VZCZCXYZ0000
PP RUEHWEB

DE RUEHKL #0874/01 2770717
ZNR UUUUU ZZH
P 030717Z OCT 08
FM AMEMBASSY KUALA LUMPUR
TO RUEHC/SECSTATE WASHDC PRIORITY 1733
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHMFIUU/HQ BICE INTEL WASHINGTON DC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
RHMFIUU/FBI WASHINGTON DC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY

UNCLAS KUALA LUMPUR 000874 
 
SIPDIS 
 
PM/DTCC - BLUE LANTERN COORDINATOR 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC MY
SUBJECT: BLUE LANTERN RESPONSE ON PRE-LICENSE END-USE CHECK 
ON LICENSE 050123747 
 
REF: SECSTATE 102553 
 
¶1.  Pursuant to reftel inquiry, Econoff in late September 
2008 contacted the Malaysian Ministry of Home Affairs (MHA, 
aka also formerly known as the Ministry of Internal Security) 
and the Malaysian company "Anafield Sdn Bhd".  By 2 October, 
both had responded to post inquiries into Anafield's proposed 
purchase of several thousand firearms and associated defense 
equipment (as listed in reftel).  Post was pleased with the 
responses and received a separate confirmation of the 
legitimacy of the purchase when the MHA's Royal Malaysian 
Police Special Branch (RMPSB, equivalent of FBI/CIA) in 
September informed Post's office of Regional Affairs that the 
firearms procurement was legitimate and intended for GOM use 
only. 
 
¶2.  Ministry of Home Affairs:  A supervisor within the 
ministry, Ms. ((Marhizah)) Abdul Razak, responded to Post's 
inquiries.  She verified the proposed order by Anafield and 
was very familiar with the details. 
 
A)  Question: Can the GOM confirm it has ordered the firearms 
listed on this license application?  Response: Yes, the 
Ministry ordered all of the firearms and associated defense 
articles through Anafield.  The firearms and equipment are 
intended for use by RMP, which is subordinated under MHA. 
 
B)  Questions: Why is the GOM purchasing this large quantity 
of carbines?  Are they undergoing a modernization program, 
increasing numbers of police or armed forces personnel, etc.? 
 Response:  Yes, this is part of a significant and ongoing 
modernization program for RMP.  The GOM is increasing the 
numbers of RMP personnel throughout the country, and many 
older RMP firearms need to be phased out and replaced. 
 
C)  Question:  Will all of the new firearms be used by the 
RMP?  Response: Yes!  All new firearms are for use only by 
RMP, and no other GOM entity.  None of them are for the 
private sector, and Malaysia has strict private firearms 
ownership laws. 
 
 
¶3.  Anafield:  The company responded promptly.  The managing 
director of Anafield, Mohamed Noor B. Yusoff, personally 
responded via email and telephone to Post's inquiry. 
 
A)  Questions:  Does Anafield ever retain physical possession 
of the defense articles listed below?  If so, at what 
facilities and what measures are taken to assure the security 
of these defense articles?  What does Anafield do with the 
defense articles once received?  Response:  Anafield said 
that it will receive the firearms and associated defense 
equipment 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).  Anafield said that 
the firearms and equipment, when not in use, would be stored 
at RMP's Central Warehouse, which is a secure storage 
facility and not/not open to the public.  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 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. 
 
B)  Questions:  Does Anafield represent either Bushmaster or 
any agency of the GOM in an official capacity?  Does Anafield 
have a contractual relationship with either?  Response:  Yes, 
Anafield is the representative for Bushmaster Firearms 
International LLC for Malaysia.  This can be verified with 
Mr. Michael Haugen (U.S. citizen), who is the Law 
Enforcement/Military Sales Manager of Bushmaster.  He can be 
reached at his cell phone (336-207-7180) and office phone 
(360-458-6395).  Yes, Anafield has a contractual relationship 
with the GOM, listed as "Kontrak Pengantian Senjata Api Dan 
Amunizi Serta Peralantan Dan Kelengkapan Khas Secara 
Rundingan Terus Dengan Syarikat Anafield Sdn Bhd."  The 
contact number is: KKDN/POL/PT/1/2008. 
 
C)  Questions:  What is Anafield's relationship to GEM 
Investment Limited?  What is GEM's role in this transaction? 
Response: Gem has assisted Anafield by arranging the 
financing with Ambank to provide the letter of credit and 
down payment to the manufacturer (Bushmaster).  Gem's 
 
directors provided a personal guarantee to Ambank for the 
loan.  Gem and Anafield have been in negotiations with 
Bushmaster from a very early stage of this contract. 
 
D) Question: Does the company understand the registration and 
licensing obligations of a broker under the International 
Traffic in Arms Regulation (ITAR)?  Response: The company 
said that it clearly understands the registration and 
licensing obligations.  The company said it will not/not 
re-export the firearms/associated equipment. 
 
 
¶4. Post assessment is that MHA and Anafield were very 
cooperative in our inquiries, and both have been forthright 
and prompt in their responses.  We assess that it is a 
legitimate deal, and one that the GOM wants to happen soon. 
KEITH