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

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UNCLAS STATE 090321

SIPDIS
QUITO FOR MARC PANNELL

E.O. 12958: N/A
TAGS: EC ETTC KOMC
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK
ON LICENSES 050117804, 050117818, 050117829 AND 050117848

REF: 03 QUITO 1058

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 licenses 050117804, 050117818,
050117829 and 050117848 for the export of automatic weapons
and grenade launchers Ecuador. 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: To establish the bona fides of these
transactions for significant quantities of automatic weapons
and grenade launchers. Previous Blue Lantern (REFTEL)
indicated that foreign intermediate consignee, MG Suber &
Associates, used family members as end-users in order to
circumvent import limits set by the Government of Ecuador.
This check is to assure that the end-user, Armada del Ecuador
(Tel: (5934) 2203353), has legitimately ordered the defense
articles listed below.

4. Action Request: Post is requested to establish the bona
fides of these transactions by making appropriate inquires to
authorities at Armada del Ecuador. Particular attention
should be paid to the quantities on the export licenses
versus the quantities expected by Armada del Ecuador. The
following questions are provided for guidance:

(To Armada del Ecuador)

--Can you confirm the orders for the firearms listed on these
license applications?

--Why is the GOE purchasing this large quantity of firearms
and grenade launchers? Is Armada del Ecuador undergoing a
modernization program, increasing numbers for personnel, etc?

--What will GOE do with the weapons that are being displaced?

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: 050117804

QUANTITY/COMMODITY:

8 M2HB Machine Guns, .50 Caliber

License Value: USD $200,000

SELLER:

MLM International Corp
7914 Queenair Drive
Gaithersburg, MD 20879

FOREIGN INTERMEDIATE CONSIGNEE:

MG Suber & Associates
Amazonas 477 y Roca Edificio Banco Los Andes, Of 1008
Quito, Ecuador

FOREIGN END-USER:

Armada del Ecuador
Direccion General del Material
Base Naval Sur
Guayaquil, Ecuador
Tel: (5934) 2203353

PURPOSE:

For use by the Ecuadorian Navy and Marine infantry units
responsible for operations on the Northern Border.

B.

DTC Case: 050117818

QUANTITY/COMMODITY:

10 M60E4/MK43 Machine Guns, 7.62 x 51mm Caliber

License Value: USD $120,000

SELLER:

MLM International Corp
7914 Queenair Drive
Gaithersburg, MD 20879

FOREIGN INTERMEDIATE CONSIGNEE:

MG Suber & Associates
Amazonas 477 y Roca Edificio Banco Los Andes, Of 1008
Quito, Ecuador

FOREIGN END-USER:

Armada del Ecuador
Direccion General del Material
Base Naval Sur
Guayaquil, Ecuador
Tel: (5934) 2203353

PURPOSE:

For use by the Ecuadorian Navy and Marine infantry units
responsible for operations on the Northern Border.

C.

DTC Case: 050117829

QUANTITY/COMMODITY:

695 M16 M4A3 Carbines, 5.56 Caliber

License Value: USD $834,382

SELLER:

MLM International Corp
7914 Queenair Drive
Gaithersburg, MD 20879

FOREIGN INTERMEDIATE CONSIGNEE:

MG Suber & Associates
Amazonas 477 y Roca Edificio Banco Los Andes, Of 1008
Quito, Ecuador

FOREIGN END-USER:

Armada del Ecuador
Direccion General del Material
Base Naval Sur
Guayaquil, Ecuador
Tel: (5934) 2203353

PURPOSE:

For use by the Ecuadorian Navy and Marine infantry units
responsible for operations on the Northern Border.

D.

DTC Case: 050117848

QUANTITY/COMMODITY:

50 M203 Grenade Launchers

License Value: USD $103,195

SELLER:

MLM International Corp
7914 Queenair Drive
Gaithersburg, MD 20879

FOREIGN INTERMEDIATE CONSIGNEE:

MG Suber & Associates
Amazonas 477 y Roca Edificio Banco Los Andes, Of 1008
Quito, Ecuador

FOREIGN END-USER:

Armada del Ecuador
Direccion General del Material
Base Naval Sur
Guayaquil, Ecuador
Tel: (5934) 2203353

PURPOSE:

For use by the Ecuadorian Navy and Marine infantry units
responsible for operations on the Northern Border.

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

A.

Purchase Order No. 08-053 from Armada del Ecuador signed by
Jose Mino Alcivar dated 07/28/2008

DSP-83 signed by Jose Mino Alcivar dated 07/28/2008, Fabian
Jarrin Moreno dated 07/28/2008, and A. Jeanroy dated
08/06/2008

End User Certification issued by Armada del Ecuador signed by
Fabian Jarrin Mreno dated 07/28/2008

B.

Purchase Order No. 08-052 from Armada del Ecuador signed by
Jose Mino Alcivar dated 07/28/2008

DSP-83 signed by Jose Mino Alcivar dated 07/28/2008, Fabian
Jarrin Moreno dated 07/28/2008, and A. Jeanroy dated
08/06/2008

End User Certification issued by Armada del Ecuador signed by
Fabian Jarrin Mreno dated 07/28/2008

C.

Purchase Order No. 08-051 from Armada del Ecuador signed by
Jose Mino Alcivar dated 07/28/2008

DSP-83 signed by Jose Mino Alcivar dated 07/28/2008, Fabian
Jarrin Moreno dated 07/28/2008, and A. Jeanroy dated
08/06/2008

End User Certification issued by Armada del Ecuador signed by
Fabian Jarrin Mreno dated 07/28/2008

D.

Purchase Order No. 08-060 from Armada del Ecuador signed by
Jose Mino Alcivar dated 07/28/2008

DSP-83 signed by Jose Mino Alcivar dated 07/28/2008, Fabian
Jarrin Moreno dated 07/28/2008, and A. Jeanroy dated
08/06/2008

End User Certification issued by Armada del Ecuador signed by
Fabian Jarrin Mreno dated 07/28/2008

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 in the Bunche Library's E-Book
Collection on the DOS Intranet:
http://virtuallibrary.state.gov/
BlueLanternGuidebook2006%2520 final .pdf

8. Department is grateful for Post's assistance in this
matter.
RICE

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