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

UNCLAS STATE 091627 SENSITIVE SIPDIS KUWAIT FOR STEVEN CONLON E.O. 12958: N/A TAGS: ETTC KOMC KU SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON LICENSE 050126494 REF: BLUE LANTERN GUIDEBOOK ¶1. This is an Action Request. See paragraph 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 050126494 for the export of firearms to Kuwait. 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: Information obtained by PM/DTCC indicates that one (1) Smith & Wesson firearm originally exported to the Ministry of Interior of Kuwait (MOI) under this licenses may have been re-exported without Department authorization. This request is for Post to inquire with MOI about the current disposition of the Smith & Wesson firearm bearing serial number BJM3362. In addition, Post is requested to establish the bona fides of foreign intermediate consignee Al-Sada General Trading & Contracting. ¶4. (U) Action Request: Post is requested to verify that all the firearms listed below were received by MOI. Post is specifically requested to determine the current disposition of the Smith & Wesson firearm bearing serial number BJM3362. Post is also requested to establish the bona fides of Al-Sada General Trading & Contracting by making inquiries to representatives of the company and appropriate host government officials. The following points are included for guidance: (To MOI) --Can you confirm that you received all the firearms listed on this license? --Can you please provide any documentation that demonstrates that you still retain possession of the Smith & Wesson firearm bearing serial number BJM3362? (To Al-Sada General Trading & Contracting) --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 are your annual sales of U.S.-origin firearms? --Did you ever retain physical possession of the firearms listed on this license? If so, please provide any documentation that demonstrates that all firearms were transferred to the Ministry of Interior of Kuwait. --Are you familiar with the regulations governing the import of U.S.-origin defense articles, including restrictions on re-transfer or re-export? (To Appropriate Kuwaiti Officials) --Is Al-Sada General Trading & Contracting properly authorized to import and sell defense articles in Kuwait? --Do you have any information on Al-Sada General Trading & Contracting that would question their reliability as a recipient of U.S. defense articles? In its reply, Post is also encouraged to comment on any other 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: 050126494 QUANTITY/COMMODITY: 630 Model 908 Pistols 630 Magazines 1 Armorer's Training course for M&P Pistols 25 Training Manuals for M&P Pistols License Value: USD $264,596 SELLER: Smith & Wesson Holding Corporation 2100 Roosevelt Ave Springfield, MA 01104 FOREIGN INTERMEDIATE CONSIGNEE: Al-Sada General Trading & Contracting Salhiya, Ali Al-Salem Street, Yousef Al-Zayed Bldg, Office 7 PO Box 25731 Safat 13118 Kuwait Tel: 2408542 / 2421601 / 965 4923451 through 2 Mobile: 965 99033946 FOREIGN END-USER: Ministry of Interior Al-Ardiya Kuwait City Kuwait Tel: 965 4342689 / 965 4349459 (as provided on the purchase order) PURPOSE: For use by the Kuwaiti Ministry of Interior. ¶6. (U) Submitted in support of the license application were the following documents (PM/DTCC will fax documentation to Posts upon request): Signed DSP-83 Nontransfer and Use Certificate signed by Cheryl Maron (Smith & Wesson) and 10/2/2008 and Ajeel Al-Ajram (MOI) dated 09/24/2008 Purchase Order issued by Al-Sada General Trading & Contracting signed by Jasem Al-Zayed dated 09/28/2008 Contract No. 551/2008-2009 between MOI and Al-Sada General Trading & Contracting ¶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 on Intellipedia: http://www.intelink.gov/wiki/ Blue Lantern End-Use Monitoring Program ¶8. (U) Department is grateful for Post's assistance in this matter. CLINTON