BLUE LANTERN LEVEL 2: PRE-LICENSE END-USE CHECK

UNCLAS STATE 098729 SIPDIS BANGKOK FOR TOM HINES E.O. 12958: N/A TAGS: ETTC KOMC TH SUBJECT: BLUE LANTERN LEVEL 2: PRE-LICENSE END-USE CHECK ON LICENSES 050190040, 050190045, 050190058, 050190070, AND 050190074 ¶1. This is an Action Request. See paragraph 4. ¶2. The Department's Office of Defense Trade Controls Compliance (PM/DTCC) requests Post's assistance in conducting a pre-license check on licenses 050190040, 050190045, 050190058, 050190070, and 050190074 for the export of firearms to Thailand. 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: According to officials in Thailand's Bureau of Investigation and Legal Affairs, only about 2,000 to 3,000 firearms are sold via the Department of Provincial Administration's Welfare Program each year (REFTEL). Despite that estimate, PM/DTCC licensing data indicates that the Bureau of Investigation and Legal Affairs has been listed as the end-user on thirty-one (31) approved firearms licenses since May 1, totaling roughly 10,506 firearms. There are currently an additional seven (7) licenses pending, totaling 1,294 firearms. This amounts to the importation of roughly 11,800 firearms in less than six months (NOTE: Five of the pending licenses are listed below). This request is for Post to establish the bona fides of these transactions and the parties involved. ¶4. Action Request: Post is requested to establish the bona fides of these transactions and of foreign consignee Raja Firearms by making inquiries to representatives of the company and appropriate authorities of the Government of Thailand. Post is also requested to determine through what means these firearms will be distributed and what entity is responsible for maintaining inventories and security of these items. Finally, Post is requested to review appropriate records to determine the ultimate end-use for the 10,506 firearms previously imported by the Bureau of Investigation and Legal Affairs. Post is also encouraged to provide guidance on an appropriate quantity of firearms to be exported to the Bureau of Investigation and Legal Affairs. The following points are included for guidance: (To Raja Firearms) --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 is your role in these transactions? --Is your company receiving any fees or commission 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? --What is the ultimate end-use for the firearms you will provide to the Bureau of Investigation and Legal Affairs? --Does your company have any input or involvement in the process by which the Bureau determines who will receive a firearms? --How did the Bureau describe the ultimate end-use of these firearms to your company? Please provide any documentation you received from the Bureau of Investigation and Legal Affairs that describes the ultimate end-use of these firearms. --How did you describe the ultimate end-use of these firearms to the U.S. vendor? Please provide any documentation you sent to the U.S. vendor that describes the ultimate end-use of these firearms. --Please explain why these firearms were ordered via five separate purchase orders instead of one. (To the Bureau of Investigation and Legal Affairs) --Can the Bureau confirm the order of the firearms listed on these license applications? --For what will these firearms be used? Who will be the ultimate end-users? Will these firearms be used in the official duty of the Bureau or any other agency of the Government of Thailand? --Please describe the process by which the Bureau determines who will receive one of these firearms. --How many firearms have you distributed via the Welfare Program this year? Please provide detailed records on who received firearms via this program. --How many firearms have been distributed via the Welfare Program in past years? --Please explain the large quantity of firearms the Bureau has received from U.S. manufacturers since May 1, 2009 (approx. 10,506 firearms). Are all of these firearms for the Welfare Program? Have there been any other major procurement efforts for firearms during the past six months? --Please provide any documentation that you provided Raja Firearms in these transactions. How did you describe the ultimate end-use of these firearms to Raja Firearms? --What role does Raja Firearms in these transactions? Will the company receive any fees or commissions from the Bureau for its services in these transactions? --Please explain why these firearms were ordered via five separate purchase orders instead of one. --Have any of previously imported firearms been re-exported out of Thailand? Will any of the firearms in the five licenses listed below be re-exported out of Thailand? (To Appropriate Import/Export and/or Law Enforcement Agencies) --Is Raja Firearms properly authorized to import and sell defense articles in Thailand? --Do you have any information on Raja Firearms that would question their reliability as a recipient of U.S. defense articles? ¶5. Details of license applications: ¶A. DTC Case: 050190040 QUANTITY/COMMODITY: 248 Sig Sauer Model P239, 9mm License Value: USD $133,102 SELLER: Sig Sauer Inc. 18 Industrial Drive Exeter, NH 03833 FOREIGN CONSIGNEE: Raja Firearms LTD. 45 Burapha Road Phranakorn District Bangkok Thailand Tel: 0-2222-1254 / 0-2222-7005 / 0-2221-6292 FOREIGN END-USER: Investigation & Legal Affairs Bureau Department of Provincial Administration Wangchaiya Nanglerng Nakornsawan Road Dusit District, Bangkok Thailand PURPOSE: For sole and exclusive use of the Investigation and Legal Affairs Bureau, Department of Provincial Administration. ¶B. DTC Case: 050190045 QUANTITY/COMMODITY: 259 Sig Sauer Model SP 2022 PRO, 9mm License Value: USD $116,291 SELLER: Sig Sauer Inc. 18 Industrial Drive Exeter, NH 03833 FOREIGN CONSIGNEE: Raja Firearms LTD. 45 Burapha Road Phranakorn District Bangkok Thailand Tel: 0-2222-1254 / 0-2222-7005 / 0-2221-6292 FOREIGN END-USER: Investigation & Legal Affairs Bureau Department of Provincial Administration Wangchaiya Nanglerng Nakornsawan Road Dusit District, Bangkok Thailand PURPOSE: For sole and exclusive use of the Investigation and Legal Affairs Bureau, Department of Provincial Administration. ¶C. DTC Case: 050190058 QUANTITY/COMMODITY: 42 Sig Sauer Model Mosquito, .22 Caliber 8 Sig Sauer Model P220, .45 Caliber 3 Sig Sauer Model P250, .45 Caliber 27 Sig Sauer Model P232, .380 Caliber 7 Sig Sauer Model P238, .380 Caliber License Value: USD $32,297 SELLER: Sig Sauer Inc. 18 Industrial Drive Exeter, NH 03833 FOREIGN CONSIGNEE: Raja Firearms LTD. 45 Burapha Road Phranakorn District Bangkok Thailand Tel: 0-2222-1254 / 0-2222-7005 / 0-2221-6292 FOREIGN END-USER: Investigation & Legal Affairs Bureau Department of Provincial Administration Wangchaiya Nanglerng Nakornsawan Road Dusit District, Bangkok Thailand PURPOSE: For sole and exclusive use of the Investigation and Legal Affairs Bureau, Department of Provincial Administration. ¶D. DTC Case: 050190070 QUANTITY/COMMODITY: 34 Sig Sauer Model P226, 9mm 351 Sig Sauer Model P229, 9mm License Value: USD $218,235 SELLER: Sig Sauer Inc. 18 Industrial Drive Exeter, NH 03833 FOREIGN CONSIGNEE: Raja Firearms LTD. 45 Burapha Road Phranakorn District Bangkok Thailand Tel: 0-2222-1254 / 0-2222-7005 / 0-2221-6292 FOREIGN END-USER: Investigation & Legal Affairs Bureau Department of Provincial Administration Wangchaiya Nanglerng Nakornsawan Road Dusit District, Bangkok Thailand PURPOSE: For sole and exclusive use of the Investigation and Legal Affairs Bureau, Department of Provincial Administration. ¶E. DTC Case: 050190074 QUANTITY/COMMODITY: 62 Sig Sauer Model P250, 9mm 180 Sig Sauer Model P229, 9mm License Value: USD $128,718 SELLER: Sig Sauer Inc. 18 Industrial Drive Exeter, NH 03833 FOREIGN CONSIGNEE: Raja Firearms LTD. 45 Burapha Road Phranakorn District Bangkok Thailand Tel: 0-2222-1254 / 0-2222-7005 / 0-2221-6292 FOREIGN END-USER: Investigation & Legal Affairs Bureau Department of Provincial Administration Wangchaiya Nanglerng Nakornsawan Road Dusit District, Bangkok Thailand PURPOSE: For sole and exclusive use of the Investigation and Legal Affairs Bureau, Department of Provincial Administration. ¶6. Submitted in support of the license application were the following documents (PM/DTCC will fax documentation to Posts upon request): ¶A. DSP-83s signed by Michael J. MacDonald (Sig Sauer Inc.) dated 09/15/2009; Sanit Khowsaard (Dept. of Provincial Administration) dated 08/13/2009; Vijay Sachdev (Raja Firearms) dated 08/13/2009. Import Permit No. Por Kor 1101/2552 issued by Investigation and Legal Affairs Bureau signed by Somkid Jayyim dated 07/29/2009. Purchase Order No. 090930 issued by Raja Firearms signed by Vijay Sachdev dated 09/01/2009. ¶B. DSP-83s signed by Michael J. MacDonald (Sig Sauer Inc.) dated 09/15/2009; Sanit Khowsaard (Dept. of Provincial Administration) dated 08/13/2009; Vijay Sachdev (Raja Firearms) dated 08/13/2009. Import Permit No. Por Kor 1103/2552 issued by Investigation and Legal Affairs Bureau signed by Somkid Jayyim dated 07/29/2009. Purchase Order No. 090920 issued by Raja Firearms signed by Vijay Sachdev dated 09/01/2009. ¶C. DSP-83s signed by Michael J. MacDonald (Sig Sauer Inc.) dated 09/15/2009; Sanit Khowsaard (Dept. of Provincial Administration) dated 08/13/2009; Vijay Sachdev (Raja Firearms) dated 08/13/2009. Import Permit No. Por Kor 1097/2552 issued by Investigation and Legal Affairs Bureau signed by Somkid Jayyim dated 07/29/2009. Purchase Order No. 090950 issued by Raja Firearms signed by Vijay Sachdev dated 09/01/2009. ¶D. Import Permit No. Por Kor 1102/2552 issued by Investigation and Legal Affairs Bureau signed by Somkid Jayyim dated 07/29/2009. Purchase Order No. 090910 issued by Raja Firearms signed by Vijay Sachdev dated 09/01/2009. ¶E. DSP-83s signed by Michael J. MacDonald (Sig Sauer Inc.) dated 09/15/2009; Sanit Khowsaard (Dept. of Provincial Administration) dated 08/13/2009; Vijay Sachdev (Raja Firearms) dated 08/13/2009. Import Permit No. Por Kor 1100/2552 issued by Investigation and Legal Affairs Bureau signed by Somkid Jayyim dated 07/29/2009. Purchase Order No. 090940 issued by Raja Firearms signed by Vijay Sachdev dated 09/01/2009. ¶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