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

VZCZCXRO5290
RR RUEHGA RUEHQU
DE RUEHC #5830/01 2301442
ZNR UUUUU ZZH
R 181425Z AUG 09
FM SECSTATE WASHDC
TO RUEHOT/AMEMBASSY OTTAWA 6245
INFO RUEHGA/AMCONSUL CALGARY 2453
RUEHQU/AMCONSUL QUEBEC 0806
RUETIAA/DIRNSA FT GEORGE G MEADE MD
RUEAIIA/CIA WASHINGTON DC
RHMCSUU/FBI WASHINGTON DC 5474
RUEKJCS/SECDEF WASHINGTON DC
RUCPDOC/USDOC WASHINGTON DC 5456

UNCLAS SECTION 01 OF 02 STATE 085830

SIPDIS
OTTAWA FOR RYAN STONER
OTTAWA FOR LORI BALBI

E.O. 12958: N/A
TAGS: ETTC KOMC CA
SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK
ON LICENSE 050148621

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 license 050148621 for the export of
carbines to Canada. 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: A proviso placed on this license
disallows the export of carbines with flash suppressers
and/or, folding, telescoping, or collapsible stocks (pinned
or unpinned). This check is to confirm that all the firearms
were received by end-user Milarms Co Ltd and to verify that
the firearms received had fixed stocks. The request is also
to determine if Agence Gravel is acting as a broker of U.S.
Munitions Listed defense articles.

4. Action Request: Post is requested to verify that the
carbines listed below were received by end-user Milarms Co
Ltd and that the firearms had fixed stocks. Post is also
requested to determine the role played by foreign consignee
Agence Gravel in this transaction and determine if the
company retained possession of any of these carbines. The
following points are included for guidance:

(To Milarms Co Ltd)

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

--Can you confirm receipt of all 50 carbines listed on this
license? Did any of these carbines include flash suppressers
and/or folding, telescoping, or collapsible stocks?

--Did you pay any fees or commissions for the services of
Agence Gravel during the course of this transaction? If so,
please explain.

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

(To Agence Gravel)

--What role did your company play in this transaction? Do
you officially represent Bushmaster Firearms in any capacity
in Canada?

--Did you pay and/or receive any fees or commissions for your
services during the course of this transaction? If so,
please provide details on these fees or commissions.

--Did any of these carbines include flash suppressers and/or
folding, telescoping, or collapsible stocks?

--Did you ever have physical possession of these carbines?
If no, can you provide documentation that demonstrates the
transfer of custody to Milarms Co Ltd of all these carbines?

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:

DTC Case: 050148621

QUANTITY/COMMODITY:

25 Bushmaster AR15 Carbines w/ Heavy Barrels

25 Bushmaster AR15 Carbines w/ Standard Barrels

License Value: USD $43,425

SELLER:

Freedom Group Inc.

STATE 00085830 002 OF 002


c/o Bushmaster Firearms International
999 Roosevelt Trail
Windham, ME 04062

FOREIGN CONSIGNEE:

Agence Gravel Inc
1530 Provinciale
Quebec G1N 4A2
Canada
Tel: 418 682 3000
POC: Adriana Maciocia

FOREIGN END-USER:

MILARM Co Ltd
10769 99th Street
Edmonton, AB T5H 4H6
Canada
Tel: 780 424 5281
POC: R. Gordon McGowan

PURPOSE:

For commercial resale in Canada

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

Signed DSP-83 Nontransfer and Use Certificate signed by
Shannon Shuman (Bushmaster) dated 19 Feb 2009, R Gordon
McGowan (Milarm) dated 16 Jan 2009, and A. Maciocia (Agence
Gravel) dated 10 Feb 2009

Import Certificate No. US 0915071 issued by Foreign Affairs
and International Trade Canada dated 02 Feb 2009

Purchase Order issued by Agence Gravel dated 5 Feb 2009
signed by A. Maciocia

Purchase Order No. 5801 issued by MilArm Co Ltd dated 10 Feb
2009 signed by R. Gordon McGowan

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

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