Cablegate: Blue Lantern Level 3: Post-Shipment End-Use Check

VZCZCXRO2958
RR RUEHNZ
DE RUEHC #5078/01 2261956
ZNR UUUUU ZZH
R 141939Z AUG 09
FM SECSTATE WASHDC
TO RUEHNZ/AMCONSUL AUCKLAND 0970
INFO RUEHWL/AMEMBASSY WELLINGTON 0212
RUETIAA/DIRNSA FT GEORGE G MEADE MD
RUEAIIA/CIA WASHINGTON DC
RHMCSUU/FBI WASHINGTON DC 5421
RUEKJCS/SECDEF WASHINGTON DC
RUCPDOC/USDOC WASHINGTON DC 5443

UNCLAS SECTION 01 OF 03 STATE 085078

SIPDIS
WELLINGTON FOR ADAM SMITH

E.O. 12958: N/A
TAGS: ETTC KOMC NZ
SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK
ON LICENSES 050130278 AND 050181912

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 post-shipment check on licenses 050130278 and 050181912 for
the export of firearms to New Zealand. Post is requested to
complete this Blue Lantern check within 45 days. Lack of
response to a Blue Lantern check will affect pending and
future licenses involving parties to this license.

3. Reason for Request: End-user Outdoor Brands first appeared
on U.S. export licenses in October 2008 on license 050130278
for firearms. Since then, the company has been approved for
over $2 million in firearms and ammunition exports. License
050181912 is the largest to date valued at over $719,000.
This check is to establish the bona fides of the company and
its annual sales.

4. Action Request: Post is requested to establish the bona
fides of Outdoor Brands by making inquiries to
representatives of the company and appropriate local
authorities. The following points are included for guidance:

(To Outdoor Brands)

--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 New
Zealand?

--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 Outdoor Brands properly authorized to import and sell
defense articles in New Zealand?

--Do you have any information on Outdoor Brands that would
question their reliability as a recipient of U.S. defense
articles?

In its reply, Post is encouraged to comment on any
information pertinent to this transaction such as security of
facilities, end-use, and concerns about the entities involved.

5. Details of license applications:

A.

DTC Case: 050130278 (NOTE: Shipments against this license
have not/not yet been completed)

QUANTITY/COMMODITY:

100 Model XL7 Bolt Action Rifles

200 Model 336 Lever Action Rifles

75 Model 917 Rifles

100 Model 925 Rifles

50 Model 795 Rifles

50 Model 982 Rifles

350 Model 700 Rifles

30 Model 715 Rifles

30 Model Seven Rifles

STATE 00085078 002 OF 003

150 Model 597 Rifles

License Value: USD $507,002 (NOTE: Actual exports are valued
at approx. $257,300)

SELLER:

American Heritage Arms
Remington Arms Company
870 Remington Drive
PO Box 700
Madison, NC 27025

FOREIGN END-USER:

Outdoor Brands
6 Botha Road Penrose
1061 Auckland
New Zealand
Tel: 64 9 582 0818

PURPOSE:

For commercial resale in New Zealand

B.

DTC Case: 050181912 (NOTE: No shipments have yet been made
against this license)

QUANTITY/COMMODITY:

300 Model 700 Rifles

100 Model Seven Rifles

50 Model 750 Rifles

50 Model 7600 Rifles

100 Model 597 Rifles

300 Model XL7 Rifles

300 Model XS7 Rifles

10 Model 308 Rifles

10 Model 338 Rifles

License Value: USD $***

SELLER:

American Heritage Arms
Remington Arms Company
870 Remington Drive
PO Box 700
Madison, NC 27025

FOREIGN END-USER:

Outdoor Brands
6 Botha Road Penrose
1061 Auckland
New Zealand
Tel: 64 9 582 0818

PURPOSE:

For commercial resale in New Zealand

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

A.

Signed DSP-83 Nontransfer and Use Certificate signed by
Shirley Conner dated 10/30/2008 and A.D. Mercer dated 10/2008
(stamp obscures the day).

Import Permit No. 105510 issued by the New Zealand Police to
Andrew David Mercer dated 10/20/2008

Purchase Order No. SD001 issued by Outdoor Brands dated

STATE 00085078 003 OF 003

10/17/2008

Purchase Order No. SD002 issued by Outdoor Brands dated
10/17/2008

B.

Signed DSP-83 Nontransfer and Use Certificate signed by
Shirley Conner dated 07/28/2009 and Andrew David Mercer
(stamp obscures the date).

Import Permit No. 111069 issued by the New Zealand Police to
Andrew David Mercer dated 07/07/2009

Import Permit No. 111070 issued by the New Zealand Police to
Andrew David Mercer dated 07/07/2009

Import Permit No. 111071 issued by the New Zealand Police to
Andrew David Mercer dated 07/07/2009

Purchase Order No. SD016 issued by Outdoor Brands dated
07/19/2009

Purchase Order No. SD017 issued by Outdoor Brands dated
07/19/2009

Purchase Order No. SD018 issued by Outdoor Brands dated
07/19/2009

Purchase Order No. SD019 issued by Outdoor Brands dated
07/19/2009

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