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

UNCLAS STATE 075563

SIPDIS
MADRID FOR E. STROTHER MURRAY

E.O. 12958: N/A
TAGS: ETTC KOMC SP
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK
ON APPLICATION 050177626

REF: A. 2006 BLUE LANTERN GUIDEBOOK

B. 2009 MADRID 453


1. This is an Action Request. See paragraphs 2-4.


2. The Department's Office of Defense Trade Controls
Compliance (PM/DTCC) requests Embassy's assistance in
conducting a pre-license check on application 050177626 for
the export of night vision goggles (NVGs) to Spain. 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: sensitive commodity and potential for
diversion and misuse. Also, foreign intermediate consignee,
Elint S.A. has been implicated in the potential diversion of
NVGs in the past.


4. Background: DTCC requested a Blue Lantern post-shipment
check on night vision devices (NVDs) (authorization request
No. 05-971940) for the Spanish Marines. Embassy Madrid,
supporting DDTC's Blue lantern inquiry, determined that
Spanish intermediate consignee, Elint S.A. could not account
for 112 NVDs, had retransferred dozens of NVDs to
unauthorized end-users in Spain and within NATO, had stored
at least 114 NVDs in its own facilities without
authorization, and committed several other violations and
irregularities. Based on Post's findings, the Spanish MoD
asked the Spanish National Police to investigate, and U.S.
applicant ITT is pursuing a patent infringement suit against
Elint S.A.


5. ACTION MADRID: Post is requested to make inquiries with
appropriate officials to determine if the Spanish Marines
ordered the NVGs from Elint S.A. and if so, verify the amount
and dollar value, and that the items will be used for the
purpose stated on the license.

The following questions are provided as suggested guidance:

--Can the Spanish MoD confirm the existence of a contract or
purchase order with Elint S.A. for the full quantity and
dollar value of NVGs?

--Can the Spanish MoD confirm end-use of the NVGs (ostensibly
in Afghanistan and Lebanon)? How many NVGs are required for
Afghanistan and Lebanon respectively?
END ACTION


6. Details of the license application:

DTC Case: 050177626

QUANTITY/COMMODITY:

462 PVS-14 Night Vision Monocular kit. Each kit includes:
PVS-14 night vision monocular generation 3; sacrificial
window NSN 5855-01-246-8271; demist shield NSN
5855-01-444-1230; head mount assembly NSN 5855-01-246-8266;
head/helmet mount adapter NSN 5965-01-444-1216

400 GT-14 Night Vision Monocular Generation 3 kit. Each kit
includes a head mount assembly NSN 5965-01-444-1216

License Value: USD 2,640,940.00

SELLER:

N-Vision Optics LLC
220 Reservoir Street Suite 26
Needdham, MA 02494
POC is Olga Rivkin, Tel. 708-505-8360 ext. 3101

FOREIGN CONSIGNEE:

A.G.C. S.L. Centro de Carga Aerea de Madrid - Barajas
Edificio de Servicios Generales
Oficina No. 304
Madrid
Spain
No POC provided, Tel. ( 34) 91 329 38 50

FOREIGN INTERMEDIATE CONSIGNEE

Elint S.A.
Sagitario 1
madrid
Spain
POC is Carlos Dominguez, Tel. 91 307 88 43

FOREIGN END-USER:

Spanish Marines
Avda. Pio XII, 86
madrid
Spain
POC is Procurement Manager, Jose Conde, No Tel. provided

PURPOSE:

The equipment will be used by the Spanish Marines in
anti-terrorist operations in Lebanon and also in support of
OEF in Afghanistan.


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

--DSP-83 Nontransfer and Use Certificate submitted by Spanish
Marines signed by Procurement Managers, Major Jesus Marin and
Colonel Pascual Junquera on 3 June 2009, and by Elint S.A.
Product Manager, Carlos Dominguez on 3 June 2009.

--Purchase Order No. 0275/AD/MAR/09 submitted by Elint S.A.,
signed by Purchasing QA Manager, Beatriz Quiros on 5 June

2009.

--End Use Statement submitted by Ministerio de Defensa,
signed by Procurement Manager, Jose Conde and by Elint S.A.
Product Manager, Carlos Dominguez on 5 June 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 Tim Mazzarelli, Phone:
202-663-3867; Email: MazzarelliTP@state.gov; SIPRNET:
MazzarelliTP@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://buncheelectroniclibrary.state.gov/eboo ks/
BlueLanternGuidebook2006%20 final .pdf


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