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

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DE RUEHC #8538 2371701
ZNR UUUUU ZZH
P R 251643Z AUG 09
FM SECSTATE WASHDC
TO RUEHML/AMEMBASSY MANILA PRIORITY 0000
INFO RUEAIIA/CIA WASHINGTON DC
RHMCSUU/FBI WASHINGTON DC 0000
RUCPDOC/USDOC WASHINGTON DC 0000
RUEKJCS/SECDEF WASHINGTON DC
RUEPINS/HQ BICE INTEL WASHINGTON DC

UNCLAS STATE 088538

SIPDIS
MANILA FOR GRAZNYA COFFIN AND DHS/ICE FOR JULIUS ARAMBULO
JUSMAG

E.O. 12958: N/A
TAGS: ETTC KOMC RP
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK
ON APPLICATION 050185253

REF: 2006 BLUE LANTERN GUIDEBOOK

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 application 050185253 for the export
of night vision devices (NVDs) to the Philippines. 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: Sensitive commodity and unfamiliar
foreign intermediate consignee, Jerub Trading. The company
has appeared in previous licenses but its bona fides have not
been verified by a Blue Lantern check.

4. ACTION: Post is requested to make inquiries with
appropriate host government officials to determine if the
Armed Forces of the Philippines ordered the NVDs from Jerub
Trading; and if so, verify the amount, and that the items
will only be used for the purpose stated on the license.
JUSMAG may also weigh in on the legitimacy of the transaction
and comment on the adequacy of security procedures for NVDs
within the Armed Forces of the Philippines. PM/DTCC also
requests that Post conducts a site visit to Jerub Trading in
order to provide Department with an assessment of its
business operations and on-site security, and to assess
whether the company appears to be a reliable recipient of
USML items. If a site visit is not possible, please inform
the PM/DTCC officer.

The following questions are provided as suggested guidance:

Jerub Trading:

--Will the company take possession of these items or will
they be conveyed directly to the Philippine Armed Forces?

--Does the company have secure facilities and proper
accounting and security procedures for handling sensitive
USML items?

--Will Jerub Trading retain positive control over the NVDs at
all times? Will there be other consignees who will have
possession of the items at any time before they are conveyed
to the end-user?

--When was the company established and who are its
principals?

--What is the nature of its business -- what type of items
does it handle, does it serve as a broker?

--What type of organizations are among its typical customers
and where are the customers located?

--Does the company understand the restrictions on United
States Munitions List (USML) items, especially the
prohibition against unauthorized re-transfer and re-export?

Philippine Armed Forces:

--Can you confirm your order of NVDs with Jerub Trading?

--Do you have an established business relationship with this
company? Have they previously procured USML on behalf of the
Armed Forces of the Philippines?

--Can you verify the end-use and end-users of these items,
and that they will be stored in secure facilities and subject
to inventory controls when not in use?

END ACTION

5. Details of license application:

DTC Case: 0501185253

QUANTITY/COMMODITY:

2351 M914 (AN-PVS14a) GEN III, 1X Night Vision Monocular
with standard accessories
1 Spare parts for M914A as per contract
911 Otal classic with infrared aiming laser (835NM) and
quick release throw level mount
1 Spare parts for Otal classic as per contract

License Value: USD 8,045,737.00

SELLER:

Nightline, Inc.
10705 SW 104 St.
Miami, FL 33176
POC is Cris Bartolomeo, Tel. 423-727-5900

FOREIGN CONSIGNEE:

Armed Forces of the Philippines
Camp General Emilio Aguinaldo
Quezon City - Manila 1110
Philippines
POC is Chief of Staff, Armed Forces of the Philippines,
General Victor S. Ibrado, No Tel. provided

FOREIGN INTERMEDIATE CONSIGNEE

Jerub Trading
7 Mahiyain - Teachers Village West
Quezon City - Manila
Philippines

FOREIGN END-USER:

Armed Forces of the Philippines
Camp General Emilio Aguinaldo
Quezon City - Manila 1110
Philippines
POC is Chief of Staff, Armed Forces of the Philippines,
General Victor S. Ibrado, No Tel. provided

PURPOSE:

Will be used in nighttime operations against terrorism
throughout the Philippines.

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

--DSP-83 Nontransfer and Use Certificate submitted by the
Armed Forces of the Philippines signed by Chief of Staff,
Armed Forces of the Philippines, General Victor S. Ibrado on
27 June 2009, and Colonel Bernardio M. Ricafrente, Jr.,
Commander Armed Forces of the Philippines Procurement Service
on 24 June 2009, and by Jerub Trading President, Eugene
Cobarrubias on 19 June 2009.

--End Use / User Statement submitted by the Armed Forces of
the Philippines, signed by General Victor S. Ibrado, no date
provided.

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 Tim Mazzarelli, Phone:
202-663-3867; Email: MazzarelliTP@state.gov; SIPRNET:
MazzarelliTP@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://buncheelectroniclibrary.state.gov/eboo ks/
BlueLanternGuidebook2006%20 final .pdf

8. Department is grateful for post's assistance in this
matter.
CLINTON

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