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PP RUEHWEB

DE RUEHC #9552 3231651
ZNR UUUUU ZZH
P R 191646Z NOV 09
FM SECSTATE WASHDC
TO RUEHEG/AMEMBASSY CAIRO PRIORITY 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 119552 
 
SENSITIVE 
SIPDIS 
CAIRO FOR MELISSA CLINE 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC EG
SUBJECT: BLUE LANTERN LEVEL 1: POST-SHIPMENT END-USE CHECK 
ON LICENSES 050073373 AND 050120640 
 
REF: EMAIL BALLARD-CLINE 
 
¶1. (U) This is an Action Request. See paragraph 4. 
 
¶2. (U) The Department's Office of Defense Trade Controls 
Compliance (PM/DTCC) requests Post's assistance in conducting 
a post-shipment check on licenses 050073373 and 050120640 for 
the export of firearms to Egypt.  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. (SBU) Reason for Request: Information obtained by PM/DTCC 
indicates that a Smith & Wesson firearm originally exported 
to M. M. Fathallah of Egypt bearing serial number BJM3308 may 
have been re-exported without Department authorization.  This 
request is for Post to inquire with M. M. Fathallah about the 
current disposition of all the firearms bearing the serial 
numbers listed in REFTEL.  Post is also requested to 
establish a baseline for M. M. Fathallah's annual sales of 
U.S.-origin firearms. 
 
¶4. (SBU) Action Request:  Post is requested to verify that 
the firearms listed below were received by M. M. Fathallah 
and to determine the company's annual sales of U.S.-origin 
firearms.  Post is also requested to review the records of 
sale for all the serial numbers listed in REFTEL to determine 
if any were re-exported.  Finally, Post should obtain all 
available information on the Smith & Wesson firearm bearing 
serial number BJM3308 (exported on license 050120640) and 
provide that information to PM/DTCC.  The following points 
are included for guidance: 
 
(To M. M. Fathallah) 
 
--What are your annual sales of U.S.-origin firearms? 
 
--Can you confirm receipt of all the firearms listed on these 
licenses? 
 
--Do you sell firearms to customers that reside outside Egypt? 
 
--Are you familiar with the regulations governing the import 
of U.S.-origin defense articles, including restrictions on 
re-transfer or re-export? 
 
--Please provide all sales records for the firearms received 
in these transactions. (NOTE: Post should use this 
information to determine the current disposition of Smith & 
Wesson BJM3308 and provide this information to PM/DTCC. END 
NOTE) 
 
In its reply, Post may also comment on any other information 
pertinent to these transactions such as security of 
facilities, end-use, and concerns about the entities involved. 
 
¶5. (U) Details of license applications: 
 
¶A. 
 
DTC Case: 050073373 
 
QUANTITY/COMMODITY: 
 
20 9mm Pistols (S&W 910) 
 
10 9mm Pistols (S&W M&P) 
 
10 9mm Pistols (S7W SW9VE) 
 
License Value: USD $16,050 
 
SELLER: 
 
RSR Group 
4405 Metric Drive 
Winterpark, FL 32792 
 
FOREIGN END-USER: 
 
M.M. Fathallah 
24 Saad Zagloul St. 
Alexandria, Egypt 
Tel: 203 4808340 / 4807725 
 
AND 
 
1 Abdel Khalik Sarwat Street 
Cairo, Egypt 
Tel: 202 25751448 / 25760582 
 
PURPOSE: 
 
Commercial resale in Egypt. 
 
¶B. 
 
DTC Case: 050120640 
 
QUANTITY/COMMODITY: 
 
40 9mm Pistols (Sig Sauer P229) 
 
70 9mm Pistols (S&W 5906) 
 
License Value: USD $113,620 
 
SELLER: 
 
RSR Group 
4405 Metric Drive 
Winterpark, FL 32792 
 
FOREIGN END-USER: 
 
M.M. Fathallah 
24 Saad Zagloul St. 
Alexandria, Egypt 
Tel: 203 4808340 / 4807725 
 
AND 
 
1 Abdel Khalik Sarwat Street 
Cairo, Egypt 
Tel: 202 25751448 / 25760582 
 
PURPOSE: 
 
Commercial resale in Egypt. 
 
¶6. (U) Submitted in support of the license application were 
the following documents (PM/DTCC will fax documentation to 
Posts upon request): 
 
¶A. 
 
DSP-83 Nontransfer and End Use Certificate signed by Cathy 
Mandery (RSR Group) dated 10/31/2007 and Mohamed M. Fathallah 
dated 10/24/2007 
 
Import license (and translation) for M.M. Fathallah dated 26 
August 2007 (License No. 19813) 
 
Order Confirmation Letter from M.M. Fathallah dated 21 August 
2007 
 
Importers Record (and translation) for MM. Fathallah issued 
by Egyptian Ministry of External Trade and Industry 
 
¶B. 
 
DSP-83 Nontransfer and End Use Certificate signed by Cathy 
Mandery (RSR Group) dated 08/27/2008 and Mohamed M. Fathallah 
dated 05/22/2008 
 
Import license (and translation) for M.M. Fathallah dated 26 
August 2007 (License No. 19813) 
 
Order Confirmation Letter from M.M. Fathallah dated 22 May 
2008 
 
Importers Record (and translation) for MM. Fathallah issued 
by Egyptian Ministry of External Trade and Industry 
 
¶7. (U) 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. (U) Department is grateful for Post's assistance in this 
matter. 
CLINTON