VZCZCXYZ0004
RR RUEHWEB

DE RUEHC #7106 3082155
ZNR UUUUU ZZH
R 032144Z NOV 08
FM SECSTATE WASHDC
TO RUEHLB/AMEMBASSY BEIRUT 0000
RUEHRL/AMEMBASSY BERLIN 0000
INFO RUEHEG/AMEMBASSY CAIRO 0000
RUETIAA/DIRNSA FT GEORGE G MEADE MD 0000
RUEAIIA/CIA WASHINGTON DC 0000
RHMCSUU/FBI WASHINGTON DC 0000
RUEKJCS/SECDEF WASHINGTON DC
RUCPDOC/USDOC WASHINGTON DC 0000

UNCLAS STATE 117106 
 
SENSITIVE 
SIPDIS 
BEIRUT FOR ANDREW LEINBERGER 
BERLIN FOR SHANE PETERSEN 
 
E.O. 12958: N/A 
TAGS: EG ETTC GM KOMC LE
SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK 
ON LICENSE 050057708 
 
REF: 2006 BLUE LANTERN GUIDEBOOK 
 
¶1. (U) This is an Action Request. See paragraphs 2 - 4. 
 
¶2. (U) The Department's Office of Defense Trade Controls 
Compliance (PM/DTCC) requests Posts' assistance in conducting 
a post-shipment check on license 050057708 for the export of 
ammunition to Lebanon. Posts are 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: To verify the end-use and 
receipt of this large quantity of ammunition. According to 
data acquired through the Automated Export System (AES), a 
significant amount of ammunition was shipped to Egypt on 23 
June 2008, against this export authorization (AES Shipping 
Number 105437). If confirmed, this would constitute an export 
to an unauthorized end-user in violation of the Arms Export 
Control Act (AECA) and the International Traffic in Arms 
Regulation (ITAR). This request is for posts to verify with 
the Lebanese Internal Security Forces the quantity of 
ammunition ordered and received against this export 
authorization. Posts are also requested to determine, to the 
extent possible, if any shipment of ammunition was exported 
under this license to any end-users not listed on this 
authorization. 
 
¶4. (SBU) Action Request: Embassy Beirut should make the 
appropriate inquiries with officials of the Lebanese Internal 
Security Forces to determine the quantity of ammunition that 
was ordered and received and to determine why such a large 
quantity is needed. Embassies Beirut and Berlin are also 
requested to make appropriate inquiries with representatives 
of Mercantile Trading Company and Logi-Sped GMBH, 
respectively, to determine if any ammunition under this 
license was shipped to end-users other than the Lebanese 
Internal Security Forces. The following points are included 
for guidance: 
 
(Action Embassy Beirut) 
 
To the Lebanese Internal Security Forces-- 
 
-- Did the Lebanese Internal Security Forces order the 
ammunition listed below? If so, what quantity of ammunition 
was ordered? What quantity of the listed ammunition was 
received? For what end-use did the Lebanese Internal Security 
Forces order such a large quantity of ammunition? Was any of 
the ammunition shipped outside the borders of Lebanon? If so, 
please explain the circumstances under which this was done. 
Are you familiar with the regulations governing the import of 
U.S.-origin defense articles, including restrictions on 
re-transfer or re-export? 
 
To Mercantile Trading Company-- 
 
-- What was Mercantile Trading Company's role in this 
transaction? Did the company ever have physical possession of 
the ammunition listed below? What quantity of ammunition was 
ordered by the Lebanese Internal Security Forces? Can you 
verify the quantity of the listed ammunition that was 
received? Was any ammunition on this license shipped to an 
end-user other than the Lebanese Internal Security Forces? 
Was any ammunition on this license shipped anywhere outside 
the borders of Lebanon? Are you familiar with the regulations 
governing the import of U.S.-origin defense articles, 
including restrictions on re-transfer or re-export? 
 
(Action Embassy Berlin) 
 
To Logi-Sped GMBH-- 
 
-- What was Logi-Sped GMBH's role in this transaction? Did 
the company ever have physical possession of the ammunition 
listed below? What quantity of ammunition was ordered by the 
Lebanese Internal Security Forces? Can you verify the 
quantity of the listed ammunition that was received? Was any 
ammunition on this license shipped to an end-user other than 
the Lebanese Internal Security Forces? Was any ammunition on 
this license shipped anywhere outside the borders of Lebanon? 
Are you familiar with the regulations governing the import of 
U.S.-origin defense articles, including restrictions on 
re-transfer or re-export? 
 
In its reply, Posts may also comment on any other information 
pertinent to these transactions such as security of 
facilities and concerns about the entities involved. 
 
¶5. (U) Details of license application: 
 
DTC Case: 050057708 
 
QUANTITY/COMMODITY: 
 
10,000,000 Centerfire Ammunition, Calibers 5.56mm, 9mm, and 
40S&W 
 
License Value: USD $2,200,000 
 
SELLER: 
 
Olin Corporation Winchester Division 
427 N. Shamrock Street 
East Alton, IL 62024 
 
FOREIGN INTERMEDIATE CONSIGNEE: 
 
Mercantile Trading Co. 
PO Box 14-5448 
Ground Floor, Sakr Building Saeb Salam Avenue (Corniche al 
Mazraa) 
Beirut 11052040 
POC: Mohamad Jamil 
Tel: 961-1-739859 
 
Logi-Sped GMBH, Niederl Hamburg 
Am Windhukkai 5 
Hamburg, Germany 
(No further information received) 
 
FOREIGN END-USER: 
 
Lebanese Internal Security Forces 
Headquarters. Hotel Dieu Street 
Beirut, Lebanon 
POC: General Ahmad Hneini 
Tel:  961-1-422138 
 
PURPOSE: 
 
For use by the Lebanese Internal Security Forces 
 
¶6. (U) Submitted in support of the license application were 
the following documents (PM/DTCC will fax documentation to 
Posts upon request): 
 
DSP-83 signed by General Achraf Rifi on 07/17/2007 and BJ 
Ambrosi on 07/20/2007 
 
Purchase order from Mercantile Trading Co. dated 07/17/2007 
signed by Mohamad Jamil 
 
Letter of End-Use (Doc. No. 69) issued by the General 
Directorate of the Internal Security Forces on 07/17/2007 
signed by General Achraf Rifi 
 
¶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 in the Bunche Library's E-Book 
Collection on the DOS Intranet: 
http://virtuallibrary.state.gov/ 
BlueLanternGuidebook2006%2520 final .pdf 
 
¶8. (U) Department is grateful for Post's assistance in this 
matter. 
RICE