VZCZCXYZ0002
RR RUEHWEB

DE RUEHC #0868 0061528
ZNR UUUUU ZZH
R 061515Z JAN 09
FM SECSTATE WASHDC
TO RUEHQT/AMEMBASSY QUITO 0000
INFO RHMCSUU/FBI WASHINGTON DC 0000
RUEKJCS/SECDEF WASHINGTON DC
RUCPDOC/USDOC WASHINGTON DC 0000
RUEPINS/HQ BICE INTEL WASHINGTON DC

UNCLAS STATE 000868 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EC ETTC KOMC
SUBJECT: BLUE LANTERN CHECK ON LICENSE APPLICATION 
050128842 
 
¶1.  This is an action message.  See paragraphs 2-4. 
 
¶2.  The Department's Office of Defense Trade Controls 
Compliance (PM/DTCC) requests post assistance in contacting 
appropriate GOE officials regarding a proposed export of 
torpedo parts to the Ecuador Navy (DDTC license 050128842). 
Post is requested to deliver this action message within 14 
days, or as soon as possible. 
 
¶3.  Reason for request: license application 050128842 was 
denied on 26 November 2008 because of the Foreign 
Intermediate Consignee involved in the transaction, Spanish 
company Commerce International Group Ltd. (CIG Ltd.).  Based 
upon credible information, the Department concluded that CIG 
Ltd. is not a reliable recipient of United States Munitions 
List (USML) items and may not be a party to any defense trade 
transaction subject to control under the International 
Traffic in Arms Regulations (ITAR).  It needs to be 
clarified, however, that the proposed sale of torpedo parts 
to the Ecuador Navy is not problematic.  Without the 
involvement of CIG Ltd., the license application would most 
likely have been approved.  PM/DTCC is therefore requesting 
post assistance to inform the Ecuador Navy about this 
clarification.  U.S. applicant Ordnance Technology Service 
Inc. has already been informed of this matter. 
 
¶4.  ACTION: Please contact the Ecuador Navy, or other 
appropriate Ecuador military officials, and inform them about 
the reason why this license application was denied.  Post 
should advise the Ecuador Navy that an export request for the 
same commodities would be favorably considered if supported 
by a direct purchase order with the U.S. applicant of the 
denied case, or another U.S. supplier.  The use of Foreign 
Consignees other than CIG Ltd. is also acceptable.  Finally, 
post may wish to recommend the Ecuador military to exercise 
caution in any future contact with CIG Ltd., and make clear 
that any U.S. defense exports to Ecuador involving CIG will 
likely be denied.  END ACTION. 
 
¶5.  License Information: 
 
DDTC Case Number 050128842 
 
QUANTITY/COMMODITY: 
 
11       Alignment Pin, P/N 2526871 
 
03       Clamp Cable, P/N MS9024-11 
 
06       Sea Water Pump Assembly, NSN 1355-01-042-1056 
 
06       Cylinder Barrel, P/N 1568887 
 
17       Pad Shock, NSN 5310-00-835-1720 
 
06       Retainer Pad, NSN 1355-00-975-0893 
 
LICENSE VALUE: USD 47,618.00 
 
APPLICANT/SOURCE: 
 
Ordnance Technology Service Inc. 
7895 Unit A Division Drive 
Mentor, Ohio 44060 USA 
 
FOREIGN INTERMEDIATE CONSIGNEE: 
 
Commerce International Group Ltd. 
5 Avenida Marques Del Duero s/n 
Edificio Atlantico 
E-29670 S.P.de Alcantara 
PO Box 65 
29680 Estepona (Malaga) 
SPAIN 
 
FOREIGN CONSIGNEE/FOREIGN END USER: 
 
Armada del Ecuador 
Direccion de Abastecimientos de la Armada 
Direccion General de Material 
Base Naval Sur, Guayaquil 
ECUADOR 
 
STATEMENT OF PURPOSE: 
 
Spare parts of MK 46 Mod 2 torpedoes. 
 
¶6.  Additional documentation submitted in support of license 
application: 
 
A)  CIG Ltd. Purchase Order Number 020/2008, dated 04 
September 2008, signed by Paul R. Cradock, Managing Director. 
 
B)  Armada del Ecuador, Direccion de Mantenimiento y 
Recuperacion de Unidades Navales, End User Certificate No. 
004, dated 26 August 2008, signed by Fernando Aguiar 
Villagomez, Capitan de Navio-EM, Director de Mantenimiento y 
Recuperacion. 
 
C)  U.S. Department of State DDTC DSP-83 Non-Transfer and Use 
Certificate, signed by Fernando Aguiar Villagomez (dated 
08-26-2008), Director Mantenimiento y Recuperacion Unidades 
Navales. 
 
¶7.  Please slug reply for PM/DTCC - BLUE LANTERN COORDINATOR 
and include the words "Blue Lantern" and the DDTC Case Number 
in the subject line.  POC on this case is Peter Sabatini, 
PM/DTCC, phone: 202-663-2819; ClassNet email: 
sabtinipj@state.sgov.gov; OpenNet email: 
sabatinipj@state.gov.  The 2006 Blue Lantern Guide Book is 
available on OpenNet at 
http://fsi.state.gov/fsi/spas/default.asp?ID= 1588 
Department thanks Post for its assistance in this matter. 
RICE