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

UNCLAS SECTION 01 OF 03 STATE 057530 SENSITIVE SIPDIS MEXICO CITY FOR STEWART BEITZ E.O. 12958: N/A TAGS: ETTC KOMC MX SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON LICENSE 050016624 REF: 08 MEXICO 3137 ¶1. This is an Action Request. See paragraphs 2 - 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 license 050016624 for the export of firearms to Mexico. 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: According to eTrace data from the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (BATFE),an AR-15 type rifle exported to the Secretaria de la Defensa Nacional (SEDENA) on license 050016624 was recovered in Panindicuaro, Michoacan (serial number L428091). The firearms on this license were destined for ultimate end-use by the Secretarias de Seguriada Publica in Baja, Chihuahua, and Michoacan. Several other firearms recovered in illicit caches and traced by BATFE have been linked to transactions to which the foreign intermediate consignees in this case, Central Aduanas de Mexico and Eduardo Jordan, were party. ¶4. (SBU) Action Request: Post is requested to making inquiries with appropriate Government of Mexico (GOM) officials in order to confirm the receipt of the firearms listed below and seek information on how the AR-15 rifle recovered in Michoacan was diverted. Post should request that GOM account for all the firearms received on this license. In addition, Post is requested to establish the bona fides of the foreign intermediate consignees Central Aduanas de Mexico and Eduardo Jordan and clarify their roles in this transaction (NOTE: Post is not/not requested to contact Central Aduanas de Laredo in Texas). The following points are included for guidance: (To the Government of Mexico) --Did GOM receive all 1,030 AR-15 type rifles exported under license 050016624? Can you provide documentation demonstrating receipt of the rifles by SEDENA? Can you provide documentation demonstrating that the firearms were transferred to and received by the Secretarias de Seguriada Publica in Baja, Chihuahua, and Michoacan? --Did GOM authorize the retransfer of any of these rifles? If so, what parties were involved in the re-export? Please provide all available information regarding the retransfer, whether authorized or otherwise. --Does GOM maintain sufficient records that allow a thorough inventory of rifles in its stock? Please account for the current location of the 1,030 AR-15 type rifles. (To Central Aduanas de Mexico in Nuevo Laredo, Tamaulipas, Mexico) --When was your company established and who are its principles? --What goods and services does your company provide? Who are your regular customers and where do they reside? --What is your role in these transactions? Did you ever have physical possession of these firearms? Please provide all available information regarding your role in this transaction, including any documentation that demonstrates that the firearms were placed in GOM custody. --What is your relationship to Central Aduanas de Laredo in Laredo, Texas? Do you have any official business partnership or agreements with the company? Are any payments, good, or services exchanged between your company and Central Aduanas de Laredo? Please describe in detail the partnership, agreements, and/or exchanges. --What was Central Aduanas de Laredo's role in this transaction? Did they ever have physical possession of the STATE 00057530 002 OF 003 firearms? --What is your relationship with Eduardo Jordan? Do you have any official business partnership or agreements with Mr. Jordan? Are any payments, good, or services exchanged between your company and Mr. Jordan? Please describe in detail the partnership, agreements, and/or exchanges. --What was Eduardo Jordan's role in this transaction? Did he ever have physical possession of the firearms? --Are you familiar with the regulations governing the import of U.S.-origin defense articles, including restrictions on re-transfer or re-export? (To Eduardo Jordan) --You previously stated that you are a marketing agent for Bushmaster Firearms (REFTEL). Is this still true? Did you ever have physical possession of the firearms during the course of this transaction? --What is your relationship to Central Aduanas de Mexico and Central Aduanas de Laredo? Do you have any official business partnership or agreements with the companies? Are any payments, good, or services exchanged between you and the companies? Please describe in detail the partnership, agreements, and/or exchanges. --What was Central Aduanas de Laredo's role in this transaction? Did they ever have physical possession of the firearms? --What was Central Aduanas de Mexico's role in this transaction? Did they ever have physical possession of the firearms? In its reply, Post is encouraged to comment on any information pertinent to this transaction such as security of facilities, end-use, and concerns about the entities involved. ¶5. (U) Details of license applications: DTC Case: 050016624 QUANTITY/COMMODITY: 1,030 Bushmaster M4A2-type Carbines, Model XM15E2S License Value: USD $974,380 SELLER: Bushmaster Firearms International 999 Roosevelt Trail Windham, ME 04062 FOREIGN INTERMEDIATE CONSIGNEES: Central Aduanas de Mexico Donato Guerra 1242 Colony Sector Aduana CP Nuevo Laredo, Tamaulipas 88000 Mexico Tel: 867 12 76 66 Eduardo Jordan Pedro Ascencio NO 211-28 Villas de San Agustin Metepec Edo de Mexico 52140 Mexico Tel: 52 614 488 4218 FOREIGN END-USER: Secretaria de la Defensa Nacional Direccion General de Industria Militar POC: COL Ricardo Martin Rodriguez Campo Militar No 1-D, Tecamachalco Naucalpan de Juarez Mexico Tel: 52 55 5589 1197 Secretaria de la Defensa Nacional Direccion General de Industria Militar POC: COL Ricardo Martin Rodriguez Av Industria Militar No 1111 Lomas de Tecamachalco STATE 00057530 003 OF 003 Naucalpan de Juarez 53950 Mexico Tel: 52 55 5589 1197 PURPOSE: For official government use. The carbines are destine to the General Direction of the Military Industry and will be distributed for sale to the Secretarias de Seguriada Publica in Baja, Chihuahua, and Michoacan. ¶6. (U) Submitted in support of the license application were the following documents (PM/DTCC will fax documentation to Posts upon request): Statement from Bushmaster Firearms indicating that a commission will be paid to Eduardo Jordan. Signed by Shannon Shuman dated 4 October 2006 Signed DSP-83 Nontransfer and Use Certificate signed by Shannon Shuman dated 4 October 2006 and Juan Alfredo Oropeza Garnica (Government of Mexico) dated 7 September 2006 Importing Contract No. 093/2006 signed by Juan Alfredo Oropeza Garnica, Guzmar Angel Gonzalez Castillo, Ricardo Martin Rodriguez, and Lauro Rodolfo Felix Lugo (Government of Mexico) and John Desantis and Allen Faraday (Bushmaster Firearms) ¶7. (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 in the Bunche Library's E-Book Collection on the DOS Intranet: http://virtuallibrary.state.gov/ BlueLanternGuidebook2006%2520 final .pdf ¶8. (U) Department is grateful for Post's assistance in this matter. CLINTON