Identifier
Created
Classification
Origin
10STATE2042
2010-01-08 22:12:00
UNCLASSIFIED
Secretary of State
Cable title:  

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

Tags:  ETTC KOMC ST BB 
pdf how-to read a cable
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RR RUEHWEB

DE RUEHC #2042 0082218
ZNR UUUUU ZZH
R 082212Z JAN 10
FM SECSTATE WASHDC
TO RUEHWN/AMEMBASSY BRIDGETOWN 0000
INFO RUETIAA/DIRNSA FT GEORGE G MEADE MD
RUEAIIA/CIA WASHINGTON DC
RHMCSUU/FBI WASHINGTON DC 0000
RUEKJCS/SECDEF WASHINGTON DC
RUCPDOC/USDOC WASHINGTON DC 0000
UNCLAS STATE 002042 

SIPDIS
BRIDGETOWN FOR JAMAL AL-MUSSAWI

E.O. 12958: N/A
TAGS: ETTC KOMC ST BB
SUBJECT: BLUE LANTERN LEVEL 2: PRE-LICENSE END-USE CHECK
ON LICENSE 050208447

REF: 09 BRIDGETOWN 100

UNCLAS STATE 002042

SIPDIS
BRIDGETOWN FOR JAMAL AL-MUSSAWI

E.O. 12958: N/A
TAGS: ETTC KOMC ST BB
SUBJECT: BLUE LANTERN LEVEL 2: PRE-LICENSE END-USE CHECK
ON LICENSE 050208447

REF: 09 BRIDGETOWN 100


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 license 050208447 for the export of
ammunition to St. Lucia. 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: A previous unfavorable Blue Lantern
on foreign consignee Sportsimports discovered significant
discrepancies between the firearms authorized for import and
those actually being imported by the company. This led to
the revocation of the company's import license by the
Government of Barbados. A letter from Sportsimports in
support of the current license describes an arrangement by
which Gar Inc. of St. Lucia would import and sell ammunition
for a commission on behalf of Sportsimports. If the
revocation of Sportsimports' import license still stands,
this transaction may represent an attempt by Sportsimports to
circumvent the laws of Barbados by selling defense articles
in a third country. In addition, this license represents the
largest quantity of ammunition exported to Gar Inc. and the
first license on which foreign intermediate consignee C & A
Brokers of St. Lucia appears. This request is for Post to
provide an update on the pending investigation in Barbados of
Sportsimports. This request is also to establish the bona
fides of this transaction and the parties involved.


4. Action Request: Post is requested to establish the bona
fides of this transaction and the parties involved by making
inquiries to representatives of the companies and appropriate
authorities of the Governments of Barbados and St. Lucia.
Post is also requested to comment on whether PM/DTCC should
approve this license, considering any outstanding concerns
with Sportsimports. The following points are included for
guidance:

(To C & A Brokers)

--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? Do
you have customers that reside outside St. Lucia? If so, who
are these customers and where do they reside?


--What role is your company playing in this transaction? How
are you being compensated for your role in this transaction
and by whom are you being compensated?

--What role is Sportsimports of Barbados playing in this
transaction? Describe your relationship to Sportsimports.

--Will you ever have physical possession of the defense
articles listed below? If so, please describe the security
measures and procedures your company has in place.

--Are you familiar with the regulations governing U.S.-origin
defense articles, including restrictions on
unauthorized re-transfer or re-export and the requirement for
brokers of U.S. defense articles to register with the U.S.
Department of State?

(To Sportsimports)

--What role is your company playing in this transaction? How
are you being compensated for your role in this transaction
and by whom are you being compensated?

--Aside from the U.S. vendor, are you compensating any
companies in this transaction for their services? If so,
please describe these services and the compensation.

--Please provide the exact quantity and calibers of the
ammunition being shipped to Gar Inc. in this transaction.
Also, please provide any documentation you received and
generated in support of this transaction (i.e. purchase
orders, contracts, etc.).

--What role is C & A Brokers of St. Lucia playing in this
transaction? Describe your relationship to C & A Brokers.

--What role is Gar Inc. of St. Lucia playing in this
transaction? Describe your relationship to Gar Inc.

--Will you ever have physical possession of the ammunition on
this license?

--Are you properly authorized to broker and/or sell defense
articles in St. Lucia? Is your role in this transaction
authorized by the Government of Barbados?

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

(To Gar Inc.)

--Please provide an estimate of your annual sales of
U.S.-origin firearms and ammunition. What accounts for the
significant increase in quantity for this order as compared
to your orders in the past?

--Please provide the exact quantity and calibers of the
ammunition you will receive in this transaction. Please
provide any documentation you received and generated in
support of this transaction (i.e. purchase orders, contracts,
etc.).

--Do you sell defense articles to customers that reside
outside St. Lucia? If so, who are these customers and where
do they reside?

--What role is Sportsimports of Barbados playing in this
transaction? Describe your relationship to Sportsimports.
Will you be compensated by this company and, if so, how and
for what?

--What role is C & A Brokers of St. Lucia playing in this
transaction? Describe your relationship to C & A Brokers.
Will you compensate this company and, if so, how?

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

(To Appropriate Import/Export and/or Law Enforcement
Authorities of Barbados)

--Please provide an update on your investigation into
Sportsimports. Is this company authorized to import and/or
broker defense articles in Barbados?

--Does the Government of Barbados require specific
authorizations for a company to use a foreign agent to sell
ammunition in a third country? If so, is Sportsimports
authorized to use a foreign agent to sell ammunition in St.
Lucia?

--Is Sportsimports' actions in this transaction within the
laws of Barbados? Do you have any information on
Sportsimports that questions its reliability as an importer
and/or broker of U.S. defense articles?

(To Appropriate Import/Export and/or Law Enforcement
Authorities of St. Lucia)

--Is Gar Inc. authorized to import and sell defense articles
in St. Lucia?

--A company in a third country may be using Gar Inc. as an
agent through which the company will sell ammunition in St.
Lucia. Does that company require authorization from the
Government of St. Lucia to engage in this activity?

--Do you have any derogatory information on Gar Inc. that
questions its reliability as an importer of U.S. defense
articles?

--Is C & A Brokers authorized to import and/or broker defense
articles in St. Lucia?

--Do you have any derogatory information on C & A Brokers
that questions its reliability as an importer and/or broker
of U.S. defense articles?

--Are there any legal restrictions on the specific quantities
or calibers of ammunition a company can import into St. Lucia
for commercial resale?

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. Details of license applications:

DTC Case: 050208447

QUANTITY/COMMODITY:

800,000 Rounds of Ammunition, 9mm, .380, .40, and .45 Calibers

20,000 Rounds of Ammunition, .22 Caliber

License Value: USD $128,800

SELLER:

Federal Cartridge Co./Ammunition Accessories Inc.
subsidiary of Alliant Techsystems Inc.
2299 Snake River Ave
Lewiston, ID 83501

FOREIGN INTERMEDIATE CONSIGNEE:

C & A Brokers
4 Mongiraud St.
Castries
St. Lucia

FOREIGN CONSIGNEE:

Sportsimports
Hopewell Plantation
St. Thomas, West Indies
Barbados
Tel: 246-425-4388
Email: greg@huzier.com
Email: spencer@huzier.com

FOREIGN END-USER:

Gar Inc.
Rodney Bay
Castries
St. Lucia

PURPOSE:

For commercial resale in St. Lucia


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

DSP-83 signed by Patti Mann (Federal Cartridge/Alliant) dated
01/06/2010; Anthony Bristol (Gar Inc.) dated 10/28/2009; and
Spencer Hutchinson (Sportsimports) dated 11/**/2009 (obscured)

Import Authorization Nos. 20/09 and 21/09 issued by the
Commissioner of Police of St. Lucia dated 09/24/2009

Purchase Order No. 252 from Sportsimports signed by Spencer
Hutchins (Sportsimports) dated 11/04/2009


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