Cablegate: Blue Lantern Level 3: Post-License/Pre-Shipment

VZCZCXYZ0001
RR RUEHWEB

DE RUEHC #8035 2361759
ZNR UUUUU ZZH
R 241741Z AUG 09
FM SECSTATE WASHDC
TO RUEHSI/AMEMBASSY TBILISI 0000
RUEHTV/AMEMBASSY TEL AVIV 0000
INFO 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 088035

SIPDIS
TBILISI FOR NICOLE O'BRIEN
TEL AVIV FOR JASON GRUBB

E.O. 12958: N/A
TAGS: ETTC KOMC IS GG
SUBJECT: BLUE LANTERN LEVEL 3: POST-LICENSE/PRE-SHIPMENT
END-USE CHECK ON LICENSES 050171347 AND 050172400

1. This is an Action Request. See paragraphs 4 - 5.

2. The Department's Office of Defense Trade Controls
Compliance (PM/DTCC) requests Post's assistance in conducting
a post-license/pre-shipment check on licenses 050171347 and
050172400 for the export of rifles and night vision to
Georgia. 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: The rifles and night vision listed
below are particularly sensitive defense articles. Foreign
intermediate consignee RPA Port Aviation had never been party
to a U.S. export license until May 2009, at which time the
company appeared on five licenses for ultimate end-use in
Georgia. This check is to establish the bona fides of these
transactions and RPA Port Aviation.

4. Action Request Tbilisi: Post is requested to establish
the bona fides of these transactions by making inquiries to
representatives of the Georgian Ministry of Internal Affairs.
The following points are included for guidance:

(To Ministry of Internal Affairs)

--Can you confirm that MOIA has ordered the defense articles
listed below?

--What role is RPA Port Aviation playing in these
transactions? What services has the company provided? What
fees or commissions have you paid the company?

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. Action Request Tel Aviv: Post is requested to establish
the bona fides of RPA Port Aviation by making inquiries to
representatives of the company.

(To RPA Port Aviation)

--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 your annual sales of U.S.-origin defense articles?

--What is your role in these transactions? What fees and
commissions will you receive for your services in these
transactions?

--Will you ever have physical possession of these defense
articles?

--Have you had a previous business relationship with the
Ministry of Internal Affairs or any other agency of the
Government of Georgia? Have you had a previous business
relationship with U.S. company Falcon Defense?

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

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: 050171347 (Partial shipment has already been made)

QUANTITY/COMMODITY:

50 McMillan "TAC50" Rifles, .50 Caliber

20 McMillan "TAC338" Rifles, .338 Lapua Caliber

20 McMillan "TAC308" Rifles, .308 Caliber

License Value: USD $790,667 (NOTE: Actual exports so far
value at approx. $100,000)

SELLER:

Falcon Defense Group
3940 Bardstown Road Suite 2C
Louisville, KY 40218
POC is Steven D. Herberth, Tel. 502-491-6942

FOREIGN INTERMEDIATE CONSIGNEE:

RPA Port Aviation Ltd
Mamam Bldg # 1103 Ben Gurion International Airport
Tel Aviv

FOREIGN END-USER:

Ministry of Internal Affairs of Georgia
10 General Gia Gulua Street
0114 Tbilisi
Georgia
POC is Deputy Minister, Internal Affairs, Shalva Janashvili,
Tel. 011-995-32-272-883

PURPOSE:

For use by the MOIA for law enforcement and counter-terrorism
operations

B.

DTC Case: 050172400 (No shipment has yet been made)

QUANTITY/COMMODITY:

140 AN/PVS-27 GEN 3 Magnum Universal Sights (NSN:
5855-01-547-9489)

License Value: USD $1,680,000

SELLER:

Falcon Defense Group
3940 Bardstown Road Suite 2C
Louisville, KY 40218
POC is Steven D. Herberth, Tel. 502-491-6942

FOREIGN INTERMEDIATE CONSIGNEE:

RPA Port Aviation Ltd
Mamam Bldg # 1103 Ben Gurion International Airport
Tel Aviv

FOREIGN END-USER:

Ministry of Internal Affairs of Georgia
10 General Gia Gulua Street
0114 Tbilisi
Georgia
POC is Deputy Minister, Internal Affairs, Shalva Janashvili,
Tel. 011-995-32-272-883

PURPOSE:

For use by the MOIA for law enforcement and counter-terrorism
operations

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 Steve
Herberth (Falcon) dated 05/21/2009 and Illegible Signature
(MOIA) dated 03/17/2009

Certificate of End User No. 114039/284 issued by MOIA signed
by Shalva Janashvili dated 03/17/2009

Letter of Intent No. 114039/286 issued by MOIA signed by
Shalva Janashvili dated 03/17/2009

Purchase Order No. 114039/287 issued by MOIA signed by Shalva
Janashvili dated 03/17/2009

B.

Signed DSP-83 Nontransfer and Use Certificate signed by Steve
Herberth (Falcon) dated 06/25/2009 and Shalva Janashvili
(MOIA) dated 06/11/2009

Certificate of End User No. 114039/292 issued by MOIA signed
by Shalva Janashvili dated 03/17/2009

Letter of Intent No. 114039/294 issued by MOIA signed by
Shalva Janashvili dated 03/17/2009

Purchase Order No. 114039/295 issued by MOIA signed by Shalva
Janashvili dated 03/17/2009

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

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