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

UNCLAS STATE 062847

SIPDIS
BERLIN FOR SHANE PETERSON

E.O. 12958: N/A
TAGS: ETTC KOMC GM
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK
ON LICENSE 050174850


1. This is an Action Request. See paragraphs 2 - 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 050174850 for the export of
ammunition to Germany. 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: Wolfgang Grau of Grauwolf has been
listed on four (4) previous licenses, none of which exceed
$710 in value. This license is valued at $1.25 million.
This check is to establish the bona fides of the end-user and
to explain the significant increase in U.S. Munitions Listed
items.


4. Action Request: Post is requested to establish the bona
fides of end-user, Grauwolf, by making inquiries to
representatives of the company and appropriate authorities in
the German government. The following points are included for
guidance:

(To Grauwolf)

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

--How long has your company been in the business of importing
and selling defense articles in Germany? What services and
products does your company provide?

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

--What are you annual sales of defense articles and services?
Can you explain the significant increase in defense articles
on this license as compared to previous export licenses
issued by the United States Government?

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

(To German Authorities)

--Is Grauwolf authorized to import and sell ammunition in
Germany? Do you have any information on Grauwolf or Wolfgang
Grau that would 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, end-use, and concerns about the entities involved.


5. Details of license applications:

DTC Case: 050174850

QUANTITY/COMMODITY:

80,000 Rifle and Pistol Brass Cases

200,000 Rifle and Pistol Bullets

25,000 Minor Rifle and Pistol Parts

License Value: USD $1,250,000

SELLER:

Graf & Sons Inc
4050 S. Clark Street
Mexico, MO 65265

FOREIGN END-USER:

Grauwolf / Wolfgang Grau
IM Dunsbach 6
Ludwigsau 36251
Germany
Tel: 0 66 21-7 16 29

PURPOSE:

For resale to hunters and sport shooters


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

DSP-83 Nontransfer and Use Certificate signed by Melissa
Perkins (Graf & Sons) dated 15 June 2009 and Wolfgang Grau
(Grauwolf) dated 6 June 2009

Purchase Order from Grauwolf dated 6 June 2009

Letter issued by Hauptzollamt GieBen - Zollamt Bad Hersfeld-
dated 27 February 2007 stating that no import permit is
required for these items.


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