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