BLUE LANTERN LEVEL 3: POST-LICENSE/PRE-SHIPMENT

S E C R E T STATE 005769 NOFORN SENSITIVE SIPDIS PRAGUE FOR AMY CARNIE E.O. 12958: DECL: 08/14/2034 TAGS: ETTC KOMC CZ SUBJECT: BLUE LANTERN LEVEL 3: POST-LICENSE/PRE-SHIPMENT END-USE CHECK ON LICENSE 050208822 REF: CIA TD-314/054414-09 OF 14 AUGUST 2009 Classified By: Lisa V. Studtmann, for reasons 1.4(a),(b),and (d) ¶1. (U) 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-license/pre-shipment check on license 050208822 for the export of ammunition to the Czech Republic. 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. (S//NF) Reason for Request: End-user Sellier & Bellot has been party to several licenses but has never been subject to a Blue Lantern check. The company is mentioned in several intelligence reports, including one which states the company sold ammunition to a front company for a Tanzanian intelligence agency (REFTEL). This request is for Post to establish the bona fides of the end-user. ¶4. (U) Action Request: Post is requested to establish the bona fides of end-user Sellier & Bellot by making inquiries to representatives of the company and appropriate authorities of the Government of the Czech Republic. Post is also requested to comment on the company's suitability as a recipient of U.S. Munitions Listed defense articles. The following points are included for guidance: (To Sellier & Bellot) --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? --Who are you major international business partners? --What are your annual sales of U.S.-origin defense articles? --Do you sell defense articles to customers that reside outside Czech Republic? If so, who are these customers and where do they reside? --Are you familiar with the regulations governing the import of U.S.-origin defense articles, including restrictions on unauthorized re-transfer or re-export? Are you familiar with the regulations governing the brokering of U.S.-origin defense articles, including the requirement for all brokers to register with the U.S. Department of State? (To Appropriate Import/Export and/or Law Enforcement Authorities) --Is Sellier & Bellot properly authorized to import and sell defense articles in Czech Republic? --Do you have any information on Sellier & Bellot that would call in to question their reliability as a recipient of U.S. defense articles? 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. (U) Details of license applications: DTC Case: 050208822 QUANTITY/COMMODITY: 5,000,000 Rounds of Bullet Cores, .20 to .499 Calibers License Value: USD $600,000 SELLER: Sierra Bullets 1400 W. Henry Sedalia, MO 65301 FOREIGN END-USER: Sellier & Bellot Lidicka 667 258 13 Vlasim Vlasim, Czech Republic Tel: 420 317 892 721 / 317 891 111 Email: hrubec@sellier-bellot.cz / info@sellier-bellot.cz PURPOSE: For commercial resale in Czech Republic to wholesale distributors and dealers ¶6. (U) Submitted in support of the license application were the following documents (PM/DTCC will fax documentation to Posts upon request): Import License Certificate No. 005/10/07440 and License/Permission No. E101300011 issued by the Ministry of Industry and Trade signed by Zdenek Richtr Purchase Order No. N09 06 from Sellier & Bellot signed by Jaroslav Hrubec dated 12/03/2009 ¶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