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

UNCLAS SECTION 01 OF 02 STATE 004067 SIPDIS EAST TIMOR FOR SEAN STEIN E.O. 12958: N/A TAGS: ETTC KOMC TT SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON APPLICATION 050209036 REF: 2006 BLUE LANTERN GUIDEBOOK ¶1. This is an Action Request. See paragraphs 2-4. ¶2. The Department's Office of Defense Trade Controls Compliance (PM/DTCC) requests Post's assistance in conducting a pre-license check on application 050209036 for the export of grenade launchers and pepper spray canisters to Timor-Leste. Embassy 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: unfamiliar foreign consignee, Dili Defense and Supplies (DDS). The company has not appeared on previous licenses nor have its bona fides been verified by a Blue Lantern check. ¶4. ACTION DILI: Embassy is requested to make inquiries with appropriate authorities to determine if the Policia Nacional Timor Leste (PNTL) ordered the grenade launchers and pepper spray from DDS and if so, verify the amount and that the items will be used for the purpose stated on the license. PM/DTCC also requests that post conduct a site visit to DDS in order to provide Department with an assessment of its business operations and on-site security. Finally, post is asked to assess whether the company appears to be a reliable recipient of USML items. If a site visit is not possible, please inform the PM/DTCC officer. The following questions are provided as suggested guidance: -------------- What is the exact end-use for these USML items? Will DDS retain positive control over the grenade launchers and pepper spray at all times prior to turning them over to the PNTL? --Does the company have secure facilities and proper accounting and security procedures for handling sensitive USML items? --When was the company established and who are its principals? --What is the nature of its business -- what type of items does it handle, does it serve as a broker? --What type of organizations are among its typical customers and where are the customers located? --Does the company understand the restrictions on United States Munitions List (USML) items, especially the prohibition against unauthorized re-transfer and re-export? END ACTION ¶5. Details of license application: DTC Case: 050209036 QUANTITY/COMMODITY: 5 TGL-6 40mm Multi Grenade Launcher 100 1440 L1 MK-4 Pepper Spray Canisters License Value: USD 13,080.00 SELLER: Combined Systems, Inc. 98 Cuttermill Rd. - Suite 231 Great Neck, NY 11021 POC is Jacob Kravel, Tel. 516-482-8484 ext. 1003 FOREIGN CONSIGNEE: Dili Defense and Supplies No. 88, Rua Matires Da Patria Landmark Plaza, Unit #02-11 Fatuhada, Dili POC is Johnny Leong, Tel. 670 732 9856 FOREIGN END-USER: Policia Nacional Timor Leste STATE 00004067 002 OF 002 Commando Nacional De Operacoes Dili East Timor POC is BOP Commander, Agustino Gomes, No Tel. provided PURPOSE: Used for riot and crowd control. ¶6. 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 the PNTL, signed by BOP Commander, Agustino Gomes on 3 August 2009, and by Dr. PNTL representative, Dr. Longuinos Monteiro on 4 August 2009, and by DDS representative, Johnny Leong (undated). --Purchase Order No. PO-COM-SYS-1/10/2009 submitted by DDS, signed by DDS representative, Johnny Leong on 15 October 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 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 ¶8. Department is grateful for post's assistance in this matter. CLINTON