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