Cablegate: Blue Lantern Level 3: Pre-License End-Use Check

VZCZCXYZ0008
RR RUEHWEB

DE RUEHC #3101 2752051
ZNR UUUUU ZZH
R 022032Z OCT 09
FM SECSTATE WASHDC
TO RUEHBY/AMEMBASSY CANBERRA 0000
INFO RUEHDN/AMCONSUL SYDNEY 0000
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 103101

SIPDIS
CANBERRA FOR DAVID ATKINSON

E.O. 12958: N/A
TAGS: ETTC KOMC AS
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK
ON LICENSES 050132093 AND 050192341

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 licenses 050132093 AND 050192341 for
the export of rifles and components to Australia. 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: Russian Mosin M91/30 sniper rifles
are popular with many insurgent groups around the world.
Australian company Lawrance Ordnance has imported a
significant quantity of these rifles from the United States
in recent years, but has never been subject to a Blue Lantern
check. A proviso was placed on export license 050132093
requiring Lawrance Ordnance to obtain signatures on U.S.
Nontransfer and Use Certificates (DSP-83s) for each customer
that purchases such rifles. This request is to establish the
bona fides of Lawrance Ordnance and verify that the company
has adhered to this proviso. (NOTE: 050132093 has been
approved and 050192341 is pending the results of this Blue
Lantern request).

4. Action Request: Post is requested to establish the bona
fides of end-user Lawrance Ordnance by making inquiries to
representatives of the company and appropriate authorities of
the Government of Australia. Post is also requested to
verify that the end-user requires purchasers of Mosin M91/30
sniper rifles to sign DSP-83 Nontranfer and Use Certificates.
The following points are included for guidance:

(To Lawrance Ordnance)

--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 are you annual sales of U.S.-origin firearms?

--Do you sell firearms to customers that reside outside
Australia?

--To whom do you usually sell Mosin M91/30 rifles? What are
they generally used for? How many of these rifles do you
generally sell per year?

--Did Century Arms notify you in writing that Lawrance
Ordnance is required to obtain a signed DSP-83 Nontransfer
and Use Certificate, including serial numbers, for each
customer that purchases the Soviet Mosin M91/30 Bolt Action
Rifle and is required to send that signed DSP-83 back to
Century Arms? If available, please provide any
correspondence you received from Century Arms explaining
these requirements.

--Has Lawrance Ordinance obtained these signed documents as
required by the terms of U.S. export license 050132093?
Please provide documentation demonstrating your compliance
with these requirements.

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

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

--Is Lawrance Ordinance properly authorized to import and
sell defense articles in Australia?

--Do you have any information on Lawrance Ordinance that
would 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. Details of license applications:

A.

DTC Case: 050132093

QUANTITY/COMMODITY:

105 Russian M44 Bolt Action Rifles, 7.62 x 54R

20 Russian Nagant 1895 Revolvers, 7.62 x 38R

20 Soviet Mosin M91/30 Bolt Action Sniper Rifles, 7.62 x 54R

5 Mark III Flare Pistols

Parts and Components for Enfield Rifles

License Value: USD $24,604

SELLER:

Century Arms, Inc.
236 Bryce Blvd
Fairfax, VT 05454

FOREIGN END-USER:

Lawrance Ordnance
Ground Floor, 802 George Street
Sydney
Australia
Tel: (61 2) 9212 5673
Mobile: 0414 762 308

PURPOSE:

For commercial resale in Australia

B.

DTC Case: 050192341

QUANTITY/COMMODITY:

300 Mosin Nagant M91/30 Bolt Action Sniper Rifles, 7.62 x 54R

License Value: USD $18,000

SELLER:

Century Arms, Inc.
236 Bryce Blvd
Fairfax, VT 05454

FOREIGN END-USER:

Lawrance Ordnance
Ground Floor, 802 George Street
Sydney NSW 2000
Australia
Tel: (61 2) 9212 5673
Mobile: 0414 762 308

PURPOSE:

For commercial resale in Australia

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

A.

DSP-83 Nontransfer and Use Certificate signed by George
Samson (Century Arms) dated 10/23/2008 and Simon Lawrance
(Lawrance Ordnance) dated 10/25/2008

Import Authorization No. N 081578 issued by Australian
Customs Service signed by Christie Palmer dated 08/27/2008

Purchase Order from Lawrance Ordnance signed by Simon
Lawrance dated 10/23/2008

B.

DSP-83 Nontransfer and Use Certificate signed by George
Samson (Century Arms) dated 09/26/2009 and Simon Lawrance
(Lawrance Ordnance) dated 09/14/2009

Import Authorization No. N 091449 issued by Australian
Customs Service signed by Sue Walter dated 04/09/2009

Purchase Order from Lawrance Ordnance signed by Simon
Lawrance dated 09/14/2009

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

© Scoop Media