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

UNCLAS STATE 092051

SIPDIS
ASTANA FOR JENNIFER BACHUS CARLETON
SOFIA FOR JOSH HUCK

E.O. 12958: N/A
TAGS: ETTC KOMC KZ BU
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK
ON LICENSE 050187693

REF: BLUE LANTERN GUIDEBOOK


1. This is an Action Request. See paragraphs 4 - 5.


2. The Department's Office of Defense Trade Controls
Compliance (PM/DTCC) requests Post's assistance in conducting
a pre-license check on license 050187693 for the export of
rifles and ammunition to Kazakhstan. 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: The rifles and ammunition in this
transaction are of a heavy caliber used by snipers. This
request is to establish the bona fides of the transaction and
determine the role of Bulgarian company Samros Group.


4. Action Astana: Post is requested to establish the bona
fides of this transaction by making inquiries to
representatives of R.S.E. Kazspetsexport and appropriate
authorities of the Government of Kazakhstan. The following
points are included for guidance:

(To MOD of Kazakhstan )

--Can the MOD confirm the order of the firearms and
ammunition listed on this license application?

(To R.S.E. Kazspetsexport)

--What role is Bulgarian company Samros Group playing in this
transaction? Please describe any fees or commissions Samros
Group is receiving for its services in this transaction.

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. Action Sofia: Post is requested to establish the bona
fides of foreign intermediate consignee Samros Group by
making inquiries to representatives of the company and
appropriate authorities of the Government of Bulgaria. The
following points are included for guidance:

(To Samros Group)

--When was your company established and who are its
principals? Does your company have offices located in other
countries?

--What products and services does your company provide? Who
are your regular customers and where do they reside?

--Will your company ever have physical possession of the
firearms and ammunition listed on this export license? If
so, what inventory procedures are in place to assure the
proper security and safe delivery of these firearms?

--From whom will you receive the defense articles and to whom
will you ship them? Please provide a brief chain of custody
for these defense articles.

--What role is your company playing in this transaction?
Please describe the fees or commissions you will receive for
your services in this transaction.

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

--Are you familiar with the regulations governing the
brokering of U.S.-origin defense articles and services,
including the requirement of all foreign brokers to register
with the U.S. Department of State?

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.


6. Details of license application:

DTC Case: 050187693

QUANTITY/COMMODITY:

2 McMillan TAC-50 Bolt Action Rifles, .50 Caliber

4,000 Rounds of Ammunition, .50 Caliber

License Value: USD $48,280

SELLER:

Falcon Defense Group
3940 Bardstown Road, Suite 2C
Louisville, KY 40218-2657

FOREIGN INTERMEDIATE CONSIGNEE:

R.S.E. Kazspetsexport
#3 Shashkin Street
Almaty 050040
Kazakhstan

FOREIGN INTERMEDIATE CONSIGNEE:

Samros Group LTD
Chaika 64/20
Varna 9005
Bulgaria
Tel: 359 52 711 452
Email: info@samrosgroup.com

FOREIGN END-USER:

Kazakhstan Ministry of Defense
Left Side, Sez #2
010000 Astana
Kazakhstan

PURPOSE:

For official use by the Ministry of Defense/Armed Forces of
Kazakhstan. For national defense purposes.


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

DSP-83 signed by Steven Herberth (Falcon Defense) dated
08/29/2009; B. Ertaev (MOD) dated 06/02/2009; and K.
Arzykulov (Kazspetsexport) dated 06/26/2009.

Purchase Order issued by Kazspetsexport to Samros Group
signed by K. Arzykulov.

Purchase Order Ref. 1282-27-09 issued by Samros Group to
Falcon Defense signed by Samat Bakhtigaliev dated 08/29/2009.

End-Use Certificate issued by Samros Group signed by R.
Komratov dated 08/10/2009.


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 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


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