals@mega.bw

FOREIGN END-USER:

Botswana Police Service
Metsimotlhabe Road
Village, Gaborone
Botswana
Tel: 267 3956390

PURPOSE:

For use by the Botswana Police Service only.


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

DSP-83 signed by Paola Gutierrez (ALS Technologies) dated
09/01/2009; Illegible (Quarter Mater Stores, Botswana Police
Service) dated 07/23/2009; Raphael Motsamai (Botswana Police
Service) dated 07/23/2009; and Kalum Mandana (Clover
Industrial Supplies) dated 07/23/2009

End User Certificate Ref No OC.24/13 I (40) issued by Quarter
Master Stores, Botswana Police Services signed by David Baale
dated 07/24/2009

Form No. 4 Import Permit No. 23204 issued by the Central Arms
Registry of the Botswana Police Service signed by Illegible
dated 09/07/2009

Purchase Order No. 0052 from Clover Industrial Supplies
signed by Kalum Nandana dated 07/23/2009


8. 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


9. Department is grateful for Post's assistance in this
matter.
CLINTON