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

S E C R E T STATE 009941 NOFORN SENSITIVE SIPDIS LONDON FOR RAMON ESCOBAR E.O. 12958: DECL: 01/25/2035 TAGS: ETTC KOMC UK SUBJECT: BLUE LANTERN LEVEL 3: POST-LICENSE/PRE-SHIPMENT END-USE CHECK ON LICENSE 050195730 REF: FBI IIR 4 212 1554 10 OF 25 JANUARY 2010 Classified By: Lisa 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 050195730 for the export of firearm barrels to the United Kingdom. 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: Recent reporting from the Federal Bureau of Investigations (FBI) suggests that Sabre Defence Industries of the United Kingdom may have re-exported U.S. rifles to end-users in a third country (REFTEL). PM/DDTC does not/not have any record of an authorization under which the re-export would have taken place. Also, a significant number of licenses for export to Sabre Defence have been issued but the company has not been subject to a Blue Lantern check. This request is to establish the bona fides of the company and determine if the company sells U.S. Munitions List items to customers outside the United Kingdom. ¶4. (SBU) Action Request: Post is requested to establish the bona fides of end-user Sabre Defence Industries by making inquiries to representatives of the company and appropriate authorities of the Government of the United Kingdom. Post is also requested to determine if the company re-exports U.S.-origin defense articles outside the United Kingdom. The following points are included for guidance: (To Sabre Defence Industries LLC) --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 relationship to Sabre Defence Industries in the United States? Do you exchange technical data with that company? If so, please describe the data. --Do you sell firearms that contain U.S.-origin parts or components to customers that reside outside the United Kingdom? If so, who are these customers and where do they reside? Please provide any U.S. Department of State authorization numbers under which these transactions have taken place. --Are you familiar with the regulations governing the import of U.S.-origin defense articles, including restrictions on unauthorized re-transfer or re-export? (To Appropriate Import/Export and/or Law Enforcement Authorities) --Is Sabre Defence Industries properly authorized to import and sell defense articles in the United Kingdom? --Is Sabre Defence Industries properly authorized to export defense articles out of the United Kingdom? --Do you have any information on Sabre Defence Industries 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: 050195730 QUANTITY/COMMODITY: 9,000 Barrel Blanks, .17 - .45 Caliber License Value: USD $450,000 SELLER: Sabre Defence Industries, LLC 450 Allied Drive Nashville, TN 37211 FOREIGN END-USER: Sabre Defence Industries, LLC Sabre House Belvue Road Northolt, Middlesex, UK Tel: 020 8842 0603 PURPOSE: For manufacturing target and hunting barrels ¶6. (U) Submitted in support of the license application were the following documents (PM/DTCC will fax documentation to Posts upon request): DSP-83 signed by Aloysius Donovan (Sabre - USA) dated 09/30/2009 and Guy Savage (Sabre - UK) dated 09/15/2009 Purchase Order No. 09292 from Sabre Defence Industries (UK) signed by Guy Savage dated 09/15/2009 ¶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