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

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DE RUEHC #9198 2381932
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FM SECSTATE WASHDC
TO RUEHVB/AMEMBASSY ZAGREB 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 089198

SIPDIS
ZAGREB FOR CHRIS RHOTON

E.O. 12958: N/A
TAGS: ETTC KOMC HR
SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK
ON LICENSE 050156644

REF: 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 post-shipment check on license 050156644 for the export of
firearms and ammunition to Croatia. 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 firearms listed below are of
military quality and have a full automatic capability.
Foreign consignee Detonex D.O.O. has never appeared on a
license before. This request is to confirm the bona fides of
the foreign consignee and confirm that the firearms were
received by the Ministry of Defense of Croatia.

4. Action Request: Post is requested to verify that the
firearms listed below were received by the Ministry of
Defense of Croatia. Post is also requested to establish the
bona fides of Detonex D.O.O. by making inquiries to
representatives of the company and appropriate authorities of
the Government of Croatia. The following points are included
for guidance:

(To Ministry of Defense)

--Can you confirm the order and receipt of all the defense
articles listed on this license?

--What was Detonex D.O.O.'s role in this transaction? Did
you pay the company any brokering fees?

--Are these rifles samples for a larger potential order?

(To Detonex D.O.O.)

--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 role did your company play in this transaction?

--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 your company ever have physical possession of these
defense articles? Please provide documentation that
demonstrates the transfer of custody to the Ministry of
Defense of all these defense articles?

(To Appropriate Import/Export and/or Law Enforcement
Authorities)

--Is Detonex D.O.O. properly authorized to import and sell
defense articles in Croatia?

--Do you have any information on Detonex D.O.O. 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:

DTC Case: 050156644

QUANTITY/COMMODITY:

4 Sig Model 556 Rifles with Full Auto

20 Magazines

1,000 Rounds of Ammunition, 5.56mm

License Value: USD $5,590

SELLER:

Sig Sauer Inc.
18 Industrial Drive
Exeter, NH 03833

FOREIGN CONSIGNEE:

Detonex D.O.O.
J. Martinovica 11
10000, Zagreb
Croatia
Tel: 00385 (0) 1 3647-147 / 00385 (0) 1 3647-148 / 00385 (0)
98 782-839
Email: detonex@zg.htnet.hr

FOREIGN END-USER:

Croatian Ministry of Defense
Kralja Petra Kresimira IV 1 Square
HR-10000 Yagreb
Croatia

PURPOSE:

For the sole and exclusive use by the Croatian Ministry of
Defense

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

End-Use Certificate No. M3-040203-09-010 issued by the
"Ministarstvo Obrane" signed by Milan Knezevic (MOD) dated
03/16/2009 and Nevenko Galic (Detonex) dated 03/20/2009

Signed DSP-83 Nontransfer and Use Certificate signed by
Melanie Fox (Sig Sauer) dated 04/07/2009, Darko Polanec
(Materials Resources Directorate, MOD) dated 03/19/2009,
BrigGen Milan Knezevic (Development, Equipping and
Modernization, MOD) dated 03/16/2009, and Nevenko Galic
(Detonex) dated 03/20/2009

Purchase Order issued by Detonex D.O.O. dated 04/28/2009

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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