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Viewing cable 08KUALALUMPUR740, SECOND BLUE LANTERN RESPONSE ON PRE-LICENSE

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Reference ID Created Released Classification Origin
08KUALALUMPUR740 2008-08-20 05:13 2011-08-26 00:00 UNCLASSIFIED Embassy Kuala Lumpur
VZCZCXYZ0032
PP RUEHWEB

DE RUEHKL #0740/01 2330513
ZNR UUUUU ZZH
P 200513Z AUG 08
FM AMEMBASSY KUALA LUMPUR
TO RUEHC/SECSTATE WASHDC PRIORITY 1516
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHMFIUU/HQ BICE INTEL WASHINGTON DC PRIORITY
RHMFIUU/FBI WASHINGTON DC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
UNCLAS KUALA LUMPUR 000740 
 
SIPDIS 
 
PM/DTCC - BLUE LANTERN COORDINATOR 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC MY
SUBJECT: SECOND BLUE LANTERN RESPONSE ON PRE-LICENSE 
END-USE CHECK ON APPLICATION 050111997 
 
REF: A. SECSTATE 74676 
     B. KUALA LUMPUR 502 
     C. SECSTATE 41077 
 
1.  Pursuant to reftel A inquiry, Econoff in early and 
mid-August 2008 contacted the Malaysian Ministry of Home 
Affairs (formerly Ministry of Internal Security) and the 
Malaysian company "Anafield Sdn Bhd".  By 20 August, both had 
responded to post inquiries into Anafield's proposed purchase 
of 270 sets of night vision equipment and 100 sets of night 
vision front sights.  Post was pleased with the responses 
provided, and recommends approval of the sale.  Post did not 
conduct a site visit to Anafield since the proposed USML 
items would not be stored at any Anafield office or facility. 
 Instead the items are to be controlled and stored by the 
Royal Malaysian Police (RMP). 
 
2.  Ministry of Home Affairs:  A member within the ministry, 
Ms. ((Marhizah)) Abdul Razak, responded to post's inquiries. 
She verified the proposed order by Anafield and sounded 
familiar with the details. 
 
A)  Are you (Home Affairs) familiar with Anafield?  Yes, the 
Ministry is familiar with Anafield and, according to the 
Ministry, Anafield has a solid reputation. 
 
 
B)  Did you order from Anafield the exact type and quantity 
of items listed on this application?  Yes, the Ministry 
ordered the exact amount of night vision monoculars, 
binoculars, and front sights as listed on the application. 
They are for use with the RMP, and only for the RMP.  The 
items will not/not be re-sold, re-exported, or issued to any 
other government ministry.  Home Affairs has issued the 
proposed sale a Malaysian contract number: KKDN/POL/PT/1/2008. 
 
 
C)  Is Anafield an official supplier/contractor for the 
Malaysian government?  Does the Malaysian government have any 
other contracts with the company?  Yes, Anafield is an 
official supplier/contractor for the Malaysian government. 
Yes, there is another deal with Anafield awaiting approval 
(Bushmaster carbines, submachine guns, rifles, and sights). 
The company also procures security-related equipment from 
other international firms, such as "Law Enforcement 
International" (St. Albans, Herts AL4 OWA, U.K.), "MSA" 
(Pittsburgh, PA, U.S.A), "Laser Shot Inc." (Stafford, TX, 
U.S.A), "Carl Walther GmbH" (Ulm, Germany), and "Safariland" 
(Ontario, CA, U.S.A). 
 
 
3.  Anafield:  After a sluggish start in early August to post 
attempts at re-contact, Anafield realized that the 
aforementioned deal could be in jeopardy, and via telephone 
and fax provided the information requested on 13 August.  The 
managing director of Anafield wrote that he welcomed 
re-contact in the event of new questions/problems. 
 
A. Does the company have proper supporting documentation, 
including purchase orders from the Malaysian government, for 
this proposed transaction?  Response:  Yes, the company said 
that it has the proper supporting documentation, which is in 
the form of a Letter of Award issued by the Ministry of Home 
Affairs.  Anafield said that Home Affairs will only issue the 
purchase order once U.S. State Department approves the export 
as a valid purchase.  A Malaysian government purchase order 
will only be valid for three months, so Home Affairs will not 
issue it until the USG approves the sale and shipment. 
Anafield said that, under Malaysian law, it cannot bring the 
shipment into Malaysian without a valid purchase order, which 
must be shown to Malaysian Customs prior to the entry of the 
shipment into the country.  The company said that it ordered 
150 sets of ATN NVM-14-31 night vision monoculars, 120 sets 
of ATN Nightshadow-31 night vision binoculars, and 100 units 
of ATN PS22-31 night vision front sights.  Anafield said that 
its primary contact at the U.S. company (American 
Technologies Network Corp., in San Francisco) is Mr. Mark 
((Tarakanov)) (email: mtarakanov@atncorp.com). 
 
 
B) 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?  Response:  Anafield said that it 
will receive the items only when the items arrive at 
Malaysian Customs, but would immediately turn the entire 
 
shipment over to the RMP (since RMP is the final end-user of 
the items).  Anafield said that the items, when not in use, 
would be stored at RMP's Central Warehouse, which is a secure 
sight and not/not open to the public or to visits by non-RMP 
personnel.  The warehouse is located at Polis Diraja 
Malaysia, Jabatan Logistik (SMS), Kompleks SMS PDRM, 
Persiaran Usahawan, Seksyen U1, 40150 Shah Alam, Selangor, 
Malaysia.  Anafield specifically said that it will clear the 
items at Malaysian Customs with officers from RMP also 
present, as firearms and associated equipment (such as NGV's) 
are controlled items in Malaysia.  Once the items clear 
Customs, the shipment will go directly to the Central 
Warehouse, and RMP is responsible for control. 
 
 
C) When was the company established and who are its 
principals?  Response: The company was established on 11 
April 2002.  Its principal officers are Director ((Mohamed 
Noor)) bin Yusoff (male, born 04 Sept 1952); Tan Sri ((Abdul 
Rahim)) bin Mohamed Noor (male, born 06 June 1943); Datuk 
((Abdullah)) bin Jonid (male, born 10 May 1938); and 
((Halina)) H. Ismail (female, born 20 June 1975). 
 
 
D) What is the nature of its business -- what type of items 
does it handle, and does it serve as a broker?  Response: 
Anafield specializes procuring in police and military 
equipment -- such as marketing simulators, firearms, gas 
masks, optics, and holsters -- for the Malaysian government. 
The company said that it does not/not serve as a broker for 
sales to other countries.  Anafield also provided information 
on a recent request to purchase U.S.-manufactured Bushmaster 
carbines, and had previously (NFI) sold Bushmaster carbines 
in small quantities to the Royal Malaysian Air Force Special 
Regiment and the RMP. 
 
 
E) What types of organizations are among its typical 
customers, and where are the customers located?  Response: 
Anafield said that its usual Malaysian government customers 
are the Ministry of Defense and the Ministry of Home Affairs, 
particularly for the RMP.  Both ministries are headquartered 
in the new, large government suburb of PutraJaya, located 
southwest of Kuala Lumpur.  Both ministries have sub-offices 
scattered throughout Malaysia. 
 
 
F) Does the company understand the restrictions on United 
States Munitions List (USML) items, especially the 
prohibition against unauthorized re-transfers and re-exports? 
 Response: The company said that it clearly understands the 
restrictions placed upon USML items.  The company said this 
requirement is why it completed the DSP83 and the End User 
Statement forms.  The company said that it will not/not 
re-export the items. 
 
 
G) What is post's assessment of whether the company appears 
to be a reliable recipient of USML items.  Response: Post's 
assessment of Anafield is that it is a professional, but 
secretive, procurement company for Malaysian ministries that 
require sensitive equipment, such as firearms and associated 
equipment.  Anafield appears to be a company staffed with 
employees that are either former members of Malaysian 
government organizations such as the Ministry of Defense or 
Ministry of Home Affairs (aka Internal Security), and that 
such employees are usually more motivated and opsec minded 
than the average Malaysian citizen.  In sum, Anafield appears 
to be a reliable recipient of USML items. 
 
 
4.  Post assessment is that Anafield and the Ministry of Home 
Affairs were more cooperative in August 2008 than previously 
in June 2008, although Anafield and Home Affairs maintain a 
more secretive nature than most normal Malaysian firms and 
government ministries.  Post believes that this is not/not 
anything nefarious.  Rather, Anafield's hesitancy to complete 
transparency is due to the nature of its work (procuring 
firearms/sensitive equipment for the government), and 
especially to almost-certain strong links to the RMP Special 
Branch, which is Malaysia's internal security intelligence 
service.  Ties between Special Branch and USG are good/very 
good in some areas, but average/poor in others, and therefore 
Anafield is wary of USG contact. Regardless, Anafield and the 
Ministry of Home Affairs answered all of the questions, and 
therefore we recommend completion of the proposed sale. 
 
KEITH