VZCZCXYZ0000
RR RUEHWEB

DE RUEHC #8013 0531524
ZNR UUUUU ZZH
R 221520Z FEB 08
FM SECSTATE WASHDC
TO RUEHLM/AMEMBASSY COLOMBO 0000
INFO RUEAIIA/CIA WASHINGTON DC 0000
RUCPDOC/USDOC WASHINGTON DC 0000
RUEKJCS/SECDEF WASHINGTON DC
RHMCSUU/FBI WASHINGTON DC 0000
RUEPINS/HQ BICE INTEL WASHINGTON DC 0000

UNCLAS STATE 018013 
 
SIPDIS 
 
SIPDIS 
COLOMBO FOR BLUE LANTERN POC 
COLOMBO FOR ROBERT GABOR 
ECON 
COLOMBO FOR MICHAEL DETAR 
POL 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC CE
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK 
ON APPLICATIONS 050087594, 050087851, AND 050087858 
 
REF: BLUE LANTERN GUIDEBOOK 2006 
 
¶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 pre-license check on applications 050087594, 050087851, and 
050087858 for the export of night vision goggles (NVGs) to 
Sri Lanka.  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 applications involving 
parties to this license. 
 
¶3. Reason for request:  end-users' irregular licensing 
history, need to verify end-use, and possible unauthorized 
brokering activity.  Pursuant to Section 699G(a) of the FY 
2008 Foreign Operations Appropriations Act, it is Department 
policy to deny licenses for the export of defense articles 
and services to Sri Lanka unless it meets the exception in 
the statute for maritime and air surveillance and 
communications.  Post should make appropriate inquiries to 
confirm the legitimacy of the proposed transactions and to 
verify that they meet the carve-out described above.  PM/DTCC 
has approved four previous licenses during 2007 for the 
export of a total of 124 night vision goggles to Sri Lanka 
for maritime and air surveillance.  The supporting 
documentation for these new, pending applications includes 
relatively old and perhaps duplicate purchase orders and 
end-use statements.  It is unclear how many night vision 
goggles Sri Lanka legitimately needs in order to conduct 
maritime and air surveillance.  In addition to these issues, 
foreign intermediate consignee LCW Holdings (PVT) Ltd. 
appears to be acting as a broker in these proposed 
transactions.  However, the company is not registered with 
the Department's Directorate of Defense Trade Controls 
(PM/DDTC) as a broker of United States Munitions List (USML) 
parts, as required by U.S. law.  LCW Holdings has appeared on 
only four previous license applications (all involving the 
Sri Lankan MOD), and its bona fides have never been verified 
by a Blue Lantern check. 
 
¶4. Post should make appropriate inquiries to confirm the 
legitimacy of the proposed transaction and to verify that 
these proposed transactions meet the carve-out described 
above.  In addition, post should make appropriate inquiries 
to verify the bona fides of LCW Holdings, to determine 
whether the company is acting as a broker in this proposed 
transaction, and to determine whether the company is aware 
that U.S. law requires brokers of USML items to register with 
PM/DDTC. The following questions are provided as suggested 
guidance: 
 
For the Sri Lanka Navy/Air Force: 
 
--Did you order from LCW Holdings the exact type and quantity 
of items listed on these applications? 
 
--For what end-use will the night vision goggles (NVGs) be 
used? 
 
--How many NVGs does the Sri Lanka Navy/Air Force need in 
order to conduct maritime/air surveillance? 
 
--Has the Sri Lanka Navy placed five different orders for 
M963 NVGs during the last half year (four orders for 50 NVGs 
and one order for 20 NVGs)?  If so, why were separate orders 
placed instead of one larger order?  Is this common practice? 
 
--Is LCW Holdings an official supplier/contractor for the Sri 
Lankan MOD?  Does the Sri Lankan MOD have any other contracts 
with the company? 
 
For LCW Holdings: 
 
--Please describe your role in this proposed transaction. 
 
--Does the company have proper supporting documentation, 
including a contract from the Sri Lanka Navy/Air Force, for 
this proposed transaction? 
 
--Does the company understand the restrictions on United 
States Munitions List (USML) items, especially the 
prohibition against unauthorized re-transfers and re-exports? 
 Does the company understand that USML items may be used only 
for the specific purpose stated on the export license? 
 
--If serving as a broker in this proposed transaction, are 
you aware that U.S. law requires brokers of USML items to 
register with the State Department and to obtain prior 
authorization for many brokered transactions? 
 
--Will the company be handling or storing the items listed on 
the application?  If so, does it have secure facilities and 
proper accounting and security procedures for handling these 
sensitive USML items? 
 
--When was the company established and who are its principals? 
 
--What types of organizations are among its typical customers 
and where are the customers located? 
 
¶5. For background, the following details of the license in 
question are provided: 
 
¶A. 
 
DTC Case: 050087594 
 
QUANTITY/COMMODITY: 
 
5     M949 Gen III Aviators Night Vision Goggles with 
standard accessories and test data sheets - FOM less than 1250 
 
License Value: USD 55,000.00 
 
SELLER: 
 
Nightline, Inc. 
10705 SW 104 St 
Miami, FL 33176 
Company contact: Cris Bartolomeo, tel. 423-727-5900 
 
FOREIGN INTERMEDIATE CONSIGNEE: 
 
LCW Holdings (Pvt) Ltd. 
108B Maya Avenue 
Colombo 06 
Sri Lanka 
Tel.: 0094 11 2597062 
Fax: 0094 112597061 
E-mail: lcwek@sltnet.lk 
(COMMENT: According to the license application, the company 
is placing the order with Nightline.  They will not receive 
the goods.  Items will ship directly to end user.  END 
COMMENT.) 
 
FOREIGN CONSIGNEE: 
 
Commander of Sri Lanka Air Force 
Air Force Headquarters Chitthapalam A Gardiner Mawatha 
Colombo 02 
Sri Lanka 
 
FOREIGN END-USER: 
 
Same as Foreign Consignee 
 
PURPOSE: 
 
To support and enhance air surveillance of the Sri Lankan Air 
Force 
 
¶B. 
 
DTC Case: 050087851 
 
QUANTITY/COMMODITY: 
 
50    M963 Gen III Single Tube Night Vision Goggle AN/PVS-7B 
with standard accessories and test data sheets - FOM not to 
exceed 1250 
 
License Value: USD 136,750.00 
 
SELLER: 
 
Nightline, Inc. 
10705 SW 104 St 
Miami, FL 33176 
Company contact: Cris Bartolomeo, tel. 423-727-5900 
 
FOREIGN INTERMEDIATE CONSIGNEE: 
 
LCW Holdings (Pvt) Ltd. 
108B Maya Avenue 
Colombo 06 
Sri Lanka 
Tel.: 0094 11 2597062 
Fax: 0094 112597061 
E-mail: lcwek@sltnet.lk 
(COMMENT: According to the license application, the company 
is placing the order with Nightline.  Goods will be shipped 
directly to end user.  END COMMENT.) 
 
FOREIGN CONSIGNEE: 
 
Sri Lanka Commander of the Navy 
Naval Headquarters Upper Chatham Street 
Colombo 01 
Sri Lanka 
 
FOREIGN END-USER: 
 
Same as Foreign Consignee 
 
PURPOSE: 
 
To support and enhance the maritime surveillance capabilities 
of Sri Lanka 
 
¶C. 
 
DTC Case: 050087858 
 
QUANTITY/COMMODITY: 
 
50    M963 Gen III Single Tube Night Vision Goggle AN/PVS-7B 
with standard accessories and test data sheets - FOM not to 
exceed 1250 
 
License Value: USD 136,750.00 
 
SELLER: 
 
Nightline, Inc. 
10705 SW 104 St 
Miami, FL 33176 
Company contact: Cris Bartolomeo, tel. 423-727-5900 
 
FOREIGN INTERMEDIATE CONSIGNEE: 
 
LCW Holdings (Pvt) Ltd. 
108B Maya Avenue 
Colombo 06 
Sri Lanka 
Tel.: 0094 11 2597062 
Fax: 0094 112597061 
E-mail: lcwek@sltnet.lk 
(COMMENT: According to the license application, the company 
is placing the order with Nightline.  Goods will be shipped 
directly to end user.  END COMMENT.) 
 
FOREIGN CONSIGNEE: 
 
Sri Lanka Commander of the Navy 
Naval Headquarters Upper Chatham Street 
Colombo 01 
Sri Lanka 
 
FOREIGN END-USER: 
 
Same as Foreign Consignee 
 
PURPOSE: 
 
To support and enhance the maritime surveillance capabilities 
of Sri Lanka 
 
¶6. Submitted in support of the license application were the 
following documents (PM/DTCC can fax documentation to post 
upon request): 
 
¶A. 
 
--Nontransfer and Use Certificate (Form DSP-83), signed by 
L.C.W. Ekanayake, Managing Director, LCW Holdings, dated 20 
Nov 2007; signed by Air Cdr. Tatfw Gunanardana, dated 
26/11/2007; and signed by Major General W.P.P. Fernando USP, 
psc, Military Liaison Officer, Ministry of Defense, dated 
26/12/2007 
 
--End User Certification Form from Sri Lanka Air Force 
Headquarters concerning contract/purchase order number 
KA-5021 dated 05 October 2007, signed by TLW Dissanayake, 
Director Logistics, undated 
 
--Purchase order no. KA-5021 (revised) from LCW Holdings to 
Nightline, signed by Lt. Col. L.C.W. Ekanayake, Managing 
Director, undated 
 
--Product brochure, including photographs and technical 
specifications 
 
¶B. 
 
--Nontransfer and Use Certificate (Form DSP-83), signed by 
L.C.W. Ekanayake, Managing Director, LCW Holdings, dated 
27/12/2007; signed by (illegible), dated 04/01/2008; and 
signed by Major General W.P.P. Fernando USP, psc, Military 
Liaison Officer, Ministry of Defense, dated 10/01/2008 
 
--End User Certification Form from Sri Lanka Navy 
Headquarters concerning contract/purchase order number 
DPC/1352/07/FP dated 30 November 2007, signed by D. Perera, 
Commander (S) SLN, dated 28 December 2007 
 
--Purchase order no. DPC/1352/07/FP from LCW Holdings to 
Nightline, signed by Lt. Col. L.C.W. Ekanayake, Managing 
Director, undated 
 
--Product brochure, including photographs and technical 
specifications 
 
¶C. 
 
--Nontransfer and Use Certificate (Form DSP-83), signed by 
L.C.W. Ekanayake, Managing Director, LCW Holdings, dated 12 
April 2007; signed by (illegible), dated 04/01/2008; and 
signed by Major General W.P.P. Fernando USP, psc, Military 
Liaison Officer, Ministry of Defense, dated 10/01/2008 
 
--End User Certification Form from Sri Lanka Navy 
Headquarters concerning contract/purchase order number 
DPC/1373/07/FP dated 30 November 2007, signed by D. Perera, 
Commander (S) SLN, dated 28 December 2007 
 
--Purchase order no. DPC/1373/07/FP from LCW Holdings to 
Nightline, signed by Lt. Col. L.C.W. Ekanayake, Managing 
Director, undated 
 
--Product brochure, including photographs and technical 
specifications 
 
 
¶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 Judd Stitziel, PM/DTCC, Phone: 
202-663-3455; email: StitzielJD@state.gov; SIPRNET: 
StitzielJD@state.sgov.gov.  The Blue Lantern Guidebook (ref) 
is available as a PDF file in the Bunche Library's Electronic 
Library collection on the DOS Intranet: 
http://virtuallibrary.state.gov/ 
BlueLanternGuidebook2006%2520 final .pdf 
 
¶8. Department is grateful for post's assistance in this 
matter. 
RICE